Latest / What the Flux / RBA lifts rate to 4.10% | Google Maps adds AI to compete with Apple | Peloton pushes into gyms

Transcript

RBA lifts rate to 4.10% | Google Maps adds AI to compete with Apple | Peloton pushes into gyms · 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 Wednesday, the eighteenth of March.
• 0:09
  Speaker 2: Does remember when people thought Apple had officially lost the plot,
• 0:12
  Speaker 2: charging seven hundred and ninety nine dollars for the original
• 0:15
  Speaker 2: AirPods Max I do well hold on to your wallets there,
• 0:18
  Speaker 2: because air Pods Max two have just landed for nine
• 0:21
  Speaker 2: hundred and ninety nine dollars and apparently the extra turn
• 0:24
  Speaker 2: to buckeroun these is because they've sprinkled a bit of
• 0:26
  Speaker 2: AI magic into the headphones. But for one thousand bucks,
• 0:29
  Speaker 2: these headphones should really be answering your emails and reminding
• 0:32
  Speaker 2: you of drig order and cooking you dinner.
• 0:34
  Speaker 1: We're obviously going to be speaking about the RBA cash
• 0:36
  Speaker 1: rate in the pod today, but if you want to
• 0:37
  Speaker 1: even big a deep dive into the cash rate decision,
• 0:40
  Speaker 1: why it happens, and what the RBA considered as part
• 0:43
  Speaker 1: of that, make sure you download the Flux app, where
• 0:45
  Speaker 1: we cover off the RBA cash rate decision from all angles.
• 0:47
  Speaker 1: Sit download the Flux app and check out our latest.
• 0:50
  Speaker 2: Article three huge stories today, Josi boy, let's do it
• 0:53
  Speaker 2: for our first, the RBA has lifted interest rates to
• 0:56
  Speaker 2: four point one percent as war, petrol prices and inflation
• 0:59
  Speaker 2: all collie into a global domino effect.
• 1:02
  Speaker 1: Well, be man, just when you thought the RBA might
• 1:03
  Speaker 1: sit this one out, they have gone and pulled the
• 1:05
  Speaker 1: trigger again.
• 1:06
  Speaker 2: So tell me more, all right. So, the RBA is
• 1:09
  Speaker 2: obviously Australia's central Bank, the bank of all banks and
• 1:12
  Speaker 2: the one for all Australias.
• 1:14
  Speaker 1: Its main goal is to keep inflation stable and the
• 1:16
  Speaker 1: economy on track, and its main lever is to do
• 1:19
  Speaker 1: this by setting the cash rate. And yesterday the Reserve
• 1:22
  Speaker 1: Bank of Australia increased the cash rate b yzero point
• 1:24
  Speaker 1: two five percent.
• 1:25
  Speaker 2: And now we're sitting at a wap in four point
• 1:27
  Speaker 2: one percent cash rate, the same as April last year.
• 1:29
  Speaker 2: And Joe boy, that's two rate hikes in two months,
• 1:32
  Speaker 2: February and March coming in hot.
• 1:34
  Speaker 1: And be man, this decision was pretty tight. Five board
• 1:37
  Speaker 1: members voted for a hike and four voted for a pause,
• 1:40
  Speaker 1: and that means nearly half the board wanted to hold
• 1:42
  Speaker 1: rate steady. Meanwhile, be Man, we know that a war
• 1:44
  Speaker 1: in the Middle East has sent oil prices flying, and
• 1:47
  Speaker 1: that has flowed straight into higher petrol prices in Australia
• 1:50
  Speaker 1: and Jozuboy.
• 1:51
  Speaker 2: Some economists are warning that inflation could jump back above
• 1:54
  Speaker 2: five percent.
• 1:55
  Speaker 1: And be Man, We know that rate hikes can't fix
• 1:57
  Speaker 1: oil sharks, but the RBA is still trying to cool
• 1:59
  Speaker 1: de man across the broader economy.
• 2:01
  Speaker 2: So even though this started with geopolitics, it's ended up
• 2:04
  Speaker 2: hitting your mortgage.
• 2:06
  Speaker 1: So what is the key learning here?
• 2:07
  Speaker 2: The economy runs on a global domino chain and interest
• 2:10
  Speaker 2: rates are the RBA's way of trying to stop it
• 2:13
  Speaker 2: from spiraling.
• 2:14
  Speaker 1: Here's the thing, be Man. Not all inflation is created
• 2:16
  Speaker 1: the same way. Sometimes it comes from demand, like people
• 2:19
  Speaker 1: spending too much money. Sometimes it comes from supply shocks
• 2:22
  Speaker 1: like oil prices spiking, which puts pressure on shipping and
• 2:25
  Speaker 1: logistics and ultimately hits the price of goods on shells.
• 2:28
  Speaker 2: And oil prices have been spiking hard. In fact, oil
• 2:31
  Speaker 2: prices have jumped from around seventy US dollars per barrel
• 2:35
  Speaker 2: to as high as one hundred and sixteen US dollars
• 2:37
  Speaker 2: per barrel.
• 2:37
  Speaker 1: And in Australia, the national average price of petrol has
• 2:40
  Speaker 1: risen seventeen percent. Well, diesel rose nearly sixteen percent in
• 2:43
  Speaker 1: the first week of March.
• 2:44
  Speaker 2: So while the other can't control oil prices, it can
• 2:47
  Speaker 2: try to control how much Australian spent For.
• 2:49
  Speaker 1: Our second story. Google is adding a new AI chatbot
• 2:53
  Speaker 1: to Google Maps in its biggest software update to the
• 2:55
  Speaker 1: product in over a decade.
• 2:57
  Speaker 2: Loving the whispers from you today, Jersey Boy, tell me more.
• 3:00
  Speaker 1: Google Maps is the navigation app that's owned by Alphabet
• 3:02
  Speaker 1: aka the Tech Giant. Formerly known as just Google.
• 3:05
  Speaker 2: Google Maps launched in two thousand and five and has
• 3:08
  Speaker 2: progressively added more features like satellite imagery, street view, and
• 3:12
  Speaker 2: aerial photos. But now it's done playing small yep.
• 3:15
  Speaker 1: Now Google's announced a new AI powered feature called Ask Maps.
• 3:19
  Speaker 2: The idea is that you can ask Google Maps any
• 3:21
  Speaker 2: random question about your surroundings.
• 3:22
  Speaker 1: So instead of just typing cafe and in me, you
• 3:24
  Speaker 1: could ask something like my phone's about to die, where
• 3:27
  Speaker 1: can I charge it?
• 3:27
  Speaker 2: Or where is the nearest public toilet because I am
• 3:30
  Speaker 2: completely busting And.
• 3:31
  Speaker 1: It will look through mapstata, reviews, photos, and even your
• 3:34
  Speaker 1: own search history for an answer.
• 3:36
  Speaker 2: And it's no surprise that this launch comes as competition
• 3:39
  Speaker 2: with Apple Maps really heats up.
• 3:41
  Speaker 1: Can you believe that?
• 3:41
  Speaker 2: Yep?
• 3:42
  Speaker 1: The gap in the number of uses between the two
• 3:43
  Speaker 1: services has been shrinking dramatically in recent.
• 3:46
  Speaker 2: Years, so Google is doubling down on expanding the feature
• 3:49
  Speaker 2: before Apple gets too close for comfort.
• 3:51
  Speaker 1: So what is the key learning here?
• 3:53
  Speaker 2: Big tech companies constantly face a strategic decision do we
• 3:56
  Speaker 2: build new products or do we upgrade our existing ones?
• 3:58
  Speaker 1: Building a new product is likely Google built Gemini. It
• 4:01
  Speaker 1: built the AI chatbot pretty much.
• 4:03
  Speaker 2: From scratch, and we saw a whole range of stuff ups.
• 4:05
  Speaker 1: With this, like the time it failed in a live
• 4:07
  Speaker 1: product launch and alphabet share price plummeted almost eight percent.
• 4:10
  Speaker 2: But feature expansion is when a company improves the quality
• 4:13
  Speaker 2: of its existing feature.
• 4:14
  Speaker 1: And that's exactly what Google's doing here, where it embeds
• 4:16
  Speaker 1: AI into tools that people already use like Maps and
• 4:19
  Speaker 1: Gmail and Docs.
• 4:21
  Speaker 2: All right, And why is this appealing? Because for Google
• 4:23
  Speaker 2: they don't need to find new users. Google Maps already
• 4:26
  Speaker 2: has more than one billion monthly.
• 4:27
  Speaker 1: Users, so by adding AI features to an existing product,
• 4:30
  Speaker 1: it means Google can scale new technology to a massive
• 4:33
  Speaker 1: audience overnight.
• 4:34
  Speaker 2: And hopefully for them, win back some of the users
• 4:36
  Speaker 2: who have converted to Apple Maps.
• 4:38
  Speaker 1: For our third and final story, Peloton is rolling into
• 4:42
  Speaker 1: gyms with new commercial grade bikes and treadmills that tries
• 4:45
  Speaker 1: to go past the at home business that it's built
• 4:47
  Speaker 1: for the last fifteen years.
• 4:49
  Speaker 2: Very interesting whispers. Tell me more about this one.
• 4:51
  Speaker 1: So Peloton is the connected fitness company that was founded
• 4:54
  Speaker 1: in twenty twelve via a Kickstarter campaign. But Josey boy,
• 4:57
  Speaker 1: it really hit peak fame during COVID, didn't it when
• 5:00
  Speaker 1: the world is split into two camps people who were
• 5:02
  Speaker 1: starting with Soudo and Peloton devotees who loved hearing instructors yell,
• 5:06
  Speaker 1: push harder. But since then its share prices plummeted ninety
• 5:09
  Speaker 1: five percent, and it wasn't helped by mister Big who
• 5:12
  Speaker 1: died on a Peloton bike in the.
• 5:13
  Speaker 2: Sex and the City movie And just like that does
• 5:15
  Speaker 2: the boy back. In twenty twenty two, Peloton expanded beyond
• 5:18
  Speaker 2: the at home market, partnering with hotel chains like Hyatt
• 5:21
  Speaker 2: and Hilton to have their bikes and treadmills in the
• 5:23
  Speaker 2: hotel gym. But now Pelotons announced a new commercial series
• 5:26
  Speaker 2: of bikes and treadmills designed specifically for commercial gyms. And
• 5:30
  Speaker 2: this big announcement comes after Peloton's consumer sales remain sluggish.
• 5:34
  Speaker 1: Their overall company revenue fell around three percent last.
• 5:37
  Speaker 2: Quarter, while its commercial unit actually grew about ten percent.
• 5:40
  Speaker 1: And by focusing on its commercial unit now Peloton has
• 5:42
  Speaker 1: managed to significantly grow its total addressable market.
• 5:45
  Speaker 2: Is that right? So what's the key learning here?
• 5:47
  Speaker 1: Total addressable market or TAM is the total revenue opportunity
• 5:50
  Speaker 1: available if a company captured one hundred percent of the
• 5:53
  Speaker 1: demand for its product or service.
• 5:54
  Speaker 2: It answers one big question, how big could this business
• 5:57
  Speaker 2: get if everything went right?
• 5:58
  Speaker 1: Yeah, and originally pelt One's TAM was mostly households that
• 6:02
  Speaker 1: are willing to buy premium home fitness equipment.
• 6:04
  Speaker 2: Which is about twenty two billion US dollars globally in
• 6:06
  Speaker 2: twenty twenty six.
• 6:07
  Speaker 1: But when Peloton starts selling machines to gyms and hotels
• 6:09
  Speaker 1: and corporate wellness centers, the TAM suddenly expands.
• 6:13
  Speaker 2: Another twenty one billion US dollars in market size globally
• 6:15
  Speaker 2: this year, and instead of selling one bike per household,
• 6:18
  Speaker 2: it might sell hundreds of machines to a single gym
• 6:20
  Speaker 2: chain across multiple locations. But boy, just because a market
• 6:25
  Speaker 2: is theoretically worth twenty two billion dollars doesn't mean a
• 6:27
  Speaker 2: company will actually capture that much of it.
• 6:29
  Speaker 1: No, no, no, and that's why investors also look at
• 6:32
  Speaker 1: serviceable addressable market or serviceable obtainable market.
• 6:35
  Speaker 2: And so now Pelosman actually needs to convince those mega
• 6:37
  Speaker 2: jyms to put its bikes on their laws.
• 6:40
  Speaker 1: Fus aam with the cashret jumping point two five percent yesterday,
• 6:43
  Speaker 1: we break down the domino effects have caused the RBA
• 6:47
  Speaker 1: to make this decision. So if you want to learn more,
• 6:49
  Speaker 1: make sure to download the Flux app and check out
• 6:50
  Speaker 1: our
• 6:51
  Speaker 2: Latest Thanks for listening and we'll see you on for
• 6:53
  Speaker 2: Friday