1 00:00:05,200 --> 00:00:06,600 Speaker 1: This is what the Flux. 2 00:00:06,640 --> 00:00:09,160 Speaker 2: I'm Brett and I'm Justin and it's Monday, the second 3 00:00:09,160 --> 00:00:09,520 Speaker 2: of June. 4 00:00:09,640 --> 00:00:12,440 Speaker 1: Does he wait? We know that Thermo Mix aficionados make 5 00:00:12,480 --> 00:00:15,800 Speaker 1: claims like Thermomix changed my life, but we didn't know 6 00:00:15,800 --> 00:00:18,440 Speaker 1: that Thermo Mix was making some wild claims itself. 7 00:00:18,480 --> 00:00:19,000 Speaker 2: Get this one. 8 00:00:19,000 --> 00:00:22,040 Speaker 1: Thermomix in Australia falsely claimed that two of its products 9 00:00:22,040 --> 00:00:26,000 Speaker 1: were endorsed by the NDIS, except they were not. So 10 00:00:26,120 --> 00:00:28,560 Speaker 1: now the a Triple se has fined Thermo Mix eighteen 11 00:00:28,640 --> 00:00:31,200 Speaker 1: thousand bucks for making these baseless claims. 12 00:00:31,480 --> 00:00:34,120 Speaker 2: Bit call by Thermomix, do not mess with their for 13 00:00:34,200 --> 00:00:36,600 Speaker 2: hands Flex Mam. If you are stuck with their hex 14 00:00:36,640 --> 00:00:39,519 Speaker 2: help student get listen up because we cover it all 15 00:00:39,560 --> 00:00:41,479 Speaker 2: in the Flux app with all the details of how 16 00:00:41,479 --> 00:00:43,919 Speaker 2: it happens, why it happens, and how might impact you. 17 00:00:44,000 --> 00:00:45,559 Speaker 2: To make sure to download the Flex app and. 18 00:00:45,560 --> 00:00:48,520 Speaker 1: Check out the article three Riveting Stories Today Josie Boy, 19 00:00:48,640 --> 00:00:51,560 Speaker 1: Let's do it for our first. Virgin Australia is offering 20 00:00:51,680 --> 00:00:55,560 Speaker 1: shares to its staff as it prepares for takeoff on 21 00:00:55,680 --> 00:00:56,640 Speaker 1: the ASX. 22 00:00:56,720 --> 00:00:58,080 Speaker 2: I feel like over the last couple of years they 23 00:00:58,080 --> 00:00:59,600 Speaker 2: owe their stuff a bit more than that be man, 24 00:00:59,680 --> 00:01:00,760 Speaker 2: but tell any more, Okay? 25 00:01:00,760 --> 00:01:03,639 Speaker 1: So, Virgin Australia first hit the Australian market in two 26 00:01:03,760 --> 00:01:06,080 Speaker 1: thousand under the name Virgin Blue. 27 00:01:05,760 --> 00:01:07,800 Speaker 2: And in twenty eleven it changed its name to Virgin 28 00:01:07,840 --> 00:01:11,680 Speaker 2: Australia and withstood challenges from Tiger air Lines, Jetstar and 29 00:01:11,720 --> 00:01:13,840 Speaker 2: the big red Rue Quantus. 30 00:01:13,360 --> 00:01:15,720 Speaker 1: But Jazzy boy as COVID locked us all down. In 31 00:01:15,800 --> 00:01:19,360 Speaker 1: early twenty twenty, Virgin Australia went into administration. 32 00:01:18,800 --> 00:01:21,000 Speaker 2: And then it was acquired by private equity giant Bain 33 00:01:21,080 --> 00:01:24,199 Speaker 2: Capital for seven hundred mel along with five billion dollars 34 00:01:24,240 --> 00:01:24,800 Speaker 2: of debt. 35 00:01:24,680 --> 00:01:27,640 Speaker 1: And since then it's been pretty much all clear skies, 36 00:01:27,840 --> 00:01:31,839 Speaker 1: with earnings of five hundred and nineteen million bucks last financial. 37 00:01:31,480 --> 00:01:34,039 Speaker 2: Year and now Virgin Australia's boss has told its eight 38 00:01:34,040 --> 00:01:36,920 Speaker 2: thousand staff that they could all receive three thousand dollars 39 00:01:36,959 --> 00:01:40,680 Speaker 2: worth of Virgin shares before it lists on the Stock Exchange. 40 00:01:40,280 --> 00:01:44,120 Speaker 1: Or a takeoff grant of share rights, as Virgin CEO 41 00:01:44,240 --> 00:01:45,840 Speaker 1: called it. But of course the man there are some 42 00:01:46,000 --> 00:01:49,400 Speaker 1: major caveats around this share offfer caveot one. Virgin Australia 43 00:01:49,480 --> 00:01:52,720 Speaker 1: needs to successfully IPO, which it's expected to do by 44 00:01:52,760 --> 00:01:55,320 Speaker 1: the end of June caveat two. These shares would only 45 00:01:55,440 --> 00:01:59,080 Speaker 1: convert into ordinary shares ie shares that can be sold 46 00:01:59,240 --> 00:02:01,880 Speaker 1: if the employee sticks around for two years post IPO. 47 00:02:02,120 --> 00:02:03,520 Speaker 2: So what is the key learning here? 48 00:02:03,640 --> 00:02:07,640 Speaker 1: Employee share schemes programs where companies offer employees equity like 49 00:02:07,720 --> 00:02:10,640 Speaker 1: shares or options as part of their total remuneration, and 50 00:02:10,639 --> 00:02:13,679 Speaker 1: it's a way to reward employees and create stronger alignment 51 00:02:13,760 --> 00:02:16,800 Speaker 1: between their day to day work and the company's overall performance. 52 00:02:17,000 --> 00:02:19,480 Speaker 1: That means, if the business performs well and the share 53 00:02:19,520 --> 00:02:22,320 Speaker 1: price climbs, employees can benefit directly and be. 54 00:02:22,400 --> 00:02:25,400 Speaker 2: Man These employee share schemes are also a very useful 55 00:02:25,400 --> 00:02:26,399 Speaker 2: retention tool YEP. 56 00:02:26,440 --> 00:02:28,800 Speaker 1: As mentioned, the employees need to stick around for twenty 57 00:02:28,800 --> 00:02:33,040 Speaker 1: four months to have their share rights converted into tradable shares. 58 00:02:32,760 --> 00:02:35,160 Speaker 2: And this can help reduce staff turnover as well. 59 00:02:35,160 --> 00:02:38,560 Speaker 1: And Jessie woit, we've seen many technology companies use employee 60 00:02:38,560 --> 00:02:42,000 Speaker 1: share schemes as part of their overall appeal to employees. 61 00:02:41,600 --> 00:02:44,040 Speaker 2: None more so than it Lassian, who pays its staff 62 00:02:44,160 --> 00:02:47,160 Speaker 2: one point one billion US dollars per year through shares. 63 00:02:47,440 --> 00:02:50,160 Speaker 1: So clearly virgin Australia is gearing up for its IPO 64 00:02:50,280 --> 00:02:53,400 Speaker 1: and AT wants its team to also join the flight 65 00:02:53,440 --> 00:02:54,600 Speaker 1: deck as shareholders. 66 00:02:54,919 --> 00:02:58,960 Speaker 2: For our second story, Glencore, the mining and commodities behemoth, 67 00:02:59,000 --> 00:03:01,880 Speaker 2: has shifted over thirty billion dollars of its assets into 68 00:03:01,919 --> 00:03:04,400 Speaker 2: an Australian subsidiary and it seems to be more than 69 00:03:04,440 --> 00:03:05,200 Speaker 2: meets the eye. 70 00:03:05,240 --> 00:03:09,720 Speaker 1: Glen Core mining for better valuations. What is going on here? 71 00:03:09,760 --> 00:03:11,880 Speaker 2: So, glen Core's a binning company that was founded back 72 00:03:11,919 --> 00:03:14,480 Speaker 2: in nineteen seventy four in Switzerland. 73 00:03:14,120 --> 00:03:17,200 Speaker 1: And it's become one of the world's biggest commodity traders 74 00:03:17,280 --> 00:03:18,000 Speaker 1: and miners. 75 00:03:18,040 --> 00:03:21,520 Speaker 2: We're talking a market cap of thirty three billion pounds. 76 00:03:21,200 --> 00:03:23,800 Speaker 1: And while it started in Switzerland, it has operations in 77 00:03:23,800 --> 00:03:27,240 Speaker 1: over thirty five countries, including Canada, to Columbia, to South 78 00:03:27,280 --> 00:03:29,400 Speaker 1: Africa and of course Australia. 79 00:03:28,880 --> 00:03:32,320 Speaker 2: And now be Man. Glencall's transferred thirty billion dollars worth 80 00:03:32,320 --> 00:03:35,000 Speaker 2: of its mining assets into an Australian subsidiary. 81 00:03:35,040 --> 00:03:37,880 Speaker 1: Interesting and not something you hear companies do every day. 82 00:03:37,920 --> 00:03:41,440 Speaker 2: Yeah, we're talking shifting assets like coal and copper and chrome, and. 83 00:03:41,360 --> 00:03:44,040 Speaker 1: This means that a big chunk of Glencare's assets, including 84 00:03:44,040 --> 00:03:47,560 Speaker 1: its coal assets, sit in Australian companies where. 85 00:03:47,400 --> 00:03:51,440 Speaker 2: Coal assets supposedly achieve higher valuation multiples than in London, 86 00:03:51,560 --> 00:03:53,600 Speaker 2: which is where they're listed right now. So what's the 87 00:03:53,680 --> 00:03:54,360 Speaker 2: key learning here? 88 00:03:54,520 --> 00:03:58,040 Speaker 1: Not all assets are valued equally and location actually can 89 00:03:58,120 --> 00:03:58,600 Speaker 1: play a role. 90 00:03:58,640 --> 00:04:01,440 Speaker 2: You see bee Man Glen Coppoli that Australian listed coal 91 00:04:01,440 --> 00:04:04,400 Speaker 2: assets actually trade at higher multiples than if they were 92 00:04:04,400 --> 00:04:05,160 Speaker 2: listed in London. 93 00:04:05,320 --> 00:04:08,880 Speaker 1: So it is doing a bit of a valuation arbitrage. 94 00:04:09,000 --> 00:04:11,720 Speaker 2: It's shifting where it's assets sit and also are reported 95 00:04:11,800 --> 00:04:14,160 Speaker 2: to take advantage of how investors value it. 96 00:04:14,240 --> 00:04:16,800 Speaker 1: In this case, it means that putting coal assets under 97 00:04:16,839 --> 00:04:19,800 Speaker 1: an Ossie umbrella might increase their perceived work. 98 00:04:19,839 --> 00:04:21,200 Speaker 2: And how does that work well? 99 00:04:21,320 --> 00:04:23,839 Speaker 1: Australian investors are very familiar with the role of coal 100 00:04:23,960 --> 00:04:26,839 Speaker 1: and the market environment could be more favorable here as well. 101 00:04:26,880 --> 00:04:29,680 Speaker 1: For example, Rio Tinto was potentially looking to merge with 102 00:04:29,720 --> 00:04:32,599 Speaker 1: Glencore back in twenty fourteen and last year as well, 103 00:04:32,680 --> 00:04:35,119 Speaker 1: in a potential two hundred and sixty billion dollar merger, 104 00:04:35,160 --> 00:04:37,280 Speaker 1: but the deal fell through. But now with the majority 105 00:04:37,279 --> 00:04:40,960 Speaker 1: of Glencore's assets legally based in Australia, which Rio also 106 00:04:41,000 --> 00:04:44,760 Speaker 1: calls home, this mining mega merger could be revisited once again. 107 00:04:44,839 --> 00:04:47,640 Speaker 2: For our third and final story. The New York Times 108 00:04:47,640 --> 00:04:51,560 Speaker 2: assigned its first aideal after years of pushing back against 109 00:04:51,560 --> 00:04:54,960 Speaker 2: AI companies, but it's not with its archer nemesis, Open Ai. 110 00:04:55,200 --> 00:04:57,839 Speaker 1: What a huge reveal here, Jazzy Boy can't wait to 111 00:04:57,880 --> 00:04:58,800 Speaker 1: hear where this one goes. 112 00:04:58,839 --> 00:05:00,800 Speaker 2: Tell me more, okay. New York Times is one of 113 00:05:00,800 --> 00:05:04,000 Speaker 2: the world's most influential newspapers, with over eleven point six 114 00:05:04,120 --> 00:05:05,080 Speaker 2: million subscribers. 115 00:05:05,120 --> 00:05:08,360 Speaker 1: Their subscribers are reading the news, They're taking cooking inspiration 116 00:05:08,440 --> 00:05:09,200 Speaker 1: from recipes. 117 00:05:09,240 --> 00:05:11,200 Speaker 2: They're playing wordll and the Mini cross Word. 118 00:05:11,160 --> 00:05:13,520 Speaker 1: Not to mention keeping up to the latest with sport 119 00:05:13,560 --> 00:05:15,840 Speaker 1: on the Athletic, the sports arm of the New York Times. 120 00:05:15,920 --> 00:05:17,680 Speaker 2: How they man. You may remember that The New York 121 00:05:17,720 --> 00:05:21,159 Speaker 2: Times sued Open Ai and Microsoft in December twenty twenty three. 122 00:05:21,279 --> 00:05:24,599 Speaker 1: Yep NYT accused them of training their AI models on 123 00:05:24,760 --> 00:05:27,000 Speaker 1: NYT content without permission. 124 00:05:26,520 --> 00:05:27,960 Speaker 2: Which is a copyright infringement. 125 00:05:28,080 --> 00:05:31,080 Speaker 1: While other news outlets have signed commercial partnerships with big 126 00:05:31,080 --> 00:05:33,160 Speaker 1: dogs of AI, the New York Times has held off. 127 00:05:33,160 --> 00:05:35,839 Speaker 2: But now The New York Times assigned its first aideal, 128 00:05:35,920 --> 00:05:37,960 Speaker 2: and apparently it's not with chat JBT. 129 00:05:38,000 --> 00:05:40,440 Speaker 1: They're bitter foe it is with Amazon. As part of 130 00:05:40,520 --> 00:05:43,200 Speaker 1: this deal, Amazon will be able to train its large 131 00:05:43,240 --> 00:05:46,600 Speaker 1: language models on New York Times content, including Alexa. 132 00:05:46,240 --> 00:05:48,320 Speaker 2: And that means Alexa could soon read out New York 133 00:05:48,360 --> 00:05:51,600 Speaker 2: Times summaries when you ask about global politics or tonight's 134 00:05:51,600 --> 00:05:52,240 Speaker 2: dinner plans. 135 00:05:52,320 --> 00:05:54,320 Speaker 1: And this is a huge step for the New York Times, 136 00:05:54,320 --> 00:05:57,200 Speaker 1: who has been very resistant to dabbling into. 137 00:05:57,040 --> 00:05:59,360 Speaker 2: The AI world. Yep, So what is the key learning here? 138 00:05:59,440 --> 00:06:02,599 Speaker 1: If you're not at the AI table, you're probably on 139 00:06:02,720 --> 00:06:03,240 Speaker 1: the menu. 140 00:06:03,400 --> 00:06:06,599 Speaker 2: Yeah. While some media companies are dragging tech giants into court, 141 00:06:06,720 --> 00:06:09,360 Speaker 2: others are licensing their content and cashing in. 142 00:06:09,440 --> 00:06:11,440 Speaker 1: Now over the past few years, Josey boy, it's become 143 00:06:11,480 --> 00:06:13,960 Speaker 1: clear that the media industry is waking up to AI. 144 00:06:14,160 --> 00:06:16,679 Speaker 2: Yeah, and they've realized that partnerships are the next big 145 00:06:16,760 --> 00:06:19,479 Speaker 2: monetization lever for content rich businesses. 146 00:06:19,600 --> 00:06:22,560 Speaker 1: And while sitting it out may feel right on principle 147 00:06:22,680 --> 00:06:25,239 Speaker 1: for the New York Times, it can also be very costly. 148 00:06:25,360 --> 00:06:28,159 Speaker 2: Yeah. For example, Newscorps signed a five year, two hundred 149 00:06:28,160 --> 00:06:30,479 Speaker 2: and fifty million US dollars to deal with open Ai, and 150 00:06:30,560 --> 00:06:34,440 Speaker 2: others like The Atlantic Conde Nast have also signed deals 151 00:06:34,480 --> 00:06:37,640 Speaker 2: with open AI. So being absent isn't just missing a trend, 152 00:06:37,760 --> 00:06:41,320 Speaker 2: it's missing out on some serious future revenue. Fluxdam X 153 00:06:41,360 --> 00:06:44,640 Speaker 2: helps student debt are getting slashed by twenty percent, so 154 00:06:44,680 --> 00:06:46,320 Speaker 2: if you've got an X help debt, make sure to 155 00:06:46,400 --> 00:06:48,200 Speaker 2: check it out in my Glove and in the Flex 156 00:06:48,240 --> 00:06:50,520 Speaker 2: app where we have a whole download as to what 157 00:06:50,560 --> 00:06:52,520 Speaker 2: happens and how can impact you. Make sure to download 158 00:06:52,520 --> 00:06:53,719 Speaker 2: the Flex app and check it out. 159 00:06:53,760 --> 00:06:56,040 Speaker 1: Thanks for listening and we'll see you on Wednesday.