Latest / What the Flux / NAB shifts jobs offshore | Aussie investors to join SpaceX | Ferrari's awkward EV launch

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NAB shifts jobs offshore | Aussie investors to join SpaceX | Ferrari's awkward EV launch · What the Flux

• 0:05
  Speaker 1: This is what the Flux.
• 0:06
  Speaker 2: I'm Brett and I'm Justin and it's Friday at twenty
• 0:09
  Speaker 2: seven to May.
• 0:09
  Speaker 1: Good news for your power bill, Juzzy boy at Electricity
• 0:12
  Speaker 1: prices are expected to fall by over ten percent across
• 0:15
  Speaker 1: Australia from July. Of that reason, you ask when your
• 0:18
  Speaker 1: bulls hit a fifty percent share of the crib for
• 0:20
  Speaker 1: the first time ever, which is a record of that
• 0:22
  Speaker 1: and so not even a war in the Middle East
• 0:24
  Speaker 1: could stop it, and a block straight can hurt us.
• 0:27
  Speaker 1: No more be man ever heard of the carry forward rule.
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  Speaker 2: It's a super strategy that most people miss but can
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  Speaker 2: and we break it down in the Flux app the
• 0:42
  Speaker 2: breakdown of what the rule is. To make sure to
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  Speaker 2: download the Flux app and check out the carry Forward Rule.
• 0:46
  Speaker 1: Three marvelous stories today, Juzzy boy, let's still it for
• 0:49
  Speaker 1: our first. NAB is cutting jobs in Australia while hiring
• 0:52
  Speaker 1: up to one thousand new staff in India and Vietnam.
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  Speaker 1: NAB in its cost cutting area here be man, so
• 0:58
  Speaker 1: tell me more so. NAB formerly known as National Australia Bank,
• 1:01
  Speaker 1: is one of Australia's big four banks that's been around
• 1:03
  Speaker 1: since eighteen thirty four.
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  Speaker 2: And b Man now currently employees around thirty eight thousand people,
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  Speaker 2: but announced earlier this year it will be cutting one
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  Speaker 2: hundred and seventy local jobs.
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  Speaker 1: Now Nam has announced plans to hire up to one
• 1:14
  Speaker 1: thousand new jobs. The plot twist is that they're not
• 1:16
  Speaker 1: hiring here in Australia, Officers in Vietnam and India are
• 1:19
  Speaker 1: getting the jobs.
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  Speaker 2: And that's after already doubling its workforce in both countries
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  Speaker 2: over the past three years.
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  Speaker 1: It already has five thousand workers in India and around
• 1:26
  Speaker 1: two thousand in Vietnam. And it's quote Innovation Center, which
• 1:29
  Speaker 1: is code for software engineers, systems, support, IT operations and
• 1:32
  Speaker 1: other skilled tech roles. But does it work? Interestingly, with
• 1:34
  Speaker 1: so much demand for offshore workers in IT, the gaps
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  Speaker 1: closing between labor costs in Australia and in Vietnam or India,
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  Speaker 1: so be man. It seems like these moves are less
• 1:42
  Speaker 1: about the labor costs and more about operational flexibilities.
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  Speaker 2: They call it so what's the key learning here. Operational
• 1:48
  Speaker 2: flexibility is a company's ability to scale its workforce up
• 1:51
  Speaker 2: or down quickly in response to demand fluctuations.
• 1:54
  Speaker 1: Or changing market conditions like AI threatening a major chunk
• 1:58
  Speaker 1: of your workforce. In fact, the Gartner Report warns eighty
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  Speaker 1: percent of the engineering workforce will need to upskill or
• 2:03
  Speaker 1: may risk losing out to the bots and be Man.
• 2:06
  Speaker 1: These offshore roles are typically easier to unwind than the
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  Speaker 1: roles onshore because there are much fewer challenges around labor
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  Speaker 1: laws and unions and redundancy.
• 2:15
  Speaker 2: Costs and be man. Every major Oussie bank has quietly
• 2:17
  Speaker 2: been building this operational flexibility into their business model. Yeah,
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  Speaker 2: CBA has over six seven hundred roles in India, A
• 2:24
  Speaker 2: and Z has nine thousand roles in India and two
• 2:26
  Speaker 2: thousand roles in the Philippines.
• 2:27
  Speaker 1: And now NAB is growing this too. So our banks
• 2:30
  Speaker 1: publicly talk about global talent and innovation hubs, the real
• 2:33
  Speaker 1: strategy might actually be optionality. For our second story, SpaceX
• 2:38
  Speaker 1: has added an Australian retail investment platform to its IPO
• 2:41
  Speaker 1: plans in what could be the biggest i PO in history.
• 2:44
  Speaker 1: I'm just about sick about speaking of Elon Muskin. So
• 2:47
  Speaker 1: SpaceX is already the world's leading and largest private rocket
• 2:51
  Speaker 1: and satellite company, and then it became one of the
• 2:53
  Speaker 1: leading AI companies and also social media companies too. Yes,
• 2:57
  Speaker 1: SpaceX owned Starlink, but also Musk's other companies Xai and
• 3:01
  Speaker 1: x aka Twitter, which had acquired earlier this year, and
• 3:03
  Speaker 1: josey Wo. We've discussed how SpaceX has file to go
• 3:06
  Speaker 1: public later this year in an expected two trillion US
• 3:09
  Speaker 1: dollar IPO, which would be the largest IPO in history,
• 3:12
  Speaker 1: But what nobody was really talking about was that sneaky
• 3:14
  Speaker 1: little detail buried on page two sixty eight of the
• 3:17
  Speaker 1: prospectus YEP, SpaceX is specifically opening the IPO to Australian
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  Speaker 1: retail investors. It also names UK, EU, Canada, Japan and
• 3:25
  Speaker 1: Korea as other countries where retail investors can buy in
• 3:28
  Speaker 1: at the IPO launch. And this basically never happens for
• 3:31
  Speaker 1: a mega global IPO for Australian retail investors, but this
• 3:34
  Speaker 1: time concept has been named as the Australian Retail Broker and.
• 3:37
  Speaker 2: This is all part of SpaceX's eployee to have retail
• 3:40
  Speaker 2: investors as a critical part of SpaceX's IPO, Musk is
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  Speaker 2: going full retail investor fan club perhaps, So what is
• 3:46
  Speaker 2: the key landing here? Institutional investors, you have a company capital,
• 3:49
  Speaker 2: but retail investors, you've a company something harder to buy,
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  Speaker 2: cult level loyalty. When a big company lists on a
• 3:55
  Speaker 2: stock exchange, it typically sells most of its IPO shares
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  Speaker 2: to large institutions.
• 3:59
  Speaker 1: In hedge funds, super funds, big asset managers.
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  Speaker 2: That means they get access to the shares at a
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  Speaker 2: fixed price that's set before trading begins on the exchange.
• 4:06
  Speaker 1: Well, once the stock hits the exchange, supply, demand, hype,
• 4:09
  Speaker 1: panic can all move the price dramatically. But like many things,
• 4:12
  Speaker 1: Elon Mask wants to do this IPO a little differently.
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  Speaker 1: SpaceX is allocating up to thirty percent of its IPO
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  Speaker 1: shares to retail investors.
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  Speaker 2: The standard for a deal of this size is five
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  Speaker 2: to ten percent for retail investors, so it's triple or
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  Speaker 2: six times the typical amount.
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  Speaker 1: And JOSEP. Wait Musk has spent his career deliberately building
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  Speaker 1: a different kind of shareholder base. Yeah, look at Tesla.
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  Speaker 2: It was the most widely held stock on robin Hood
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  Speaker 2: for years, which is all retail investors, and that retail
• 4:36
  Speaker 2: army stuck around who bat earning its controversies, production issues,
• 4:39
  Speaker 2: and Elon tweeting rogue things. So clearly a man Elon
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  Speaker 2: doesn't just want capital, he wants an army of true
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  Speaker 2: believers who will hold onto the SpaceX stock for the
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  Speaker 2: next twenty years.
• 4:48
  Speaker 1: While he tries to build a colony on masks.
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  Speaker 2: For our third and final story, Ferrari has unveiled its
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  Speaker 2: first fully electric car, and its own marketing chief is
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  Speaker 2: telling its loyal customers to please, please, please, do not
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  Speaker 2: buy this car.
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  Speaker 1: It seems like the opposite move to what a CMO
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  Speaker 1: should be doing, so tell me more. Okay, so we know.
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  Speaker 2: Ferrari is the Italian luxury sports car maker with that
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  Speaker 2: horsey logo.
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  Speaker 1: It was found it in nineteen thirty nine and Jazi
• 5:11
  Speaker 1: way Between the car and the Formula One team and
• 5:13
  Speaker 1: the merch it's arguably one of the most iconic brands
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  Speaker 1: on Earth. Ferrari has just launched its first electric vehicle
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  Speaker 1: called the Luce Italian four Lights. We'll set your back
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  Speaker 1: a lazy nine hundred K and it was designed by
• 5:25
  Speaker 1: none other than Johnny.
• 5:26
  Speaker 2: I, the same guy who designed the iPhone, the iMac
• 5:28
  Speaker 2: and basically every Apple product you've ever told yourself that
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  Speaker 2: you need it.
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  Speaker 1: Ferrari's own chief marketing officer described the design as polarizing, and.
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  Speaker 2: The cemo literally said to my petrol heads, please do
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  Speaker 2: not buy the luce.
• 5:39
  Speaker 1: I see the old reverse psychology trick on your customers.
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  Speaker 2: The Ferrari claimed. The goal is to target people who
• 5:44
  Speaker 2: already own an electric vehicle but want a Ferrari.
• 5:47
  Speaker 1: Rather than try to convince petrol heads to go electric.
• 5:49
  Speaker 2: And this is a major brand extension and a major
• 5:52
  Speaker 2: gamble for the world's most famous car company. So what's
• 5:54
  Speaker 2: the key learning here? Brand extension is when a company
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  Speaker 2: tries to stretch its identity into a new category and
• 5:59
  Speaker 2: new order or a product type. But the important part
• 6:02
  Speaker 2: is it needs to do it without losing the magic
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  Speaker 2: of the original brand. Right now, Ferrari's average age client
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  Speaker 2: is fifty two.
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  Speaker 1: And they want to get some younger buyers into the
• 6:10
  Speaker 1: customer base. And I must say the timing is a
• 6:12
  Speaker 1: little bit interesting.
• 6:14
  Speaker 2: Yep, I might remind you of a man. In February
• 6:16
  Speaker 2: this year, Ferrari's rival Lamborghini abandoned its whole EV strategy.
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  Speaker 1: And Jaguar has received a heap of negative feedback for
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  Speaker 1: its new brand and EV cars too, and they suffered
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  Speaker 1: a ninety eight percent drop in sales. So jaziboit Ferrari
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  Speaker 1: originally planned for forty percent of models to be electric
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  Speaker 1: by twenty thirty, and now the target has been cut
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  Speaker 1: to twenty percent. Resetting expectations sounds like a good move,
• 6:37
  Speaker 1: flux am. If you've heard the term carry fold rule
• 6:39
  Speaker 1: before but you don't quite know what it is, we
• 6:40
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• 6:43
  Speaker 1: we break it down so you can understand what the
• 6:45
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• 6:47
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• 6:48
  Speaker 1: Flux app and check out our latest article. Thanks for
• 6:50
  Speaker 1: listening and we'll see you on Friday.