1 00:00:05,200 --> 00:00:07,760 Speaker 1: This is what the Flux. I'm Brett and I'm Justin 2 00:00:07,800 --> 00:00:09,440 Speaker 1: and it's Wednesday, the eighteenth of March. 3 00:00:09,520 --> 00:00:12,399 Speaker 2: Does remember when people thought Apple had officially lost the plot, 4 00:00:12,520 --> 00:00:15,120 Speaker 2: charging seven hundred and ninety nine dollars for the original 5 00:00:15,120 --> 00:00:18,320 Speaker 2: AirPods Max I do well hold on to your wallets there, 6 00:00:18,360 --> 00:00:21,760 Speaker 2: because air Pods Max two have just landed for nine 7 00:00:21,840 --> 00:00:24,360 Speaker 2: hundred and ninety nine dollars and apparently the extra turn 8 00:00:24,480 --> 00:00:26,479 Speaker 2: to buckeroun these is because they've sprinkled a bit of 9 00:00:26,520 --> 00:00:29,200 Speaker 2: AI magic into the headphones. But for one thousand bucks, 10 00:00:29,240 --> 00:00:32,320 Speaker 2: these headphones should really be answering your emails and reminding 11 00:00:32,360 --> 00:00:34,120 Speaker 2: you of drig order and cooking you dinner. 12 00:00:34,120 --> 00:00:36,000 Speaker 1: We're obviously going to be speaking about the RBA cash 13 00:00:36,040 --> 00:00:37,720 Speaker 1: rate in the pod today, but if you want to 14 00:00:37,760 --> 00:00:40,280 Speaker 1: even big a deep dive into the cash rate decision, 15 00:00:40,479 --> 00:00:43,120 Speaker 1: why it happens, and what the RBA considered as part 16 00:00:43,159 --> 00:00:45,080 Speaker 1: of that, make sure you download the Flux app, where 17 00:00:45,080 --> 00:00:47,800 Speaker 1: we cover off the RBA cash rate decision from all angles. 18 00:00:47,840 --> 00:00:50,280 Speaker 1: Sit download the Flux app and check out our latest. 19 00:00:50,080 --> 00:00:53,360 Speaker 2: Article three huge stories today, Josi boy, let's do it 20 00:00:53,440 --> 00:00:56,120 Speaker 2: for our first, the RBA has lifted interest rates to 21 00:00:56,160 --> 00:00:59,400 Speaker 2: four point one percent as war, petrol prices and inflation 22 00:00:59,560 --> 00:01:01,960 Speaker 2: all collie into a global domino effect. 23 00:01:02,080 --> 00:01:03,960 Speaker 1: Well, be man, just when you thought the RBA might 24 00:01:03,960 --> 00:01:05,679 Speaker 1: sit this one out, they have gone and pulled the 25 00:01:05,680 --> 00:01:06,280 Speaker 1: trigger again. 26 00:01:06,560 --> 00:01:09,039 Speaker 2: So tell me more, all right. So, the RBA is 27 00:01:09,160 --> 00:01:12,360 Speaker 2: obviously Australia's central Bank, the bank of all banks and 28 00:01:12,480 --> 00:01:13,959 Speaker 2: the one for all Australias. 29 00:01:14,319 --> 00:01:16,679 Speaker 1: Its main goal is to keep inflation stable and the 30 00:01:16,720 --> 00:01:19,039 Speaker 1: economy on track, and its main lever is to do 31 00:01:19,120 --> 00:01:21,959 Speaker 1: this by setting the cash rate. And yesterday the Reserve 32 00:01:22,000 --> 00:01:24,280 Speaker 1: Bank of Australia increased the cash rate b yzero point 33 00:01:24,360 --> 00:01:25,160 Speaker 1: two five percent. 34 00:01:25,319 --> 00:01:27,080 Speaker 2: And now we're sitting at a wap in four point 35 00:01:27,120 --> 00:01:29,679 Speaker 2: one percent cash rate, the same as April last year. 36 00:01:29,720 --> 00:01:32,560 Speaker 2: And Joe boy, that's two rate hikes in two months, 37 00:01:32,760 --> 00:01:34,480 Speaker 2: February and March coming in hot. 38 00:01:34,560 --> 00:01:37,199 Speaker 1: And be man, this decision was pretty tight. Five board 39 00:01:37,240 --> 00:01:40,320 Speaker 1: members voted for a hike and four voted for a pause, 40 00:01:40,520 --> 00:01:42,680 Speaker 1: and that means nearly half the board wanted to hold 41 00:01:42,720 --> 00:01:44,920 Speaker 1: rate steady. Meanwhile, be Man, we know that a war 42 00:01:44,959 --> 00:01:47,440 Speaker 1: in the Middle East has sent oil prices flying, and 43 00:01:47,440 --> 00:01:50,400 Speaker 1: that has flowed straight into higher petrol prices in Australia 44 00:01:50,480 --> 00:01:51,000 Speaker 1: and Jozuboy. 45 00:01:51,080 --> 00:01:54,360 Speaker 2: Some economists are warning that inflation could jump back above 46 00:01:54,400 --> 00:01:54,960 Speaker 2: five percent. 47 00:01:55,000 --> 00:01:57,080 Speaker 1: And be Man, We know that rate hikes can't fix 48 00:01:57,120 --> 00:01:59,520 Speaker 1: oil sharks, but the RBA is still trying to cool 49 00:01:59,560 --> 00:02:01,440 Speaker 1: de man across the broader economy. 50 00:02:01,480 --> 00:02:04,320 Speaker 2: So even though this started with geopolitics, it's ended up 51 00:02:04,400 --> 00:02:05,600 Speaker 2: hitting your mortgage. 52 00:02:06,120 --> 00:02:07,520 Speaker 1: So what is the key learning here? 53 00:02:07,560 --> 00:02:10,160 Speaker 2: The economy runs on a global domino chain and interest 54 00:02:10,200 --> 00:02:13,240 Speaker 2: rates are the RBA's way of trying to stop it 55 00:02:13,240 --> 00:02:14,000 Speaker 2: from spiraling. 56 00:02:14,040 --> 00:02:16,840 Speaker 1: Here's the thing, be Man. Not all inflation is created 57 00:02:16,880 --> 00:02:19,320 Speaker 1: the same way. Sometimes it comes from demand, like people 58 00:02:19,400 --> 00:02:22,280 Speaker 1: spending too much money. Sometimes it comes from supply shocks 59 00:02:22,520 --> 00:02:25,160 Speaker 1: like oil prices spiking, which puts pressure on shipping and 60 00:02:25,200 --> 00:02:28,880 Speaker 1: logistics and ultimately hits the price of goods on shells. 61 00:02:28,480 --> 00:02:31,520 Speaker 2: And oil prices have been spiking hard. In fact, oil 62 00:02:31,520 --> 00:02:35,000 Speaker 2: prices have jumped from around seventy US dollars per barrel 63 00:02:35,080 --> 00:02:37,200 Speaker 2: to as high as one hundred and sixteen US dollars 64 00:02:37,200 --> 00:02:38,000 Speaker 2: per barrel. 65 00:02:37,680 --> 00:02:40,480 Speaker 1: And in Australia, the national average price of petrol has 66 00:02:40,560 --> 00:02:43,720 Speaker 1: risen seventeen percent. Well, diesel rose nearly sixteen percent in 67 00:02:43,760 --> 00:02:44,640 Speaker 1: the first week of March. 68 00:02:44,720 --> 00:02:47,400 Speaker 2: So while the other can't control oil prices, it can 69 00:02:47,680 --> 00:02:49,919 Speaker 2: try to control how much Australian spent For. 70 00:02:49,960 --> 00:02:53,200 Speaker 1: Our second story. Google is adding a new AI chatbot 71 00:02:53,240 --> 00:02:55,720 Speaker 1: to Google Maps in its biggest software update to the 72 00:02:55,720 --> 00:02:57,359 Speaker 1: product in over a decade. 73 00:02:57,480 --> 00:02:59,760 Speaker 2: Loving the whispers from you today, Jersey Boy, tell me more. 74 00:03:00,000 --> 00:03:02,920 Speaker 1: Google Maps is the navigation app that's owned by Alphabet 75 00:03:02,960 --> 00:03:05,720 Speaker 1: aka the Tech Giant. Formerly known as just Google. 76 00:03:05,760 --> 00:03:08,440 Speaker 2: Google Maps launched in two thousand and five and has 77 00:03:08,560 --> 00:03:12,160 Speaker 2: progressively added more features like satellite imagery, street view, and 78 00:03:12,200 --> 00:03:14,959 Speaker 2: aerial photos. But now it's done playing small yep. 79 00:03:15,240 --> 00:03:18,920 Speaker 1: Now Google's announced a new AI powered feature called Ask Maps. 80 00:03:19,040 --> 00:03:21,120 Speaker 2: The idea is that you can ask Google Maps any 81 00:03:21,200 --> 00:03:22,720 Speaker 2: random question about your surroundings. 82 00:03:22,720 --> 00:03:24,720 Speaker 1: So instead of just typing cafe and in me, you 83 00:03:24,720 --> 00:03:27,000 Speaker 1: could ask something like my phone's about to die, where 84 00:03:27,000 --> 00:03:27,720 Speaker 1: can I charge it? 85 00:03:27,880 --> 00:03:30,160 Speaker 2: Or where is the nearest public toilet because I am 86 00:03:30,360 --> 00:03:31,880 Speaker 2: completely busting And. 87 00:03:31,840 --> 00:03:34,639 Speaker 1: It will look through mapstata, reviews, photos, and even your 88 00:03:34,639 --> 00:03:36,240 Speaker 1: own search history for an answer. 89 00:03:36,360 --> 00:03:39,600 Speaker 2: And it's no surprise that this launch comes as competition 90 00:03:39,680 --> 00:03:41,120 Speaker 2: with Apple Maps really heats up. 91 00:03:41,120 --> 00:03:41,720 Speaker 1: Can you believe that? 92 00:03:41,800 --> 00:03:42,040 Speaker 2: Yep? 93 00:03:42,080 --> 00:03:43,920 Speaker 1: The gap in the number of uses between the two 94 00:03:43,960 --> 00:03:46,840 Speaker 1: services has been shrinking dramatically in recent. 95 00:03:46,640 --> 00:03:49,400 Speaker 2: Years, so Google is doubling down on expanding the feature 96 00:03:49,440 --> 00:03:51,320 Speaker 2: before Apple gets too close for comfort. 97 00:03:51,800 --> 00:03:53,200 Speaker 1: So what is the key learning here? 98 00:03:53,280 --> 00:03:56,280 Speaker 2: Big tech companies constantly face a strategic decision do we 99 00:03:56,320 --> 00:03:58,720 Speaker 2: build new products or do we upgrade our existing ones? 100 00:03:58,760 --> 00:04:01,320 Speaker 1: Building a new product is likely Google built Gemini. It 101 00:04:01,320 --> 00:04:03,480 Speaker 1: built the AI chatbot pretty much. 102 00:04:03,320 --> 00:04:05,880 Speaker 2: From scratch, and we saw a whole range of stuff ups. 103 00:04:05,680 --> 00:04:07,360 Speaker 1: With this, like the time it failed in a live 104 00:04:07,360 --> 00:04:10,600 Speaker 1: product launch and alphabet share price plummeted almost eight percent. 105 00:04:10,680 --> 00:04:13,120 Speaker 2: But feature expansion is when a company improves the quality 106 00:04:13,120 --> 00:04:14,400 Speaker 2: of its existing feature. 107 00:04:14,120 --> 00:04:16,560 Speaker 1: And that's exactly what Google's doing here, where it embeds 108 00:04:16,600 --> 00:04:19,800 Speaker 1: AI into tools that people already use like Maps and 109 00:04:19,920 --> 00:04:21,000 Speaker 1: Gmail and Docs. 110 00:04:21,080 --> 00:04:23,120 Speaker 2: All right, And why is this appealing? Because for Google 111 00:04:23,160 --> 00:04:26,040 Speaker 2: they don't need to find new users. Google Maps already 112 00:04:26,040 --> 00:04:28,159 Speaker 2: has more than one billion monthly. 113 00:04:27,960 --> 00:04:30,680 Speaker 1: Users, so by adding AI features to an existing product, 114 00:04:30,720 --> 00:04:33,440 Speaker 1: it means Google can scale new technology to a massive 115 00:04:33,480 --> 00:04:34,800 Speaker 1: audience overnight. 116 00:04:34,440 --> 00:04:36,760 Speaker 2: And hopefully for them, win back some of the users 117 00:04:36,760 --> 00:04:38,280 Speaker 2: who have converted to Apple Maps. 118 00:04:38,360 --> 00:04:41,800 Speaker 1: For our third and final story, Peloton is rolling into 119 00:04:42,000 --> 00:04:45,279 Speaker 1: gyms with new commercial grade bikes and treadmills that tries 120 00:04:45,320 --> 00:04:47,800 Speaker 1: to go past the at home business that it's built 121 00:04:47,839 --> 00:04:48,880 Speaker 1: for the last fifteen years. 122 00:04:49,160 --> 00:04:51,320 Speaker 2: Very interesting whispers. Tell me more about this one. 123 00:04:51,520 --> 00:04:54,400 Speaker 1: So Peloton is the connected fitness company that was founded 124 00:04:54,400 --> 00:04:57,440 Speaker 1: in twenty twelve via a Kickstarter campaign. But Josey boy, 125 00:04:57,520 --> 00:05:00,360 Speaker 1: it really hit peak fame during COVID, didn't it when 126 00:05:00,360 --> 00:05:02,480 Speaker 1: the world is split into two camps people who were 127 00:05:02,600 --> 00:05:06,240 Speaker 1: starting with Soudo and Peloton devotees who loved hearing instructors yell, 128 00:05:06,400 --> 00:05:09,919 Speaker 1: push harder. But since then its share prices plummeted ninety 129 00:05:09,920 --> 00:05:11,960 Speaker 1: five percent, and it wasn't helped by mister Big who 130 00:05:12,000 --> 00:05:13,760 Speaker 1: died on a Peloton bike in the. 131 00:05:13,720 --> 00:05:15,720 Speaker 2: Sex and the City movie And just like that does 132 00:05:15,720 --> 00:05:18,320 Speaker 2: the boy back. In twenty twenty two, Peloton expanded beyond 133 00:05:18,320 --> 00:05:21,000 Speaker 2: the at home market, partnering with hotel chains like Hyatt 134 00:05:21,000 --> 00:05:23,400 Speaker 2: and Hilton to have their bikes and treadmills in the 135 00:05:23,440 --> 00:05:26,839 Speaker 2: hotel gym. But now Pelotons announced a new commercial series 136 00:05:26,839 --> 00:05:30,120 Speaker 2: of bikes and treadmills designed specifically for commercial gyms. And 137 00:05:30,200 --> 00:05:34,480 Speaker 2: this big announcement comes after Peloton's consumer sales remain sluggish. 138 00:05:34,720 --> 00:05:37,560 Speaker 1: Their overall company revenue fell around three percent last. 139 00:05:37,400 --> 00:05:40,440 Speaker 2: Quarter, while its commercial unit actually grew about ten percent. 140 00:05:40,160 --> 00:05:42,720 Speaker 1: And by focusing on its commercial unit now Peloton has 141 00:05:42,760 --> 00:05:45,560 Speaker 1: managed to significantly grow its total addressable market. 142 00:05:45,800 --> 00:05:47,400 Speaker 2: Is that right? So what's the key learning here? 143 00:05:47,440 --> 00:05:50,919 Speaker 1: Total addressable market or TAM is the total revenue opportunity 144 00:05:50,960 --> 00:05:53,480 Speaker 1: available if a company captured one hundred percent of the 145 00:05:53,520 --> 00:05:54,880 Speaker 1: demand for its product or service. 146 00:05:54,920 --> 00:05:57,480 Speaker 2: It answers one big question, how big could this business 147 00:05:57,560 --> 00:05:58,800 Speaker 2: get if everything went right? 148 00:05:58,880 --> 00:06:01,960 Speaker 1: Yeah, and originally pelt One's TAM was mostly households that 149 00:06:02,000 --> 00:06:04,680 Speaker 1: are willing to buy premium home fitness equipment. 150 00:06:04,279 --> 00:06:06,560 Speaker 2: Which is about twenty two billion US dollars globally in 151 00:06:06,600 --> 00:06:07,320 Speaker 2: twenty twenty six. 152 00:06:07,360 --> 00:06:09,960 Speaker 1: But when Peloton starts selling machines to gyms and hotels 153 00:06:09,960 --> 00:06:13,560 Speaker 1: and corporate wellness centers, the TAM suddenly expands. 154 00:06:13,040 --> 00:06:15,840 Speaker 2: Another twenty one billion US dollars in market size globally 155 00:06:15,880 --> 00:06:18,600 Speaker 2: this year, and instead of selling one bike per household, 156 00:06:18,640 --> 00:06:20,760 Speaker 2: it might sell hundreds of machines to a single gym 157 00:06:20,839 --> 00:06:25,000 Speaker 2: chain across multiple locations. But boy, just because a market 158 00:06:25,080 --> 00:06:27,760 Speaker 2: is theoretically worth twenty two billion dollars doesn't mean a 159 00:06:27,800 --> 00:06:29,920 Speaker 2: company will actually capture that much of it. 160 00:06:29,960 --> 00:06:32,000 Speaker 1: No, no, no, and that's why investors also look at 161 00:06:32,000 --> 00:06:35,159 Speaker 1: serviceable addressable market or serviceable obtainable market. 162 00:06:35,279 --> 00:06:37,720 Speaker 2: And so now Pelosman actually needs to convince those mega 163 00:06:37,800 --> 00:06:40,200 Speaker 2: jyms to put its bikes on their laws. 164 00:06:40,320 --> 00:06:43,600 Speaker 1: Fus aam with the cashret jumping point two five percent yesterday, 165 00:06:43,720 --> 00:06:46,960 Speaker 1: we break down the domino effects have caused the RBA 166 00:06:47,120 --> 00:06:49,040 Speaker 1: to make this decision. So if you want to learn more, 167 00:06:49,040 --> 00:06:50,880 Speaker 1: make sure to download the Flux app and check out 168 00:06:50,880 --> 00:06:51,000 Speaker 1: our 169 00:06:51,080 --> 00:06:53,160 Speaker 2: Latest Thanks for listening and we'll see you on for 170 00:06:53,279 --> 00:06:53,719 Speaker 2: Friday