Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Qantas report A$235M Net Loss and to axe 5000 jobs

Qantas report A$235M Net Loss and to axe 5000 jobs

By Chay Flack (Equities Dealer, CMC Markets Stockbroking)

The Dow Jones has added 18.75 points overnight and the S&P500 has closed flat adding 0.04 of a point. US New homes sales increased to the highest level since 2009 at 468,000 seasonally adjusted rate, causing stocks to erase earlier intra-session losses on the S&P.

The S&P500 is hovering around its all-time highs but was unable to close above its closing high set earlier in the week, missing by just 3.14 points.

Qantas have reported this morning that they have made a A$235M Net loss, will axe 5000 jobs and defer the remaining A380 and 787-8 orders. The attempt to rein in costs is a good sign however the stock is encountering some early selling this morning with anticipation at fever pitch and a strong rally in recent days

Our futures market is pointing down 15 points as we near the end of reporting season and a number of companies are Ex Dividend (Aurizon Holdings, Fortescue Metals Group, Fairfax Media Ltd, Toll Holdings).

Last week I made the call that strong earnings were priced into the market and I was expecting a fall in the ASX 200. I was wrong to the tune of 100 points as the Australian market establishes new highs since 2008. I still think the weakness is there and short term downside risk is a concern, however investor optimism could see this rally continue.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news