1 00:00:05,200 --> 00:00:06,640 Speaker 1: This is what the Flux. 2 00:00:06,760 --> 00:00:09,959 Speaker 2: I'm Brett and Justin. It's Wednesday, the twenty second of October. 3 00:00:10,039 --> 00:00:13,000 Speaker 1: Duzzy boy, Google Search ain't the only one feeling the 4 00:00:13,000 --> 00:00:16,000 Speaker 1: brunt of ais capability our trust. The old friend Wikipedia 5 00:00:16,079 --> 00:00:18,640 Speaker 1: is copying a hit as well. Get this one. Wikipedia 6 00:00:18,840 --> 00:00:22,560 Speaker 1: warned that human page views dropped eight percent year over years. 7 00:00:22,720 --> 00:00:26,040 Speaker 1: They reckon it's because younger generations seeking answers from AI 8 00:00:26,079 --> 00:00:29,040 Speaker 1: platform and of course a little bit of TikTok as well. 9 00:00:29,080 --> 00:00:30,840 Speaker 2: So where do we get the truth from anyone? Be man? 10 00:00:31,400 --> 00:00:33,199 Speaker 2: Good question, fox fam. Have you ever heard of the 11 00:00:33,280 --> 00:00:37,120 Speaker 2: fire movement? Sanceor financial independence? Retire early? And it's a 12 00:00:37,120 --> 00:00:39,400 Speaker 2: movement of people who saved and invest a hate of 13 00:00:39,440 --> 00:00:41,839 Speaker 2: their money so they can retire early. We break it 14 00:00:41,880 --> 00:00:44,240 Speaker 2: down in the Flux app what fire is, how people 15 00:00:44,280 --> 00:00:46,760 Speaker 2: do it, and all the different types of lifestyles as well. 16 00:00:46,800 --> 00:00:48,280 Speaker 2: If you want to learn more about how to become 17 00:00:48,400 --> 00:00:51,239 Speaker 2: financially dependent and retire early, make sure to download the 18 00:00:51,240 --> 00:00:52,360 Speaker 2: Flux app and check it out. 19 00:00:52,440 --> 00:00:55,920 Speaker 1: Three splendid stories today, Juzzy boy, let's do it for 20 00:00:55,960 --> 00:00:59,560 Speaker 1: our first. Comsec, which is Combank's trading platform, has seen 21 00:00:59,600 --> 00:01:02,920 Speaker 1: its profit jump thirty six percent. As more Aussies try 22 00:01:02,960 --> 00:01:06,199 Speaker 1: to get their hands into volatile stock markets. 23 00:01:05,880 --> 00:01:08,360 Speaker 2: Raining trades over there on comsext b Man, so tell 24 00:01:08,400 --> 00:01:08,880 Speaker 2: me more so. 25 00:01:09,000 --> 00:01:12,880 Speaker 1: Compsec is the online stockbroking arm of Combank, which is 26 00:01:12,880 --> 00:01:14,360 Speaker 1: obviously Australia's the biggest bank. 27 00:01:14,400 --> 00:01:17,240 Speaker 2: And be Man more than forty percent of Australian investors 28 00:01:17,280 --> 00:01:18,920 Speaker 2: and now using Comsex platform. 29 00:01:18,959 --> 00:01:22,160 Speaker 1: That's basically everyone who's ever googled how do I buy? 30 00:01:22,440 --> 00:01:25,400 Speaker 2: Etes, Yes, and be Man. In the year to June thirty, 31 00:01:25,440 --> 00:01:28,280 Speaker 2: twenty twenty five, compsecton ounce it's revenue climb to just 32 00:01:28,400 --> 00:01:31,040 Speaker 2: under two hundred and eighty nine million bucks. 33 00:01:30,760 --> 00:01:33,240 Speaker 1: And its profit whent up thirty six percent to just 34 00:01:33,400 --> 00:01:35,960 Speaker 1: under one hundred and fifty six million bucks. 35 00:01:36,000 --> 00:01:38,039 Speaker 2: Wow, and be Man. Even though there have been new 36 00:01:38,200 --> 00:01:41,480 Speaker 2: low cost trading competitors entering the market, Compsex customer base 37 00:01:41,640 --> 00:01:43,759 Speaker 2: cracked three million Aussies. 38 00:01:43,480 --> 00:01:46,319 Speaker 1: Which is up thirty seven percent in one year. 39 00:01:46,400 --> 00:01:47,360 Speaker 2: And what was the reason? 40 00:01:47,520 --> 00:01:50,880 Speaker 1: Well, they reckon with volatility in the market where it 41 00:01:50,960 --> 00:01:53,840 Speaker 1: is a lot of retail traders are trying to snag 42 00:01:53,920 --> 00:01:56,240 Speaker 1: a discount when the stock prices go down. 43 00:01:56,320 --> 00:01:58,280 Speaker 2: Interesting, So what is the key learning here? 44 00:01:58,360 --> 00:02:02,760 Speaker 1: When market volatility spikes trading volumes saw and so do 45 00:02:03,040 --> 00:02:04,520 Speaker 1: online broker profits. 46 00:02:04,600 --> 00:02:07,720 Speaker 2: You see, market volatility is how dramatically prices move up 47 00:02:07,840 --> 00:02:09,560 Speaker 2: or move down over a short period. 48 00:02:09,560 --> 00:02:14,440 Speaker 1: It's often measured using indicators like the volatility Index or VIX. 49 00:02:14,280 --> 00:02:16,520 Speaker 2: And they man when there's high volatility in the market. 50 00:02:16,680 --> 00:02:19,280 Speaker 2: It generally attracts retail traders yep. 51 00:02:19,160 --> 00:02:22,280 Speaker 1: Those who see opportunity in big price swings. 52 00:02:21,800 --> 00:02:24,760 Speaker 2: But volatility can swing both ways. It can create profit 53 00:02:24,760 --> 00:02:27,000 Speaker 2: opportunities but also raises risk. 54 00:02:27,080 --> 00:02:29,560 Speaker 1: Now thankfully for investors, the S and P five hundred 55 00:02:29,639 --> 00:02:33,400 Speaker 1: has jumped eighty five percent since it's twenty twenty two lows. 56 00:02:32,960 --> 00:02:35,359 Speaker 2: While the ASEX two hundred is up forty percent since 57 00:02:35,360 --> 00:02:36,200 Speaker 2: then as well. 58 00:02:36,080 --> 00:02:38,600 Speaker 1: And that has pushed more investors into the market to 59 00:02:38,680 --> 00:02:39,760 Speaker 1: try to make a buck. 60 00:02:40,280 --> 00:02:43,200 Speaker 2: And that's pretty great news for online trading platforms because 61 00:02:43,240 --> 00:02:45,959 Speaker 2: they typically earn revenue per transaction. 62 00:02:45,600 --> 00:02:49,600 Speaker 1: So comsec is making bank right now while retail traders 63 00:02:49,680 --> 00:02:52,160 Speaker 1: look to ride the highs and lows of the market. 64 00:02:52,680 --> 00:02:57,000 Speaker 2: For our second story, Rex Airline aka Regional Express has 65 00:02:57,040 --> 00:02:59,440 Speaker 2: find a US buyer after fifteen months. 66 00:02:59,520 --> 00:03:02,760 Speaker 1: It admitis s REX is finally getting some new wings. 67 00:03:02,840 --> 00:03:04,280 Speaker 1: Juzsey Boy tell me more okay. 68 00:03:04,320 --> 00:03:07,720 Speaker 2: So, REX, which is regional express airline connects regional towns 69 00:03:07,760 --> 00:03:11,280 Speaker 2: to major cities around Australia. Think Dubbo, Think Wogga Wogga, 70 00:03:11,400 --> 00:03:12,880 Speaker 2: think brokenhel jose boit. 71 00:03:12,919 --> 00:03:16,440 Speaker 1: You may recall that REX fell into voluntary administration last year, yep. 72 00:03:16,520 --> 00:03:18,360 Speaker 2: I do remember that after they tried to take on 73 00:03:18,480 --> 00:03:21,040 Speaker 2: the big eagles of the Australian Sky, Quantus and Virtu 74 00:03:21,040 --> 00:03:23,480 Speaker 2: of Australia on the capital city roots. 75 00:03:23,320 --> 00:03:26,600 Speaker 1: And that expansion meant REX racked up big debts that 76 00:03:26,680 --> 00:03:27,960 Speaker 1: they just couldn't afford to repay. 77 00:03:28,120 --> 00:03:31,320 Speaker 2: Next minute, voluntary administration and the government paying back some 78 00:03:31,400 --> 00:03:33,800 Speaker 2: of its debtors to keep REX in the air for 79 00:03:33,919 --> 00:03:34,720 Speaker 2: regional Roots. 80 00:03:34,760 --> 00:03:38,680 Speaker 1: And now, after fifteen months in administration, an American aviation 81 00:03:38,840 --> 00:03:42,040 Speaker 1: firm named air Tea has agreed to buy Rex, with 82 00:03:42,120 --> 00:03:43,800 Speaker 1: the final terms expected this week. 83 00:03:43,840 --> 00:03:46,960 Speaker 2: And b Man airt runs FedEx flights and charters in 84 00:03:47,000 --> 00:03:47,440 Speaker 2: the US. 85 00:03:47,640 --> 00:03:50,200 Speaker 1: But Josey Boy, the deal is an all smooth flying 86 00:03:50,400 --> 00:03:51,800 Speaker 1: especially for Rex's creditors. 87 00:03:51,840 --> 00:03:54,040 Speaker 2: Yep. It's believed that as part of this deal, most 88 00:03:54,080 --> 00:03:57,560 Speaker 2: of rex's creditors, including the Federal government, won't be repaid 89 00:03:57,560 --> 00:03:58,080 Speaker 2: their debts. 90 00:03:58,120 --> 00:04:00,320 Speaker 1: And Juzzy Boy The government knows it's very hard to 91 00:04:00,320 --> 00:04:04,080 Speaker 1: get a deal for Rex because of its asset specific risk. 92 00:04:04,560 --> 00:04:06,000 Speaker 2: So what is the key learning here? 93 00:04:06,080 --> 00:04:09,320 Speaker 1: Asset specific risk is when a company's value is heavily 94 00:04:09,400 --> 00:04:13,640 Speaker 1: tied to specific equipment or technology that can't easily be replaced. 95 00:04:13,640 --> 00:04:16,360 Speaker 2: In other words, the company's key assets pose a significant 96 00:04:16,440 --> 00:04:17,360 Speaker 2: risk for the buyer. 97 00:04:17,480 --> 00:04:19,960 Speaker 1: And it just so happens that Rex's biggest assets, it's 98 00:04:20,160 --> 00:04:22,240 Speaker 1: error planes, are also its biggest risk. 99 00:04:22,360 --> 00:04:25,120 Speaker 2: Yeah get this, bee Man. Rex operates fifty seven planes, 100 00:04:25,200 --> 00:04:28,320 Speaker 2: mostly SAB three forties, that are older than some of 101 00:04:28,400 --> 00:04:30,360 Speaker 2: its passengers. 102 00:04:30,400 --> 00:04:33,200 Speaker 1: In fact, its average planes are more than thirty one 103 00:04:33,279 --> 00:04:34,560 Speaker 1: years old Kerry. 104 00:04:34,560 --> 00:04:37,039 Speaker 2: And that means these planes need a whole lot of 105 00:04:37,080 --> 00:04:39,080 Speaker 2: maintenance and also replacement parts. 106 00:04:39,200 --> 00:04:41,840 Speaker 1: The problem for Rex is that Saab don't make these 107 00:04:41,880 --> 00:04:45,479 Speaker 1: planes anymore, so finding parts is nigh impossible. 108 00:04:45,279 --> 00:04:46,839 Speaker 2: Asset specific risk. 109 00:04:47,160 --> 00:04:50,400 Speaker 1: But AIRT has access to spare parts for Rex's Saab 110 00:04:50,480 --> 00:04:51,640 Speaker 1: three forty aircrafts, and. 111 00:04:51,600 --> 00:04:54,720 Speaker 2: It also owns the maintenance and repair operations facilities too, 112 00:04:54,800 --> 00:04:56,800 Speaker 2: So Jazi Waite, the good news is that they'll be 113 00:04:56,839 --> 00:04:59,240 Speaker 2: able to keep these planes in the air. The bad 114 00:04:59,279 --> 00:05:02,200 Speaker 2: news for rex its creditors is that AIRT weren't really 115 00:05:02,240 --> 00:05:04,719 Speaker 2: competing with other buyers to get this deal done. For 116 00:05:04,760 --> 00:05:08,280 Speaker 2: our third and final story, Gucci's parent company, Keering, has 117 00:05:08,279 --> 00:05:12,240 Speaker 2: sold its beauty business to Looreel for billion euros to 118 00:05:12,400 --> 00:05:15,039 Speaker 2: cut its debt and refocus on fashion. 119 00:05:15,160 --> 00:05:17,839 Speaker 1: A very rough run for Gucci lately. Josey boy, what's 120 00:05:17,839 --> 00:05:18,200 Speaker 1: going on here? 121 00:05:18,240 --> 00:05:21,440 Speaker 2: Okay? So Curing is the French luxury conglomerate behind brands 122 00:05:21,440 --> 00:05:24,440 Speaker 2: like Gucci, Balenciaga, Batakea, Vinetta. 123 00:05:24,160 --> 00:05:27,239 Speaker 1: But does boy. Last year, Kring launched its beauty division 124 00:05:27,400 --> 00:05:29,920 Speaker 1: after buying perfume maker Creed for three and a half 125 00:05:29,960 --> 00:05:30,640 Speaker 1: billion euros. 126 00:05:30,680 --> 00:05:32,359 Speaker 2: That was all part of its plan to compete with 127 00:05:32,520 --> 00:05:33,799 Speaker 2: LVMH in beauty. 128 00:05:33,880 --> 00:05:36,520 Speaker 1: But twelve months can be a very long time in 129 00:05:36,560 --> 00:05:38,880 Speaker 1: the business world. Because Kerring has done a four point 130 00:05:38,920 --> 00:05:39,799 Speaker 1: eighty Yeah it's. 131 00:05:39,600 --> 00:05:41,840 Speaker 2: New CEO's come in with a plan to car Keyrings 132 00:05:42,000 --> 00:05:44,560 Speaker 2: nine and a half billion euro debt. So now Kerring 133 00:05:44,560 --> 00:05:47,599 Speaker 2: has sold its beauty business to Loreal for four billion euros. 134 00:05:47,680 --> 00:05:50,000 Speaker 2: That'll include the perfume maker Creed, but it will also 135 00:05:50,040 --> 00:05:52,800 Speaker 2: give Loreel the long term rights to develop perfumes and 136 00:05:52,920 --> 00:05:56,160 Speaker 2: cosmetics for Gucci, Billinciaga and Bataga. Venetta and be Man. 137 00:05:56,240 --> 00:05:58,799 Speaker 2: This is Lorel's biggest acquisition ever. 138 00:05:59,040 --> 00:06:01,520 Speaker 1: The new CEO enters the picture and wants Caring to 139 00:06:01,520 --> 00:06:05,040 Speaker 1: focus only on its core strength and I'm talking luxury fashion. 140 00:06:05,200 --> 00:06:06,560 Speaker 2: So what is the key learning here? 141 00:06:06,640 --> 00:06:09,320 Speaker 1: Business leaders need to place different bets depending on what 142 00:06:09,400 --> 00:06:11,320 Speaker 1: the business needs most at the time. 143 00:06:11,360 --> 00:06:13,520 Speaker 2: When times are good, you want to plant the seeds 144 00:06:13,520 --> 00:06:15,760 Speaker 2: for new growth. When things tighten up, you need to 145 00:06:15,800 --> 00:06:17,800 Speaker 2: pull back and protect the roots. 146 00:06:17,920 --> 00:06:21,039 Speaker 1: Now, Kerring's previous CEO wanted to diversify into beauty so 147 00:06:21,080 --> 00:06:23,919 Speaker 1: the company was not totally dependent on luxury fashion sales. 148 00:06:23,960 --> 00:06:26,240 Speaker 2: That made sense when Gucci is booming and the goal 149 00:06:26,320 --> 00:06:28,000 Speaker 2: is to build new growth engine. 150 00:06:28,000 --> 00:06:29,800 Speaker 1: But fast forward a couple of years and the picture 151 00:06:29,800 --> 00:06:30,560 Speaker 1: has changed. 152 00:06:30,640 --> 00:06:32,120 Speaker 2: Caring's demanded China dropped. 153 00:06:32,160 --> 00:06:35,400 Speaker 1: It suffered a second quarter drop in sales of fifteen percent. 154 00:06:35,560 --> 00:06:38,159 Speaker 1: So now under the new CEO, the priority has flipped 155 00:06:38,160 --> 00:06:39,240 Speaker 1: to refocusing. 156 00:06:39,320 --> 00:06:42,000 Speaker 2: Fuckdam. For many people, the thought of retirement is in 157 00:06:42,120 --> 00:06:45,400 Speaker 2: sixty seventy for those in the fire movements, sometimes it 158 00:06:45,440 --> 00:06:47,800 Speaker 2: can be in your thirties or forties. Please break it 159 00:06:47,839 --> 00:06:50,400 Speaker 2: down in the Flux app how many Australians are getting 160 00:06:50,440 --> 00:06:52,360 Speaker 2: on the trend. May shut it, download the Flux app 161 00:06:52,400 --> 00:06:53,520 Speaker 2: and check out the article. 162 00:06:53,600 --> 00:06:56,000 Speaker 1: Thanks for listening, and we'll see you on Friday.