1 00:00:05,200 --> 00:00:07,920 Speaker 1: This is what the Flux. I'm Brett and I'm justin 2 00:00:08,000 --> 00:00:10,560 Speaker 1: As Friday, the twenty third January, Dozy boy. Every year 3 00:00:10,560 --> 00:00:14,280 Speaker 1: we have the great debate property or shares, bricks or tickers. Well, 4 00:00:14,320 --> 00:00:16,439 Speaker 1: the twenty twenty five score card is in and propertly 5 00:00:16,680 --> 00:00:19,120 Speaker 1: just got its neck over the line or its fatality. 6 00:00:19,200 --> 00:00:21,720 Speaker 1: Across Australia, home values were up eight point six percent 7 00:00:21,800 --> 00:00:24,040 Speaker 1: last year, while we all odds, which includes the five 8 00:00:24,120 --> 00:00:27,120 Speaker 1: hundred largest companies missed on the AX, was up seven 9 00:00:27,160 --> 00:00:30,240 Speaker 1: point one percent. Interesting now, Jazzy boy. It's a brand 10 00:00:30,240 --> 00:00:32,920 Speaker 1: new year, which means new battle begins. Man speaking of 11 00:00:32,960 --> 00:00:35,760 Speaker 1: a new year. Every single year, millions of OSSI's look 12 00:00:35,800 --> 00:00:38,239 Speaker 1: to find the most efficient and smartest way to use 13 00:00:38,280 --> 00:00:41,080 Speaker 1: their annually. Well in the Flux app today, we've broken 14 00:00:41,120 --> 00:00:43,559 Speaker 1: down the best way that you can turn twenty days 15 00:00:43,600 --> 00:00:47,000 Speaker 1: of annually into more than fifty days of holidays across 16 00:00:47,040 --> 00:00:48,360 Speaker 1: twenty twenty six. Do you want to learn how to 17 00:00:48,440 --> 00:00:50,800 Speaker 1: maximize your annually? Make sure to download the Flux app 18 00:00:50,800 --> 00:00:53,440 Speaker 1: and check it out three liberating stories today, Juzzy boy, 19 00:00:53,479 --> 00:00:56,240 Speaker 1: let's do it for our first. Australia's biggest banks are 20 00:00:56,320 --> 00:01:00,360 Speaker 1: quietly making billions from zero interest accounts. As Ossie cussustomers 21 00:01:00,440 --> 00:01:02,760 Speaker 1: pay the lazy tax or guilty of this at some point, 22 00:01:02,760 --> 00:01:04,920 Speaker 1: b man, So tell me what's going on here? So Josie, wait, 23 00:01:05,000 --> 00:01:06,960 Speaker 1: we all know the big four banks here in Australia. 24 00:01:07,040 --> 00:01:09,600 Speaker 1: There's your combanks, you nabs us packs, the ANZ ed's 25 00:01:09,840 --> 00:01:12,039 Speaker 1: love them or hate them or just tolerate them. They 26 00:01:12,040 --> 00:01:14,839 Speaker 1: happen to be considered the most profitable banks in the world. 27 00:01:14,920 --> 00:01:16,840 Speaker 1: And now, be man. It's been revealed the Big four 28 00:01:16,880 --> 00:01:19,280 Speaker 1: are sitting on more than three hundred and twenty billion 29 00:01:19,319 --> 00:01:22,280 Speaker 1: dollars in transaction and business accounts that are paying drum 30 00:01:22,400 --> 00:01:26,760 Speaker 1: roll plays zero percent interest to customers. You mean zero zero, yes, 31 00:01:26,880 --> 00:01:30,760 Speaker 1: zero zero. And these are what analysts politely call lazy deposits. 32 00:01:30,920 --> 00:01:33,400 Speaker 1: In other words, money is just sitting there doing nothing 33 00:01:33,440 --> 00:01:36,200 Speaker 1: for you and almost everything for the bank. And be man. 34 00:01:36,280 --> 00:01:39,160 Speaker 1: These lazy deposits make up almost twenty percent of all 35 00:01:39,200 --> 00:01:43,319 Speaker 1: deposits across Australian banks. In fact, josiboit Jardin estimates that 36 00:01:43,400 --> 00:01:46,000 Speaker 1: Combank alone is earning close to five billion dollars a 37 00:01:46,080 --> 00:01:48,520 Speaker 1: year from the zero interest deposits, which is up nearly 38 00:01:48,520 --> 00:01:51,360 Speaker 1: four hundred and fifty percent since twenty twenty two. So 39 00:01:51,400 --> 00:01:53,720 Speaker 1: it's starting to make sense how the banks can continually 40 00:01:53,760 --> 00:01:56,520 Speaker 1: announce record profits. So what is the key learning here? 41 00:01:56,560 --> 00:01:59,600 Speaker 1: When people think about bank profits, they usually focus on mortgages, 42 00:01:59,680 --> 00:02:02,440 Speaker 1: but the real money is often made in deposits. We 43 00:02:02,520 --> 00:02:05,120 Speaker 1: know the traditional banking business model works. Be Man well, 44 00:02:05,200 --> 00:02:07,920 Speaker 1: banks raised money as cheaply as possible from customers, then 45 00:02:07,960 --> 00:02:10,480 Speaker 1: lend it out at higher rates, and that gap between 46 00:02:10,480 --> 00:02:12,720 Speaker 1: the deposit and the lending is what's called the net 47 00:02:12,760 --> 00:02:14,960 Speaker 1: interest margin or NIM. The bigger the gap, the bigger 48 00:02:15,000 --> 00:02:17,639 Speaker 1: the profit. And be Man at zero interest transaction accounts 49 00:02:17,639 --> 00:02:19,640 Speaker 1: are gold in this model for the banks because they 50 00:02:19,680 --> 00:02:22,720 Speaker 1: cost the banks almost nothing. And might I remind you 51 00:02:22,760 --> 00:02:25,000 Speaker 1: that over the past few years, banks have repriced their 52 00:02:25,000 --> 00:02:27,960 Speaker 1: loans much faster than they have for their deposits, and 53 00:02:28,040 --> 00:02:31,640 Speaker 1: that means customers cash has been quietly subsidizing the bank's 54 00:02:31,639 --> 00:02:35,200 Speaker 1: record profits. Combank's record profit of over ten billion dollars 55 00:02:35,280 --> 00:02:38,000 Speaker 1: in the last financial year and be Man. This explains 56 00:02:38,000 --> 00:02:41,640 Speaker 1: why banks can report strong earnings even if loan growth slows. 57 00:02:41,919 --> 00:02:44,440 Speaker 1: And for us humble savers, it's a reminder that where 58 00:02:44,480 --> 00:02:46,600 Speaker 1: you parker, cash matters just as much as how you 59 00:02:46,639 --> 00:02:49,919 Speaker 1: borrow it? Mm hmm. For our second story, Ryanair's boss 60 00:02:49,919 --> 00:02:52,440 Speaker 1: has picked a public fight with Elon Musk and it's 61 00:02:52,440 --> 00:02:55,480 Speaker 1: turned it into cheaper flights and more bookings. Trap in 62 00:02:55,520 --> 00:02:58,240 Speaker 1: because this one is turbulent with a site of popcorn. 63 00:02:58,280 --> 00:03:00,799 Speaker 1: What is happening here? Okay? So most know Ryan Air 64 00:03:00,880 --> 00:03:04,320 Speaker 1: as Europe's biggest airline. It's famous for its ultra cheap 65 00:03:04,440 --> 00:03:06,840 Speaker 1: fares and it's no frills flying and let's just say 66 00:03:06,880 --> 00:03:10,040 Speaker 1: it makes Jetstar feel like a first class lounge. Yep. 67 00:03:10,040 --> 00:03:12,480 Speaker 1: It's also known for two other things, one having a 68 00:03:12,520 --> 00:03:15,919 Speaker 1: pretty unhinged social media account and two having a very 69 00:03:16,000 --> 00:03:18,799 Speaker 1: unhinged CEO named Michael O'Leary who has run Ryan Air 70 00:03:18,840 --> 00:03:21,639 Speaker 1: for over thirty years, so be man. The drama kicked 71 00:03:21,639 --> 00:03:24,560 Speaker 1: off when Ryanair said it would not install Elon Musk's 72 00:03:24,560 --> 00:03:27,040 Speaker 1: Starlink Wi Fi on its planes. That was because it 73 00:03:27,080 --> 00:03:29,760 Speaker 1: was too expensive and added fuel drag when you install 74 00:03:29,840 --> 00:03:32,760 Speaker 1: the antennas and all the other equipment. So Elon Musk 75 00:03:32,840 --> 00:03:37,400 Speaker 1: jumped on X and called O'Leary an insufferable chimp. Next minute, 76 00:03:37,400 --> 00:03:39,480 Speaker 1: he threatened to buy Ryan Air so that he could 77 00:03:39,600 --> 00:03:42,880 Speaker 1: fire the quote idiot O'Leary. Most companies would panic, they 78 00:03:43,120 --> 00:03:45,680 Speaker 1: maybe bring in the lawyers, prepare the carefully worded public 79 00:03:45,720 --> 00:03:49,040 Speaker 1: statement to de escalate, But rather than back down, Ryanair 80 00:03:49,160 --> 00:03:52,800 Speaker 1: escalated things with their very own idiot sale. They're offering 81 00:03:52,800 --> 00:03:56,560 Speaker 1: one hundred thousand seats for twenty US dollars each, well, 82 00:03:56,640 --> 00:04:00,320 Speaker 1: openly thanking Musk for the free publicity. So good, So 83 00:04:00,400 --> 00:04:03,680 Speaker 1: what is the learning here? In today's attention economy, outrage 84 00:04:03,720 --> 00:04:07,120 Speaker 1: is often more powerful and cost effective than traditional advertising. 85 00:04:07,240 --> 00:04:09,839 Speaker 1: The man. We know that most companies spend millions trying 86 00:04:09,840 --> 00:04:12,680 Speaker 1: to get noticed, but Ryanair gets it by picking fights, 87 00:04:12,720 --> 00:04:16,000 Speaker 1: making noise on TikTok, and being completely unapologetic about all 88 00:04:16,040 --> 00:04:18,600 Speaker 1: of it. Yeah, rhine go's where many other companies are 89 00:04:18,680 --> 00:04:21,560 Speaker 1: unwilling to go. Yeah. Their strategy to use controversy to 90 00:04:21,560 --> 00:04:24,080 Speaker 1: gain free publicity is wow. And the logic is that 91 00:04:24,120 --> 00:04:26,560 Speaker 1: people say the drama, then they google Ryanair and they 92 00:04:26,600 --> 00:04:28,839 Speaker 1: realize they can get from London to Paris for less 93 00:04:28,880 --> 00:04:32,480 Speaker 1: than a pub meal, and suddenly their customers yep. In fact, 94 00:04:32,560 --> 00:04:35,000 Speaker 1: Jusi Boy O'Leary once had a pie thrown at his 95 00:04:35,040 --> 00:04:37,280 Speaker 1: face by protesters, which is all over the news. Next 96 00:04:37,279 --> 00:04:41,200 Speaker 1: minute Ryanair's bookings jumped six percent. But this approach certainly 97 00:04:41,200 --> 00:04:44,039 Speaker 1: wouldn't work for most airlines or companies. Nope, But in 98 00:04:44,080 --> 00:04:46,520 Speaker 1: this case, the battle with Elon Musk has already seen 99 00:04:46,680 --> 00:04:50,080 Speaker 1: Ryanair bookings jump three percent and millions clicking through to 100 00:04:50,200 --> 00:04:52,320 Speaker 1: the idiot sale, So it's fair to say that this 101 00:04:52,480 --> 00:04:55,159 Speaker 1: is having the exact opposite effect of what Elon would 102 00:04:55,200 --> 00:04:57,640 Speaker 1: have hoped for. Our third and final story, one of 103 00:04:57,640 --> 00:05:01,080 Speaker 1: the world's most iconic department stores, Zack's Fifth Avenue, has 104 00:05:01,080 --> 00:05:04,520 Speaker 1: filed for bankruptcy and left hundreds of fashion brands owed 105 00:05:04,720 --> 00:05:07,159 Speaker 1: millions of dollars. You never like to see these stories, 106 00:05:07,240 --> 00:05:10,240 Speaker 1: Jasi boy affects many retailers actually around the world, So 107 00:05:10,320 --> 00:05:12,599 Speaker 1: tell me more, Okay. So Saxon's Avenue is the iconic 108 00:05:12,760 --> 00:05:14,919 Speaker 1: New York department store. It's been the go to place 109 00:05:14,960 --> 00:05:17,200 Speaker 1: for luxury for a lazy one hundred and sixty years. 110 00:05:17,240 --> 00:05:19,320 Speaker 1: Now get this one. In twenty twenty four, sax paid 111 00:05:19,360 --> 00:05:22,720 Speaker 1: two point seven billion US dollars to acquire Nieman Marcus 112 00:05:22,760 --> 00:05:26,440 Speaker 1: to supposedly create a super luxury group. But now the 113 00:05:26,600 --> 00:05:29,960 Speaker 1: entire group, named SAX Global, has filed for bankruptcy protection 114 00:05:30,120 --> 00:05:32,359 Speaker 1: in the US all right, Josi, boy, that's quite huge. 115 00:05:32,360 --> 00:05:34,640 Speaker 1: So what was the reason? In short, the numbers just 116 00:05:34,760 --> 00:05:38,120 Speaker 1: stopped working, their debts continued to grow while sales continue 117 00:05:38,160 --> 00:05:40,080 Speaker 1: to fall, and suppliers kept waiting for the money they 118 00:05:40,120 --> 00:05:42,839 Speaker 1: were owed to come through and waiting and waiting and waiting. 119 00:05:43,000 --> 00:05:44,920 Speaker 1: In fact, they meant Chanel is owed more than one 120 00:05:45,000 --> 00:05:47,880 Speaker 1: hundred and thirty six million US dollars by SAX Global. 121 00:05:47,960 --> 00:05:50,560 Speaker 1: But it ain't just global luxury brands feeling the pain. 122 00:05:50,680 --> 00:05:53,920 Speaker 1: Also local Australian designers Yep, we'd be talking Camilla as 123 00:05:54,080 --> 00:05:57,640 Speaker 1: Rebecca Velance Naked Wolf, who are now also oweded billions 124 00:05:57,680 --> 00:06:00,080 Speaker 1: and very unlikely to recover much, if any of that 125 00:06:00,200 --> 00:06:02,160 Speaker 1: money and be Man. This collapse is also a bit 126 00:06:02,200 --> 00:06:04,800 Speaker 1: of a warning shot for our very owned department stores 127 00:06:04,839 --> 00:06:07,440 Speaker 1: like David Jones and Meyer. Yep, they're desperately trying to 128 00:06:07,480 --> 00:06:11,120 Speaker 1: reinvent themselves in a world moving rapidly toward direct consumer shopping. 129 00:06:11,640 --> 00:06:13,920 Speaker 1: So what is the key learning here the department store 130 00:06:13,920 --> 00:06:16,080 Speaker 1: business model and to what it used to be? In fact, 131 00:06:16,160 --> 00:06:18,880 Speaker 1: be Man. Over the last two decades, the entire segment 132 00:06:18,960 --> 00:06:21,279 Speaker 1: has been in a major decline. Juzy way back in 133 00:06:21,279 --> 00:06:23,400 Speaker 1: the day department stores were the pin up guys and 134 00:06:23,440 --> 00:06:25,600 Speaker 1: gals of retail. Yeah, but in the US we've seen 135 00:06:25,680 --> 00:06:28,279 Speaker 1: Barney shut down in twenty nineteen after nearly one hundred 136 00:06:28,360 --> 00:06:31,279 Speaker 1: years of selling luxury clothes. Also Lord and Taylor after 137 00:06:31,279 --> 00:06:33,799 Speaker 1: about one hundred and ninety five years, and now sax 138 00:06:33,839 --> 00:06:36,640 Speaker 1: Global that they man. What's fascinating is the sax Global 139 00:06:36,880 --> 00:06:39,400 Speaker 1: is still pretty bullish about its prospects for the future, 140 00:06:39,520 --> 00:06:41,960 Speaker 1: so this looks less like liquidation and more of a 141 00:06:42,000 --> 00:06:45,360 Speaker 1: financial reset to try and renegotiate contracts and come back. 142 00:06:45,440 --> 00:06:47,599 Speaker 1: Lena flexam if just one of the best ways to 143 00:06:47,640 --> 00:06:50,120 Speaker 1: hack your annually this year, well we've got to cover 144 00:06:50,160 --> 00:06:51,960 Speaker 1: it in the Flux app. Today we break down the 145 00:06:51,960 --> 00:06:54,800 Speaker 1: best ways to maximize your annually this year. Thanks for 146 00:06:54,839 --> 00:06:57,240 Speaker 1: listening and we'll see you on Wednesday.