Virgin Australia offers $3000 worth of shares to staff as it prepares for takeoff… onto the ASX.
Glencore, the mining behemoth, has shifted over $30 billion of its assets into an Australian subsidiary… but there seems to be more than meets the eye.
The New York Times signs its first-ever AI deal after years of pushing back against AI companies - but it’s not with its arch-nemesis OpenAI.
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Episode Transcript
This is what the Flux.
Speaker 2 (00:06):
I'm Brett and I'm Justin and it's Monday, the second
of June.
Speaker 1 (00:09):
Does he wait? We know that Thermo Mix aficionados make
claims like Thermomix changed my life, but we didn't know
that Thermo Mix was making some wild claims itself.
Speaker 2 (00:18):
Get this one.
Speaker 1 (00:19):
Thermomix in Australia falsely claimed that two of its products
were endorsed by the NDIS, except they were not. So
now the a Triple se has fined Thermo Mix eighteen
thousand bucks for making these baseless claims.
Speaker 2 (00:31):
Bit call by Thermomix, do not mess with their for
hands Flex Mam. If you are stuck with their hex
help student get listen up because we cover it all
in the Flux app with all the details of how
it happens, why it happens, and how might impact you.
To make sure to download the Flex app and.
Speaker 1 (00:45):
Check out the article three Riveting Stories Today Josie Boy,
Let's do it for our first. Virgin Australia is offering
shares to its staff as it prepares for takeoff on
the ASX.
Speaker 2 (00:56):
I feel like over the last couple of years they
owe their stuff a bit more than that be man,
but tell any more, Okay?
Speaker 1 (01:00):
So, Virgin Australia first hit the Australian market in two
thousand under the name Virgin Blue.
Speaker 2 (01:05):
And in twenty eleven it changed its name to Virgin
Australia and withstood challenges from Tiger air Lines, Jetstar and
the big red Rue Quantus.
Speaker 1 (01:13):
But Jazzy boy as COVID locked us all down. In
early twenty twenty, Virgin Australia went into administration.
Speaker 2 (01:18):
And then it was acquired by private equity giant Bain
Capital for seven hundred mel along with five billion dollars
of debt.
Speaker 1 (01:24):
And since then it's been pretty much all clear skies,
with earnings of five hundred and nineteen million bucks last financial.
Speaker 2 (01:31):
Year and now Virgin Australia's boss has told its eight
thousand staff that they could all receive three thousand dollars
worth of Virgin shares before it lists on the Stock Exchange.
Speaker 1 (01:40):
Or a takeoff grant of share rights, as Virgin CEO
called it. But of course the man there are some
major caveats around this share offfer caveot one. Virgin Australia
needs to successfully IPO, which it's expected to do by
the end of June caveat two. These shares would only
convert into ordinary shares ie shares that can be sold
if the employee sticks around for two years post IPO.
Speaker 2 (02:02):
So what is the key learning here?
Speaker 1 (02:03):
Employee share schemes programs where companies offer employees equity like
shares or options as part of their total remuneration, and
it's a way to reward employees and create stronger alignment
between their day to day work and the company's overall performance.
That means, if the business performs well and the share
price climbs, employees can benefit directly and be.
Speaker 2 (02:22):
Man These employee share schemes are also a very useful
retention tool YEP.
Speaker 1 (02:26):
As mentioned, the employees need to stick around for twenty
four months to have their share rights converted into tradable shares.
Speaker 2 (02:32):
And this can help reduce staff turnover as well.
Speaker 1 (02:35):
And Jessie woit, we've seen many technology companies use employee
share schemes as part of their overall appeal to employees.
Speaker 2 (02:41):
None more so than it Lassian, who pays its staff
one point one billion US dollars per year through shares.
Speaker 1 (02:47):
So clearly virgin Australia is gearing up for its IPO
and AT wants its team to also join the flight
deck as shareholders.
Speaker 2 (02:54):
For our second story, Glencore, the mining and commodities behemoth,
has shifted over thirty billion dollars of its assets into
an Australian subsidiary and it seems to be more than
meets the eye.
Speaker 1 (03:05):
Glen Core mining for better valuations. What is going on here?
Speaker 2 (03:09):
So, glen Core's a binning company that was founded back
in nineteen seventy four in Switzerland.
Speaker 1 (03:14):
And it's become one of the world's biggest commodity traders
and miners.
Speaker 2 (03:18):
We're talking a market cap of thirty three billion pounds.
Speaker 1 (03:21):
And while it started in Switzerland, it has operations in
over thirty five countries, including Canada, to Columbia, to South
Africa and of course Australia.
Speaker 2 (03:28):
And now be Man. Glencall's transferred thirty billion dollars worth
of its mining assets into an Australian subsidiary.
Speaker 1 (03:35):
Interesting and not something you hear companies do every day.
Speaker 2 (03:37):
Yeah, we're talking shifting assets like coal and copper and chrome, and.
Speaker 1 (03:41):
This means that a big chunk of Glencare's assets, including
its coal assets, sit in Australian companies where.
Speaker 2 (03:47):
Coal assets supposedly achieve higher valuation multiples than in London,
which is where they're listed right now. So what's the
key learning here?
Speaker 1 (03:54):
Not all assets are valued equally and location actually can
play a role.
Speaker 2 (03:58):
You see bee Man Glen Coppoli that Australian listed coal
assets actually trade at higher multiples than if they were
listed in London.
Speaker 1 (04:05):
So it is doing a bit of a valuation arbitrage.
Speaker 2 (04:09):
It's shifting where it's assets sit and also are reported
to take advantage of how investors value it.
Speaker 1 (04:14):
In this case, it means that putting coal assets under
an Ossie umbrella might increase their perceived work.
Speaker 2 (04:19):
And how does that work well?
Speaker 1 (04:21):
Australian investors are very familiar with the role of coal
and the market environment could be more favorable here as well.
For example, Rio Tinto was potentially looking to merge with
Glencore back in twenty fourteen and last year as well,
in a potential two hundred and sixty billion dollar merger,
but the deal fell through. But now with the majority
of Glencore's assets legally based in Australia, which Rio also
calls home, this mining mega merger could be revisited once again.
Speaker 2 (04:44):
For our third and final story. The New York Times
assigned its first aideal after years of pushing back against
AI companies, but it's not with its archer nemesis, Open Ai.
Speaker 1 (04:55):
What a huge reveal here, Jazzy Boy can't wait to
hear where this one goes.
Speaker 2 (04:58):
Tell me more, okay. New York Times is one of
the world's most influential newspapers, with over eleven point six
million subscribers.
Speaker 1 (05:05):
Their subscribers are reading the news, They're taking cooking inspiration
from recipes.
Speaker 2 (05:09):
They're playing wordll and the Mini cross Word.
Speaker 1 (05:11):
Not to mention keeping up to the latest with sport
on the Athletic, the sports arm of the New York Times.
Speaker 2 (05:15):
How they man. You may remember that The New York
Times sued Open Ai and Microsoft in December twenty twenty three.
Speaker 1 (05:21):
Yep NYT accused them of training their AI models on
NYT content without permission.
Speaker 2 (05:26):
Which is a copyright infringement.
Speaker 1 (05:28):
While other news outlets have signed commercial partnerships with big
dogs of AI, the New York Times has held off.
Speaker 2 (05:33):
But now The New York Times assigned its first aideal,
and apparently it's not with chat JBT.
Speaker 1 (05:38):
They're bitter foe it is with Amazon. As part of
this deal, Amazon will be able to train its large
language models on New York Times content, including Alexa.
Speaker 2 (05:46):
And that means Alexa could soon read out New York
Times summaries when you ask about global politics or tonight's
dinner plans.
Speaker 1 (05:52):
And this is a huge step for the New York Times,
who has been very resistant to dabbling into.
Speaker 2 (05:57):
The AI world. Yep, So what is the key learning here?
Speaker 1 (05:59):
If you're not at the AI table, you're probably on
the menu.
Speaker 2 (06:03):
Yeah. While some media companies are dragging tech giants into court,
others are licensing their content and cashing in.
Speaker 1 (06:09):
Now over the past few years, Josey boy, it's become
clear that the media industry is waking up to AI.
Speaker 2 (06:14):
Yeah, and they've realized that partnerships are the next big
monetization lever for content rich businesses.
Speaker 1 (06:19):
And while sitting it out may feel right on principle
for the New York Times, it can also be very costly.
Speaker 2 (06:25):
Yeah. For example, Newscorps signed a five year, two hundred
and fifty million US dollars to deal with open Ai, and
others like The Atlantic Conde Nast have also signed deals
with open AI. So being absent isn't just missing a trend,
it's missing out on some serious future revenue. Fluxdam X
helps student debt are getting slashed by twenty percent, so
if you've got an X help debt, make sure to
(06:46):
check it out in my Glove and in the Flex
app where we have a whole download as to what
happens and how can impact you. Make sure to download
the Flex app and check it out.
Speaker 1 (06:53):
Thanks for listening and we'll see you on Wednesday.
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