Australia’s biggest bank is in hot water with the finance sector union for allegedly using “redundancy” as cover to send local jobs offshore.
Netflix just posted record quarterly revenue…but investors still sold off the stock because of its pricey content strategy.
Lovable, the startup helping people build apps without writing code, has cracked unicorn status just 8 months after launch.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:05):
This is what the Flux.
Speaker 2 (00:06):
I'm Brett and I'm Justin and Monday, the twenty first
of July.
Speaker 1 (00:09):
Jesse boy. We've spoken about the downfall of Australian retail
a fair bit over the last few years, and the
pain still keeps coming. And this time it's for Country Road.
Country Road warned that its flagship stores in Sydney will
be closed once the lease is up, and on top
of that, it will look to downsize a whole lot
of other stores as well. Not exactly a vote of
confidence for Country Road and even the retail sector.
Speaker 2 (00:32):
Not at all.
Speaker 1 (00:33):
Man.
Speaker 2 (00:33):
I'll give you a little good news story though I
saved one hundred and fifty bucks last week? Did you
actually thanks to the subscription tracker in the Flux app Now,
Fox Sam, if you want to save money every single
month and identify subscriptions you're paying for but forgotten about,
make sure to download the Flux app and check out
the subscription tracker.
Speaker 1 (00:48):
Three insightful stories today, Juzzy boy, Let's do it for
our first. Australia's biggest bank is in hot water with
the Finance Sector Union for allegedly using quote redundancy as
cover to send local jobs offshore.
Speaker 2 (01:01):
Boiling water alert, bman, So tell me what's going on
with the big yellow well.
Speaker 1 (01:04):
Combank is not just Australia's biggest bank, Juzzy boy, it's
Australia's biggest listed company.
Speaker 2 (01:10):
Yeah, we're talking more than seventeen million Australian customers.
Speaker 1 (01:13):
It has a valuation of three hundred and five billion dollars.
Speaker 2 (01:16):
And to put that into perspective, Febman, because I know
you love your perspective. Its market value is nearly as
big as Westpac, an said and NAB combined.
Speaker 1 (01:23):
But late last week, the Finance Sector Union, or the FSU,
they launched legal action against CBA in the Fair Work Commission.
They alleged that Combank breach its enterprise agreement yep. Last
month it made three hundred and four roles in Australia redundant.
Speaker 2 (01:37):
But the FSU claim that Combank is now hiring for
near identical jobs in India, same job titles, same roles,
different continent.
Speaker 1 (01:45):
The union reckons this was a cost cutting exercise masked
as redundancy and.
Speaker 2 (01:50):
This violates the union agreement.
Speaker 1 (01:52):
But this one ain't over because Combank is refuting all
of those allegations.
Speaker 2 (01:56):
But nothing like a bit of a labor arbitrage for
one of Australia's most profitable companies be Man.
Speaker 1 (02:01):
Yeah, so what is the key learning here?
Speaker 2 (02:02):
Labor arbitrage is the practice of capitalizing on wage differences
between different regions.
Speaker 1 (02:07):
In other words, hiring workers in lower cost countries to
perform the same tasks for less money.
Speaker 2 (02:13):
And while this can make financial sense for a company's
bottom line, it's not a great look, especially when the
company is public, and especially when the company is highly profitable.
Speaker 1 (02:21):
Might I remind you, Juzzy boy that Kombank announced a
six percent rising cash profits to two point six billion
dollars for the March quarter alone. Huge, But b Man,
this is part of a broader plan for combak yeap
Coombank's Indian employee count has almost doubled in the last
two years to over five six hundred hours. So in
CBA's case, moving drops to India will likely save them
(02:41):
tens of millions of dollars, but it also opens them
up to a bit of a legal risk and reputational
risks as well.
Speaker 2 (02:48):
For our second story, Netflix just posted record quarterly revenue,
but investors still sold off the stock because of its
pricey content strategy.
Speaker 1 (02:56):
Grab that popcorn, juzzy boy, and I know you like
popcorn because this one is due see break it down
for me.
Speaker 2 (03:01):
We know the sorry of Netflix started as a DVD
rental service back in ninety seven.
Speaker 1 (03:04):
Grown into the world's biggest subscription video streaming service.
Speaker 2 (03:08):
And now blocking you from sharing your account with friends
and family and foes as well.
Speaker 1 (03:12):
Does wait? Netflix just announced its revenue for the most
recent quarter reached eleven point eight billion US dollary.
Speaker 2 (03:19):
Due we're talking to casual sixteen percent jump in their
quarterly revenue.
Speaker 1 (03:23):
And while Netflix doesn't report on specific subscriber numbers anymore,
its subscribers streamed ninety five billion hours in the first
half of this year.
Speaker 2 (03:32):
That is enough time to watch suits from start to
finish all of the seasons about eighteen million times over.
Speaker 1 (03:37):
But despite these impressive results, Netflix's share price got a
bit of a whack.
Speaker 2 (03:41):
And why is that?
Speaker 1 (03:42):
Well, the Flix warned that their margin is expected to
drop in the second half of this year, and why
is that. The reason for that is because they're spending
big dollars on original content, and despite.
Speaker 2 (03:53):
Them raising their full year revenue forecast, the big budget
series are going to hit their bottom line.
Speaker 1 (03:58):
But Netflix's CFO reckons bilding assets rather than buying them
is the only way forward.
Speaker 2 (04:04):
Interesting, so tell me what is the key Lenie here.
Speaker 1 (04:06):
When you own the show, you don't have to keep
paying to rent someone else's content.
Speaker 2 (04:10):
And that is the big shift that Netflix is making.
Speaker 1 (04:12):
Most streaming platforms start by buying or licensing content.
Speaker 2 (04:16):
They pay big bucks to license popular shows or movies
so they can quickly build a catalog.
Speaker 1 (04:20):
Like when Netflix paid one hundred million dollars to license
Friends for just a year.
Speaker 2 (04:23):
But over time, b Man, that gets really expensive.
Speaker 1 (04:26):
And these licensing deals often come with an expiring day.
Speaker 2 (04:28):
So you're constantly forking out money without building any long
term value, just as foxtell now with all the HBO
shows like Euphoria and House of Dragon waltzing out the
door really got to hurt, but be man. By creating
its own hit shows, Netflix is building a library that
it fully owns.
Speaker 1 (04:44):
Like squid Game, which wracked up one hundred and twenty
two million views in just a few weeks. For our
third and final story, Lovable, the startup helping people build
apps without writing code, has cracked Unicorn status just eight
months after launch, development teams going into survival mode. Tell
me what's going on here? Juzy boy okay?
Speaker 2 (05:02):
So, Lovable is a Swedish AI startup that let's uses
build websites and apps using natural language.
Speaker 1 (05:08):
In other words, you can tell it in plain English
or French or Swedish what kind of app or website
you want?
Speaker 2 (05:13):
Make me a hair salon booking app with blush pink
tones and gentle millennial.
Speaker 1 (05:17):
Energy and boomerooney, It's done.
Speaker 2 (05:19):
The website designed.
Speaker 1 (05:20):
The color palette has been chosen, even the beautiful logo
been made for you, Josie Boy. Lovable only launched in
November last year, but already has two point three million
active users and one hundred and eighty thousand paying subscribers
and probably most excitingly, seventy five million dollars in annual
recurring revenues.
Speaker 2 (05:38):
Not bad for a company with just forty five employees.
Speaker 1 (05:40):
Now, Lovable just raised a whopping two hundred million US
dollars at evaluation of just under two billion US dollars
Unicorn Alert all part of an up and coming group
of vibe coding companies.
Speaker 2 (05:53):
So what is the key learning here?
Speaker 1 (05:55):
Vibe coding is the idea that you don't need to
know how to code, You just need to know what
you want.
Speaker 2 (06:00):
In other words, need to be able to describe your
idea clearly in natural language. But AI can handle the
rest and b man, this shift means way more people
can test ideas and build products and launch.
Speaker 1 (06:09):
Apps as well, and that means AI is shifting the
balance of power from software engineers to entrepreneurs. And clearly, jesyboy,
democratizing software development is a very big business.
Speaker 2 (06:21):
Just last month, AI coding assistant Cursor raised five hundred
million US dollars on a near ten billion US dollar valuation.
Speaker 1 (06:27):
So jaesiboy, the next wave of AI companies are all
about making software more accessible and lovable.
Speaker 2 (06:33):
Is clearly cash here, speaking of aiv man, did you
know our subscription tracker used a little sprinkle of AI
to identify all of your recurring payment black subscriptions here
Netflix to Spotify and shows you how much is spending
each and every month. It can save you hundreds of dollars.
To make sure you've downloaded the flux app and you
connect to your accounts to find all the ways you
can save money.
Speaker 1 (06:53):
Thanks for listening and we'll see you on Wednesday,
This is what the Flux.
Speaker 2 (00:06):
I'm Brett and I'm Justin and Monday, the twenty first
of July.
Speaker 1 (00:09):
Jesse boy. We've spoken about the downfall of Australian retail
a fair bit over the last few years, and the
pain still keeps coming. And this time it's for Country Road.
Country Road warned that its flagship stores in Sydney will
be closed once the lease is up, and on top
of that, it will look to downsize a whole lot
of other stores as well. Not exactly a vote of
confidence for Country Road and even the retail sector.
Speaker 2 (00:32):
Not at all.
Speaker 1 (00:33):
Man.
Speaker 2 (00:33):
I'll give you a little good news story though I
saved one hundred and fifty bucks last week? Did you
actually thanks to the subscription tracker in the Flux app Now,
Fox Sam, if you want to save money every single
month and identify subscriptions you're paying for but forgotten about,
make sure to download the Flux app and check out
the subscription tracker.
Speaker 1 (00:48):
Three insightful stories today, Juzzy boy, Let's do it for
our first. Australia's biggest bank is in hot water with
the Finance Sector Union for allegedly using quote redundancy as
cover to send local jobs offshore.
Speaker 2 (01:01):
Boiling water alert, bman, So tell me what's going on
with the big yellow well.
Speaker 1 (01:04):
Combank is not just Australia's biggest bank, Juzzy boy, it's
Australia's biggest listed company.
Speaker 2 (01:10):
Yeah, we're talking more than seventeen million Australian customers.
Speaker 1 (01:13):
It has a valuation of three hundred and five billion dollars.
Speaker 2 (01:16):
And to put that into perspective, Febman, because I know
you love your perspective. Its market value is nearly as
big as Westpac, an said and NAB combined.
Speaker 1 (01:23):
But late last week, the Finance Sector Union, or the FSU,
they launched legal action against CBA in the Fair Work Commission.
They alleged that Combank breach its enterprise agreement yep. Last
month it made three hundred and four roles in Australia redundant.
Speaker 2 (01:37):
But the FSU claim that Combank is now hiring for
near identical jobs in India, same job titles, same roles,
different continent.
Speaker 1 (01:45):
The union reckons this was a cost cutting exercise masked
as redundancy and.
Speaker 2 (01:50):
This violates the union agreement.
Speaker 1 (01:52):
But this one ain't over because Combank is refuting all
of those allegations.
Speaker 2 (01:56):
But nothing like a bit of a labor arbitrage for
one of Australia's most profitable companies be Man.
Speaker 1 (02:01):
Yeah, so what is the key learning here?
Speaker 2 (02:02):
Labor arbitrage is the practice of capitalizing on wage differences
between different regions.
Speaker 1 (02:07):
In other words, hiring workers in lower cost countries to
perform the same tasks for less money.
Speaker 2 (02:13):
And while this can make financial sense for a company's
bottom line, it's not a great look, especially when the
company is public, and especially when the company is highly profitable.
Speaker 1 (02:21):
Might I remind you, Juzzy boy that Kombank announced a
six percent rising cash profits to two point six billion
dollars for the March quarter alone. Huge, But b Man,
this is part of a broader plan for combak yeap
Coombank's Indian employee count has almost doubled in the last
two years to over five six hundred hours. So in
CBA's case, moving drops to India will likely save them
(02:41):
tens of millions of dollars, but it also opens them
up to a bit of a legal risk and reputational
risks as well.
Speaker 2 (02:48):
For our second story, Netflix just posted record quarterly revenue,
but investors still sold off the stock because of its
pricey content strategy.
Speaker 1 (02:56):
Grab that popcorn, juzzy boy, and I know you like
popcorn because this one is due see break it down
for me.
Speaker 2 (03:01):
We know the sorry of Netflix started as a DVD
rental service back in ninety seven.
Speaker 1 (03:04):
Grown into the world's biggest subscription video streaming service.
Speaker 2 (03:08):
And now blocking you from sharing your account with friends
and family and foes as well.
Speaker 1 (03:12):
Does wait? Netflix just announced its revenue for the most
recent quarter reached eleven point eight billion US dollary.
Speaker 2 (03:19):
Due we're talking to casual sixteen percent jump in their
quarterly revenue.
Speaker 1 (03:23):
And while Netflix doesn't report on specific subscriber numbers anymore,
its subscribers streamed ninety five billion hours in the first
half of this year.
Speaker 2 (03:32):
That is enough time to watch suits from start to
finish all of the seasons about eighteen million times over.
Speaker 1 (03:37):
But despite these impressive results, Netflix's share price got a
bit of a whack.
Speaker 2 (03:41):
And why is that?
Speaker 1 (03:42):
Well, the Flix warned that their margin is expected to
drop in the second half of this year, and why
is that. The reason for that is because they're spending
big dollars on original content, and despite.
Speaker 2 (03:53):
Them raising their full year revenue forecast, the big budget
series are going to hit their bottom line.
Speaker 1 (03:58):
But Netflix's CFO reckons bilding assets rather than buying them
is the only way forward.
Speaker 2 (04:04):
Interesting, so tell me what is the key Lenie here.
Speaker 1 (04:06):
When you own the show, you don't have to keep
paying to rent someone else's content.
Speaker 2 (04:10):
And that is the big shift that Netflix is making.
Speaker 1 (04:12):
Most streaming platforms start by buying or licensing content.
Speaker 2 (04:16):
They pay big bucks to license popular shows or movies
so they can quickly build a catalog.
Speaker 1 (04:20):
Like when Netflix paid one hundred million dollars to license
Friends for just a year.
Speaker 2 (04:23):
But over time, b Man, that gets really expensive.
Speaker 1 (04:26):
And these licensing deals often come with an expiring day.
Speaker 2 (04:28):
So you're constantly forking out money without building any long
term value, just as foxtell now with all the HBO
shows like Euphoria and House of Dragon waltzing out the
door really got to hurt, but be man. By creating
its own hit shows, Netflix is building a library that
it fully owns.
Speaker 1 (04:44):
Like squid Game, which wracked up one hundred and twenty
two million views in just a few weeks. For our
third and final story, Lovable, the startup helping people build
apps without writing code, has cracked Unicorn status just eight
months after launch, development teams going into survival mode. Tell
me what's going on here? Juzy boy okay?
Speaker 2 (05:02):
So, Lovable is a Swedish AI startup that let's uses
build websites and apps using natural language.
Speaker 1 (05:08):
In other words, you can tell it in plain English
or French or Swedish what kind of app or website
you want?
Speaker 2 (05:13):
Make me a hair salon booking app with blush pink
tones and gentle millennial.
Speaker 1 (05:17):
Energy and boomerooney, It's done.
Speaker 2 (05:19):
The website designed.
Speaker 1 (05:20):
The color palette has been chosen, even the beautiful logo
been made for you, Josie Boy. Lovable only launched in
November last year, but already has two point three million
active users and one hundred and eighty thousand paying subscribers
and probably most excitingly, seventy five million dollars in annual
recurring revenues.
Speaker 2 (05:38):
Not bad for a company with just forty five employees.
Speaker 1 (05:40):
Now, Lovable just raised a whopping two hundred million US
dollars at evaluation of just under two billion US dollars
Unicorn Alert all part of an up and coming group
of vibe coding companies.
Speaker 2 (05:53):
So what is the key learning here?
Speaker 1 (05:55):
Vibe coding is the idea that you don't need to
know how to code, You just need to know what
you want.
Speaker 2 (06:00):
In other words, need to be able to describe your
idea clearly in natural language. But AI can handle the
rest and b man, this shift means way more people
can test ideas and build products and launch.
Speaker 1 (06:09):
Apps as well, and that means AI is shifting the
balance of power from software engineers to entrepreneurs. And clearly, jesyboy,
democratizing software development is a very big business.
Speaker 2 (06:21):
Just last month, AI coding assistant Cursor raised five hundred
million US dollars on a near ten billion US dollar valuation.
Speaker 1 (06:27):
So jaesiboy, the next wave of AI companies are all
about making software more accessible and lovable.
Speaker 2 (06:33):
Is clearly cash here, speaking of aiv man, did you
know our subscription tracker used a little sprinkle of AI
to identify all of your recurring payment black subscriptions here
Netflix to Spotify and shows you how much is spending
each and every month. It can save you hundreds of dollars.
To make sure you've downloaded the flux app and you
connect to your accounts to find all the ways you
can save money.
Speaker 1 (06:53):
Thanks for listening and we'll see you on Wednesday,
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