Money

Qantas: What is going on with your credit?

Published

3 months ago

August 29, 2023

ticker NEWS

Alan Joyce, the CEO of Qantas, is facing mounting challenges as he prepares to step down from his role. Recent court battles with Qantas employees over illegal sackings and a class-action lawsuit from customers seeking reimbursement of over half a billion dollars in flight credits.

Furthermore, Joyce recently found himself in the hot seat during a Senate hearing on Australia’s cost-of-living crisis. Lawmakers accused him of profiteering and contributing to the national inflation rate. This unexpected confrontation comes after Qantas received $2.7 billion in taxpayer support during the COVID-19 pandemic.

In response, Joyce argued that the best way for Qantas to repay the taxpayer support is by continuing to make profits and paying corporate taxes. However, it was revealed that Qantas has not paid any corporate taxes during Joyce’s 15-year tenure as CEO. In fact, the airline has received more in credits from the Australian Tax Office than it has paid in taxes, on top of the government support it received.

Tax strategy

This tax strategy was achieved by reporting losses, particularly in 2012 when Joyce’s decision to ground the airline resulted in substantial losses. Two years later, the airline reported more losses after a market share battle with Virgin. In both cases, the losses allowed Qantas to receive significant financial support.

The government’s support for Qantas during the pandemic has raised questions about equity stakes and the return on investment for taxpayers. While Joyce claimed that the airline was weeks away from insolvency, no equity stake was secured in return for the financial assistance.

Instead, Joyce oversaw the return of $1.5 billion to investors through share buybacks, increasing the Qantas share price and benefiting Qantas executives.

The question remains whether Qantas will pay back taxpayers for the support it received during the pandemic or continue on its path without any obligation.

Money

Tech giants drive global mega-cap surge amid inflation relief

Published

1 day ago

December 1, 2023

ticker NEWS

Tech giants have taken the lead in propelling global mega-cap stocks to new heights.

This surge comes as a welcome relief for investors who have been closely monitoring the impact of rising inflation on the financial markets.

The tech sector, including giants like Apple, Amazon, and Microsoft, has been instrumental in driving the rally. These companies have reported robust earnings and strong growth prospects, which has boosted investor confidence. As a result, the market capitalization of these tech behemoths has reached unprecedented levels, contributing significantly to the overall rise in global mega-cap stocks.

The easing of inflationary pressures has played a pivotal role in this resurgence. Central banks’ efforts to tame inflation through monetary policy adjustments have begun to bear fruit, reassuring investors and stabilizing financial markets. As concerns over rapidly increasing prices recede, investors have become more willing to invest in mega-cap stocks, particularly in the tech sector, which has demonstrated resilience in the face of economic challenges.

Will the tech giants maintain their momentum and continue to lead the mega-cap surge, or are there potential risks on the horizon?

Money

Real reason bosses want employers back in the office

Published

3 days ago

November 30, 2023

ticker NEWS

As the world gradually recovers from the pandemic, employers are increasingly pushing for their staff to return to the office after years of remote work.

The driving force behind this push is the sharp decline in commercial property values, which has left many businesses concerned about their real estate investments.

Commercial property values have plunged in the wake of the pandemic, with many companies downsizing or reconsidering their office space needs.

This has put pressure on employers to reevaluate their remote work policies and encourage employees to return to the office. #featured

Money

Businesses cash in on Black Friday sales

Published

3 days ago

November 30, 2023

ticker NEWS

Black Friday, the annual shopping frenzy, has become a global phenomenon rooted in economic strategies.

Retailers deploy various tactics to lure consumers, creating a win-win scenario for both shoppers and businesses.

The concept of Black Friday traces its roots to the United States, where it marks the beginning of the holiday shopping season. Retailers offer significant discounts on a wide range of products to attract a massive customer influx. This strategy, known as loss leader pricing, involves selling a few products at a loss to entice customers into stores, hoping they will buy other items at regular prices.

Retailers also employ the scarcity principle by advertising limited-time offers and doorbuster deals. This sense of urgency compels consumers to make quick decisions, boosting sales.

Furthermore, online shopping has revolutionized Black Friday economics. E-commerce giants use data analytics to customize deals, targeting individual preferences. Cyber Monday, the digital counterpart to Black Friday, capitalizes on the convenience of online shopping. #featured