Speaker 1: This is what the Flux. I'm Brett and I'm justin
Speaker 1: and it's Friday, the eighteenth of October.
Speaker 2: Super exciting to be here in our new studio at
Speaker 2: net Wealth HQ. Really fancy stuff around here.
Speaker 1: I'll like it. Now.
Speaker 2: Get this. The Australian economy just keeps on keeping on.
Speaker 2: More than sixty four thousand people found jobs in September,
Speaker 2: according to the Australian Bureau of Statistics, and now, Juzzy boy,
Speaker 2: Australian employment growth just hit a sixteen month Hi, man,
Speaker 2: is there.
Speaker 1: Any better feeling than walking into the weekend with fifty
Speaker 1: snackeroonis in your pockets?
Speaker 2: I'm not sure.
Speaker 1: Every week we give a fifty bucks for the first
Speaker 1: person to answer three business questions correctly in our weekly
Speaker 1: game at quick Sticks. So we make sure to download
Speaker 1: the Flux app and turn your notifications on three.
Speaker 2: Splendid stories today, juzzy boy, let's do it for our
Speaker 2: first combank has been whacked with a seven point five
Speaker 2: million dollar fine for sending more than one hundred and
Speaker 2: seventy million emails to customers that did not include the
Speaker 2: option to unsubscribed.
Speaker 1: Is there anything worse than a spam emails? That you
Speaker 1: don't want and can't unsubscribe to, maybe only a reply
Speaker 1: all email percent by accidents to the whole office. So
Speaker 1: tell me what's going on here?
Speaker 2: So Juseway will often speak about Commonwealth Bank of Australia
Speaker 2: aka Combank aka big e Yellow.
Speaker 1: Yeah. They're the biggest bank in Australia with over seventeen
Speaker 1: million customers.
Speaker 2: And their share price has been bonkers this year as well,
Speaker 2: up twenty five percent, which is large for a monstrous
Speaker 2: business like Combank.
Speaker 1: That the man with all growing businesses comes growing pains,
Speaker 1: and Combank has had a fair few recently.
Speaker 2: In May twenty twenty three, Combank paid a three point
Speaker 2: five to five million dollar fine for sending sixty five
Speaker 2: million emails without a working unsubscribe option in the email.
Speaker 1: That was bad and they've learned.
Speaker 2: Their lesson right, Well not quite, jusy boy, because Combank
Speaker 2: has breached the spam rules once again for the second
Speaker 2: time in less than eighteen months.
Speaker 1: This time is sent more than one hundred and seventy
Speaker 1: eight million emails to customers without the necessary option to unsubscribe, and.
Speaker 2: As a result it has copped a seven point five
Speaker 2: million dollar fine for its laxness. So I'm wondering over
Speaker 2: here is the key learning here?
Speaker 1: The cost of sending emails and texts can be pretty cheap,
Speaker 1: but the cost of breaching laws is becoming very costly
Speaker 1: for a company's reputation.
Speaker 2: Companies with very large databases can send out emails for
Speaker 2: free at the click of a button.
Speaker 1: But in Australia we've now got pretty strict laws around
Speaker 1: spammy emails under the Spam app.
Speaker 2: Including the fact that customers need to be able to
Speaker 2: unsubscribe from marketing emails and be man.
Speaker 1: Because of the ease of sending these emails, AKMA, Australia's
Speaker 1: Communications and Media Authority, has been actively cracking down on
Speaker 1: the practice over the past eighteen months.
Speaker 2: Get this. AKIME is issued more than fifteen million dollars
Speaker 2: in spam and telemarketing penalties in that period of time.
Speaker 1: We're talking companies like Ticke, tech opsm Kmart, DoorDash and
Speaker 1: of course Combank previously.
Speaker 2: So hopefully Big Yellow has learned its lesson this time,
Speaker 2: or otherwise the fine might be even juicier.
Speaker 1: B Man. Before we jump into our second story, we
Speaker 1: are very excited to be having a quick fireside chat
Speaker 1: with Brendan Malone the Sea. Your rais Australia's number one
Speaker 1: micro investment app. Brendan, welcome, thanks justin.
Speaker 3: Great to be Brent.
Speaker 2: How are you very well Brendan. Awesome to have you here.
Speaker 1: And Brendan apparently been a big listener of the pod
Speaker 1: for a long time.
Speaker 3: I love it. I love the small It's a bit
Speaker 3: like a small amount over time that up and you
Speaker 3: can learn something.
Speaker 1: Love that, Brendan. We've seen over the last couple of
Speaker 1: years huge numbers of Australians getting into Etfs've got a
Speaker 1: fun stat for you, the ETF market group on more
Speaker 1: than thirty seven percent over the past year. So would
Speaker 1: love you to give us a quick overview of ETFs
Speaker 1: and also just why the market is growing so much.
Speaker 3: I think the easiest way to explain it and boils
Speaker 3: on from Newcastle. So I explain things as best I
Speaker 3: can because I I can't expect our customers to understand it.
Speaker 3: So it's all about diversification the D word. The way
Speaker 3: I explained it to people, think of the shipping container,
Speaker 3: open up the doors, throwing a couple of companies, lock
Speaker 3: it up and there you go. So you're not getting
Speaker 3: exposure to one you're getting exposure to in the industry,
Speaker 3: we'll call it a basket of different companies. And that's
Speaker 3: why there's been very popular over recent years because it
Speaker 3: creates that diversification and it usually follows an index. It
Speaker 3: could be the S and P, it could be the
Speaker 3: NAS deck, it could be Emerging markets over here, or
Speaker 3: the FANGS or the or cybersecurity and tech and Brenda.
Speaker 2: And let's talk a little bit about micro investing, which
Speaker 2: is a little different to direct investing in shares. How
Speaker 2: do you define what micro investing is?
Speaker 3: The important part there is that micro investing is that
Speaker 3: you're fully invested for your five dollars. We can sit
Speaker 3: there and you know, Jazzi will say, hey, I want
Speaker 3: a CBA stock or can't afford a whole one at
Speaker 3: one hundred and forty odd dollars, but you could put
Speaker 3: ten dollars into CBA, So he gets that fractional portion
Speaker 3: whatever the ten dollars is the percentage of he gets
Speaker 3: that ownership of those units. So it gives a lot
Speaker 3: of Australians or micro investing at that fractionalization level creates
Speaker 3: everybody to get a flavor of or get the hands
Speaker 3: into something like an expensive stop CBA or Macora's B too.
Speaker 1: I've actually been very happy with my raise account. I've
Speaker 1: been tracking with the Aggressive portfolio. The reason I liked
Speaker 1: it because they had asex in it had EUROPTF SMP
Speaker 1: five hundred grown to a few grand just from like
Speaker 1: the roundups, which I'm pretty happy about. I know that's
Speaker 1: not the only option. There's quite a few different investment
Speaker 1: options available.
Speaker 3: Look, while Jazzy the Aggressive love it, what we're trying
Speaker 3: to do is break down the various investing. So we've
Speaker 3: got a conservative to an aggressive and when you look
Speaker 3: at that, it's just a and it's the diversification or
Speaker 3: the exposure to what I call classes, whether it's bonds
Speaker 3: or cash on the left hand side of the conservative
Speaker 3: up to aggressive.
Speaker 1: And as there been a standout portfolio over the last
Speaker 1: twelve twenty four months, the.
Speaker 3: Most popular things like the Aggressive, but also our social
Speaker 3: responsible Emerald portfolio on you know, just as a little tidbit.
Speaker 3: Super Ratings for the second year in a row has
Speaker 3: rated the Emerald portfolio the number one performing net of
Speaker 3: fees second financial year in a row.
Speaker 1: And Brendan I kind of touched on it briefly. But
Speaker 1: the thing that I love is like I buy a
Speaker 1: coffee for four dollars, sixty rounds up the extra forty
Speaker 1: cents to five bucks, so then forty cents goes into
Speaker 1: my raise account. But how does that work for people?
Speaker 1: And how have you seen that working successfully?
Speaker 3: Don't tell them they can't spend, because everybody's going to spend.
Speaker 3: What roundups does goes. I hope my wife's not listening.
Speaker 3: She's got a bad habit of spending. But with the
Speaker 3: round up feature, she's spending and saving at the same time.
Speaker 3: Or she tells me that she's saving money because she
Speaker 3: brought it through Razuewards, or she gets the round up.
Speaker 1: Brendan, great to have you on the pod and if
Speaker 1: b man it leaves again, then hopefully we can get
Speaker 1: you to replace it.
Speaker 2: Yes, sub Brendan inform.
Speaker 3: Yeah, absolutely, Hey juzzy mate, what's the killing.
Speaker 1: For our second story? Boeing, the aeroplane manufacturer, is looking
Speaker 1: to raise twenty five billion US dollars to stabilize its
Speaker 1: finances After a staff strike and issues with its operations.
Speaker 2: Boeing has officially hit turbulence. Where's the latest on their
Speaker 2: flight plan?
Speaker 1: Good question? We'll be a bit of background. Bows founded
Speaker 1: back in nineteen sixteen.
Speaker 2: Now, since then they've become one of the largest aerospace
Speaker 2: manufacturers in the solar system.
Speaker 1: We're talking more than ten thousand Boeing built commercial jet
Speaker 1: liners in service worldwide.
Speaker 2: Otherwise known as almost half the world fleet, and.
Speaker 1: They're more than six thousand on order right now.
Speaker 2: But now, Juzy boy, Boeing is looking to raise as
Speaker 2: much as twenty five billion dollars through a mix of
Speaker 2: shares and bond.
Speaker 1: And what's the reason for this wop and raise.
Speaker 2: Well, Boeing has been struggling to navigate through some pretty
Speaker 2: stormy weather.
Speaker 1: Yeah, we're talking a strike that has stopped production of
Speaker 1: its planes.
Speaker 2: Yep, as well as enormous delays in the delivery of
Speaker 2: planes as well.
Speaker 1: Yet this some of Boeing's Triple sevens were promised to
Speaker 1: be delivered to airlines in twenty nineteen. Now they're saying
Speaker 1: twenty twenty six.
Speaker 2: So Jazi boy, it's no surprise that the stock has
Speaker 2: lost more than forty percent in value this year.
Speaker 1: But be man, despite the fact that Boeing's in a
Speaker 1: world of pain, Boeing's still confident that will raise the
Speaker 1: cash to survive and maybe even thrive.
Speaker 2: So I'm wondering what is the key learning here?
Speaker 1: In the world of business and finance, some companies are
Speaker 1: considered too big to fail.
Speaker 2: Interesting so Boeing's collapse could and would have enormous consequences
Speaker 2: for the broader economy globally.
Speaker 1: And be man. The idea of being too big to
Speaker 1: fail is particularly true for industries critical to national security
Speaker 1: and infrastructure like aviation.
Speaker 2: When these types of companies face challenges, investors often step
Speaker 2: in to help keep things afloat.
Speaker 1: Because they know if the company collapses it could hurt
Speaker 1: everyone even more. And this ain't the first company that
Speaker 1: has been too big to fail. Remember the GFC back
Speaker 1: in two thousand and eight.
Speaker 2: B Man I most certainly do General Motors and Chrysler,
Speaker 2: the car manufacturers. They were about to go down the gurglar.
Speaker 1: And the US government swopped in with a thirteen poin
Speaker 1: four billion US dollar bailout package, and they also bailed
Speaker 1: at eight banks like JP Morgan Wells Fargo with two
Speaker 1: hundred and forty five billion US dollars as well.
Speaker 2: So Jazi boy, when you are too big to fail,
Speaker 2: you might just find that people are willing to go
Speaker 2: the extra mile to help you out.
Speaker 1: For our third and final story, Australian Super, Australia's biggest superfund,
Speaker 1: is making a two point two billion dollar bet on
Speaker 1: US data centers and AI.
Speaker 2: Buzzwords like data centers and AI equal take my money, now,
Speaker 2: tell me more?
Speaker 1: Okay. So, Australian Super is an industry superfund. They've got
Speaker 1: over three hundred and forty billion dollars of retirement savings
Speaker 1: under their management.
Speaker 2: And more than three point four million members.
Speaker 1: Fun fact by man, Australian Super is actually the largest
Speaker 1: superfund in Australia and the sixteenth largest penchry fund in
Speaker 1: the whole wide world.
Speaker 2: That's huge, Jasey boy. But now os super is investing
Speaker 2: two point two billion dollars into a US data center
Speaker 2: company named data Bank.
Speaker 1: In other words, oz s soupers jumping on the bandwagon
Speaker 1: of the artificial intelligence wave big time.
Speaker 3: Now.
Speaker 2: Interestingly, this is O Super's first move into the US
Speaker 2: data center market.
Speaker 1: The cup they have invested in Data Bank already has
Speaker 1: more than sixty five data centers in twenty seven markets,
Speaker 1: and they plan to use OZ Super's money to finance
Speaker 1: new sites.
Speaker 2: There's no denying it. Jazy Boy in this deal enables
Speaker 2: olsuper to get involved in the frenzy around cloud and
Speaker 2: AI infrastructure.
Speaker 1: So what is the key learning here?
Speaker 2: Competition to invest in data centers is reaching its zenith
Speaker 2: in twenty twenty four.
Speaker 1: It's fair to say we are in the Singa market
Speaker 1: that is desperate to cash in on AI technology.
Speaker 2: And old oz Super is going all in.
Speaker 1: Yeah, oz Super bought a minority stake in another company
Speaker 1: named Vantage Data Centers for two and a half billion.
Speaker 1: Baccarinis and jaz Boy. It's not just osuper on the hunt,
Speaker 1: oh No, many large investment firms with an interesting infrastructure
Speaker 1: and now also hyper focused on data centers, particularly with
Speaker 1: AI associated with that Bluck Sam. If you want to
Speaker 1: kick off the weekend on a high with fifty bucks
Speaker 1: in your front pocket, there's only one way to do it.
Speaker 1: It's in the Flux app. Make sure you download the
Speaker 1: Flux app and have your notifications turned on to play
Speaker 1: quick stix today.
Speaker 2: Thanks for listening and we'll see you on Monday.