Qantas profit soars; 500 tariffs axed; OpenAI opens in Aus

Qantas profit soars; 500 tariffs axed; OpenAI opens in Aus

News in brief

Shoppers flocking to Kmart and Bunnings in a cost-of-living crunch have fuelled a stellar result for Wesfarmers, with strong demand at the two retailers lifting earnings across the group.

 

Treasurer Jim Chalmers has announced the removal of 500 ‘nuisance’ import tariffs, aiming to reduce costs for Aussie businesses. He says many of the tariffs - on items like tyres, TVs, air conditioners, and wine glasses -cost more to follow up than the revenue they bring in.

 

An unfortunate turn of events at ANZ: more than 300 staff in the bank's retail division are being made redundant, but some found out from an automated email telling them to return their laptops, before managers could speak with them.

 

ChatGPT owner OpenAI is setting up shop in Australia for the first time, with a new office in Sydney. The company said surging local demand and partnerships — including a new deal with Commonwealth Bank — made having a local base essential.

 

Chipmaker Nvidia has smashed expectations again, posting quarterly revenue of $US46.7 billion, and $US25.8 billion in profit – both ahead of forecasts. It’s looking at $US54 billion in sales next quarter. But investors still wanted more, selling off the stock after the result.

Fear-o-meter

Is regulation stifling innovation in Australia?

 

Fred Schebesta, founder of Finder, has had two legal battles with the corporate regulator in Australia over a crypto-asset related product offered through the platform. And on both occasions, the Federal Court has ruled in favour of Finder.

"I think every entrepreneur should be rattled by it in Australia. And I think it has rattled them and people have just left. Most crypto entrepreneurs leave Australia. If you want to go and do something, you wouldn't do it here."

Fred spoke candidly with Michael Thompson on the latest episode of One On One by Fear & Greed about the impact of his battle with ASIC, the time his business broke Google's rules, and why he pushes the boundaries:

"The universe rewards people who challenge what is the status quo or the understood thing because no one's looking there. And because no one's looking there, you can go and get white space and go and win. And that's literally where innovation happens."

Fear & Greed Q+A today

On the potential for a bumper spring selling season, fuelled by three interest rate cuts, growing consumer sentiment, and the government's decision to bring forward its first home buyer scheme:

 

"It's absolutely almost like throwing a firelighter on the housing market in terms of a demand policy. I think that particularly because there's no caps on the number and there's no caps on the income, you know, we could actually be staring down the barrel here of first home buyer activity competing with levels we saw back in 2009 when we saw significant increases in grants available for first home buyers. 

 

So I think we have to be very cautious here that we could really see a strong wave of first home buyer activity coming into the market. And I think the winners here are going to be those that get in early or already in the housing market because what we will absolutely see is stronger rates of price growth for certain sectors, sub-sectors of our housing market."

It’s Friday, the 29th of August. After a turbulent few years, Qantas is back with a bumper profit: $2.39 billion, its second largest result ever. The airline's share price shot up 9pc to a new high. Jetstar delivered a standout performance, carrying a record 16 million passengers domestically, and corporate travel is bouncing back. It couldn't come at a better time for Qantas, after a $90 million fine for illegally sacking ground crew during COVID. CEO Vanessa Hudson says the company is learning from the fallout, and is sharing the airline's strong FY25 result with staff through a new employee share scheme.

Greed-o-meter

City	Median age
Darwin	34.8
Canberra	35.7
Brisbane	36.4
Melbourne	36.6
Sydney	36.8
Perth	37.5
Adelaide	39.2
Hobart	39.3

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It's not often that data from the Bureau of Statistics might cause an intercity rumble - but this could potentially do it. Hobart has narrowly edged out Adelaide as Australia's oldest capital city, based on the median age of its inhabitants. It's the first time in five years that Hobart's beaten Adelaide for the top spot.

Listen to today's episode 🎧 

Source: ABS