Latest / What the Flux / CBA hit with $7.5 million fine for spamming | Boeing's turbulent path | AusSuper's desperate for AI exposure

Transcript

CBA hit with $7.5 million fine for spamming | Boeing's turbulent path | AusSuper's desperate for AI exposure · What the Flux

• 0:05
  Speaker 1: This is what the Flux. I'm Brett and I'm justin
• 0:07
  Speaker 1: and it's Friday, the eighteenth of October.
• 0:09
  Speaker 2: Super exciting to be here in our new studio at
• 0:12
  Speaker 2: net Wealth HQ. Really fancy stuff around here.
• 0:15
  Speaker 1: I'll like it. Now.
• 0:16
  Speaker 2: Get this. The Australian economy just keeps on keeping on.
• 0:20
  Speaker 2: More than sixty four thousand people found jobs in September,
• 0:23
  Speaker 2: according to the Australian Bureau of Statistics, and now, Juzzy boy,
• 0:27
  Speaker 2: Australian employment growth just hit a sixteen month Hi, man,
• 0:31
  Speaker 2: is there.
• 0:31
  Speaker 1: Any better feeling than walking into the weekend with fifty
• 0:34
  Speaker 1: snackeroonis in your pockets?
• 0:36
  Speaker 2: I'm not sure.
• 0:36
  Speaker 1: Every week we give a fifty bucks for the first
• 0:38
  Speaker 1: person to answer three business questions correctly in our weekly
• 0:41
  Speaker 1: game at quick Sticks. So we make sure to download
• 0:43
  Speaker 1: the Flux app and turn your notifications on three.
• 0:46
  Speaker 2: Splendid stories today, juzzy boy, let's do it for our
• 0:49
  Speaker 2: first combank has been whacked with a seven point five
• 0:53
  Speaker 2: million dollar fine for sending more than one hundred and
• 0:55
  Speaker 2: seventy million emails to customers that did not include the
• 0:59
  Speaker 2: option to unsubscribed.
• 1:01
  Speaker 1: Is there anything worse than a spam emails? That you
• 1:03
  Speaker 1: don't want and can't unsubscribe to, maybe only a reply
• 1:06
  Speaker 1: all email percent by accidents to the whole office. So
• 1:08
  Speaker 1: tell me what's going on here?
• 1:09
  Speaker 2: So Juseway will often speak about Commonwealth Bank of Australia
• 1:12
  Speaker 2: aka Combank aka big e Yellow.
• 1:14
  Speaker 1: Yeah. They're the biggest bank in Australia with over seventeen
• 1:17
  Speaker 1: million customers.
• 1:18
  Speaker 2: And their share price has been bonkers this year as well,
• 1:20
  Speaker 2: up twenty five percent, which is large for a monstrous
• 1:23
  Speaker 2: business like Combank.
• 1:24
  Speaker 1: That the man with all growing businesses comes growing pains,
• 1:27
  Speaker 1: and Combank has had a fair few recently.
• 1:29
  Speaker 2: In May twenty twenty three, Combank paid a three point
• 1:32
  Speaker 2: five to five million dollar fine for sending sixty five
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  Speaker 2: million emails without a working unsubscribe option in the email.
• 1:39
  Speaker 1: That was bad and they've learned.
• 1:40
  Speaker 2: Their lesson right, Well not quite, jusy boy, because Combank
• 1:44
  Speaker 2: has breached the spam rules once again for the second
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  Speaker 2: time in less than eighteen months.
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  Speaker 1: This time is sent more than one hundred and seventy
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  Speaker 1: eight million emails to customers without the necessary option to unsubscribe, and.
• 1:54
  Speaker 2: As a result it has copped a seven point five
• 1:56
  Speaker 2: million dollar fine for its laxness. So I'm wondering over
• 1:59
  Speaker 2: here is the key learning here?
• 2:01
  Speaker 1: The cost of sending emails and texts can be pretty cheap,
• 2:04
  Speaker 1: but the cost of breaching laws is becoming very costly
• 2:06
  Speaker 1: for a company's reputation.
• 2:08
  Speaker 2: Companies with very large databases can send out emails for
• 2:11
  Speaker 2: free at the click of a button.
• 2:12
  Speaker 1: But in Australia we've now got pretty strict laws around
• 2:15
  Speaker 1: spammy emails under the Spam app.
• 2:17
  Speaker 2: Including the fact that customers need to be able to
• 2:19
  Speaker 2: unsubscribe from marketing emails and be man.
• 2:22
  Speaker 1: Because of the ease of sending these emails, AKMA, Australia's
• 2:25
  Speaker 1: Communications and Media Authority, has been actively cracking down on
• 2:28
  Speaker 1: the practice over the past eighteen months.
• 2:30
  Speaker 2: Get this. AKIME is issued more than fifteen million dollars
• 2:32
  Speaker 2: in spam and telemarketing penalties in that period of time.
• 2:35
  Speaker 1: We're talking companies like Ticke, tech opsm Kmart, DoorDash and
• 2:38
  Speaker 1: of course Combank previously.
• 2:40
  Speaker 2: So hopefully Big Yellow has learned its lesson this time,
• 2:43
  Speaker 2: or otherwise the fine might be even juicier.
• 2:46
  Speaker 1: B Man. Before we jump into our second story, we
• 2:49
  Speaker 1: are very excited to be having a quick fireside chat
• 2:51
  Speaker 1: with Brendan Malone the Sea. Your rais Australia's number one
• 2:55
  Speaker 1: micro investment app. Brendan, welcome, thanks justin.
• 2:57
  Speaker 3: Great to be Brent.
• 2:58
  Speaker 2: How are you very well Brendan. Awesome to have you here.
• 3:00
  Speaker 1: And Brendan apparently been a big listener of the pod
• 3:02
  Speaker 1: for a long time.
• 3:03
  Speaker 3: I love it. I love the small It's a bit
• 3:05
  Speaker 3: like a small amount over time that up and you
• 3:07
  Speaker 3: can learn something.
• 3:08
  Speaker 1: Love that, Brendan. We've seen over the last couple of
• 3:10
  Speaker 1: years huge numbers of Australians getting into Etfs've got a
• 3:13
  Speaker 1: fun stat for you, the ETF market group on more
• 3:15
  Speaker 1: than thirty seven percent over the past year. So would
• 3:18
  Speaker 1: love you to give us a quick overview of ETFs
• 3:20
  Speaker 1: and also just why the market is growing so much.
• 3:23
  Speaker 3: I think the easiest way to explain it and boils
• 3:26
  Speaker 3: on from Newcastle. So I explain things as best I
• 3:29
  Speaker 3: can because I I can't expect our customers to understand it.
• 3:32
  Speaker 3: So it's all about diversification the D word. The way
• 3:35
  Speaker 3: I explained it to people, think of the shipping container,
• 3:37
  Speaker 3: open up the doors, throwing a couple of companies, lock
• 3:39
  Speaker 3: it up and there you go. So you're not getting
• 3:41
  Speaker 3: exposure to one you're getting exposure to in the industry,
• 3:44
  Speaker 3: we'll call it a basket of different companies. And that's
• 3:46
  Speaker 3: why there's been very popular over recent years because it
• 3:49
  Speaker 3: creates that diversification and it usually follows an index. It
• 3:52
  Speaker 3: could be the S and P, it could be the
• 3:54
  Speaker 3: NAS deck, it could be Emerging markets over here, or
• 3:57
  Speaker 3: the FANGS or the or cybersecurity and tech and Brenda.
• 4:00
  Speaker 2: And let's talk a little bit about micro investing, which
• 4:02
  Speaker 2: is a little different to direct investing in shares. How
• 4:05
  Speaker 2: do you define what micro investing is?
• 4:07
  Speaker 3: The important part there is that micro investing is that
• 4:10
  Speaker 3: you're fully invested for your five dollars. We can sit
• 4:13
  Speaker 3: there and you know, Jazzi will say, hey, I want
• 4:15
  Speaker 3: a CBA stock or can't afford a whole one at
• 4:17
  Speaker 3: one hundred and forty odd dollars, but you could put
• 4:20
  Speaker 3: ten dollars into CBA, So he gets that fractional portion
• 4:23
  Speaker 3: whatever the ten dollars is the percentage of he gets
• 4:25
  Speaker 3: that ownership of those units. So it gives a lot
• 4:27
  Speaker 3: of Australians or micro investing at that fractionalization level creates
• 4:31
  Speaker 3: everybody to get a flavor of or get the hands
• 4:34
  Speaker 3: into something like an expensive stop CBA or Macora's B too.
• 4:37
  Speaker 1: I've actually been very happy with my raise account. I've
• 4:40
  Speaker 1: been tracking with the Aggressive portfolio. The reason I liked
• 4:42
  Speaker 1: it because they had asex in it had EUROPTF SMP
• 4:45
  Speaker 1: five hundred grown to a few grand just from like
• 4:47
  Speaker 1: the roundups, which I'm pretty happy about. I know that's
• 4:49
  Speaker 1: not the only option. There's quite a few different investment
• 4:51
  Speaker 1: options available.
• 4:52
  Speaker 3: Look, while Jazzy the Aggressive love it, what we're trying
• 4:55
  Speaker 3: to do is break down the various investing. So we've
• 4:56
  Speaker 3: got a conservative to an aggressive and when you look
• 4:59
  Speaker 3: at that, it's just a and it's the diversification or
• 5:01
  Speaker 3: the exposure to what I call classes, whether it's bonds
• 5:05
  Speaker 3: or cash on the left hand side of the conservative
• 5:08
  Speaker 3: up to aggressive.
• 5:09
  Speaker 1: And as there been a standout portfolio over the last
• 5:11
  Speaker 1: twelve twenty four months, the.
• 5:13
  Speaker 3: Most popular things like the Aggressive, but also our social
• 5:16
  Speaker 3: responsible Emerald portfolio on you know, just as a little tidbit.
• 5:19
  Speaker 3: Super Ratings for the second year in a row has
• 5:21
  Speaker 3: rated the Emerald portfolio the number one performing net of
• 5:24
  Speaker 3: fees second financial year in a row.
• 5:26
  Speaker 1: And Brendan I kind of touched on it briefly. But
• 5:29
  Speaker 1: the thing that I love is like I buy a
• 5:30
  Speaker 1: coffee for four dollars, sixty rounds up the extra forty
• 5:33
  Speaker 1: cents to five bucks, so then forty cents goes into
• 5:36
  Speaker 1: my raise account. But how does that work for people?
• 5:38
  Speaker 1: And how have you seen that working successfully?
• 5:40
  Speaker 3: Don't tell them they can't spend, because everybody's going to spend.
• 5:43
  Speaker 3: What roundups does goes. I hope my wife's not listening.
• 5:46
  Speaker 3: She's got a bad habit of spending. But with the
• 5:48
  Speaker 3: round up feature, she's spending and saving at the same time.
• 5:51
  Speaker 3: Or she tells me that she's saving money because she
• 5:53
  Speaker 3: brought it through Razuewards, or she gets the round up.
• 5:55
  Speaker 1: Brendan, great to have you on the pod and if
• 5:57
  Speaker 1: b man it leaves again, then hopefully we can get
• 5:59
  Speaker 1: you to replace it.
• 6:00
  Speaker 2: Yes, sub Brendan inform.
• 6:01
  Speaker 3: Yeah, absolutely, Hey juzzy mate, what's the killing.
• 6:08
  Speaker 1: For our second story? Boeing, the aeroplane manufacturer, is looking
• 6:12
  Speaker 1: to raise twenty five billion US dollars to stabilize its
• 6:15
  Speaker 1: finances After a staff strike and issues with its operations.
• 6:18
  Speaker 2: Boeing has officially hit turbulence. Where's the latest on their
• 6:22
  Speaker 2: flight plan?
• 6:23
  Speaker 1: Good question? We'll be a bit of background. Bows founded
• 6:26
  Speaker 1: back in nineteen sixteen.
• 6:27
  Speaker 2: Now, since then they've become one of the largest aerospace
• 6:30
  Speaker 2: manufacturers in the solar system.
• 6:32
  Speaker 1: We're talking more than ten thousand Boeing built commercial jet
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  Speaker 1: liners in service worldwide.
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  Speaker 2: Otherwise known as almost half the world fleet, and.
• 6:40
  Speaker 1: They're more than six thousand on order right now.
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  Speaker 2: But now, Juzy boy, Boeing is looking to raise as
• 6:44
  Speaker 2: much as twenty five billion dollars through a mix of
• 6:47
  Speaker 2: shares and bond.
• 6:48
  Speaker 1: And what's the reason for this wop and raise.
• 6:50
  Speaker 2: Well, Boeing has been struggling to navigate through some pretty
• 6:53
  Speaker 2: stormy weather.
• 6:54
  Speaker 1: Yeah, we're talking a strike that has stopped production of
• 6:56
  Speaker 1: its planes.
• 6:57
  Speaker 2: Yep, as well as enormous delays in the delivery of
• 6:59
  Speaker 2: planes as well.
• 7:00
  Speaker 1: Yet this some of Boeing's Triple sevens were promised to
• 7:02
  Speaker 1: be delivered to airlines in twenty nineteen. Now they're saying
• 7:05
  Speaker 1: twenty twenty six.
• 7:06
  Speaker 2: So Jazi boy, it's no surprise that the stock has
• 7:08
  Speaker 2: lost more than forty percent in value this year.
• 7:11
  Speaker 1: But be man, despite the fact that Boeing's in a
• 7:13
  Speaker 1: world of pain, Boeing's still confident that will raise the
• 7:15
  Speaker 1: cash to survive and maybe even thrive.
• 7:18
  Speaker 2: So I'm wondering what is the key learning here?
• 7:20
  Speaker 1: In the world of business and finance, some companies are
• 7:23
  Speaker 1: considered too big to fail.
• 7:24
  Speaker 2: Interesting so Boeing's collapse could and would have enormous consequences
• 7:29
  Speaker 2: for the broader economy globally.
• 7:30
  Speaker 1: And be man. The idea of being too big to
• 7:32
  Speaker 1: fail is particularly true for industries critical to national security
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  Speaker 1: and infrastructure like aviation.
• 7:38
  Speaker 2: When these types of companies face challenges, investors often step
• 7:42
  Speaker 2: in to help keep things afloat.
• 7:43
  Speaker 1: Because they know if the company collapses it could hurt
• 7:45
  Speaker 1: everyone even more. And this ain't the first company that
• 7:48
  Speaker 1: has been too big to fail. Remember the GFC back
• 7:50
  Speaker 1: in two thousand and eight.
• 7:51
  Speaker 2: B Man I most certainly do General Motors and Chrysler,
• 7:54
  Speaker 2: the car manufacturers. They were about to go down the gurglar.
• 7:57
  Speaker 1: And the US government swopped in with a thirteen poin
• 8:00
  Speaker 1: four billion US dollar bailout package, and they also bailed
• 8:02
  Speaker 1: at eight banks like JP Morgan Wells Fargo with two
• 8:05
  Speaker 1: hundred and forty five billion US dollars as well.
• 8:07
  Speaker 2: So Jazi boy, when you are too big to fail,
• 8:09
  Speaker 2: you might just find that people are willing to go
• 8:12
  Speaker 2: the extra mile to help you out.
• 8:14
  Speaker 1: For our third and final story, Australian Super, Australia's biggest superfund,
• 8:18
  Speaker 1: is making a two point two billion dollar bet on
• 8:21
  Speaker 1: US data centers and AI.
• 8:22
  Speaker 2: Buzzwords like data centers and AI equal take my money, now,
• 8:28
  Speaker 2: tell me more?
• 8:28
  Speaker 1: Okay. So, Australian Super is an industry superfund. They've got
• 8:31
  Speaker 1: over three hundred and forty billion dollars of retirement savings
• 8:34
  Speaker 1: under their management.
• 8:35
  Speaker 2: And more than three point four million members.
• 8:37
  Speaker 1: Fun fact by man, Australian Super is actually the largest
• 8:39
  Speaker 1: superfund in Australia and the sixteenth largest penchry fund in
• 8:43
  Speaker 1: the whole wide world.
• 8:44
  Speaker 2: That's huge, Jasey boy. But now os super is investing
• 8:46
  Speaker 2: two point two billion dollars into a US data center
• 8:49
  Speaker 2: company named data Bank.
• 8:51
  Speaker 1: In other words, oz s soupers jumping on the bandwagon
• 8:53
  Speaker 1: of the artificial intelligence wave big time.
• 8:55
  Speaker 3: Now.
• 8:55
  Speaker 2: Interestingly, this is O Super's first move into the US
• 8:58
  Speaker 2: data center market.
• 8:59
  Speaker 1: The cup they have invested in Data Bank already has
• 9:01
  Speaker 1: more than sixty five data centers in twenty seven markets,
• 9:04
  Speaker 1: and they plan to use OZ Super's money to finance
• 9:07
  Speaker 1: new sites.
• 9:07
  Speaker 2: There's no denying it. Jazy Boy in this deal enables
• 9:10
  Speaker 2: olsuper to get involved in the frenzy around cloud and
• 9:13
  Speaker 2: AI infrastructure.
• 9:14
  Speaker 1: So what is the key learning here?
• 9:15
  Speaker 2: Competition to invest in data centers is reaching its zenith
• 9:19
  Speaker 2: in twenty twenty four.
• 9:20
  Speaker 1: It's fair to say we are in the Singa market
• 9:22
  Speaker 1: that is desperate to cash in on AI technology.
• 9:25
  Speaker 2: And old oz Super is going all in.
• 9:27
  Speaker 1: Yeah, oz Super bought a minority stake in another company
• 9:30
  Speaker 1: named Vantage Data Centers for two and a half billion.
• 9:32
  Speaker 1: Baccarinis and jaz Boy. It's not just osuper on the hunt,
• 9:35
  Speaker 1: oh No, many large investment firms with an interesting infrastructure
• 9:39
  Speaker 1: and now also hyper focused on data centers, particularly with
• 9:42
  Speaker 1: AI associated with that Bluck Sam. If you want to
• 9:44
  Speaker 1: kick off the weekend on a high with fifty bucks
• 9:46
  Speaker 1: in your front pocket, there's only one way to do it.
• 9:48
  Speaker 1: It's in the Flux app. Make sure you download the
• 9:49
  Speaker 1: Flux app and have your notifications turned on to play
• 9:52
  Speaker 1: quick stix today.
• 9:52
  Speaker 2: Thanks for listening and we'll see you on Monday.