Latest / What the Flux / Virgin Australia overcharges 61,000 customers | Trump's tariff trauma | Canva takes on Microsoft head-first

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Virgin Australia overcharges 61,000 customers | Trump's tariff trauma | Canva takes on Microsoft head-first · What the Flux

• 0:07
  Speaker 1: Just Monday fourteenth of April, Dozy Boyd, the Australian and
• 0:11
  Speaker 1: US share markets have gone from fear to frenzy, to
• 0:13
  Speaker 1: fear and at some point probably frenzy again. But that
• 0:16
  Speaker 1: hasn't stopped Donald Trump tweeting this is a great time
• 0:20
  Speaker 1: to appuye, only hours before pausing the tariffs. There is
• 0:23
  Speaker 1: truly nothing like the President of the USA giving financial
• 0:26
  Speaker 1: advice based on decisions he makes that impact the entire universe.
• 0:30
  Speaker 2: So through nearly half of Australians are watching more than
• 0:33
  Speaker 2: five streaming services a moment. That's according to r mita university,
• 0:37
  Speaker 2: that means on average eighty bucks per month in streaming
• 0:40
  Speaker 2: services alongside every other subscription at flex AM. If you
• 0:43
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• 0:48
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• 0:51
  Speaker 2: you how much is spending per month. To make sure
• 0:53
  Speaker 2: to download the flocks app to check it out.
• 0:54
  Speaker 1: Three revolutionary stories today, Dozy Boyd, Let's do it for
• 0:58
  Speaker 1: our first. Virgin Australia has it admitted to overcharging sixty
• 1:01
  Speaker 1: one thousand customers just as it prepares for an ASEX comeback.
• 1:05
  Speaker 2: Not exactly smooth skies for the big VB man. So
• 1:08
  Speaker 2: what is going on here?
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  Speaker 1: Well, Virgin Australia was founded in two thousand under the
• 1:12
  Speaker 1: name Virgin Blue and is currently owned by private equity
• 1:15
  Speaker 1: giant Bain Capital now be Man. We spoke a few
• 1:18
  Speaker 1: weeks ago about Virgin Australia's major turnaround over the past
• 1:21
  Speaker 1: few years and also how it plans to relist on
• 1:24
  Speaker 1: the ASEX at some stage this year.
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  Speaker 2: But now Virgin Australia revealed it overcharged sixty one thousand
• 1:30
  Speaker 2: of its customers.
• 1:31
  Speaker 1: Yep, it happened when customers made changes to their bookings
• 1:34
  Speaker 1: between April twenty twenty and March of twenty twenty five,
• 1:37
  Speaker 1: and the average.
• 1:38
  Speaker 2: Overcharge per customer was around fifty five bucks.
• 1:41
  Speaker 1: Just enough to buy a week coffee and a soggy
• 1:43
  Speaker 1: sandwich at the terminal.
• 1:45
  Speaker 2: So now be Man, Virgin Australia is contacting all customers
• 1:48
  Speaker 2: who are eligible for refunds, which is around three point
• 1:50
  Speaker 2: four Meal.
• 1:50
  Speaker 1: And Jesse Boy. Any unclaimed refunds will be donated to
• 1:53
  Speaker 1: charity like the Good Corporate Citizen and Virgin Australia well
• 1:56
  Speaker 1: and truly is.
• 1:57
  Speaker 2: And be Man. Virgin Australia's leadership need to put their
• 2:00
  Speaker 2: best foot forward at the moment because they are on
• 2:02
  Speaker 2: the campaign.
• 2:02
  Speaker 1: Trail operation get Virgin Australia back on the ASX.
• 2:06
  Speaker 2: And make ban Capital a tidy profit.
• 2:09
  Speaker 1: So what is the key learning here?
• 2:10
  Speaker 2: When a company's preparing to go public, Everything and anything
• 2:13
  Speaker 2: can influence investor appetite.
• 2:15
  Speaker 1: You see, Juzzy boy, The investor sentiment plays a major
• 2:18
  Speaker 1: role in pricing and demand for the IPO and be Man.
• 2:21
  Speaker 2: While Virgin's overcharging to customers might seem small in isolation,
• 2:24
  Speaker 2: right now, every detail matters.
• 2:26
  Speaker 1: Investors will be looking at whether the company is running
• 2:29
  Speaker 1: a tight ship. They'll be looking at how ethically they
• 2:31
  Speaker 1: run the business and of course whether there are any
• 2:33
  Speaker 1: regulatory issues in the cockpit. Juzzy boy. This ain't the
• 2:36
  Speaker 1: first major company to have a hiccup in the lead
• 2:38
  Speaker 1: up to their big IPO.
• 2:39
  Speaker 2: Remember when Delivery iPod in London with Bikai i Do,
• 2:42
  Speaker 2: and at.
• 2:42
  Speaker 1: The time investors were concerned about how it treated gig workers.
• 2:46
  Speaker 2: It ended up bombing, falling twenty six percent on its
• 2:49
  Speaker 2: share market debut.
• 2:50
  Speaker 1: In fact, it's down fifty five percent since it listed
• 2:52
  Speaker 1: in April twenty twenty one.
• 2:53
  Speaker 2: But be Man. If Virgin shows it's taking customer issues seriously,
• 2:57
  Speaker 2: it might actually help boost their investor confidence. For our
• 3:00
  Speaker 2: second story, Donald Trump's put a ninety day pause on
• 3:02
  Speaker 2: his mega tariffs, but it's largely because the bond market
• 3:05
  Speaker 2: threw a bit of a tantrum.
• 3:07
  Speaker 1: Quite a spanner from Donald J. Trump juzzywork. I'd admit
• 3:09
  Speaker 1: didn't see this on coming. To tell me what's going
• 3:11
  Speaker 1: on here?
• 3:12
  Speaker 2: Okay, so we know Donald Trump was hyping up Liberation
• 3:14
  Speaker 2: Day as the economic equivalent of the Super Bowl.
• 3:16
  Speaker 1: It was supposed to be a major reset to the
• 3:18
  Speaker 1: global economy. But juse way, few investors could imagine the
• 3:21
  Speaker 1: tariffs would be as dramatic as they had been.
• 3:24
  Speaker 2: We know that more than ninety countries were whacked with
• 3:25
  Speaker 2: tariffs between ten percent Hello Australia and one.
• 3:28
  Speaker 1: Hundred and forty five percent Hello to you China.
• 3:31
  Speaker 2: And be Mann. Despite investors begging Trump to consider, he
• 3:34
  Speaker 2: tweeted on truth Social my policies will they ever change?
• 3:37
  Speaker 1: In caps? Except a few days later his policies did
• 3:40
  Speaker 1: in fact change.
• 3:40
  Speaker 2: Yeah, he paused the reciprocal tariffs for ninety days.
• 3:43
  Speaker 1: And we'll only be sticking with the ten percent baseline
• 3:45
  Speaker 1: tariffs for now, except for with China. But interestingly, the
• 3:48
  Speaker 1: major reversal was reportedly because of a selloff in the
• 3:51
  Speaker 1: US bond market.
• 3:52
  Speaker 2: Interesting, so what is the key learning here?
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  Speaker 1: Bonds are financial products where individuals or institutions are even
• 3:58
  Speaker 1: countries lend money to a government or a company in
• 4:01
  Speaker 1: return for a fixed interest and be man In tough
• 4:04
  Speaker 1: economic times, government bonds are generally seen as a safehaor
• 4:07
  Speaker 1: as opposed to the share market or the property market, and.
• 4:10
  Speaker 2: That's because governments are considered less of a risk to default.
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  Speaker 1: When there's a lot of demand for bonds, typically the
• 4:15
  Speaker 1: bond yields i e. The equivalent of an interest rate
• 4:18
  Speaker 1: will drop.
• 4:19
  Speaker 2: But be Man. During the tariff tiff right now, the
• 4:21
  Speaker 2: bond fields were actually rising.
• 4:23
  Speaker 1: And does it wait. That's a pretty big signal that
• 4:25
  Speaker 1: investors not only had little faith in markets, but also
• 4:28
  Speaker 1: little faith in the US government.
• 4:30
  Speaker 2: And be Man. If confidence in bonds drops, it can
• 4:32
  Speaker 2: have a whole lot of flow on effects as well.
• 4:34
  Speaker 1: Interest rates can spike, borrowing costs might rise, and the
• 4:37
  Speaker 1: economy can take a hit.
• 4:38
  Speaker 2: So this just shows how powerful financial markets can be
• 4:41
  Speaker 2: as a political pressure point. For our third and final story,
• 4:44
  Speaker 2: Camber has dropped one of its biggest product updates ever
• 4:47
  Speaker 2: to compete head on with Microsoft's offer suite.
• 4:50
  Speaker 1: Microsoft Excel, having a circular reference meltdown right now, who's
• 4:54
  Speaker 1: with me? What's going on here?
• 4:55
  Speaker 2: Okay? So we know Canber is the design tool to
• 4:57
  Speaker 2: let people design Instagram quotes and wedding invites, and suddenly
• 5:00
  Speaker 2: they call themselves creatives yep. Canvor was founded in Sydney
• 5:04
  Speaker 2: in twenty twelve and has become a darling of the
• 5:06
  Speaker 2: Australian tech scene and Joseboy. While Canvas started as a
• 5:09
  Speaker 2: design software, it's slowly but surely been expanding. Yeah. First
• 5:13
  Speaker 2: it expands it into docks to take on Word and
• 5:15
  Speaker 2: Google Docs.
• 5:15
  Speaker 1: It created presentation in order to take on PowerPoint and
• 5:18
  Speaker 1: Google Slides.
• 5:19
  Speaker 2: And now at an annual product release conference, Canva nound
• 5:22
  Speaker 2: some big news.
• 5:23
  Speaker 1: Well. First, it's annualized recurring revenue tipped over three billion
• 5:27
  Speaker 1: US dollars, up from two and a half bill in
• 5:29
  Speaker 1: October last year.
• 5:30
  Speaker 2: And next it's launching a new rival to you guess,
• 5:33
  Speaker 2: the b Man Excel.
• 5:34
  Speaker 1: Wow and Juzzyboy. Canvor claims this new product doesn't require
• 5:37
  Speaker 1: any formulas and coding.
• 5:39
  Speaker 2: The goal for Canva is to take on the incumbents
• 5:41
  Speaker 2: in the enterprise space.
• 5:42
  Speaker 1: Like Microsoft and Microsoft and Microsoft and Google as well
• 5:47
  Speaker 1: and Jaziboyd. This means that Canva will use both its
• 5:50
  Speaker 1: bottom up and its top down enterprise sales model.
• 5:53
  Speaker 2: So what is the key learning here?
• 5:55
  Speaker 1: Sometimes the best way into a company isn't through the
• 5:57
  Speaker 1: front door, it's through the side window.
• 5:59
  Speaker 2: Now mean, man, we know true. Additionally, enterprise software has
• 6:01
  Speaker 2: been sold using a top down model.
• 6:03
  Speaker 1: That's where a salesperson would buddy up to a decision
• 6:06
  Speaker 1: maker at the top of the company and then roll
• 6:08
  Speaker 1: out the software to the rest of the team whether
• 6:11
  Speaker 1: they liked it or not. But over the past decade,
• 6:13
  Speaker 1: the bottom up sales model has become a very effective
• 6:16
  Speaker 1: way into organizations. With the bottom up model, individual employees
• 6:19
  Speaker 1: start using a tool on their own individually, and then over.
• 6:22
  Speaker 2: Time a good feature spreads organically.
• 6:24
  Speaker 1: Within the company until the business pretty much has to
• 6:26
  Speaker 1: buy a team plan. In fact, Zybok Canva already hit
• 6:30
  Speaker 1: one billion US dollars in annual recurring revenue through this
• 6:33
  Speaker 1: bottom up approach. Before building out their top down approach.
• 6:36
  Speaker 2: But as Canvas heads deeper into enterprise world, it needs
• 6:39
  Speaker 2: to develop a strong top down approach as well. Buck An,
• 6:41
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  Speaker 1: Thanks for listening and we'll see you on Wednesdames