Latest / What the Flux / Aussies pay the “lazy tax” & banks boom | Ryanair trolls Musk | Saks Fifth Avenue files for bankruptcy

Transcript

Aussies pay the “lazy tax” & banks boom | Ryanair trolls Musk | Saks Fifth Avenue files for bankruptcy · What the Flux

• 0:05
  Speaker 1: This is what the Flux. I'm Brett and I'm justin
• 0:08
  Speaker 1: As Friday, the twenty third January, Dozy boy. Every year
• 0:10
  Speaker 1: we have the great debate property or shares, bricks or tickers. Well,
• 0:14
  Speaker 1: the twenty twenty five score card is in and propertly
• 0:16
  Speaker 1: just got its neck over the line or its fatality.
• 0:19
  Speaker 1: Across Australia, home values were up eight point six percent
• 0:21
  Speaker 1: last year, while we all odds, which includes the five
• 0:24
  Speaker 1: hundred largest companies missed on the AX, was up seven
• 0:27
  Speaker 1: point one percent. Interesting now, Jazzy boy. It's a brand
• 0:30
  Speaker 1: new year, which means new battle begins. Man speaking of
• 0:32
  Speaker 1: a new year. Every single year, millions of OSSI's look
• 0:35
  Speaker 1: to find the most efficient and smartest way to use
• 0:38
  Speaker 1: their annually. Well in the Flux app today, we've broken
• 0:41
  Speaker 1: down the best way that you can turn twenty days
• 0:43
  Speaker 1: of annually into more than fifty days of holidays across
• 0:47
  Speaker 1: twenty twenty six. Do you want to learn how to
• 0:48
  Speaker 1: maximize your annually? Make sure to download the Flux app
• 0:50
  Speaker 1: and check it out three liberating stories today, Juzzy boy,
• 0:53
  Speaker 1: let's do it for our first. Australia's biggest banks are
• 0:56
  Speaker 1: quietly making billions from zero interest accounts. As Ossie cussustomers
• 1:00
  Speaker 1: pay the lazy tax or guilty of this at some point,
• 1:02
  Speaker 1: b man, So tell me what's going on here? So Josie, wait,
• 1:05
  Speaker 1: we all know the big four banks here in Australia.
• 1:07
  Speaker 1: There's your combanks, you nabs us packs, the ANZ ed's
• 1:09
  Speaker 1: love them or hate them or just tolerate them. They
• 1:12
  Speaker 1: happen to be considered the most profitable banks in the world.
• 1:14
  Speaker 1: And now, be man. It's been revealed the Big four
• 1:16
  Speaker 1: are sitting on more than three hundred and twenty billion
• 1:19
  Speaker 1: dollars in transaction and business accounts that are paying drum
• 1:22
  Speaker 1: roll plays zero percent interest to customers. You mean zero zero, yes,
• 1:26
  Speaker 1: zero zero. And these are what analysts politely call lazy deposits.
• 1:30
  Speaker 1: In other words, money is just sitting there doing nothing
• 1:33
  Speaker 1: for you and almost everything for the bank. And be man.
• 1:36
  Speaker 1: These lazy deposits make up almost twenty percent of all
• 1:39
  Speaker 1: deposits across Australian banks. In fact, josiboit Jardin estimates that
• 1:43
  Speaker 1: Combank alone is earning close to five billion dollars a
• 1:46
  Speaker 1: year from the zero interest deposits, which is up nearly
• 1:48
  Speaker 1: four hundred and fifty percent since twenty twenty two. So
• 1:51
  Speaker 1: it's starting to make sense how the banks can continually
• 1:53
  Speaker 1: announce record profits. So what is the key learning here?
• 1:56
  Speaker 1: When people think about bank profits, they usually focus on mortgages,
• 1:59
  Speaker 1: but the real money is often made in deposits. We
• 2:02
  Speaker 1: know the traditional banking business model works. Be Man well,
• 2:05
  Speaker 1: banks raised money as cheaply as possible from customers, then
• 2:07
  Speaker 1: lend it out at higher rates, and that gap between
• 2:10
  Speaker 1: the deposit and the lending is what's called the net
• 2:12
  Speaker 1: interest margin or NIM. The bigger the gap, the bigger
• 2:15
  Speaker 1: the profit. And be Man at zero interest transaction accounts
• 2:17
  Speaker 1: are gold in this model for the banks because they
• 2:19
  Speaker 1: cost the banks almost nothing. And might I remind you
• 2:22
  Speaker 1: that over the past few years, banks have repriced their
• 2:25
  Speaker 1: loans much faster than they have for their deposits, and
• 2:28
  Speaker 1: that means customers cash has been quietly subsidizing the bank's
• 2:31
  Speaker 1: record profits. Combank's record profit of over ten billion dollars
• 2:35
  Speaker 1: in the last financial year and be Man. This explains
• 2:38
  Speaker 1: why banks can report strong earnings even if loan growth slows.
• 2:41
  Speaker 1: And for us humble savers, it's a reminder that where
• 2:44
  Speaker 1: you parker, cash matters just as much as how you
• 2:46
  Speaker 1: borrow it? Mm hmm. For our second story, Ryanair's boss
• 2:49
  Speaker 1: has picked a public fight with Elon Musk and it's
• 2:52
  Speaker 1: turned it into cheaper flights and more bookings. Trap in
• 2:55
  Speaker 1: because this one is turbulent with a site of popcorn.
• 2:58
  Speaker 1: What is happening here? Okay? So most know Ryan Air
• 3:00
  Speaker 1: as Europe's biggest airline. It's famous for its ultra cheap
• 3:04
  Speaker 1: fares and it's no frills flying and let's just say
• 3:06
  Speaker 1: it makes Jetstar feel like a first class lounge. Yep.
• 3:10
  Speaker 1: It's also known for two other things, one having a
• 3:12
  Speaker 1: pretty unhinged social media account and two having a very
• 3:16
  Speaker 1: unhinged CEO named Michael O'Leary who has run Ryan Air
• 3:18
  Speaker 1: for over thirty years, so be man. The drama kicked
• 3:21
  Speaker 1: off when Ryanair said it would not install Elon Musk's
• 3:24
  Speaker 1: Starlink Wi Fi on its planes. That was because it
• 3:27
  Speaker 1: was too expensive and added fuel drag when you install
• 3:29
  Speaker 1: the antennas and all the other equipment. So Elon Musk
• 3:32
  Speaker 1: jumped on X and called O'Leary an insufferable chimp. Next minute,
• 3:37
  Speaker 1: he threatened to buy Ryan Air so that he could
• 3:39
  Speaker 1: fire the quote idiot O'Leary. Most companies would panic, they
• 3:43
  Speaker 1: maybe bring in the lawyers, prepare the carefully worded public
• 3:45
  Speaker 1: statement to de escalate, But rather than back down, Ryanair
• 3:49
  Speaker 1: escalated things with their very own idiot sale. They're offering
• 3:52
  Speaker 1: one hundred thousand seats for twenty US dollars each, well,
• 3:56
  Speaker 1: openly thanking Musk for the free publicity. So good, So
• 4:00
  Speaker 1: what is the learning here? In today's attention economy, outrage
• 4:03
  Speaker 1: is often more powerful and cost effective than traditional advertising.
• 4:07
  Speaker 1: The man. We know that most companies spend millions trying
• 4:09
  Speaker 1: to get noticed, but Ryanair gets it by picking fights,
• 4:12
  Speaker 1: making noise on TikTok, and being completely unapologetic about all
• 4:16
  Speaker 1: of it. Yeah, rhine go's where many other companies are
• 4:18
  Speaker 1: unwilling to go. Yeah. Their strategy to use controversy to
• 4:21
  Speaker 1: gain free publicity is wow. And the logic is that
• 4:24
  Speaker 1: people say the drama, then they google Ryanair and they
• 4:26
  Speaker 1: realize they can get from London to Paris for less
• 4:28
  Speaker 1: than a pub meal, and suddenly their customers yep. In fact,
• 4:32
  Speaker 1: Jusi Boy O'Leary once had a pie thrown at his
• 4:35
  Speaker 1: face by protesters, which is all over the news. Next
• 4:37
  Speaker 1: minute Ryanair's bookings jumped six percent. But this approach certainly
• 4:41
  Speaker 1: wouldn't work for most airlines or companies. Nope, But in
• 4:44
  Speaker 1: this case, the battle with Elon Musk has already seen
• 4:46
  Speaker 1: Ryanair bookings jump three percent and millions clicking through to
• 4:50
  Speaker 1: the idiot sale, So it's fair to say that this
• 4:52
  Speaker 1: is having the exact opposite effect of what Elon would
• 4:55
  Speaker 1: have hoped for. Our third and final story, one of
• 4:57
  Speaker 1: the world's most iconic department stores, Zack's Fifth Avenue, has
• 5:01
  Speaker 1: filed for bankruptcy and left hundreds of fashion brands owed
• 5:04
  Speaker 1: millions of dollars. You never like to see these stories,
• 5:07
  Speaker 1: Jasi boy affects many retailers actually around the world, So
• 5:10
  Speaker 1: tell me more, Okay. So Saxon's Avenue is the iconic
• 5:12
  Speaker 1: New York department store. It's been the go to place
• 5:14
  Speaker 1: for luxury for a lazy one hundred and sixty years.
• 5:17
  Speaker 1: Now get this one. In twenty twenty four, sax paid
• 5:19
  Speaker 1: two point seven billion US dollars to acquire Nieman Marcus
• 5:22
  Speaker 1: to supposedly create a super luxury group. But now the
• 5:26
  Speaker 1: entire group, named SAX Global, has filed for bankruptcy protection
• 5:30
  Speaker 1: in the US all right, Josi, boy, that's quite huge.
• 5:32
  Speaker 1: So what was the reason? In short, the numbers just
• 5:34
  Speaker 1: stopped working, their debts continued to grow while sales continue
• 5:38
  Speaker 1: to fall, and suppliers kept waiting for the money they
• 5:40
  Speaker 1: were owed to come through and waiting and waiting and waiting.
• 5:43
  Speaker 1: In fact, they meant Chanel is owed more than one
• 5:45
  Speaker 1: hundred and thirty six million US dollars by SAX Global.
• 5:47
  Speaker 1: But it ain't just global luxury brands feeling the pain.
• 5:50
  Speaker 1: Also local Australian designers Yep, we'd be talking Camilla as
• 5:54
  Speaker 1: Rebecca Velance Naked Wolf, who are now also oweded billions
• 5:57
  Speaker 1: and very unlikely to recover much, if any of that
• 6:00
  Speaker 1: money and be Man. This collapse is also a bit
• 6:02
  Speaker 1: of a warning shot for our very owned department stores
• 6:04
  Speaker 1: like David Jones and Meyer. Yep, they're desperately trying to
• 6:07
  Speaker 1: reinvent themselves in a world moving rapidly toward direct consumer shopping.
• 6:11
  Speaker 1: So what is the key learning here the department store
• 6:13
  Speaker 1: business model and to what it used to be? In fact,
• 6:16
  Speaker 1: be Man. Over the last two decades, the entire segment
• 6:18
  Speaker 1: has been in a major decline. Juzy way back in
• 6:21
  Speaker 1: the day department stores were the pin up guys and
• 6:23
  Speaker 1: gals of retail. Yeah, but in the US we've seen
• 6:25
  Speaker 1: Barney shut down in twenty nineteen after nearly one hundred
• 6:28
  Speaker 1: years of selling luxury clothes. Also Lord and Taylor after
• 6:31
  Speaker 1: about one hundred and ninety five years, and now sax
• 6:33
  Speaker 1: Global that they man. What's fascinating is the sax Global
• 6:36
  Speaker 1: is still pretty bullish about its prospects for the future,
• 6:39
  Speaker 1: so this looks less like liquidation and more of a
• 6:42
  Speaker 1: financial reset to try and renegotiate contracts and come back.
• 6:45
  Speaker 1: Lena flexam if just one of the best ways to
• 6:47
  Speaker 1: hack your annually this year, well we've got to cover
• 6:50
  Speaker 1: it in the Flux app. Today we break down the
• 6:51
  Speaker 1: best ways to maximize your annually this year. Thanks for
• 6:54
  Speaker 1: listening and we'll see you on Wednesday.