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Grounded: Qantas may return to stand-downs

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Qantas may have to stand down airline staff due to lockdowns happening across Australia

Flight cancellation data released on Wednesday showed more than 9000 flights were cancelled in July, majority of them were flights with Qantas and Jetstar.

Qantas CEO Alan Joyce sent an email to staff detailing the effects of the current lockdown hitting Sydney and Melboure.

Joyce said their total flying had dropped below 40 per cent of pre-Covid capacity and an extension to the lockdowns could be problematic for the group.

In the email written to staff he said the company isn’t at the point of requiring stand-downs in domestic operations at this stage.

“But to be honest, we can’t rule it out if multiple states keep their borders closed for extended periods.”

“Hopefully this scenario doesn’t come to pass. But we’ve always been upfront through this crisis and it’s important for you to know the challenges we’re facing,” said Mr Joyce.

Australia’s largest cities in lockdown so thousands of flights grounded

“NSW is a key part of the Qantas and Jetstar network, so that lockdown has already seen our total domestic flying fall from 90 per cent of pre-COVID levels to around 60 per cent,” he wrote.

“When you add in the Victorian and now South Australian lockdowns, our total flying drops below 40 per cent.”

Qantas wants the government to chip in

He said if that happened he expected the government would provide a basic level of income support.. yet another call out for the JobKeeper payment to return.

Mr Joyce reassured workers that this situation will only be temporary, because “unlike last winter there’s now a Covid vaccine rolling out”.

The message came as rival Rex announced the temporary suspension of its Boeing 737 operations.

At the height of the Covid crisis last year, Qantas had more than 20,000 employees stood down.

About 7500 people who usually work in the airline’s international business remain stood down.

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Money

Markets ignore Israeli-Iranian conflict but risks remain high

Markets remain optimistic despite the escalating Israel-Iran conflict, raising concerns of potential complacency among investors.

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Markets remain optimistic despite the escalating Israel-Iran conflict, raising concerns of potential complacency among investors.

In Short:
Market analysts warn that global investors are underestimating the conflict between Israel and Iran, despite resilient stock market gains. Analysts highlight the potential for prolonged conflict and significant impacts on energy markets, cautioning against complacency.

Global investors are currently underestimating the potential impact of the ongoing conflict between Israel and Iran, according to market analysts.

Despite four days of escalating fighting, which has resulted in significant casualties, global stock markets have shown resilience. Stocks in Europe, Asia-Pacific, and the U.S. have all seen gains, indicating a disconnect between market performance and geopolitical developments.

Investment director Russ Mould highlighted the risk of a broader conflict affecting energy markets. He noted that the situation is complex and the ramifications could extend beyond financial concerns.

Heightened risks

Strategist David Roche suggested the conflict may last longer than typical Israeli responses, posing heightened risks. Torbjorn Soltvedt from Verisk Maplecroft expressed that the current situation resembles an open-ended war, with severe implications for the region and global energy markets.

Energy prices have already reacted to the unrest, with crude oil experiencing significant price fluctuations. Analysts caution that a period of calm might lead markets to mistakenly believe in lasting peace, potentially creating buying opportunities in energy assets.

Conversely, some analysts, like Deutsche Bank’s Jim Reid, maintain a more cautious outlook, noting that retaliatory actions between Iran and Israel have yet to escalate dramatically. He indicated that historical patterns suggest a typical market recovery from such shocks.

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Money

Australia’s stalled economy forces businesses to innovate or die

Australia’s economy is slowing with 0.2% GDP growth; experts suggest interest rate cuts, prompting businesses to adapt for growth.

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Australia’s economy is slowing with 0.2% GDP growth; experts suggest interest rate cuts, prompting businesses to adapt for growth.


Australia’s economy is slowing fast, with GDP growth at just 0.2% and output per person in decline. Experts are now predicting steep interest rate cuts to avoid recession.

What can businesses do to adapt and grow in this climate? Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#AustralianEconomy #RBA #InterestRates #BusinessStrategy #EconomicNews #GDP #TickerNews #AustraliaFinance

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Money

World Bank predicts U.S. growth cut by tariffs

World Bank forecasts U.S. growth halving due to tariffs; global economy also faces significant slowdown, especially in exports.

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World Bank forecasts U.S. growth halving due to tariffs; global economy also faces significant slowdown, especially in exports.

In Short:
The World Bank has downgraded U.S. growth projections to 1.4% for 2025 due to President Trump’s tariff policies, warning that increased tariffs could worsen the global economic slowdown. The report highlights a decline in growth for multiple economies, with a particular emphasis on the negative impact on living standards and the need for negotiated trade barriers.

The World Bank has downgraded its growth projections for the U.S. economy, forecasting an increase of just 1.4% in 2025, down from the previous year’s 2.8%. This reduction is attributed to President Trump’s tariff policies, which are anticipated to hamper both U.S. and global growth.

The World Bank’s latest report highlights an expected slowdown in multiple economies, including the eurozone, Japan, and India. Mexico is projected to experience the most significant impact, with growth dropping to 0.2% from 1.5%.

Exacerbate the slowdown

Amid these forecasts, the World Bank warned that a further rise in tariffs could exacerbate the slowdown. If tariffs were raised by an additional 10 percentage points, global growth could plummet to 1.8% this year and 2% in 2026. Such an escalation would lead to reduced trade, declining confidence, and increased market turmoil.

Indermit Gill, the World Bank’s chief economist, noted that if a course correction is not made, the negative effects on living standards could be severe. The Organisation for Economic Cooperation and Development has also voiced concerns about the implications of tariffs, predicting a U.S. growth rate of 1.6% with inflation approaching 4%.

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