1 00:00:05,280 --> 00:00:06,680 Speaker 1: This is lot of Flux. 2 00:00:06,720 --> 00:00:09,920 Speaker 2: I'm Brett and Justin As Wednesday, the sixteenth of October, 3 00:00:10,039 --> 00:00:12,400 Speaker 2: Johnsie Boy, we spoke the other day about the XBS 4 00:00:12,440 --> 00:00:15,360 Speaker 2: and payment terminals when you tap your card. Now the 5 00:00:15,400 --> 00:00:18,720 Speaker 2: federal government is getting ready to outlaw debit cards surcharges. 6 00:00:18,840 --> 00:00:21,160 Speaker 2: That means you pay for your five dollars twenty coffee 7 00:00:21,160 --> 00:00:23,440 Speaker 2: with a debit card and you should be charged five 8 00:00:23,520 --> 00:00:26,360 Speaker 2: dollars twenty None of these five dollars and thirty six cents, 9 00:00:26,520 --> 00:00:27,400 Speaker 2: mumbo jumbo. 10 00:00:27,480 --> 00:00:29,920 Speaker 1: I never get that random number. So on Fox fam. 11 00:00:30,000 --> 00:00:32,360 Speaker 1: As we hit the middle of October, there are only 12 00:00:32,440 --> 00:00:35,680 Speaker 1: two more weeks until the cutoff to submit your tax 13 00:00:35,720 --> 00:00:38,000 Speaker 1: return via Miga, and if you don't submit it for 14 00:00:38,080 --> 00:00:40,519 Speaker 1: the end of October, you could be facing fines up 15 00:00:40,520 --> 00:00:43,680 Speaker 1: to fifteen hundred bukaroonies. Thankfully, in the Flux app, we've 16 00:00:43,720 --> 00:00:45,440 Speaker 1: got it all covered, all the steps you need to 17 00:00:45,479 --> 00:00:47,239 Speaker 1: take if you want to submit your tax return, so 18 00:00:47,280 --> 00:00:48,320 Speaker 1: make sure to check it out. 19 00:00:48,320 --> 00:00:51,879 Speaker 2: Three truly inspiring stories today, Jusy boy, let's do it 20 00:00:51,960 --> 00:00:55,360 Speaker 2: for our first. Virgin Australia has seen its earnings jump 21 00:00:55,400 --> 00:00:58,760 Speaker 2: by eighteen percent after it recorded its second profit in 22 00:00:58,800 --> 00:00:59,760 Speaker 2: a row. 23 00:00:59,400 --> 00:01:01,400 Speaker 1: After a decad being in the Red b Man, these 24 00:01:01,400 --> 00:01:04,120 Speaker 1: profits must feel extra sweet for Virgin right now, so 25 00:01:04,280 --> 00:01:05,040 Speaker 1: tell me more. 26 00:01:04,880 --> 00:01:07,440 Speaker 2: Well, Jessie Boy, We've spoken about Virgin Australia a fair 27 00:01:07,520 --> 00:01:10,080 Speaker 2: bit in the past twelve months. Most recently though, Qatar 28 00:01:10,200 --> 00:01:13,119 Speaker 2: Airways acquired a twenty five percent stake of Virgin Australia, 29 00:01:13,160 --> 00:01:16,800 Speaker 2: which is still subject to regulatory approval by the Bye 30 00:01:17,040 --> 00:01:19,720 Speaker 2: the BEMN. After years of loss making and even going 31 00:01:19,760 --> 00:01:23,679 Speaker 2: into voluntary administration under previous ownership, Virgin Australia has now 32 00:01:23,680 --> 00:01:26,960 Speaker 2: announced a big profit. Yeah, we're talking earnings of five 33 00:01:27,040 --> 00:01:29,560 Speaker 2: hundred and nineteen million bucks for the past financial year, 34 00:01:29,600 --> 00:01:31,840 Speaker 2: which is an eighteen percent jump on last year. 35 00:01:31,840 --> 00:01:34,520 Speaker 1: And be man, Virgin Australia has a pretty fat grin 36 00:01:34,560 --> 00:01:37,280 Speaker 1: on his face right now because it's rival Quantus actually 37 00:01:37,319 --> 00:01:39,319 Speaker 1: saw its earnings drop by seventeen percent. 38 00:01:39,440 --> 00:01:42,120 Speaker 2: Big big turnaround from the Big V after pretty much 39 00:01:42,160 --> 00:01:43,600 Speaker 2: shutting up shop in twenty twenty. 40 00:01:43,720 --> 00:01:45,880 Speaker 1: In the last financial year it flew more than nineteen 41 00:01:45,920 --> 00:01:47,520 Speaker 1: point two million passengers, and. 42 00:01:47,560 --> 00:01:50,200 Speaker 2: Josie Boy, Virgin Australia is planning to ramp up the 43 00:01:50,240 --> 00:01:53,680 Speaker 2: pressure on Quantas even more if the Qatar Airways investment is. 44 00:01:53,680 --> 00:01:56,680 Speaker 1: Approved, particularly if it uses the wet leases. 45 00:01:56,960 --> 00:01:58,640 Speaker 2: And it's fair to say we need a bit of 46 00:01:58,640 --> 00:02:02,080 Speaker 2: competition in the airline market, both domestic and international. 47 00:02:02,200 --> 00:02:03,560 Speaker 1: So what is the key learning here? 48 00:02:03,600 --> 00:02:07,560 Speaker 2: Strategic investments can transform an airlines balance sheet from red 49 00:02:07,680 --> 00:02:08,280 Speaker 2: to black. 50 00:02:08,400 --> 00:02:10,880 Speaker 1: You see, be Man. While Virgin Australia has already performed 51 00:02:10,919 --> 00:02:13,040 Speaker 1: strongly over the last couple of years, it now has 52 00:02:13,080 --> 00:02:16,600 Speaker 1: the ability to leverage Qatar Airways through wet leases. Here's 53 00:02:16,639 --> 00:02:17,200 Speaker 1: how it works. 54 00:02:17,280 --> 00:02:20,120 Speaker 2: One airline in this case Virgin sells seats on the 55 00:02:20,160 --> 00:02:22,400 Speaker 2: flights operated by another carrier. 56 00:02:22,120 --> 00:02:24,160 Speaker 1: In this case Qatar Airways, but jes Wait. 57 00:02:24,200 --> 00:02:26,840 Speaker 2: While it's sold as a Virgin flight, Qatar would use 58 00:02:26,880 --> 00:02:29,079 Speaker 2: its own aircraft and its own crew and be Man. 59 00:02:29,200 --> 00:02:31,680 Speaker 1: This works for Qatar Airways, who has capacity with a 60 00:02:31,800 --> 00:02:33,079 Speaker 1: heap of planes. 61 00:02:32,800 --> 00:02:34,960 Speaker 2: And it works for Virgin Australia, who can sell more 62 00:02:35,000 --> 00:02:38,880 Speaker 2: flights than it currently offers. And if Qatar's investment is approved, 63 00:02:38,919 --> 00:02:41,480 Speaker 2: it could lead to twenty eight new flights a week 64 00:02:41,680 --> 00:02:44,600 Speaker 2: to Doha from Sydney, Melbourne, Brisbane and Perth, as. 65 00:02:44,440 --> 00:02:47,120 Speaker 1: Well as potentially competing on other flights to London and 66 00:02:47,160 --> 00:02:49,160 Speaker 1: Paris Rome Dallas. 67 00:02:48,840 --> 00:02:51,480 Speaker 2: Which quantus has no competition for right now. 68 00:02:51,520 --> 00:02:55,120 Speaker 1: For our second story, Ikea has dropped prices globally to 69 00:02:55,160 --> 00:02:59,560 Speaker 1: attract more shoppers after its first revenue drop in four years. 70 00:02:59,760 --> 00:03:03,000 Speaker 2: The masters of the Allen key have finally hit a snag. 71 00:03:03,320 --> 00:03:05,200 Speaker 2: Tell me more so, be man. Ikea is the. 72 00:03:05,280 --> 00:03:08,079 Speaker 1: Build it yourself furniture store started in Sweden back in 73 00:03:08,160 --> 00:03:09,079 Speaker 1: nineteen forty three. 74 00:03:09,120 --> 00:03:11,799 Speaker 2: The names of its products are nearly as complicated as 75 00:03:11,840 --> 00:03:13,240 Speaker 2: the assembly of its products. 76 00:03:13,320 --> 00:03:14,760 Speaker 1: But then, man, you've got to hand it to them. 77 00:03:14,800 --> 00:03:18,919 Speaker 1: These flash pack makers just keep growing and growing and growing. 78 00:03:18,720 --> 00:03:20,760 Speaker 2: Until their last financial year. 79 00:03:20,960 --> 00:03:23,600 Speaker 1: Yeah, Ikea has announced sales of thirty nine point six 80 00:03:23,720 --> 00:03:27,160 Speaker 1: billion euros globally for the last financial year to August. 81 00:03:27,360 --> 00:03:29,600 Speaker 2: And that's a five point three percent decline in revenue 82 00:03:29,600 --> 00:03:30,760 Speaker 2: compared to last year. 83 00:03:30,760 --> 00:03:32,640 Speaker 1: And what was the reason for this drop? Bman, well 84 00:03:32,720 --> 00:03:33,160 Speaker 1: does it boy? 85 00:03:33,200 --> 00:03:36,120 Speaker 2: The CEO said that they experienced a slow down of 86 00:03:36,160 --> 00:03:39,240 Speaker 2: the home furnishing industry in all markets at the very 87 00:03:39,240 --> 00:03:40,040 Speaker 2: same time. 88 00:03:40,160 --> 00:03:43,080 Speaker 1: And he reckons they haven't experienced anything like it since 89 00:03:43,160 --> 00:03:44,040 Speaker 1: two thousand and. 90 00:03:44,000 --> 00:03:47,280 Speaker 2: Eight ahem, ahem, the global financial crisis. 91 00:03:47,280 --> 00:03:49,560 Speaker 1: And after they saw a decline in store visit, Ikea 92 00:03:49,720 --> 00:03:53,160 Speaker 1: pulled the old strategic price cuts move to boost sales 93 00:03:53,200 --> 00:03:55,280 Speaker 1: through its Amaze like stores and does boy. 94 00:03:55,320 --> 00:03:57,920 Speaker 2: Ike has announced it's likely to drop even more price 95 00:03:57,960 --> 00:03:59,160 Speaker 2: cuts in the coming year. 96 00:03:59,000 --> 00:04:01,200 Speaker 1: Because it's raw material costs have dropped as well as 97 00:04:01,240 --> 00:04:04,800 Speaker 1: those pesky softer economic condition So what is the key 98 00:04:04,880 --> 00:04:08,240 Speaker 1: learning here? In an era of rising costs, cutting prices 99 00:04:08,280 --> 00:04:11,560 Speaker 1: is a bold move that actually defies the market norms. 100 00:04:11,760 --> 00:04:14,320 Speaker 2: Well, we know that global inflation hit about eight point 101 00:04:14,360 --> 00:04:17,480 Speaker 2: seven percent in twenty twenty two. In twenty twenty three, 102 00:04:17,600 --> 00:04:19,479 Speaker 2: it was still over six and a half percent, and 103 00:04:19,520 --> 00:04:22,480 Speaker 2: most retailers have used inflation as the perfect excuse to 104 00:04:22,600 --> 00:04:25,640 Speaker 2: jack up prices. Looking at you, Coles and Wooally, the 105 00:04:25,720 --> 00:04:29,360 Speaker 2: jazibait Ikea has taken an unconventional route by reducing prices 106 00:04:29,360 --> 00:04:31,200 Speaker 2: despite these external pressures that they've got. 107 00:04:31,279 --> 00:04:33,040 Speaker 1: Yeah. The idea for Ikia is that if it can 108 00:04:33,040 --> 00:04:36,160 Speaker 1: cut its costs while competitors are increasing, it can appeal 109 00:04:36,240 --> 00:04:37,920 Speaker 1: to budget conscious consumers. 110 00:04:38,040 --> 00:04:40,239 Speaker 2: It may help them play the long game by focusing 111 00:04:40,240 --> 00:04:43,440 Speaker 2: on building market chap rather than short term revenue and profits. 112 00:04:43,480 --> 00:04:46,640 Speaker 1: For our third and final story, Adobe has joined the 113 00:04:46,760 --> 00:04:50,080 Speaker 1: AI race after launching an AI video generator that will 114 00:04:50,080 --> 00:04:52,800 Speaker 1: see compete with the tech giants. 115 00:04:52,440 --> 00:04:55,520 Speaker 2: Adobe pulling out the biggest gun they've got. I want 116 00:04:55,520 --> 00:04:57,840 Speaker 2: to know, Jazi Way, what or what is going on here? 117 00:04:57,880 --> 00:05:00,880 Speaker 2: Adobe is the American design software co. It started in 118 00:05:01,000 --> 00:05:04,040 Speaker 2: nineteen eighty two. It's probably best known for Photoshop or 119 00:05:04,080 --> 00:05:06,560 Speaker 2: Adobe Illustrated products, which have been the bread and butter 120 00:05:06,720 --> 00:05:09,240 Speaker 2: for designers for many many years. 121 00:05:09,000 --> 00:05:10,960 Speaker 1: Now be Man. Over the last few years, Adobe has 122 00:05:11,000 --> 00:05:13,520 Speaker 1: been facing some pretty tough competition from the likes of 123 00:05:13,560 --> 00:05:16,360 Speaker 1: Camber and Microsoft, who have entered and made a big 124 00:05:16,400 --> 00:05:17,880 Speaker 1: splash in the design market. 125 00:05:17,640 --> 00:05:20,080 Speaker 2: And it's also been getting heat from big tech companies 126 00:05:20,120 --> 00:05:22,839 Speaker 2: like OpenAI and Google who are stepping into the design 127 00:05:22,880 --> 00:05:24,479 Speaker 2: market with their AI tools. 128 00:05:24,520 --> 00:05:26,480 Speaker 1: But now b Man, Adobe has come out with its 129 00:05:26,520 --> 00:05:27,640 Speaker 1: own version of AI. 130 00:05:27,839 --> 00:05:30,520 Speaker 2: Yep, they've released a new AI video generator tool to 131 00:05:30,600 --> 00:05:33,480 Speaker 2: help create and edit videos from text prompts. 132 00:05:33,480 --> 00:05:35,719 Speaker 1: For example, you could enter a prompt like create a 133 00:05:35,760 --> 00:05:37,719 Speaker 1: poker game on the Sydney Harbor. 134 00:05:37,440 --> 00:05:40,120 Speaker 2: Bridge and basically it allows you to choose everything from 135 00:05:40,240 --> 00:05:43,560 Speaker 2: the look of the people, the camera angles, the motions, 136 00:05:43,680 --> 00:05:44,240 Speaker 2: the zoom in. 137 00:05:44,360 --> 00:05:46,960 Speaker 1: Or out and interestingly, be Man its models have been 138 00:05:47,000 --> 00:05:50,520 Speaker 1: trained mostly on its own library of squillions of stock 139 00:05:50,640 --> 00:05:51,760 Speaker 1: videos and images. 140 00:05:51,839 --> 00:05:54,520 Speaker 2: What a marvelous observation, Jesse Voice. I'm wondering what is 141 00:05:54,560 --> 00:05:56,560 Speaker 2: the key learning here In the race to dominate the 142 00:05:56,600 --> 00:05:59,680 Speaker 2: AI industry? Owning your own content can be a major 143 00:05:59,720 --> 00:06:01,600 Speaker 2: compared advantage. 144 00:06:01,080 --> 00:06:01,680 Speaker 1: Is the thing. 145 00:06:01,839 --> 00:06:04,560 Speaker 2: Adobe is our big, big dog, but also pretty small 146 00:06:04,600 --> 00:06:07,200 Speaker 2: player in the AI industry compared to tech giants like 147 00:06:07,240 --> 00:06:08,440 Speaker 2: Meta or like Google. 148 00:06:08,560 --> 00:06:11,839 Speaker 1: But unlike those big dogs, Adobe owns a massive library 149 00:06:11,839 --> 00:06:14,320 Speaker 1: of photo and video data that it can train its 150 00:06:14,360 --> 00:06:15,200 Speaker 1: AI models on. 151 00:06:15,200 --> 00:06:18,400 Speaker 2: Which means it doesn't need to negotiate expensive licensing deals 152 00:06:18,440 --> 00:06:21,760 Speaker 2: to legally access content that trains its models. 153 00:06:21,839 --> 00:06:24,839 Speaker 1: Yeah, we've already seen open Ai negotiate licensing deals with 154 00:06:24,960 --> 00:06:28,400 Speaker 1: media and content companies like News Corp. And Reddit, Financial Times, 155 00:06:28,440 --> 00:06:30,520 Speaker 1: Shutterstock and more so does it Boy? 156 00:06:30,600 --> 00:06:32,680 Speaker 2: Well, some tech companies have to show out millions to 157 00:06:32,760 --> 00:06:36,040 Speaker 2: access content. Adobe can train its models on its own content, so. 158 00:06:36,000 --> 00:06:38,640 Speaker 1: There's less barriers in Adobe's way to launch its AI 159 00:06:38,680 --> 00:06:41,560 Speaker 1: products and maybe even get ahead in the market. Yeah, 160 00:06:41,600 --> 00:06:44,839 Speaker 1: Fox amm two more weeks to do the dreaded tax returns, 161 00:06:44,839 --> 00:06:46,479 Speaker 1: but everyone puts off until the very end. We have 162 00:06:46,560 --> 00:06:48,800 Speaker 1: it step by step, all covered in the Flux app. 163 00:06:48,839 --> 00:06:50,640 Speaker 1: Add us of your tax return to make sure to 164 00:06:50,640 --> 00:06:52,360 Speaker 1: download the Flux app and check it all out. 165 00:06:52,400 --> 00:06:55,640 Speaker 2: Thanks for listening, and we'll see you on Friday.