Latest / What the Flux / $1.9 trillion of super makes a big call | OpenAI rolls out ads | Porsche's biggest sales drop in 16 years

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$1.9 trillion of super makes a big call | OpenAI rolls out ads | Porsche's biggest sales drop in 16 years · What the Flux

• 0:05
  Speaker 1: This is what the Flux. I'm Brett and I'm justin
• 0:08
  Speaker 1: a It's Monday, the twenty first of January.
• 0:09
  Speaker 2: Dozy boy, the battle of the wallet continues. We know
• 0:12
  Speaker 2: that kombank has been desperately trying to stop Apple's growth
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  Speaker 2: in the digital wallet space for years. Now. You're pushing
• 0:18
  Speaker 2: the RBA to force Apple to make changes to its
• 0:21
  Speaker 2: payment terms. Watch this space, Sarah reckon to.
• 0:24
  Speaker 1: Big behemoths coming against each other in Australia. It's very juicy,
• 0:27
  Speaker 1: be man. And speaking of things that are very juicy,
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  Speaker 1: twenty twenty five was full of plenty of financial twists
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  Speaker 1: and turns, but there were ten companies that emerged on top.
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  Speaker 1: We break it down in the Flux app with our
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  Speaker 1: finance wraps for twenty twenty five. Who topped the A
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  Speaker 1: six two hundred charts and there was one stand out
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  Speaker 1: industry So if you want to learn more, they shut it,
• 0:46
  Speaker 1: download the Flux app and check it out.
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  Speaker 2: Three refreshing stories today, Juzzy boy, let's do it for
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  Speaker 2: our first. The organization advising one point nine trillion dollars
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  Speaker 2: worth of superannuation money set the stage for twenty twenty six,
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  Speaker 2: and this one is likely to have ripple effects across
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  Speaker 2: all ASX two hundred companies.
• 1:02
  Speaker 1: Tell you what you do not want to mess with
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  Speaker 1: the weight of super in Australia. Be man, so tell
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  Speaker 1: me more.
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  Speaker 2: So, Juzzi boy. The Australian Council of Superannuation Investors, or
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  Speaker 2: AXE as I like to call them. It's not exactly
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  Speaker 2: the sexiest sounding organization, is it.
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  Speaker 1: That is true, but it's an absolute heavyweight when it
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  Speaker 1: comes to super funds in Australia.
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  Speaker 2: In fact, it advises thirty five of the biggest super
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  Speaker 2: funds in Australia on everything from voting advice to how
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  Speaker 2: they should engage with asexis, sid portfolio companies and be man.
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  Speaker 1: These thirty five super funds hold a collective at one
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  Speaker 1: point nine trillion dollars in assets.
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  Speaker 2: Yep, A big fat trillion starting with a T yep,
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  Speaker 2: So be man.
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  Speaker 1: Every two years AXI updates their guidelines to super funds.
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  Speaker 2: And they've just dropped their latest advice.
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  Speaker 1: And let me tell you this is big news because
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  Speaker 1: AXI effectively sets the tone how big super engages with
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  Speaker 1: companies on the asex.
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  Speaker 2: All right, anything juicy to report will be man.
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  Speaker 1: The overall vibe of these guidelines was very different to
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  Speaker 1: previous versions.
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  Speaker 2: Yeah, previous reports focused a lot more on areas like
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  Speaker 2: diversity and culture and ESG is.
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  Speaker 1: This one focused much more on clear business outcomes. So
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  Speaker 1: the focus of super funds in the next couple of
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  Speaker 1: years is likely to shift too.
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  Speaker 2: Interesting, So what's the key learning here?
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  Speaker 1: Over the past decade, corporate governance has become increasingly prescriptive,
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  Speaker 1: but the wins look to be changing YEP.
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  Speaker 2: In the past there have been detailed expectations around diversity,
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  Speaker 2: culture and ESG frameworks, but the man according to AXI,
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  Speaker 2: those issues still matter, but the pendulum is swinging back
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  Speaker 2: towards clear business outcomes YEP. Investors want to know where
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  Speaker 2: the boards are actually protecting shareholder value.
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  Speaker 1: That's why the latest guidelines focus harder on executive.
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  Speaker 2: Pay as well as ensuring that directors have the right
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  Speaker 2: skills that match the company's real challenges, not to mention
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  Speaker 2: a real focus on founder led companies and succession planning
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  Speaker 2: within those companies. And over the past few years we've
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  Speaker 2: seen high profile cases at companies are Quantas and am
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  Speaker 2: Z where poor oversight has destroyed company value.
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  Speaker 1: YEP. Matter remind you b Man at Quantus's sharebright plummeted
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  Speaker 1: thirty three percent in twenty twenty three after all those scandals.
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  Speaker 2: And A and Z share price dropped after their government
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  Speaker 2: bond scandal.
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  Speaker 1: For our second story, open ai is testing ads inside
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  Speaker 1: CHATJPT as it starts to look for a clearer path
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  Speaker 1: to making actual money the world's worst kept secret, juzzy boy,
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  Speaker 1: tell me more. Okay, So, open ai is the company
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  Speaker 1: behind chatch epyt, which is now valued at a casual
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  Speaker 1: five hundred billion US dollars.
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  Speaker 2: You know, that little chatbot that roughly eight hundred million
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  Speaker 2: people use monthly around.
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  Speaker 1: The world, That little thing that helps you write emails,
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  Speaker 1: parking infringement appeals and of course vibe coding as well.
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  Speaker 2: But now open ai has announced it will start testing
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  Speaker 2: ads inside CHATJPT for free tier users.
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  Speaker 1: As well as in its new tier chat jpt Go
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  Speaker 1: as well. So how will it work. Well, ads will
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  Speaker 1: appear at the bottom of conversations, and they're going to
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  Speaker 1: be targeted to the topic that you're discussing with the chatbot,
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  Speaker 1: but supposedly they will clearly be labeled the sponsored The
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  Speaker 1: good news, speed Man, is that higher price plans will
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  Speaker 1: remain ad free for now.
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  Speaker 2: Ooh fun fact for you. J Boy open AI CEO
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  Speaker 2: once said he hates ads and finds mixing ads with
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  Speaker 2: AI uniquely unsettling.
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  Speaker 1: But yes, here we are because somebody's got to pay
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  Speaker 1: the bills for all those data centers.
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  Speaker 2: And this monetization model seems eerily familiar.
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  Speaker 1: So what is the key learning here?
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  Speaker 2: This may be a new technology, but they're using the
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  Speaker 2: same old way of making money.
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  Speaker 1: The old freemium plus ads model, I believe we call
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  Speaker 1: this YEP.
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  Speaker 2: Step one, offer a powerful product for free.
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  Speaker 1: Step two upsell the most engaged users into a paid tier.
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  Speaker 2: Step three monetize the mass audience with ads and the man.
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  Speaker 1: We've seen this model work for years with companies like
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  Speaker 1: Spotify and YouTube.
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  Speaker 2: And more recently with streaming services like Netflix, Disney plus
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  Speaker 2: Amazon Prime.
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  Speaker 1: In fact, a man fifty five percent of new sign
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  Speaker 1: ups to Netflix signed out to their freemium plus ads model.
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  Speaker 2: The logic is pretty done simple. They want to monetize
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  Speaker 2: every user.
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  Speaker 1: You either pay for the product yourself, or you become
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  Speaker 1: the product with your attention.
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  Speaker 2: Or you pay a smaller amount for the product and
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  Speaker 2: still become the product. For our third and final story,
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  Speaker 2: Porsche has suffered its worst sales drop since two thousand
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  Speaker 2: and nine after its reliance on demand from China. He's
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  Speaker 2: really getting tested.
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  Speaker 1: Even the smoothest machines can still be man, So tell
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  Speaker 1: me what's going on here.
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  Speaker 2: So Porsche is the German sports car icon, best known
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  Speaker 2: for the nine to eleven and kN cars.
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  Speaker 1: And the man It's sits under the Volkswagen Group with
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  Speaker 1: brands like Audi and Bentley and obviously Volkswagen as well.
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  Speaker 2: Now, Josey boy, I want to take you back to
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  Speaker 2: two thousand and nine, when the world was hurting from
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  Speaker 2: the global financial crisis. What else was happening back then,
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  Speaker 2: Jussey boy.
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  Speaker 1: I got a feeling that black eyed Peas was actually popular.
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  Speaker 2: I now also at that time, Porsche's deliveries dropped by
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  Speaker 2: about twenty five percent, And now.
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  Speaker 1: In twenty twenty five, sixteen years later, Porsche has suffered
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  Speaker 1: its steepest decline in sales since that very moment.
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  Speaker 2: Yep, Porsche worned that it delivered just under two hundred
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  Speaker 2: and eighty thousand vehicles worldwide in twenty twenty five. And juzyboy,
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  Speaker 2: that's down about ten percent year on year, and China
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  Speaker 2: was the biggest pothole where Porsche's sales dropped twenty six percent.
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  Speaker 2: Check on top of that, Porsche delayed a number of
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  Speaker 2: their electric car launchers.
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  Speaker 1: All in all, this cost the business around one point
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  Speaker 1: eight billion euros in lost earnings.
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  Speaker 2: And these results are really highlighting how such a mega
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  Speaker 2: alliance on one market can or.
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  Speaker 1: Really hurt yep. So what is the key learning here?
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  Speaker 2: Geographic concentration can significantly magnify risk.
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  Speaker 1: Man. We know that China has been the growth engine
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  Speaker 1: for global luxury car makers for more than a decade.
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  Speaker 2: And many of the luxury car makers have invested heavily
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  Speaker 2: in the China middle class and affluent category to grow
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  Speaker 2: their business.
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  Speaker 1: So in that growth engine struggles, the impact is almost immediate.
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  Speaker 1: And what's the reason for this slowdown? Well, there's been
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  Speaker 1: a general drop in demand for luxury cars in China
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  Speaker 1: because of the slowing economy, and there's also heated.
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  Speaker 2: Competition in the electric vehicle market with more EV brands.
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  Speaker 2: Then I've had hot meals.
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  Speaker 1: If it's any comfort for Porsche, it's rivals like BMW
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  Speaker 1: and Mercedes bands have also struggled there. Recently, Yeap BMW's
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  Speaker 1: deliveries in China dropped about twelve and a half percent
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  Speaker 1: in twenty twenty five, mind you, and Mercedes deliveries felled
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  Speaker 1: nineteen percent two.
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  Speaker 2: So it just goes to show you how exposed the
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  Speaker 2: whole sector is to one market, a market that can.
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  Speaker 1: Flip pretty pretty quickly. M Fox. There are a heap
• 6:43
  Speaker 1: of big news stories that happened in twenty twenty five,
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  Speaker 1: RBA cup of cachert gold price surgeres. We have all
• 6:48
  Speaker 1: of the twenty twenty five Finance app in the Flux
• 6:50
  Speaker 1: app today. To make sure to download the Flux app
• 6:53
  Speaker 1: and check it out.
• 6:53
  Speaker 2: Thanks for listening, and we'll see you on Friday.