1 00:00:05,240 --> 00:00:06,680 Speaker 1: This is what the Flux. 2 00:00:06,760 --> 00:00:10,120 Speaker 2: I'm justin and I'm harsh deep, and it's Wednesday, the twelfth. 3 00:00:09,760 --> 00:00:11,720 Speaker 1: Of June a se We know the bonds that entered 4 00:00:11,800 --> 00:00:14,840 Speaker 1: voluntary administration in April this year. There was still a 5 00:00:15,000 --> 00:00:17,720 Speaker 1: little sparkle of hope that it could bounce back. But 6 00:00:17,800 --> 00:00:20,080 Speaker 1: now more than three hundred bonds or employees have been 7 00:00:20,079 --> 00:00:23,680 Speaker 1: told their roles are officially terminated, so they won't pay 8 00:00:23,800 --> 00:00:25,720 Speaker 1: for the past two months. It's kind of hard to 9 00:00:25,720 --> 00:00:27,520 Speaker 1: see it come back from here. FLUXPAM. 10 00:00:27,560 --> 00:00:30,000 Speaker 2: Is there anything more annoying than looking at your bank 11 00:00:30,080 --> 00:00:32,480 Speaker 2: balance in one banking app, and then your high interest 12 00:00:32,520 --> 00:00:35,080 Speaker 2: savings in another account, and then your credit card in another. 13 00:00:35,400 --> 00:00:37,479 Speaker 2: That's part of the reason why we built the Flux 14 00:00:37,520 --> 00:00:40,000 Speaker 2: budgeting tool. You get a three sixty degree view of 15 00:00:40,040 --> 00:00:42,920 Speaker 2: your finances all in one spot. It takes thirty seconds 16 00:00:42,920 --> 00:00:45,000 Speaker 2: to sign up and will save you hours of time. 17 00:00:45,200 --> 00:00:47,159 Speaker 1: Three time saving stories. 18 00:00:47,159 --> 00:00:49,600 Speaker 2: Today, let's get into it for our first. 19 00:00:49,720 --> 00:00:53,680 Speaker 1: Apple has announced a partnership with GPT's creator to bring 20 00:00:53,920 --> 00:00:56,760 Speaker 1: generative AI tools to iPhones as part of their New 21 00:00:56,880 --> 00:01:00,000 Speaker 1: Age of AI, or Apple Intelligence, as they call it. 22 00:01:00,320 --> 00:01:02,560 Speaker 2: No surprise that Eon Musk had a thing or two 23 00:01:02,560 --> 00:01:04,800 Speaker 2: to say about this union. What's going on here? 24 00:01:04,920 --> 00:01:06,880 Speaker 1: Just Apple is, of course, one of the world's most 25 00:01:06,959 --> 00:01:10,720 Speaker 1: valuable tech companies, with evaluation of two point nine trillion 26 00:01:10,880 --> 00:01:11,600 Speaker 1: US dollars. 27 00:01:11,680 --> 00:01:14,759 Speaker 2: It started back in nineteen seventy six with a handbuilt 28 00:01:14,760 --> 00:01:17,959 Speaker 2: computer that was actually a circuit board minus the keyboard, 29 00:01:18,040 --> 00:01:20,400 Speaker 2: minus the mouse, minus the monitor and the power supply. 30 00:01:20,640 --> 00:01:24,400 Speaker 1: But today Apple's an entire ecosystem of tech, hardware and 31 00:01:24,440 --> 00:01:27,959 Speaker 1: software and entertainment, and now it looks like it's finally 32 00:01:28,080 --> 00:01:30,360 Speaker 1: leading into artificial intelligence too. Yeah. 33 00:01:30,400 --> 00:01:32,960 Speaker 2: Apple has announced in its latest conference that it will 34 00:01:32,959 --> 00:01:36,560 Speaker 2: be launching Apple Intelligence, a bunch of generative AI products 35 00:01:36,560 --> 00:01:38,119 Speaker 2: and services to its devices. 36 00:01:38,160 --> 00:01:40,720 Speaker 1: We're talking things like turning your sketches on your Notes 37 00:01:40,760 --> 00:01:42,800 Speaker 1: app into clear images. 38 00:01:42,360 --> 00:01:46,280 Speaker 2: Or automatically recording and transcribing audio including phone calls. 39 00:01:46,400 --> 00:01:49,360 Speaker 1: Kind of creepy, very creepy. And we're talking Siri being 40 00:01:49,360 --> 00:01:52,000 Speaker 1: able to access your texts and your emails to answer 41 00:01:52,120 --> 00:01:54,560 Speaker 1: questions and do simple tasks, also kind of creepy. 42 00:01:55,040 --> 00:01:58,600 Speaker 2: Apple's also announced a partnership with open ai to allow 43 00:01:58,640 --> 00:02:01,760 Speaker 2: its users to integrate the devices would chat GBT, but. 44 00:02:01,720 --> 00:02:04,200 Speaker 1: A she there is one little catch apart from it 45 00:02:04,200 --> 00:02:07,080 Speaker 1: all being very creepy. These features won't work on any 46 00:02:07,120 --> 00:02:09,040 Speaker 1: iPhone older than an iPhone fifteen. 47 00:02:09,440 --> 00:02:12,200 Speaker 2: So with these tech big dogs coming together to bring 48 00:02:12,240 --> 00:02:15,920 Speaker 2: AI to iPhones, we could see the biggest iPhone upgrade 49 00:02:15,919 --> 00:02:17,240 Speaker 2: cycle we've seen so far. 50 00:02:17,360 --> 00:02:19,400 Speaker 1: Interesting, So what is the key learning here? 51 00:02:19,560 --> 00:02:23,040 Speaker 2: The upgrade cycle is a pattern of replacing old technology 52 00:02:23,120 --> 00:02:24,040 Speaker 2: with newer versions. 53 00:02:24,160 --> 00:02:26,440 Speaker 1: Remember seeing the lines outside Apple stores when a new 54 00:02:26,480 --> 00:02:29,320 Speaker 1: iPhone would drop, Well, they might be oh, yeah, come back. 55 00:02:29,520 --> 00:02:32,720 Speaker 2: You see about two hundred and seventy million iPhone users 56 00:02:32,760 --> 00:02:35,639 Speaker 2: haven't upgraded their iPhone in four or more years. 57 00:02:35,400 --> 00:02:37,760 Speaker 1: And that means they're not buying new Apple devices often 58 00:02:37,840 --> 00:02:39,400 Speaker 1: enough for Apple's liking. Yep. 59 00:02:39,440 --> 00:02:42,360 Speaker 2: But as part of this AI update, customers will need 60 00:02:42,400 --> 00:02:45,080 Speaker 2: to upgrade to at least an iPhone fifteen first. 61 00:02:44,840 --> 00:02:47,160 Speaker 1: And there's a good chance they will. In fact, according 62 00:02:47,160 --> 00:02:50,240 Speaker 1: to Apple, more than fifteen percent of the Apple installed 63 00:02:50,240 --> 00:02:53,200 Speaker 1: base is expected to upgrade to the latest iPhone to 64 00:02:53,360 --> 00:02:54,440 Speaker 1: use the AI, and this. 65 00:02:54,440 --> 00:02:57,440 Speaker 2: Could trigger the biggest upgrade cycle since Apple came out 66 00:02:57,440 --> 00:03:00,200 Speaker 2: with the iPhone twelve in twenty twenty, that often five 67 00:03:00,240 --> 00:03:01,040 Speaker 2: G connectivity. 68 00:03:01,160 --> 00:03:04,800 Speaker 1: For our second story, Toyota's reputation just took a fifteen 69 00:03:05,040 --> 00:03:07,280 Speaker 1: billion US dollar hit after it was found to have 70 00:03:07,360 --> 00:03:09,360 Speaker 1: falsified its car safety tests. 71 00:03:09,400 --> 00:03:12,640 Speaker 2: A reliable turder pulling a fast one here, tell me 72 00:03:12,680 --> 00:03:13,160 Speaker 2: what's going on? 73 00:03:13,240 --> 00:03:15,880 Speaker 1: Okay, So, Turda is the Japanese car manufacturer that was 74 00:03:15,880 --> 00:03:18,000 Speaker 1: found in nineteen thirty seven. 75 00:03:17,840 --> 00:03:21,200 Speaker 2: And Turda also owns a Diahatsuit, Lexus and Heino brands, 76 00:03:21,240 --> 00:03:22,959 Speaker 2: as well as twenty percent of Subaru. 77 00:03:23,120 --> 00:03:26,040 Speaker 1: In fact, Toyota is the largest automotive company in the 78 00:03:26,160 --> 00:03:28,200 Speaker 1: whole universe based on vehicle salt. 79 00:03:28,360 --> 00:03:31,640 Speaker 2: Yep, we're talking over ten million vehicle sold in just 80 00:03:31,680 --> 00:03:32,880 Speaker 2: twenty twenty three alone. 81 00:03:32,960 --> 00:03:36,280 Speaker 1: But now Toyota's investors have slammed on the handbreak after 82 00:03:36,320 --> 00:03:40,839 Speaker 1: discovering the Toyota had falsified and mishandled its car safety tests. 83 00:03:40,880 --> 00:03:43,320 Speaker 2: Now floxwam. The good news is if you are cruising 84 00:03:43,320 --> 00:03:45,640 Speaker 2: in a turder, they've promised that the cars are still 85 00:03:45,640 --> 00:03:46,280 Speaker 2: safe to drive. 86 00:03:46,360 --> 00:03:48,360 Speaker 1: But the bad news for Touda was that the share 87 00:03:48,360 --> 00:03:50,920 Speaker 1: price dropped over five percent, which took more than fifteen 88 00:03:51,160 --> 00:03:53,320 Speaker 1: billion US dollars off its market valuation. 89 00:03:53,560 --> 00:03:55,480 Speaker 2: Really taken a hit to their brand equity. 90 00:03:55,520 --> 00:03:57,400 Speaker 1: A yeah, so what is the key learning here? 91 00:03:57,560 --> 00:04:00,360 Speaker 2: Brand equity is the value that a company gained or 92 00:04:00,440 --> 00:04:03,560 Speaker 2: losers from the perception of its brand by its customers, and. 93 00:04:03,520 --> 00:04:06,560 Speaker 1: This perception is based on customers experiences as well as 94 00:04:06,600 --> 00:04:08,400 Speaker 1: the company's reputation in the market. 95 00:04:08,840 --> 00:04:11,720 Speaker 2: Lexis and Tuda were both known as the most reliable 96 00:04:11,760 --> 00:04:14,400 Speaker 2: car brands in the world in twenty twenty three, according 97 00:04:14,400 --> 00:04:15,520 Speaker 2: to Consumer Report, but. 98 00:04:15,480 --> 00:04:18,600 Speaker 1: This safety scandal has caused severe damage shorts brand equity 99 00:04:18,640 --> 00:04:19,480 Speaker 1: in twenty twenty. 100 00:04:19,279 --> 00:04:21,880 Speaker 2: Four, and recovering from such a hit involves not just 101 00:04:21,920 --> 00:04:26,360 Speaker 2: addressing the immediate issues transparently, but also re establishing customer trust. 102 00:04:26,440 --> 00:04:30,520 Speaker 1: Remember diesel GATEHD back in twenty fifteen when Volkswagen manipulated 103 00:04:30,520 --> 00:04:33,440 Speaker 1: their diesel emission results. Oh yeah, after that, their CEO 104 00:04:33,480 --> 00:04:36,279 Speaker 1: stepped down and they sidered a lawsuit fourteen point seven 105 00:04:36,360 --> 00:04:38,280 Speaker 1: billion US dollars and as part of. 106 00:04:38,200 --> 00:04:41,640 Speaker 2: That settlement put ten billion dollars towards repairing or buying 107 00:04:41,680 --> 00:04:43,760 Speaker 2: back polluting Volkswagen vehicles. 108 00:04:43,400 --> 00:04:47,320 Speaker 1: Which has contributed to renewing Volkswagen's brand equity, especially as 109 00:04:47,320 --> 00:04:49,560 Speaker 1: it's now becoming one of the leaders in the shift 110 00:04:49,560 --> 00:04:50,279 Speaker 1: to clean energy. 111 00:04:50,440 --> 00:04:53,880 Speaker 2: For our third and final story, the company behind car 112 00:04:53,960 --> 00:04:57,760 Speaker 2: part retailers Autobarn and Berson has received a takeover bid 113 00:04:57,800 --> 00:05:00,440 Speaker 2: of more than one point eight billion dollars from a 114 00:05:00,480 --> 00:05:01,800 Speaker 2: private equity giant. 115 00:05:01,560 --> 00:05:05,159 Speaker 1: Sounds like a very opportunistic of EHD. So tell me everything. 116 00:05:05,240 --> 00:05:07,520 Speaker 2: Well, you may not have heard of Bapcore, but they're 117 00:05:07,560 --> 00:05:10,320 Speaker 2: the company behind some of the biggest car part retailers. 118 00:05:10,360 --> 00:05:12,560 Speaker 1: Yeah. They started back in nineteen seventy one when it 119 00:05:12,600 --> 00:05:15,640 Speaker 1: was just persons, but after arrange of acquisitions and sales 120 00:05:15,680 --> 00:05:18,080 Speaker 1: a changed name to babcour in twenty sixteen and. 121 00:05:18,200 --> 00:05:20,440 Speaker 2: Just backcour may not be in a sexy industry, but 122 00:05:20,520 --> 00:05:22,360 Speaker 2: it is a seriously big company. 123 00:05:22,440 --> 00:05:24,680 Speaker 1: Yeah. They're the owner of more than eleven hundred auto 124 00:05:24,760 --> 00:05:27,400 Speaker 1: barn Persons, Midas and Auto pro. 125 00:05:27,360 --> 00:05:30,120 Speaker 2: Stores with over five five hundred employees. 126 00:05:30,240 --> 00:05:33,080 Speaker 1: Actually, over the past twelve months, Bapcoor has been struggling 127 00:05:33,240 --> 00:05:35,080 Speaker 1: more than the engine on my two thousand and nine 128 00:05:35,080 --> 00:05:36,320 Speaker 1: master YEP. 129 00:05:36,360 --> 00:05:39,360 Speaker 2: It suffered the reprofit downgrades in the past twelve months and. 130 00:05:39,279 --> 00:05:41,080 Speaker 1: Then through on top of that, its share price has 131 00:05:41,120 --> 00:05:43,000 Speaker 1: declined more than twenty seven percent too. 132 00:05:43,440 --> 00:05:46,880 Speaker 2: So now Bain Capital, the private equity giant, has swooped 133 00:05:46,920 --> 00:05:49,200 Speaker 2: in with a takeover offer of more than one point 134 00:05:49,279 --> 00:05:50,400 Speaker 2: eight billion. 135 00:05:50,040 --> 00:05:52,560 Speaker 1: Dollars and its values each share at around five dollars 136 00:05:52,640 --> 00:05:55,479 Speaker 1: forty that's still well below the eight dollars that the 137 00:05:55,520 --> 00:05:57,600 Speaker 1: share price was sitting at just over two years ago. 138 00:05:57,800 --> 00:06:00,440 Speaker 2: Seems like beIN trying to turbo charge and under performing 139 00:06:00,480 --> 00:06:01,000 Speaker 2: engine here. 140 00:06:01,440 --> 00:06:02,920 Speaker 1: So what is the key learning here? 141 00:06:03,040 --> 00:06:06,440 Speaker 2: Private equity is all about seeing value where others see challenges. 142 00:06:06,560 --> 00:06:09,200 Speaker 1: Seg that call has all the makings of a very 143 00:06:09,240 --> 00:06:10,200 Speaker 1: successful business. 144 00:06:10,279 --> 00:06:12,680 Speaker 2: They've got a significant presence in the car parts industry 145 00:06:12,680 --> 00:06:13,919 Speaker 2: across Australia. 146 00:06:13,480 --> 00:06:15,640 Speaker 1: We've got strong brand value and they've. 147 00:06:15,480 --> 00:06:18,280 Speaker 2: Got more than twenty five percent market share across Australia. 148 00:06:18,360 --> 00:06:20,839 Speaker 1: Oh and by blah bye, there are twenty million passenger 149 00:06:20,920 --> 00:06:23,800 Speaker 1: vehicles in Australia currently and it's still expected to grow. 150 00:06:23,920 --> 00:06:26,800 Speaker 2: But just Bapcourt doesn't even have a CEO right now. 151 00:06:26,880 --> 00:06:29,479 Speaker 1: So private equity giants like Bank Capital see this as 152 00:06:29,520 --> 00:06:32,720 Speaker 1: an opportunistic buy and we'll try and implement a turnaround, 153 00:06:32,880 --> 00:06:33,160 Speaker 1: you know. 154 00:06:33,320 --> 00:06:36,200 Speaker 2: Change backcourse tires, tweak the engine and maybe change some 155 00:06:36,320 --> 00:06:38,320 Speaker 2: detals before it puts it back on the market at 156 00:06:38,320 --> 00:06:39,039 Speaker 2: a premium. 157 00:06:39,080 --> 00:06:42,159 Speaker 1: Plus. I've ever wondered what you're spending each and every month, Well, 158 00:06:42,200 --> 00:06:43,880 Speaker 1: in the Flux app, we can through that for you. 159 00:06:43,880 --> 00:06:46,559 Speaker 1: In under thirty seconds. It's a three hundred and sixty 160 00:06:46,600 --> 00:06:48,960 Speaker 1: degree view of all your finances in the one spot 161 00:06:49,000 --> 00:06:51,000 Speaker 1: to download the Flux app, check out the budgeting tool 162 00:06:51,000 --> 00:06:52,440 Speaker 1: and it will save the hours of time. 163 00:06:52,560 --> 00:06:54,440 Speaker 2: Thanks for listening, and we'll see you on Friday.