1 00:00:05,280 --> 00:00:07,880 Speaker 1: This is what the Flux. I'm Brett and I'm justin 2 00:00:08,000 --> 00:00:09,760 Speaker 1: a It's Monday, the twenty first of January. 3 00:00:09,840 --> 00:00:12,319 Speaker 2: Dozy boy, the battle of the wallet continues. We know 4 00:00:12,400 --> 00:00:15,200 Speaker 2: that kombank has been desperately trying to stop Apple's growth 5 00:00:15,240 --> 00:00:18,240 Speaker 2: in the digital wallet space for years. Now. You're pushing 6 00:00:18,280 --> 00:00:21,120 Speaker 2: the RBA to force Apple to make changes to its 7 00:00:21,200 --> 00:00:23,919 Speaker 2: payment terms. Watch this space, Sarah reckon to. 8 00:00:24,040 --> 00:00:27,280 Speaker 1: Big behemoths coming against each other in Australia. It's very juicy, 9 00:00:27,320 --> 00:00:30,240 Speaker 1: be man. And speaking of things that are very juicy, 10 00:00:30,320 --> 00:00:33,240 Speaker 1: twenty twenty five was full of plenty of financial twists 11 00:00:33,280 --> 00:00:36,360 Speaker 1: and turns, but there were ten companies that emerged on top. 12 00:00:36,520 --> 00:00:38,360 Speaker 1: We break it down in the Flux app with our 13 00:00:38,440 --> 00:00:40,880 Speaker 1: finance wraps for twenty twenty five. Who topped the A 14 00:00:41,080 --> 00:00:44,040 Speaker 1: six two hundred charts and there was one stand out 15 00:00:44,240 --> 00:00:46,600 Speaker 1: industry So if you want to learn more, they shut it, 16 00:00:46,600 --> 00:00:48,160 Speaker 1: download the Flux app and check it out. 17 00:00:48,200 --> 00:00:51,200 Speaker 2: Three refreshing stories today, Juzzy boy, let's do it for 18 00:00:51,240 --> 00:00:54,800 Speaker 2: our first. The organization advising one point nine trillion dollars 19 00:00:54,840 --> 00:00:58,040 Speaker 2: worth of superannuation money set the stage for twenty twenty six, 20 00:00:58,080 --> 00:01:00,760 Speaker 2: and this one is likely to have ripple effects across 21 00:01:00,800 --> 00:01:02,760 Speaker 2: all ASX two hundred companies. 22 00:01:02,520 --> 00:01:03,960 Speaker 1: Tell you what you do not want to mess with 23 00:01:04,000 --> 00:01:06,440 Speaker 1: the weight of super in Australia. Be man, so tell 24 00:01:06,480 --> 00:01:07,000 Speaker 1: me more. 25 00:01:06,840 --> 00:01:10,280 Speaker 2: So, Juzzi boy. The Australian Council of Superannuation Investors, or 26 00:01:10,319 --> 00:01:12,720 Speaker 2: AXE as I like to call them. It's not exactly 27 00:01:12,800 --> 00:01:14,600 Speaker 2: the sexiest sounding organization, is it. 28 00:01:14,640 --> 00:01:17,240 Speaker 1: That is true, but it's an absolute heavyweight when it 29 00:01:17,280 --> 00:01:18,760 Speaker 1: comes to super funds in Australia. 30 00:01:18,800 --> 00:01:21,080 Speaker 2: In fact, it advises thirty five of the biggest super 31 00:01:21,080 --> 00:01:24,760 Speaker 2: funds in Australia on everything from voting advice to how 32 00:01:24,760 --> 00:01:28,040 Speaker 2: they should engage with asexis, sid portfolio companies and be man. 33 00:01:28,200 --> 00:01:30,720 Speaker 1: These thirty five super funds hold a collective at one 34 00:01:30,720 --> 00:01:33,600 Speaker 1: point nine trillion dollars in assets. 35 00:01:33,200 --> 00:01:35,880 Speaker 2: Yep, A big fat trillion starting with a T yep, 36 00:01:35,880 --> 00:01:36,360 Speaker 2: So be man. 37 00:01:36,400 --> 00:01:40,200 Speaker 1: Every two years AXI updates their guidelines to super funds. 38 00:01:39,840 --> 00:01:41,480 Speaker 2: And they've just dropped their latest advice. 39 00:01:41,560 --> 00:01:43,479 Speaker 1: And let me tell you this is big news because 40 00:01:43,520 --> 00:01:47,200 Speaker 1: AXI effectively sets the tone how big super engages with 41 00:01:47,280 --> 00:01:48,920 Speaker 1: companies on the asex. 42 00:01:48,480 --> 00:01:50,440 Speaker 2: All right, anything juicy to report will be man. 43 00:01:50,560 --> 00:01:53,680 Speaker 1: The overall vibe of these guidelines was very different to 44 00:01:53,760 --> 00:01:54,680 Speaker 1: previous versions. 45 00:01:54,800 --> 00:01:57,360 Speaker 2: Yeah, previous reports focused a lot more on areas like 46 00:01:57,440 --> 00:02:00,200 Speaker 2: diversity and culture and ESG is. 47 00:02:00,200 --> 00:02:03,040 Speaker 1: This one focused much more on clear business outcomes. So 48 00:02:03,120 --> 00:02:04,920 Speaker 1: the focus of super funds in the next couple of 49 00:02:04,960 --> 00:02:06,360 Speaker 1: years is likely to shift too. 50 00:02:06,560 --> 00:02:08,160 Speaker 2: Interesting, So what's the key learning here? 51 00:02:08,240 --> 00:02:12,200 Speaker 1: Over the past decade, corporate governance has become increasingly prescriptive, 52 00:02:12,280 --> 00:02:14,239 Speaker 1: but the wins look to be changing YEP. 53 00:02:14,280 --> 00:02:17,400 Speaker 2: In the past there have been detailed expectations around diversity, 54 00:02:17,440 --> 00:02:20,400 Speaker 2: culture and ESG frameworks, but the man according to AXI, 55 00:02:20,520 --> 00:02:23,320 Speaker 2: those issues still matter, but the pendulum is swinging back 56 00:02:23,400 --> 00:02:26,440 Speaker 2: towards clear business outcomes YEP. Investors want to know where 57 00:02:26,440 --> 00:02:28,639 Speaker 2: the boards are actually protecting shareholder value. 58 00:02:28,639 --> 00:02:32,239 Speaker 1: That's why the latest guidelines focus harder on executive. 59 00:02:31,639 --> 00:02:33,840 Speaker 2: Pay as well as ensuring that directors have the right 60 00:02:33,880 --> 00:02:36,880 Speaker 2: skills that match the company's real challenges, not to mention 61 00:02:37,080 --> 00:02:40,720 Speaker 2: a real focus on founder led companies and succession planning 62 00:02:40,760 --> 00:02:43,079 Speaker 2: within those companies. And over the past few years we've 63 00:02:43,080 --> 00:02:45,639 Speaker 2: seen high profile cases at companies are Quantas and am 64 00:02:45,760 --> 00:02:48,720 Speaker 2: Z where poor oversight has destroyed company value. 65 00:02:48,800 --> 00:02:51,440 Speaker 1: YEP. Matter remind you b Man at Quantus's sharebright plummeted 66 00:02:51,480 --> 00:02:55,200 Speaker 1: thirty three percent in twenty twenty three after all those scandals. 67 00:02:55,120 --> 00:02:57,560 Speaker 2: And A and Z share price dropped after their government 68 00:02:57,720 --> 00:02:58,480 Speaker 2: bond scandal. 69 00:02:58,639 --> 00:03:02,080 Speaker 1: For our second story, open ai is testing ads inside 70 00:03:02,160 --> 00:03:05,200 Speaker 1: CHATJPT as it starts to look for a clearer path 71 00:03:05,280 --> 00:03:08,320 Speaker 1: to making actual money the world's worst kept secret, juzzy boy, 72 00:03:08,360 --> 00:03:10,400 Speaker 1: tell me more. Okay, So, open ai is the company 73 00:03:10,400 --> 00:03:12,920 Speaker 1: behind chatch epyt, which is now valued at a casual 74 00:03:13,000 --> 00:03:14,560 Speaker 1: five hundred billion US dollars. 75 00:03:14,720 --> 00:03:17,040 Speaker 2: You know, that little chatbot that roughly eight hundred million 76 00:03:17,040 --> 00:03:18,480 Speaker 2: people use monthly around. 77 00:03:18,200 --> 00:03:20,920 Speaker 1: The world, That little thing that helps you write emails, 78 00:03:20,919 --> 00:03:23,639 Speaker 1: parking infringement appeals and of course vibe coding as well. 79 00:03:23,680 --> 00:03:26,160 Speaker 2: But now open ai has announced it will start testing 80 00:03:26,200 --> 00:03:29,400 Speaker 2: ads inside CHATJPT for free tier users. 81 00:03:29,040 --> 00:03:31,480 Speaker 1: As well as in its new tier chat jpt Go 82 00:03:31,840 --> 00:03:33,680 Speaker 1: as well. So how will it work. Well, ads will 83 00:03:33,680 --> 00:03:35,880 Speaker 1: appear at the bottom of conversations, and they're going to 84 00:03:35,920 --> 00:03:38,680 Speaker 1: be targeted to the topic that you're discussing with the chatbot, 85 00:03:38,720 --> 00:03:41,600 Speaker 1: but supposedly they will clearly be labeled the sponsored The 86 00:03:41,600 --> 00:03:43,960 Speaker 1: good news, speed Man, is that higher price plans will 87 00:03:43,960 --> 00:03:45,800 Speaker 1: remain ad free for now. 88 00:03:46,040 --> 00:03:48,600 Speaker 2: Ooh fun fact for you. J Boy open AI CEO 89 00:03:48,640 --> 00:03:50,800 Speaker 2: once said he hates ads and finds mixing ads with 90 00:03:50,880 --> 00:03:52,320 Speaker 2: AI uniquely unsettling. 91 00:03:53,080 --> 00:03:55,440 Speaker 1: But yes, here we are because somebody's got to pay 92 00:03:55,440 --> 00:03:56,920 Speaker 1: the bills for all those data centers. 93 00:03:56,960 --> 00:03:59,800 Speaker 2: And this monetization model seems eerily familiar. 94 00:04:00,400 --> 00:04:01,840 Speaker 1: So what is the key learning here? 95 00:04:01,920 --> 00:04:03,800 Speaker 2: This may be a new technology, but they're using the 96 00:04:03,840 --> 00:04:05,680 Speaker 2: same old way of making money. 97 00:04:05,440 --> 00:04:08,160 Speaker 1: The old freemium plus ads model, I believe we call 98 00:04:08,200 --> 00:04:08,640 Speaker 1: this YEP. 99 00:04:08,680 --> 00:04:10,560 Speaker 2: Step one, offer a powerful product for free. 100 00:04:10,560 --> 00:04:13,640 Speaker 1: Step two upsell the most engaged users into a paid tier. 101 00:04:13,760 --> 00:04:16,600 Speaker 2: Step three monetize the mass audience with ads and the man. 102 00:04:16,600 --> 00:04:18,800 Speaker 1: We've seen this model work for years with companies like 103 00:04:18,839 --> 00:04:20,840 Speaker 1: Spotify and YouTube. 104 00:04:20,320 --> 00:04:23,560 Speaker 2: And more recently with streaming services like Netflix, Disney plus 105 00:04:23,600 --> 00:04:24,400 Speaker 2: Amazon Prime. 106 00:04:24,560 --> 00:04:26,680 Speaker 1: In fact, a man fifty five percent of new sign 107 00:04:26,720 --> 00:04:29,719 Speaker 1: ups to Netflix signed out to their freemium plus ads model. 108 00:04:29,760 --> 00:04:32,040 Speaker 2: The logic is pretty done simple. They want to monetize 109 00:04:32,080 --> 00:04:32,640 Speaker 2: every user. 110 00:04:32,880 --> 00:04:34,719 Speaker 1: You either pay for the product yourself, or you become 111 00:04:34,760 --> 00:04:36,240 Speaker 1: the product with your attention. 112 00:04:36,040 --> 00:04:37,719 Speaker 2: Or you pay a smaller amount for the product and 113 00:04:37,760 --> 00:04:41,719 Speaker 2: still become the product. For our third and final story, 114 00:04:41,839 --> 00:04:44,760 Speaker 2: Porsche has suffered its worst sales drop since two thousand 115 00:04:44,760 --> 00:04:47,400 Speaker 2: and nine after its reliance on demand from China. He's 116 00:04:47,480 --> 00:04:48,360 Speaker 2: really getting tested. 117 00:04:49,000 --> 00:04:51,400 Speaker 1: Even the smoothest machines can still be man, So tell 118 00:04:51,400 --> 00:04:52,200 Speaker 1: me what's going on here. 119 00:04:52,240 --> 00:04:54,920 Speaker 2: So Porsche is the German sports car icon, best known 120 00:04:54,960 --> 00:04:57,279 Speaker 2: for the nine to eleven and kN cars. 121 00:04:57,040 --> 00:04:59,159 Speaker 1: And the man It's sits under the Volkswagen Group with 122 00:04:59,200 --> 00:05:02,279 Speaker 1: brands like Audi and Bentley and obviously Volkswagen as well. 123 00:05:02,320 --> 00:05:03,680 Speaker 2: Now, Josey boy, I want to take you back to 124 00:05:03,680 --> 00:05:05,880 Speaker 2: two thousand and nine, when the world was hurting from 125 00:05:05,920 --> 00:05:08,120 Speaker 2: the global financial crisis. What else was happening back then, 126 00:05:08,160 --> 00:05:08,720 Speaker 2: Jussey boy. 127 00:05:08,680 --> 00:05:11,240 Speaker 1: I got a feeling that black eyed Peas was actually popular. 128 00:05:11,360 --> 00:05:14,479 Speaker 2: I now also at that time, Porsche's deliveries dropped by 129 00:05:14,480 --> 00:05:16,200 Speaker 2: about twenty five percent, And now. 130 00:05:16,040 --> 00:05:19,000 Speaker 1: In twenty twenty five, sixteen years later, Porsche has suffered 131 00:05:19,040 --> 00:05:22,000 Speaker 1: its steepest decline in sales since that very moment. 132 00:05:22,360 --> 00:05:25,119 Speaker 2: Yep, Porsche worned that it delivered just under two hundred 133 00:05:25,120 --> 00:05:28,120 Speaker 2: and eighty thousand vehicles worldwide in twenty twenty five. And juzyboy, 134 00:05:28,200 --> 00:05:30,560 Speaker 2: that's down about ten percent year on year, and China 135 00:05:30,800 --> 00:05:34,640 Speaker 2: was the biggest pothole where Porsche's sales dropped twenty six percent. 136 00:05:34,880 --> 00:05:37,000 Speaker 2: Check on top of that, Porsche delayed a number of 137 00:05:37,000 --> 00:05:38,360 Speaker 2: their electric car launchers. 138 00:05:38,440 --> 00:05:40,719 Speaker 1: All in all, this cost the business around one point 139 00:05:40,800 --> 00:05:42,960 Speaker 1: eight billion euros in lost earnings. 140 00:05:43,040 --> 00:05:45,839 Speaker 2: And these results are really highlighting how such a mega 141 00:05:45,880 --> 00:05:47,760 Speaker 2: alliance on one market can or. 142 00:05:47,720 --> 00:05:50,040 Speaker 1: Really hurt yep. So what is the key learning here? 143 00:05:50,120 --> 00:05:53,320 Speaker 2: Geographic concentration can significantly magnify risk. 144 00:05:53,760 --> 00:05:56,000 Speaker 1: Man. We know that China has been the growth engine 145 00:05:56,000 --> 00:05:59,000 Speaker 1: for global luxury car makers for more than a decade. 146 00:05:58,640 --> 00:06:01,200 Speaker 2: And many of the luxury car makers have invested heavily 147 00:06:01,360 --> 00:06:04,440 Speaker 2: in the China middle class and affluent category to grow 148 00:06:04,480 --> 00:06:05,039 Speaker 2: their business. 149 00:06:05,440 --> 00:06:09,000 Speaker 1: So in that growth engine struggles, the impact is almost immediate. 150 00:06:09,200 --> 00:06:11,200 Speaker 1: And what's the reason for this slowdown? Well, there's been 151 00:06:11,240 --> 00:06:13,719 Speaker 1: a general drop in demand for luxury cars in China 152 00:06:13,800 --> 00:06:16,320 Speaker 1: because of the slowing economy, and there's also heated. 153 00:06:16,040 --> 00:06:19,320 Speaker 2: Competition in the electric vehicle market with more EV brands. 154 00:06:19,400 --> 00:06:20,960 Speaker 2: Then I've had hot meals. 155 00:06:21,480 --> 00:06:24,160 Speaker 1: If it's any comfort for Porsche, it's rivals like BMW 156 00:06:24,279 --> 00:06:28,040 Speaker 1: and Mercedes bands have also struggled there. Recently, Yeap BMW's 157 00:06:28,080 --> 00:06:30,400 Speaker 1: deliveries in China dropped about twelve and a half percent 158 00:06:30,440 --> 00:06:33,400 Speaker 1: in twenty twenty five, mind you, and Mercedes deliveries felled 159 00:06:33,480 --> 00:06:34,640 Speaker 1: nineteen percent two. 160 00:06:34,600 --> 00:06:37,560 Speaker 2: So it just goes to show you how exposed the 161 00:06:37,600 --> 00:06:40,240 Speaker 2: whole sector is to one market, a market that can. 162 00:06:40,160 --> 00:06:43,320 Speaker 1: Flip pretty pretty quickly. M Fox. There are a heap 163 00:06:43,360 --> 00:06:45,240 Speaker 1: of big news stories that happened in twenty twenty five, 164 00:06:45,360 --> 00:06:48,400 Speaker 1: RBA cup of cachert gold price surgeres. We have all 165 00:06:48,560 --> 00:06:50,919 Speaker 1: of the twenty twenty five Finance app in the Flux 166 00:06:50,960 --> 00:06:53,000 Speaker 1: app today. To make sure to download the Flux app 167 00:06:53,040 --> 00:06:53,680 Speaker 1: and check it out. 168 00:06:53,720 --> 00:06:56,240 Speaker 2: Thanks for listening, and we'll see you on Friday.