Money
Can Australians really expect to travel overseas by Christmas?
Can Australians get overseas by Christmas? The bold plan to have the entire nation’s population vaccinated by 80 per cent isn’t the only roadblock keeping Australians grounded
- Major Australian airline Qantas is hopeful some international flights before Christmas
- Fate lies on National Cabinet’s target of 80 per cent of the Australia’s population vaccinated by the end of the year
- Qantas CEO Alan Joyce has flagged quarantine requirements as one of the biggest unknowns for the aviation sector
Home for Christmas?
At the beginning of the pandemic last year, the hope was borders to open by Christmas 2020. Although optimistic, this reality is now likely one year on.
Despite the harsh lockdowns across the country to contain the delta outbreak of covid-19, Qantas chief executive Alan Joyce said Australia’s rapid vaccination rollout would make international holiday travel possible again for the first time in almost two years.
In a media conference, Joyce said he understands the delta variant is difficult to manage but the first step is vaccinating airline crew and the entire Australian population, in line with Australian Prime Minister Scott Morrison’s national strategy.
2,000 Qantas frontline staff including cabin crew, pilots and airport workers will have until November 15 to get jabbed, while the 20,0000 remaining workers have until March 31 next year.
“It’s obviously up to government exactly how and when our international borders re-open, but with Australia on track to meet the 80 per cent trigger agreed by National Cabinet by the end of the year, we need to plan ahead for what is a complex restart process,” Mr Joyce said.
Joyce said international travel may seem a long way off, but the airline will remain optimistic despite the ongoing change of circumstances.
“Some people might say we’re being too optimistic, but based on the pace of the vaccine rollout, this is within reach and we want to make sure we’re ready.”
Joyce said.
What could stop this?
The writing is on ‘Phase C’ of the federal government’s path to pandemic normality.
Joyce flagged that one of the biggest unknowns hangs around quarantine requirements, that vary from state to state in Australia for domestic travel at the moment.
In a media conference, Joyce mentioned the possibility of home isolation as a viable option once international travel off the ground.
Australians have been banned from travelling overseas for a holiday since March 2020, when the pandemic began.
Joyce said there is good dialogue between Qantas and the federal government, and ongoing discussions will continue.
Qantas is assuming that current domestic border closures will remain in place until early December, and there is no decision yet if domestic passengers must be vaccinated like international passengers.
“It would be shame to visit relatives in London before relatives in Perth”
Joyce said
Where can I travel?
Joyce says Qantas is hopeful travel demand will spike once borders reopen, and has put forward a plan to layout initial routes.
Qantas said the initial routes being planned for high vaccination destinations include Singapore, the United States, Japan, United Kingdom and Canada.
The airline expects the New Zealand travel bubble will resume in some form by mid-December.
Passengers can expect a restart on flights to Hong Kong in February and the rest of the Qantas and Jetstar international network from April next year.
Flights to low vaccination cities like in Asia and South Africa with high Covid-19 case numbers would not restart until at least April 2022 as well.
Those destinations include Bali, Jakarta, Manila, Bangkok, Phuket, Ho Chi Minh City and Johannesburg.
Qantas has plans to bring back five of its A380 Airbus super jumbos earlier than expected, in 2022
However the hope from Qantas is market recovery by 2024.
Money
Inflation rise reduces chances of Reserve Bank rate cut
Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs
Inflation spikes, drastically reducing chances of a Reserve Bank rate cut amid economic pressures and rising costs
– Rate cut likelihood by the Reserve Bank has decreased due to a rise in annual inflation to 3.2 per cent.
– Significant price increases in housing, recreation, and transport are raising concerns for the Reserve Bank.
The likelihood of a rate cut by the Reserve Bank has decreased significantly after a surge in annual inflation.
The Australian Bureau of Statistics reported that inflation for the year ending September rose to 3.2 per cent, reflecting a 1.1 per cent increase.
Trimmed mean inflation, a crucial measure for the Reserve Bank, was recorded at 1 per cent for the quarter and 3 per cent for the year. The bank anticipates inflation to reach 3 per cent by year-end, while trimmed mean inflation is expected to slightly decrease.
The quarterly rise of 1.3 per cent in September exceeded expectations. Governor Bullock noted that a deviation from the Reserve Bank’s projections could have material implications.
Financial markets reacted promptly, with the Australian dollar rising against the US dollar, while the ASX200 index fell.
The most significant price increases were observed in housing, recreation, and transport, indicating widespread price pressures that concern the Reserve Bank.
Despite the unexpected inflation rise, some economists believe the Reserve Bank may still consider rate cuts in December, viewing current price spikes as temporary due to the winding back of subsidies.
Economic Pressures
Broad-based economic pressures suggest that the Reserve Bank may not reduce interest rates at its upcoming meeting. Analysts highlight the need for ongoing support for households facing cost-of-living challenges.
Money
Wall Street hits record highs on low inflation
Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision
Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision
– U.S. stocks rose to record highs on Friday due to lower inflation and strong corporate earnings.
– Key earnings reports from major companies are expected next week, influencing market trends.
The Labor Department reported that the Consumer Price Index was slightly cooler than analysts’ predictions, easing concerns about inflation impacts from tariffs. This development suggests a likely interest rate cut by the Federal Reserve at its upcoming meeting.
Ryan Detrick from Carson Group noted the positive inflation news may facilitate forthcoming Fed rate cuts. Despite the ongoing government shutdown affecting data releases, this CPI report provided much-needed clarity.
Earnings reports are continuing, with 143 S&P 500 companies having reported results. Growth expectations for third-quarter earnings have risen to 10.4%. Detrick indicated a strong opening to the earnings season with a significant percentage of companies exceeding expectations.
This coming week, key earnings will be reported from Meta Platforms, Microsoft, Alphabet, Amazon, and Apple, alongside industrial companies like Caterpillar and Boeing.
The Dow rose 472.51 points to 47,207.12. The S&P 500 increased by 53.25 points to 6,791.69, while the Nasdaq gained 263.07 points, reaching 23,204.87.
Alphabet gained 2.7% following a deal expansion with Anthropic. Coinbase saw a 9.8% increase from a JPMorgan upgrade. In contrast, Deckers Outdoor’s shares fell 15.2% after lowering sales forecasts.
Market Trends
Advancing stocks on the NYSE outnumbered decliners by 2.18 to 1. The S&P 500 had 34 new highs, with the Nasdaq recording 124.
Trading volume was 19.04 billion shares, lower than the average of the past 20 days.
Money
US stocks face tests from Tesla, Netflix earnings
US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data
US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data
– Earnings reports from Tesla and Netflix might affect U.S. stock performance next week amid high inflation concerns.
– Increased market volatility arises from U.S.-China trade tensions and fewer S&P 500 stocks in an uptrend.
The S&P 500 entered its fourth year of growth amidst these fluctuations, having previously experienced a period of calm. Experts suggest market risks are intensifying as valuations reach peak levels.
Market Volatility
Concerns regarding U.S.-China trade relations escalated last week when the U.S. threatened to raise tariffs by November 1 over China’s rare-earth export policies. President Donald Trump is scheduled to meet with President Xi Jinping in two weeks to discuss these issues.
Despite these challenges, major stock indexes gained ground over the week, with the S&P 500 up 13.3% year-to-date. However, a noticeable decline in the number of S&P 500 stocks in an uptrend raises caution among investors about underlying market weaknesses.
The upcoming third-quarter earnings will be closely monitored, especially as the government shutdown halts economic data releases. Companies like Procter & Gamble, Coca-Cola, RTX, and IBM are due to report. The delayed U.S. consumer price index is also expected to provide crucial insights ahead of the Federal Reserve’s monetary policy meeting on October 28-29.
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