The Australian dollar returned to the black on Wednesday, but was still nursing hefty losses from its 1.5 per cent slide overnight. It took a beating after the Reserve Bank opened the door to a slower pace of interest rate increases at its policy meeting. It stood at US69.20¢ in afternoon trading.
Australian government bond yields regained some ground, tracking higher US rates after hawkish comments from several Federal Reserve officials, in contrast to the RBA’s more cautious approach.
The RBA raised interest rates by 0.5 percentage points to 1.85 per cent on Tuesday, saying future tightening would depend on data and the environment.
Investors trimmed their RBA cash rate outlook with interbank futures are fully priced for a 0.25 percentage point lift in the cash rate in September. They imply the cash rate at 2.9 per cent by Christmas with a peak expected in March at 3.3 per cent.
“We expect the RBA to hike to a terminal rate of 3.35 per cent to contain the upside risks to inflation – but we have slightly lowered the subjective probability of 50bp hikes in each of September (60 per cent) and October (55 per cent) alongside the incrementally cautious tone of today’s statement,” said Andrew Boak, chief economist for Australia and NZ at Goldman Sachs.
Three-year government bond yields edged up to 2.8 per cent, from a low of 2.7 per cent on Tuesday, but were still well under a peak of 3.8 per cent in mid-June. Likewise, the 10-year yield nudged up to 3.1 per cent, but away from above 4 per cent as recently as mid-June.
Australian retail sales volumes topped forecasts in the June quarter, as consumer demand proved resilient despite soaring inflation.
Retail sales in April-June rose an inflation-adjusted 1.4 per cent from the previous quarter, beating market forecasts of a 1.2 per cent gain, the Australian Bureau of Statistics said on Wednesday.
Yet, Tapas Strickland, director of the economics and markets team at NAB, warned of emerging signs of moderation in food and household goods, probably related to steeper prices and already elevated spending, rather than the impact of higher rates.
“Volumes should moderate in the quarters ahead given recent interest rate increases, an erosion of real incomes due to higher prices and some associated reductions in discretionary spending,” he said. “The question will be to what extent will some categories of services spending hold up more.”
The consumer discretionary sector led the losses on the ASX, down 1.5 per cent with Domino’s Pizza down 3.6 per cent to $71,215. Star Entertainment shed 2.8 per cent to $3,005, Aristocrat eased 2 per cent to $$34,615 and JB Hi-Fi dropped 1.58 per cent to $42.92.
It was just a quick snack and drinks while on their honeymoon in Greece — and it turned into a whopping bill.
Newlyweds Alex and Lindsay Breen ordered just one beer, one cocktail and a dozen oysters — and were then hit with a staggering $850 bill by the DK Oyster bar on the island of Mykonos.
The Canadian couple were in disbelief when they saw the eyewatering tab, with restaurant waiters handing them menus without prices.
“We went to the oyster bar for a bite to eat and a drink,” Lindsay said.
“They immediately said, ‘Do you want oysters?’ We said yes and he said, ‘A dozen?’, so we said yes because a dozen is a typical order.
“My husband ordered a beer and I asked for a cocktail menu and he came back with the beer but I had to ask again for a cocktail menu and he started rhyming off different kinds of alcohol he had, vodka, gin but I asked for a menu.”
Alex Breen with his beer and oysters at the restaurant in Greece. Credit: Kennedy News and Media/Kennedy News and Media
The waiter eventually brought her a menu “but it didn’t have the brand or the drinks”.
Lindsay gave in and ordered an Aperol spritz.
When they had finished the oysters, the waiter tried to persuade them to order crab legs.
“When we’d finished the oysters, he was trying to get us to have crab legs and thank goodness we didn’t,” Lindsay said.
She said the waiter then tried to pressure them into having dessert.
“The guy came back with a huge trolley of desserts and he says, ‘So of course we’re having cake today’, and starts putting different desserts on our table and we said we didn’t want them and he started getting offended that we didn’t want to take them, so I can see how people would be pressured to take more,” she said.
“As we kept refusing what he was trying to give us, he was getting more frustrated.”
When the couple were ready to leave, they asked for the bill — but rather than giving it to them at the table, Alex was taken to a back room to pay.
Lindsay Breen with her cocktail. Credit: Kennedy News and Media/Kennedy News and Media
On being shown the massive bill, Alex was shocked and asked for a breakdown, which they gave him in Greek.
Feeling under pressure and getting a “sketchy vibe”, Alex paid the bill.
“He definitely felt intimidated and he’s the friendliest guy, so even if the bill was double he probably would have paid it to avoid any problems,” Lindsay said.
“It was pretty crazy. I’m glad in hindsight that we didn’t cause an argument or refuse to pay because it could have ended up worse for us.
“They know when you’re tourists and they take advantage.”
Egg lovers across the country may have to get used to seeing near-empty shelves, as Coles and Woolworths supermarkets continue to face shortages amid a decreased supply from farmers.
Over the course of the pandemic, Aussie customers have become accustomed to reduced supplies of essential food items, with eggs just the latest to be added to the list.
Coles has placed restrictions on eggs, with customers only allowed to buy no more than two cartons in one shop.
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A Coles spokesperson told 7NEWS.com.au it was continuing to monitor supply and work hard with suppliers to improve availability.
“(We) will keep customers updated on any changes,” the spokesperson said.
Woolworths stores do not currently have any restrictions in place, with eggs continuing to be delivered into stores on a regular basis despite the constrained supply.
Woolies and Coles say they are continuing to work with suppliers to meet demand. Credit: Getty Images
A spokesperson attributed the shortage to a reduction in the output of locally produced eggs at a number of farms across the country.
“While we continue to deliver eggs to our stores regularly, customers may notice reduced availability at the moment and we thank them for their patience and understanding,” the spokesperson said.
“We’re in close contact with our suppliers and are working to increase the availability of eggs in stores as soon as possible.”
Australian Eggs managing director Rowan McMonnies said while some were pinning the blame on free-range eggs for the empty shelves, there is actually a host of contributing factors.
“Free-range production is more complex than other systems as there are more variables to manage, including seasonal weather conditions,” he said.
“Egg farmers are usually able to meet demand across the year through planning but COVID disruption has made this difficult.”
According to McMonnies, when lockdown ended last year, egg demand dropped significantly, which sent a signal to farmers that people did not want as many eggs.
The reason for the decrease in supply should not be boiled down to the production of free-range eggs, says Australian Eggs managing director Rowan McMonnies. Credit: Getty Images
However, demand has bounced back much faster than expected, and demand for eggs has increased over the past 12 months.
“Retail volumes are only down slightly on this time last year, which was at an elevated position due to the COVID lockdowns,” McMonnies said.
“Cafes and restaurants appear to have also bounced back faster than anticipated as diners have made up for lost time.”
McMonnies reassured customers that the egg industry was strong and that a range of production systems meant customers would continue to have a variety of choices.
“Egg farmers will respond to the current shortages to ensure demand will be met going forward.”
Fast-growing fintech company Block is down 78 per cent, after $US130 billion was wiped from its market value.
Many more will have to follow Klarna’s lead before the full extent of the reset sinks in. Despite some signs that people are getting more realistic about valuations, “we don’t yet have the full puking that’s required,” says Wolfe.
“Many companies are going to be in denial about the change in valuations until they run out of capital,” says David Cowan, a partner at US venture capital company, Bessemer Venture Partners.
Venture Capital’s deferred date with reality, when it comes, will be a watershed moment for the start-up sector. Investors of all stripes have crashed the clubby world of VC in recent years in pursuit of companies promising higher growth rates than those available on the public sharemarket.
Much of that investment poured in last year, as the valuations of private start-ups were hitting a peak. Hedge funds, private equity firms, sovereign wealth funds, corporate VCs and mutual funds between them supplied two-thirds of all the money that went into venture investing globally last year, according to data provider PitchBook.
If those bets sour, it could lead to a retreat by many of the newcomers drawn to venture investing. And that, in turn, could deliver a shock to a sector that has grown used to ever-increasing amounts of capital.
The scale of the most recent venture boom has dwarfed that at the end of the 1990s, when annual investment peaked at $US100 billion in the US. By comparison, the amount of cash pumped into US tech start-ups last year reached $US330 billion. That was twice as much as the previous year, which was itself twice the level of three years earlier.
The flood of money into the private markets was matched by an equal flood into IPOs.
According to US investment manager Coatue – one of a new band of “crossover” investors that moved from the public markets into the VC world – $US1.4 trillion found its way into promising growth companies globally last year, half of it in the form of venture capital and half through IPOs. That single-year surge, it calculated, was almost $US1 trillion more than the average of $US425 billion a year raised over the previous decade.
Fear of missing out
Carried along by this immense tide of capital, many venture capitalists now admit their market was overcome by a race to invest at almost any price – though most like to claim their own funds were able to sidestep the worst of the excesses.
“If there was one word to describe it, it was FOMO,” says Eric Vishria, a partner at Benchmark Capital in California. The “fear of missing out” he points to brought a stampede at the peak of the market. It wasn’t just the high prices investors were prepared to pay not to miss the boat: periods for conducting due diligence were drastically shortened and protections that investors usually build in to protect their investments fell by the wayside.
The steady economic expansion and relaxed financial conditions that followed the financial crisis more than a decade before had led many investors to view venture capital as a one-way bet, says Vishria. “Over the last 12 years, the right answer for almost every company was just to hold, and distribute [the shares] later,” he adds.
“The incentives were lined up for keeping companies private and doing bigger and bigger rounds [of funding]adds Phil Libin, a venture investor and former CEO of Evernote in Silicon Valley.
For company founders and employees, as well as the venture firms that backed them and the limited partners that supplied the capital, it looked like a gravy train. As valuations ratcheted higher, companies set up share-trading programs for employees and executives to cash in, and investors were able to mark up their valuations with each new round of capital.
As a result, according to Vishria, the venture capital industry became bloated. Many companies stayed private far longer than was usual for a start-up, drawing on private investors rather than moving to the share market.
The size of venture funds exploded as investors put ever-larger amounts of capital to work. And investment discipline was loosened, with VCs spreading their bets widely across entire sectors rather trying to single out the small number of big winners that had traditionally provided the lion’s share of the industry’s profits.
The new investors that set the tone as venture investments ballooned included SoftBank’s Vision fund, which ploughed $US100 billion into the market. Tiger Global, which spread its bets widely, at one stage held more stakes in $US1 billion start-ups than any other investor. Both have since disclosed shattering losses: the Vision Fund registered a one-year loss of $US27 billion in May, the same month it emerged that Tiger had lost $US17 billion.
At the height of the boom, investors raced to back everything from electric vehicle companies such as Rivian, which raised more than $US5 billion last year, to fringe tech bets that gambled on significant scientific breakthroughs to generate a return, such as nuclear fusion.
“The inbound [interest] was insane,” with two or three unprompted offers of financing a week, says Jeremy Burton, a former top Oracle executive who now heads a private software company called Observe. Those approaches have stopped, he adds – a reflection of the deep chill that has failed over the venture market as entrepreneurs and investors wait for reality to sink in and a new consensus about valuation levels to take hold.
High-risk projects
The surfeit of capital pushed new fields of science forward at a faster pace. They included technologies such as quantum computing and driverless cars, “moonshot” projects that were once considered too risky or long term even for venture capital funds, which typically take a seven- to eight-year view.
Significant headway has been reported by start-ups in both fields, though the truly transformative breakthroughs that venture investors hoped for remain out of reach.
Block CEO Jack Dorsey, left, with Afterpay co-founders Nick Molnar and Anthony Eisen. Fast-growing fintech company Block is down 78 per cent, after $US130 billion was wiped from its market value.
That treasure chest also helped to open up risky new sectors of the economy to private start-ups. The amount of money flowing into commercial space start-ups, for instance, doubled last year to more than $US15 billion, according to engineering and analytics company BryceTech. In the middle of the last decade, annual investments were about $US3 billion a year.
Private investment has backed a flurry of novel rocket technologies, satellite systems and earth imaging services. But start-ups have also ventured on to the frontier of space exploration, says space analyst Laura Forczyk. With NASA planning a return to the moon, private companies hoping to ride in its wake are already plotting lunar activities that range from mining to building cloud computing centers.
“There’s a lot more commercial activity [in areas of space exploration and research that were once considered the province of governments],” says Forczyk. If the money dries up, “I don’t know if it’s going to be sustainable”.
Venture investors have been left reassessing bets in fields that were once considered among the hottest fields for start-ups.
Howard Morgan, chairman of New York venture firm B Capital, singles out the tech industry’s various attempts to revolutionize the transport sector as one cause of regret. The driverless car and electric scooter companies his firm invested in no longer look like they’re about to change the world, he says.
One company B Capital invested in, scooter company Bird, was valued at almost $US3 billion at the start of 2020. After going public late last year, and taking the total amount of outside capital it had raised to almost $900 million, Bird is now worth just $142 million. “We’ve realized maybe the world isn’t ready for as many of these things as we thought,” says Morgan.
Asked which sectors are likely to prove the biggest disappointments, most venture investors list the same handful: the ultra-fast US food delivery companies, such as Gopuff and Gorillas, that have set out to bring customers their grocery items in as little as 20 minutes ; fintechs that embarked on an expensive campaign to build large consumer businesses; and blockchain-based ventures that have been caught up in the crypto crash.
In a recent presentation to its investors, Coatue depicted the tumbling valuations it expects in the tech world as a series of dominoes that are only just starting to topple. It predicted that big losses would spread, starting with unprofitable internet companies and reaching deeper into the crypto and fintech sectors, before eating into more solid-seeming sectors such as software and semiconductors.
If predictions like these are correct, then investors who put the bulk of their funds to work at the peak of the market could be facing the sort of negative returns that have not been seen since the dotcom crash at the turn of the century.
In venture, timing is everything. The median venture fund that was raised in 1996, when the first internet boom was just gathering steam, returned 41 per cent a year over its life, according to Greenwich Associates, which tracks fund performance. But the median fund raised in 1999, at the peak of the bubble, went on to suffer a loss of 3 per cent a year.
A repeat of that performance could drive away many of the new investors who have recently been drawn to the market. Yet even if some, including SoftBank and Tiger Global, end up being less significant forces in future, several VCs predicted that the big investors who backed those firms will look for other vehicles to invest in, meaning that competition for investments will remain high.
Resetting expectations
For most tech start-ups, meanwhile, the world has just changed drastically. With a large amount of cash still sitting in existing venture funds, start-ups with proven businesses that are at no immediate risk from a weakening economy can still look forward to raising money on favorable terms.
Elon Musk’s private space company, SpaceX, was valued at $US125 billion in its latest round of funding in June, up from $US74 billion in April last year.
But most others have little choice but to adjust their goals. The boom in capital raising has left many with plenty of cash in the bank to get through two or three years of a funding drought. Yet uncertainty about when capital will next be freely available, and on what terms, has fostered an inevitable caution.
Gopuff, which raised $US3.4 billion before the venture wave crested, is among the many well-capitalized start-ups that have moved to lay off staff and close facilities to conserve cash.
According to one Gopuff investor, the basic unit economics of its business – the amount of revenue it can generate on each order, relative to what that order costs – are sound. But the expensive race for growth that was once the goal of start-ups like this, no longer makes sense when capital becomes constrained.
A similar calculation is being made across the start-up world. Payback periods are shortening. Hyper-growth is no longer the order of the day.
Investors became accustomed to seeing successful software start-ups tripling their revenues in the early years, says Burton at Observe. With the reset in expectations, “I’m not sure that still holds.”
When his company gets past its early phase of product development and is ready to ramp up its marketing spending, he is already anticipating a less frenetic dash for growth: “It may be more measured or more economical growth, rather than growth at any cost, ” he says.
“There’s no question, growth at any price is gone for the next few years,” adds Morgan, of B Capital.
For venture investors, it may sound like a big step back after the go-go years are coming to an end. Yet, there is a reason for the equanimity many profess: a reset brings with it the chance to pay lower prices for future investments, to back start-ups that show greater financial discipline, and to face less competition from rival start-ups funded by deep-pocketed interlocutors, such as SoftBank.
Vishria at Benchmark sums up the hope: “All the pretenders and the speculators will get wiped out. We’ll have the believers and the builders.”
It’s an appealing vision that many venture investors – by definition among the professional world’s greatest optimists – subscribe to. But it is still far from clear how long it will take the venture capital market to reset, or how many of today’s investors and start-ups will still be standing when it does.
Chemicals and mining explosives company Orica has paid $260 million in cash to buy Axis mining technology, a specialized geospatial tool which will help miners explore, extract and refine material from “mine to mill.”
The deal is funded through the proceeds of a fully underwritten $650 million institutional share placement, reported earlier by Street Talk.
Orica’s shares went into a trading halt on Wednesday morning ahead of the deal.
Orica told investors Axis geospatial technology will accelerate Orica’s capabilities to support new mineral discoveries required for decarbonisation – as new mineral discoveries are increasingly located at greater depths and demand more precise geophysics.
Axis’ gold and copper exposure also accelerates Orica’s broader commodity mix objectives.
In addition to the cash payout, a deferred earn-out payment of up to $90 million is payable based on Axis’ cumulative earnings generated from 1 October, 2022 to the end of December, 2024. That is contingent on key management remaining employed by Orica during the earn-out period.
Orica Managing Director and CEO Sanjeev Gandhi said: “We are extremely pleased to welcome Axis into Orica.”
“This strategic acquisition further strengthens our existing Digital Solutions vertical and expands our Orebody Intelligence portfolio upstream.”
Perth Airport is in chaos after desperately trying to recover from a total blackout because of the severe storms crossing the State.
Flights were up and running but there was a huge backlog with passengers attempting to get through security.
Hundreds of people in high-vis were at Terminal 2 as regional flights were taking off. The line to get through to security was almost out the door as people raced to make their flight on time.
Terminal 1 was less chaotic, almost a ghost town in comparison, as several flights were still cancelled.
An airport spokeswoman said the terminals were “fully operational” as of 10pm last night but the flow-on effects of the impact could still be felt.
Perth Airport has announced a thorough review of its backup power systems in light of the power disruption.
While the backup power for the critical runways switched on, terminals were thrown into disarray chaos as backup power failed to come on.
Chief executive Kevin Brown said the review would start immediately to understand why parts of the back-up generation system did not deploy.
“We apologize for the inconvenience the power outage caused to passengers and we thank them for their patience and understanding that we were dealing with a unique and challenging weather event,” he said.
“The back-up generation system for critical safety systems such as the runway lighting worked as intended, meaning that aircraft could continue to land safely throughout the event.
“Other parts of the back-up generation system that provide power to the terminals did not work as intended.
“We need to understand why that happened.
Perth Airport has experienced a major power outage. Justin Benson Cooper Credit: Justin Benson Cooper/The West Australian
Thousands of passengers were disrupted overnight with dozens of flights delayed or cancelled.
The airport told its passengers to go home and declared all flights were canceled due to power outages “out of their control”, but by 8pm on Tuesday, changed its mind.
“With critical services back online, Perth Airport is now able to process some passengers through the outbound security processes,” a statement said.
“However it will take some time to clear the backlog of delayed services.”
By 10pm, the airport said it was working to activate its systems across its terminals in order to become fully-operational following delays and cancellations across the airline networks.
Passengers were warned some airlines could still decide to cancel and reschedule flights. “We ask passengers for their continued patience as our team and our airline partners work to get flights underway,” the airport said.
Travelers were left sitting in the dark with only torches to light their way.
Severe storms hitting Perth shut all the power down at the airport in what some experienced staff have never seen before.
Disgruntled passengers battled with freshly unloaded luggage as torrential wind and rain pelted them as they left the airport to board taxis.
Perth Airport announced the news about 5.15pm, warning that a power outage would result in lengthy delays for the next two hours.
The airport apologized to passengers, some of whom are understood to be stranded at other airports because they’re unable to land in Perth.
Perth Airport has experienced a major power outage. Picture are Angela and Han Nguyen Justin Benson-Cooper Credit: Justin Benson Cooper/The West Australian
“The safety of everyone who works in or is traveling through our airport remains our highest priority,” the airport said.
“We apologize to our passengers and customers for any inconvenience.”
Perth Airport said the decision to cancel flights earlier in the evening was made based on the advice of Western Power.
“Perth Airport has made the decision to delay all outbound services currently scheduled to depart before 7.30pm,” the statement said.
“All enroute inbound flights will be able to arrive safely. All scheduled flights into Perth which have not yet departed will be delayed until further notice.”
Hundreds of people were still crowding around baggage carousels at 7.30pm waiting for luggage to be unloaded from aircrafts.
Passengers in the Qantas terminal were reminded to stay patient while a “technical issue” prevented people from rebooking flights, as staff handed out water and chips to affected travellers.
A team in Sydney is currently working to “uncheck” passengers so flights can be rebooked. “Please be patient and go home, rebook from home as I’ve been advised delays could take up to another two hours,” staff announced.
Qantas Passengers Angela and Han Nguyen hoped to be on a flight to Sydney for a three-day work event.
Ms Nguyen, who is pregnant, said at about 3pm they were aware of flight delays.
Perth Airport has experienced a major power outage. Justin Benson Cooper Credit: Justin Benson Cooper/The West Australian
“We were Sitting in the lounge upstairs getting notifications from staff that it was out of their control and they had no idea what was happening,” she said.
“Staff working for 20 years told us they’d seen nothing like this.”
While “disappointed”, the couple said they were glad they could return to their Attadale home.
The lights came back on shortly before 7pm.
Passengers were told to leave as soon as their bags were collected and Perth visitors were told to find their own accommodation. Car park shelters were packed, as people waited to be picked up by transport services.
Melbourne woman Caren Vidler said she had no idea what to do as she frantically tried to find a bed for the night.
She was on her way to London when she was stopped at immigration and told her flight was cancelled.
“I’m going to watch some friends, who are divers, compete in the Commonwealth Games,” she said.
“I’ll be gutted if I can’t watch them, this was the whole purpose of my trip.”
“I’ve never experienced this before, I don’t know anyone in Perth…I’m going to need a bed for the night.”
Western Power says emergency crews are working hard in difficult conditions to restore power across Perth.
“Damaging and destructive winds associated with the front have thrown debris, including tree branches, into the network, damaging equipment and bringing down powerlines,” a spokesperson said.
“Our priority during the storm is responding to reported hazards to ensure the safety of the community and our crews.
A power outage has delayed flights at Perth Airport. Credit: Lincoln Baker/The West Australian
“Our network operations team is working to isolate damaged parts of the network and back feed where possible to restore power where it is safe to do so.”
It comes as Perth braces for more damaging winds set to smash the State after thousands were left without power and properties damaged overnight.
On Tuesday night, 11,000 homes in Perth and the South West remained without power.
The Bureau of Meteorology has issued a severe weather warning for Goldfields, Eucla, Lower West, South West, South Coastal, South East Coastal, Great Southern, Central Wheat Belt and parts of Gascoyne, South Interior and Central West districts.
A strong wind warning is also in place for Melville Waters and the Gascoyne Coast.
These winds are forecast to continue through to dawn on Wednesday and the Bureau has warned that wind likes may cause damage to homes and property, particularly along the coast and nearby inland, becoming more isolated further inland.
“That is why we have been providing more information as part of our annual results reporting and why we have been more transparent with our people at year-end about pay bands and where they sit in relation to their peers.”
“In our experience transparency also helps drive more equitable outcomes and is an important factor in addressing challenges like gender pay equity.”
The disclosure of the pay rates at two divisions follows PwC, Accenture and KPMG providing their pay rates to The Australian Financial Review. Accenture provided rates for its consultants, while PwC and KPMG provided rates for the major divisions at the firm.
EY has declined to provide any pay data but has made limited pay disclosures to staff about pay rates confined to their specific geography and business.
These advisory firms are all battling each other, and clients, to hire the same type of staff amid a global skills shortage.
Deloitte had developed its pay and benefits package based on regular market research, Mr Powick said.
“We regularly monitor market pay information through the year and conduct a formal annual review of a number of diverse benchmarking data sets to ensure that our salaries remain competitive with the market,” he said.
“We also benchmark other benefit areas such as leave, flexibility and training with the view of being a market leader in these domains.”
Deloitte’s lead human capital partner, Pip Dexter, said the firm wanted to support staff on their “career journey”.
“For us this includes financial reward, access to funded training and development, opportunities for accelerated career progression, market-leading leave and flexibility options, and support during different life stages,” Ms Dexter said.
“In FY22 we also made a decision to share above-plan profits with our people and that is an additional component of our total reward package that we intend to continue.”
The staff pay rates between the four firms are difficult to directly compare, and vary by typical experience.
In consulting, the minimum pay for a Deloitte senior consultant of $100,000 is on par with an Accenture team lead/consultant. The minimum pay for a Deloitte director of $190,000 is above PwC (from $184,800) and below KPMG (from $200,000).
Experts agree that pay transparency helps close the gender pay gap and have called on advisory firms, along with private sector companies, to reveal details about staff pay.
Deloitte’s overall gender pay gap was 12.6 per cent at the end of last year. The gap differed by division, with a 2.2 per cent gap in assurance and advisory and a 15.9 per cent gap in consulting.
The firm is working to close this gap via a range of policies including providing secondary carer’s leave and ensuring there are “gender-balanced” shortlists at each stage of the recruitment process.
A newlywed couple was outraged to learn they were stuck with an AU$850 bill after being pressured to enjoy “a quick snack” while on their honeymoon.
Lindsay Breen and her husband Alex, both 30, were left in shock after being surprised by the outrageous bill at DK Oyster in Mykonos.
The couple, who hail from Toronto, Canada, was exploring the picturesque town when they decided to pop into one of the local restaurants.
“We went to the oyster bar for a bite to eat and a drink,” Lindsay explained.
“They immediately said ‘do you want oysters?’ They were very presumptuous. We said yes and he said ‘a dozen?’ so we said yes because a dozen is a typical order.
“My husband ordered a beer and I asked for a cocktail menu and he came back with the beer but I had to ask again for a cocktail menu and he started rhyming off different kinds of alcohol he had, vodka, gin but I asked for a menu.”
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The restaurant worker continued to give Lindsay a hard time about bringing out a menu.
“I didn’t know how it was so difficult to see what they had,” she said.
The server eventually brought the couple “what they consider their cocktail menu” which was simply “a laminated piece of paper with the types of alcohol listed but it didn’t have the brand or the drinks” listed.
Lindsay finally gave in and ordered an Aperol spritz “because they clearly didn’t have a menu that they wanted to give me”.
“He finally came back with comically large drinks so we were thinking it’s their funny thing that the bar does because we didn’t ask for an extra-large cocktail,” she remembered.
“He was very much lurking around the table the whole time. He was always around,” she said of the aggressive restaurant worker.
“When we’d finished the oysters, he was trying to get us to have crab legs and thank goodness we didn’t. He said ‘You know what would go really nice with these oysters? Crab legs. Shall I get some over for you guys?’ and we said no, we just wanted a quick snack and a drink.”
The new bride remembered that Alex claimed to see a menu on his way back from the bathroom listing oysters for US$29 but Lindsay couldn’t believe it.
“We had already eaten the oysters so we thought, ‘Oh God, what are we getting ourselves into with this bill?’” she said.
But worse was yet to come.
“The guy came back with a huge trolley of desserts and he says, ‘So, of course, we’re having cake today’ and starts putting different desserts on our table and we said we didn’t want them and he started getting offended that we didn’t want to take them so I can see how people would be pressured to take more.
“As we kept refusing what he was trying to give us he was getting more frustrated.”
After finishing their snack and “comically large drinks,” the couple was ready to pay and continue with their day.
“When we were ready to leave, I went to the washroom and they had my husband go into a back room to pay which is sketchy,” Lindsay remembered.
“They gave him the bill which was over 400 euros. He was shocked and asked for a breakdown. They had a computer screen that they turned to him and it was all in Greek but we don’t speak Greek.”
Although he was completely shocked by the large bill, Alex paid without any issues after he got a “sketchy vibe” and “didn’t want to get himself in a bad situation.”
“He definitely felt intimidated and he’s the friendliest guy so even if the bill was double he probably would have paid it to avoid any problems,” Lindsay admitted.
“It was pretty crazy. I’m glad in hindsight that we didn’t cause an argument or refuse to pay because it could have ended up worse for us. They know when you’re tourists they take advantage.”
The couple was in disbelief as they walked away from the overpriced beach club.
“It’s so crazy to pay that for a snack,” Lindsay insisted. “We were really shocked, especially because we’d had some really nice meals in Italy and we’re willing to spend when it’s justified but we didn’t get much.”
Despite the shock, the couple is just glad they were able to foot the bill and charge the rest of their large expenses on their credit card.
“I can imagine how someone would end up with no money. It’s not an ideal way to spend our money but we’re fortunate we could pay,” she said.
“On holidays, we like to stumble in wherever looks good. we don’t really research but we’ll probably start. They have a similar atmosphere to the other restaurants to blend in and make people think it’ll be at a similar price.
Lindsay did concede that it was “less busy than the other restaurants”.
“They all had their menus posted outside which is typical for that type of area. They were all similar price points, obviously a little bit expensive but fair for what you were getting.”
She and Alex quickly glanced at the menu outside DK Oyster in Mykonos and believe the oysters were listed at nine euros but later learned that the restaurant priced their menu based on items per 100g.
“So it says calamari is 29 dollars but in fine print, it will say that’s for 100g of calamari so your bill comes up to 300 euros,” she said. “I’m so happy we didn’t go there hungry and order a proper lunch.”
The Breens aren’t the first couple to be scammed by this oceanfront restaurant in Greece.
“Next door, a store owner said he was so sorry to hear that we went,” Lindsay said.
“He said he warns everyone that goes into the store to stay away from there and it doesn’t represent who the Greek people are.”
DK Oyster’s TripAdvisor rating is a measly 2.5 stars accumulated from their 1455 ratings. The page is flooded with 1-star accounts of experiences similar to the Breens’.
“DO NOT GO HERE! Absolutely disgusting behavior from manager and staff. Cocktails are awful and charged €125 plus service for 2! Waiters made us feel very uncomfortable,” one review reads.
“Wish we looked at the reviews before! This place is a joke! 350 euros for 4 drinks! I would definitely NOT recommend going here. Please save your euros!” another reads.
But the staff at the tourist trap do not seem to be very apologetic and often mock their guests who leave bad reviews.
“Thank you for taking the time to post your review, but could you please clarify the exact reason for your disappointment? The prices you mention sound correct, so I would like to understand what the problem was,” a reply reads.
“The drinks were not what you expected, the setting or the service? Your opinion is important to us. So, we would appreciate it if you would take a few minutes to clarify.”
They also mocked customers who claimed to be intimidated into paying the exorbitant prices: “Let me see if I got it right: You were abducted from the beach and shoved by force into a luxury restaurant.”
After all the commotion the restaurant has cooked up, they were recently fined more than $30,000 for scamming two American tourists, the Greek City Times reported.
This serves as a lesson to those who look at the menu and think ‘It’s all Greek to me’ – double check the prices before you sit down!
This article originally appeared on the New York Post and has been republished with permission
The picturesque Sydney beachside manor owned by F45 co-founder Adam Gilchrist is set to go under the hammer after the Australian fitness giant’s stunning downfall.
Mr Gilchrist (not the cricketer), who stepped down as F45’s chief executive last week amid stock plunges and company-wide lay-offs, is selling his “beachfront trophy home” at Freshwater on Sydney’s northern beaches.
The home, 52 Ocean View Rd, grew into infamy in 2018 when Mr Gilchrist and his wife Eli bought the property for a whopping $14m due to a minor neighborly dispute.
The couple had purchased a three-bedroom cottage on 50 Ocean View Rd for $5.4m in 2017 and planned to spend $2.5m to develop the property.
But neighbors complained it would not comply with building height or boundary controls, which led to Mr Gilchrist taking the extraordinary step of withdrawing his proposal and setting the matter by buying his neighbour’s bigger home for the obscene amount.
The $14m price was a record for the Freshwater suburb, with agents considering 52 Ocean View Rd’s mammoth coming out an outlier price.
But the three-storey home is again on the market, with real estate agents billing it as “unquestionably one of the finest homes and locations in Sydney”.
“Cutting-edge architectural design and an unsurpassed beachfront setting combine in this state-of-the-art luxury residence to deliver the ultimate designer beach house,” a description of the home reads.
“Set to a picture-perfect backdrop that sweeps over the surf to the ocean’s horizon and North Head, the tri-level residence showcases living spaces and lift access to all three levels and has been appointed and furnished with every conceivable luxury.”
The home’s features include five bedrooms, three bathrooms and giant retractable windows in the dining room.
Mr Gilchrist suddenly announced last week that he was stepping down as F45’s chief executive after co-founding the business with Rob Deutsch back in 2013.
The company also revealed it would be laying off 110 staff and cuttings its operational expenses, which caused its stock price to fall by more than 60 per cent.
F45 hoped that by reducing its corporate workforce by 45 per cent it could return to a positive cash flow.
Mr Gilchrist said he would be “forever grateful” as he exited the company.
“To the staff that have worked tirelessly since our inception, you have been incredible in your efforts, and I thank you for all of your support,” Mr Gilchrist said in a statement.
“To the investors that have joined us along our journey, I thank you for your commitment to F45.
“Lastly, I am forever grateful to our franchisees who deliver the world’s best workout each day to F45 members around the world.”
Mr Deutsch, who stepped down as chief executive and sold his shares in the company in 2020, said there were “enormous issues needing fixing”.
“Never in my wildest dreams could I have imagined this,” he wrote on Instagram.
“When I exited, and sold out of F45, I left a healthy, phenomenal, beast of a business. All the way from the company culture to the heart beat of the business… the workouts. F45 was special.
“I genuinely hope all of the 110 laid-off staff, find happiness and opportunities elsewhere.”
F45 was a global fitness powerhouse before its stock shock last week, with more than 1500 studios in 45 countries and Hollywood superstar Mark Wahlberg among its investors.
Mr Gilchrist made $500m overnight when the company went public on the New York Stock Exchange in July last year.
His northern Sydney home will be up for auction on August 27.
WA’s biggest independent food distributor has warned consumers to expect further hikes at their favorite pubs and restaurants – and eventually supermarkets – as supply chain pressures and skyrocketing input costs continue to drive up prices.
The price of vegetable oil supplied by New West Foods to hundreds of eateries across WA has almost doubled since August 2020, with eggs up 75 per cent over the same two-year period.
Salmon has jumped 50 per cent while cheese and bacon are both up around 35 per cent.
Even the humble frozen chip – a staple of takeaway menus everywhere – has climbed 25 per cent.
The scale of price rises over the past two years. Credit: The West Australian
The majority of those price rises have come in the last 12 months as myriad factors combined to create what New West Foods managing director Damon Venoutsos said was the “perfect storm” for food costs.
Mr Venoutsos described distribution businesses like his own as the “canary in the coal mine” for price increases because – unlike supermarkets and fast-food chains – they did not enter into long-term agreements with suppliers.
“Most of the time we get 30 days’ notice from our suppliers that prices are going up whereas your big retailers (such as Coles and Woolworths) and quick service restaurants (such as KFC) can lock in their prices for anything up to six months ,” he said.
“Often we’re using the exact same supplier so while I don’t know when (the supermarkets) are going to catch up, it’s inevitable they will have to.”
Mr Venoutsos said prices had increased “very quickly and very dramatically” in recent months and that practically no food type had been spared, although some – such as fish, meat and dairy – had been impacted worse than others.
The biggest riser – vegetable oil – is in short supply globally, with exports largely cut off from war-torn Ukraine which traditionally produces 50 per cent of the sunflower oil used around the world.
New West Foods clients include Optus Stadium, King Edward Memorial and Sir Charles Gairdner hospitals and hundreds of restaurants and cafes.
New West Foods managing director Damon Venoutsos has warned of more price hikes. Credit: simon santi/The West Australian
Mr Venoutos said takeaway-oriented restaurants such as fish and chip shops and pizzerias were among the hardest hit with practically all their staple ingredients surging in price.
Independent Food Distributors Australia chief executive Richard Forbes listed half a dozen reasons for the escalating costs including clogged ports globally, COVID lockdowns in China, a shortage of sea containers and spiraling domestic energy and transport prices.
Last month, Manjimup-based WA Chips – the State’s only local manufacturer – revealed its gas bill was up $400,000 (60 per cent) compared to the previous year.
Mr Forbes said additional costs were being incurred at every step of the production, distribution and storage supply chain.
“Anyone that refrigerates product in bulk – which would be practically all distributors – have seen those costs go from around $50,000 to $80,000,” he said.
Labor shortages were also a major issue, with Mr Forbes estimating there were 160,000 vacancies between the agriculture, transport, warehousing and hospitality sectors.
