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Air Canada revokes staffer’s flying privileges for two years over complaint

Air Canada revokes staffer's flying privileges for two years over complaint

An airline staffer has been banned from flying for two years after her daughter complained about a lack of customer service when trying to board a flight.

The daughter, who wishes not to be named, told Business Insider she had bought a ticket using Air Canada flying privileges given to her by her mother.

However, after allegedly experiencing poor customer service by gate staff, she filed a complaint with the airline, having also copied in media outlets.

The daughter’s act led to the airline not only revoking her standby flying privileges, but that too of her 62-year-old administrator mother for two years.

Standby tickets allow airline employees to fly anywhere for a fraction of the normal cost, something that had attracted the woman’s mother to the job.

According to Insider, an email sent to the employee suggested her daughter had misrepresented herself as a revenue-generating customer.

“I had a really like sickening feeling when my mother told me what they did to her,” the woman told the publication.

“It’s one thing for me to be reprimanded, but it’s totally different for my actions impacting my mum.”

The woman’s mother, who has fears over losing her job, approached the union who reportedly advised her nothing could be done and that apologizing could help in reducing the penalty.

An Air Canada spokesperson told the outlet that employee travel is a “special privilege”.

“[It is] a unique and generous perk of working for an airline that comes with responsibilities which the overwhelming majority of employees and families understand and value,” the spokesperson said.

“We take feedback about our services seriously. In fact, we undertook an investigation into the complaint lodged, and subsequently found facts which did not align with what was presented.”

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Boston Consulting in ‘nepotism’ row over work experience for partners’ kids

Boston Consulting in 'nepotism' row over work experience for partners' kids

“It’s caused a lot of internal disquiet both among more junior staff [and at] more senior levels, particularly in the London office, and concerns were simply overruled,” the employee said.

BCG, which employs 25,000 people in more than 100 cities around the world, said: “The Bruce Henderson Summer Program has been in place for many years and is designed to help children have a broad educational and professional experience. Parents cover the primary costs, such as travel. Participants stay in college dorms, and the program is focused on education.”

The firm added that consultants who worked on the program had volunteered their time: “BCG did not staff a team to organize this.”

The firm reported sales of $US11 billion ($15.8 billion) for 2021. It has also tightened its travel policies for staff as part of efforts to reach net-zero carbon emissions by 2030. Trips to cities such as Florence and Lisbon for prospective recruits to the London office have been axed.

Chief executive Christoph Schweizer said in February that he wanted BCG to hire climate activists to work for corporate clients and that he expects the firm will earn up to a third of its fees from climate consulting within five years. BCG said it “remains committed, and is on track, to reach net-zero climate impact no later than 2030, and we are on target to halve our carbon emissions by 2025”.

Last year, BCG also signed up to a program run by the UK’s Sutton Trust to help people from lower-income backgrounds enter consulting.

“This kind of behavior makes a mockery of the work that the [Sutton] Trust does to advance social mobility in finance and consulting,” said the employee, adding it is “also completely against the spirit of our very publicly stated net-zero ambitions”.

Staff writing anonymously in a private group on the Fishbowl app, which requires users to register with their work email addresses, made similar complaints that the work experience program was inconsistent with the firm’s public positions.

“People would take the net-zero commitment more seriously if there was more consistency across the board,” said one BCG staffer. “We get our global trainings killed and [managing directors/partners] kids get flown to London for a fun day?” said another.

A third labeled the program “super nepotism”, noting: “Our recruiting program aimed at the same age group is oversubscribed 40:1.”

One person describing themselves as a senior partner defended the firm saying: “We are paying our own way if we want our children to go.”

But a fourth BCG employee wrote: “Let’s advertise it and see what the public response is? Join BCG to babysit the bosses’ kids!”

“Shocking use of resources,” wrote a fifth, who said they had worked on the events.

Financial Times

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Australian house prices fall fastest since GFC and 1980s crash

Sydney property prices have fallen their sharpest in 40 years as the national housing market nosedive picks up pace.

A market expert has labeled this downturn on par with the start of the Global Financial Crisis and the early 1980s crash.

The May interest rate rise was a trigger point, CoreLogic’s Home Value Index for July has been found.

The median national home value dropped 1.3 per cent over July, CoreLogic reveals, which is the third month in a row of price declines. Over the quarter, national prices are down 2 per cent. The national median value is now $747,812.

This sits against a period of blistering growth during the pandemic where values ​​rose 28.6 per cent.

READMORE: Nervous buyers drop out of auction race for $2.41m Dulwich Hill house

CoreLogic data real estate housing decline prices graph
CoreLogic’s House Price Index for July shows a record-breaking Sydney slump. (CoreLogic)

The glisten has also gone from the two-year long tree and sea-change price boom, with regional areas also in a value slide. However, capital growth outside of the metro areas is holding more tenaciously.

Although the Australian housing market is only three months into a decline, price tumbled have been aggressive. The property market cooldown is spreading beyond the high-value capitals of Sydney and Melbourne, according to the CoreLogic figures.

Five of the eight capital cities recorded price drops in July.

In Sydney, overall dwelling values ​​are down 2.2 per cent over the month, which represents a record-breaking slump (or 4.7 per cent over three months).

The declines are even deeper when broken down by houses, which have dropped 2.5 per cent in value over July, or 5.3 per cent over three months.

READMORE: Movie star David Wenham discreetly bought in Brisbane

An auction by The Agency, North Epping, in full flight. (Peter Ray)

CoreLogic research director Tim Lawless said housing values ​​had “weakened sharply” since the Reserve Bank lifted the nation’s cash rate in May, for the first time after a 12 year honeymoon.

“The rate of growth in housing values ​​was slowing well before interest rates started to rise. However, it’s abundantly clear markets have weakened quite sharply since the first rate rise on May 5,” he said.

“Although the housing market is only three months into a decline, the national Home Value Index shows that the rate of decline is comparable with the onset of the global financial crisis in 2008, and the sharp downswing of the early 1980s.

“In Sydney, where the downturn has been particularly accelerated, we are seeing the sharpest value falls in almost 40 years.

“Due to the record high levels of debt, indebted households are more sensitive to higher interest rates, as well as the additional downside impact from very high inflation on balance sheets and sentiment.”

READMORE: The shocking number of Australians at risk of mortgage stress

$30,000 Vaucluse rental
CoreLogic research director Tim Lawless said property values ​​had “weakened sharply” since rates started to lift. (Domain)

In Melbourne, values ​​dropped 1.5 per cent over the month and Brisbane reached a milestone of negative growth – down 0.8 per cent – for the first time since August 2020.

Brisbane had been considered a strong market even while the other eastern capitals had started to go backwards.

Hobart clocked at 1.5 per cent value drop and Canberra lodged at 1.1 per cent decline.

Perth, Adelaide and Darwin defied the downturn to register growth, but since interest rates have crept upwards, the speed of that growth is slowing down, CoreLogic found.

Perth clocked 0.2 per cent growth over July, Adelaide’s market rose 0.4 per cent and Darwin had 0.5 per cent growth.

READMORE: Melbourne’s Autumn House has been crowned Australia’s best home

6 Carrington Street Parramatta Sydney houses for sale Domain property market
The housing market decline has spread through regional areas as well, but metro has fared the worst. (Domain)

In regional areas, the combined dwelling median experienced its first decline since August 2000, sitting at 0.8 per cent less, month-on-month.

Regional Victoria (-0.7 per cent), New South Wales (-1.1 per cent), Tasmania (-0.6 per cent) and Queensland (-0.7 per cent) all experienced price declines. However, regional South Australia (up 1.1 per cent) and Western Australia (an increase of 0.1 per cent) were the exception and made capital gains.

CoreLogic found most regional centers close to capital cities, which attracted strong migration during the pandemic, have posted decreases in home values ​​in the three months to July, ending a two-year run of growth.

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ASX starts higher after Wall Street closes bumper July with rally

ASX starts higher after Wall Street closes bumper July with rally

The tech-heavy Nasdaq rose 1.9 per cent, ending the month 12.4 per cent higher, while the Dow Jones Industrial Average rose 1 per cent and notched a 6.7 per cent gain for the month.

The latest rally came as investors weighed a mix of company earnings reports and new data showing inflation jumped by the most in four decades last month.

Stock gains in recent weeks have been fueled by better-than-expected corporate earnings reports and falling bond yields, which have pulled back after soaring much of this year on expectations of higher interest rates.

Wall Street just wrapped up its best month since late 2020.

Wall Street just wrapped up its best month since late 2020.Credit:Bloomberg

“You’ve had 10-year Treasury yields come down precipitously,” said Rob Haworth, senior investment strategist at US Bank Wealth Management. “With inflation so hot, I think the expectation is the Fed stays on path, but it’s damaging enough for the economy that they’re going to have to pivot in 2023.”

Weak economic data, including a report on Thursday showing that the US economy contracted last quarter and could be in a recession, have also spurred stocks higher by giving some investors confidence that the Federal Reserve will be able to dial back its aggressive pace of rate hikes sooner than expected.

The central bank raised its key short-term interest rate by 0.75 percentage points on Wednesday, lifting it to the highest level since 2018. The Fed is raising rates in a bid to slow the US economy and quell inflation.

An inflation gauge that is closely tracked by the Federal Reserve jumped 6.8 per cent in June from a year ago, the biggest increase in four decades, leaving Americans with no relief from surging prices. On a month-to-month basis, inflation accelerated to 1 per cent in June from May’s 0.6 per cent monthly increase, the Commerce Department said Friday.

The figures underscored the persistence of the inflation that is eroding Americans’ purchasing power, dimming their confidence in the economy and threatening Democrats in Congress in the run-up to the November midterm elections.

Some market watchers advised against placing too much emphasis on the June data, however.

“This inflation metric is for June and we know much has changed since then, especially gas prices, so investors should put this inflation report into historical context,” said Jeffrey Roach, chief economist for LPL Financial. “Looking ahead, July inflation rates will ease a bit from the previous month as food and energy costs should wane in July.”

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Exxon and Chevron posted record quarterly profits last quarter amid high oil and gas prices. The two companies made $US46 billion ($66 billion) last quarter and roughly four times the amount of money they made in the same period a year earlier. Chevron shares jumped 8.9 per cent to a six-week high, while Exxon rose 4.6 per cent.

Amazon surged 10.4 per cent for the biggest gain in the S&P 500 after the company posted a quarterly loss, but its revenue jumped sharply in the quarter.

Apple rose 3.3 per cent after its quarterly earnings came in better than Wall Street expected. The iPhone maker saw its profit for the April-June period decline by 10 per cent while revenue edged up 2 per cent as it grappled with manufacturing headaches and inflation pressures.

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5 things to watch on the ASX 200 on Monday 1 August 2022

5 things to watch on the ASX 200 on Monday 1 August 2022

2 women looking at phone

Image source: Getty Images

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with another solid gain. The benchmark index rose 0.8% to 6,945.2 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to start the week in a positive fashion after another strong night on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 46 points or 0.7% higher this morning. On Wall Street, the Dow Jones was up 1%, the S&P 500 climbed 1.4%, and the NASDAQ stormed 1.9%.

Oil prices rise again

energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a positive start to the week after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price rose 2.3% to US$98.62 a barrel and the Brent crude oil price climbed 2.1% to US$103.97 a barrel. This was driven by speculation that OPEC won’t boost its supply as some hoped.

Westpac shares upgraded

the Westpac Banking Corp. (ASX: WBC) share price could be heading a lot higher from current levels according to analysts at Goldman Sachs. This morning the broker upgraded the banking giant’s shares to a buy rating and put them on its coveted conviction list. Goldman has a $26.12 price target on Westpac’s shares. Its analysts highlight “WBC’s NIM leverage to higher rates.”

Gold price pushes higher

gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price pushed higher on Friday night. According to CNBC, the spot gold price was up 0.8% to US$1,772.50 an ounce. This was partly driven by the softening of the US dollar and meant a second successive week of gains for the precious metal.

Ramsay takeover progressing?

the Ramsay Health Care Limited (ASX: RHC) share price will be on watch amid reports that KKR’s takeover approach is progressing. In April, the private hospital operator received a non-binding $88 per share offer from the private equity giant. According to the AFR, Ramsay is believed to have received a new request for due diligence on his French business, Ramsay Sante. This is thought to be the only thing holding up a binding offer being tabled.

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Top ASX shares to buy in August 2022

Top ASX shares to buy in August 2022

With the August earnings season about to kick off, ASX companies big and small will soon turn in their report cards for mums, dads (and every other type of investor!) to judge their progress.

But before the bell rings on the duxes and drop-outs, we asked our Foolish contributors to let us know which ASX shares they reckon will top the class in the long run. Here is what the team came up with:

7 best ASX shares for August 2022 (smallest to largest)

  • Lindsay Australia Limited (ASX: LAU), $144.95 million
  • Electro Optic Systems Holdings Ltd (ASX: EOS), $148.86 million
  • Ansarada Group Ltd (ASX: AND), $164.82 million
  • Temple & Webster Group Ltd (ASX: TPW), $637.52 million
  • Charter Hall Long WALE REIT (ASX: CLW), $3.29 billion
  • Treasury Wine Estates Ltd (ASX: TWE), $8.84 billion
  • South32 Ltd (ASX: S32), $17.63 billion

(Market capitalizations as of 31 July 2022)

Why our Foolish writers love these ASX shares

Lindsay Australia Limited

What it does: Lindsay Australia is an integrated transport, logistics, and rural supply company. It has a large and growing fleet of road and rail transport, along with more than 40 rural supply stores and transport depots.

By Bernd Struben: The Lindsay share price has gained around 17% so far in 2022, despite skyrocketing fuel costs. Even following that gain, the stock trades at a reasonable price-to-earnings (P/E) ratio of 20 times. And, I believe it has strong growth potential with the end-to-end solutions the company provides to Australia’s farmers by simplifying transport and logistics issues across the agricultural sector. That’s particularly relevant in light of a growing global food crunch.

In its FY22 first-half (H1) results, Lindsay reported a 20.2% year-on-year increase in underlying earnings before interest, tax, depreciation, and amortization (EBITDA), which reached $31.4 million. The company also continues to expand its rail fleet, adding 50 refrigerated containers in H1, bringing the total to 350.

Lindsay is also a reliable dividend payer, with a current trailing dividend yield of 3.96%, unfranked.

Motley Fool contributor Bernd Struben does not own shares of Lindsay Australia Limited.

Electro Optic Systems Holdings Ltd

What it does: Electro Optic Systems (EOS) is an Australian-owned and operated defence, space and communications company.

By Aaron Teboneras: EOS designs, manufactures and exports advanced technology systems. Key applications include sensors and systems for space domain awareness, optical, microwave and on-the-move satellite products, and remote weapons systems.

With the EOS share price currently trading not far off multi-year lows at 91 cents, I believe this has created an attractive buying opportunity for long-term investors.

Defense capabilities among Australia and its allies have been growing in importance since Russia’s invasion of Ukraine and China’s assertiveness in the Indo-Pacific region. This has highlighted a need among many EOS customers, including NATO, to increase their defense expenditure.

In FY2021, EOS reported record revenue of $211.8 million. That was 17.5% higher than what it achieved in FY2020 ($180.2 million). The company expects FY22 revenue to be equal to or higher than FY21.

Furthermore, the defense contractor continues to invest heavily in the future, particularly in its SpaceLink division. The total addressable market for this is estimated to be around US$2 billion per annum from 2024.

Motley Fool contributor Aaron Teboneras owns shares of Electro Optic Systems Holdings Ltd.

Ansarada Group Ltd

What it does: Ansarada is a provider of specialized cloud-based software addressing the needs of companies and organizations requiring data management solutions for managing mergers and acquisitions, tender processes, and board meetings.

By Mitchell Lawler: The tech sector has been punished so far in 2022. However, while it is not uncommon to find small-cap ASX tech shares showing falls of more than 40% on a year-to-date basis, the Ansarada share price has been somewhat resilient, retracing 19% since the start of the year.

Notably, the reduction in the company’s share price has coincided with sustained growth across key metrics. Last week, Ansarada released its fourth-quarter results for FY22. Positively, revenue increased 43% year-on-year (YoY) to $12.9 million, accompanied by customer growth of 52% YoY.

With an impressive staple of clients, zero debt, and $22 million in cash, I believe Ansarada is currently a relatively well-positioned company.

Motley Fool contributor Mitchell Lawler owns shares of Ansarada Group Ltd.

Temple & Webster Group Ltd

What it does: Temple & Webster is the largest, online-only retailer of furniture and homewares in Australia. A majority of the 200,000 products for sale on the company’s website are held and directly dispatched to customers by external suppliers. Temple & Webster also has a growing private-label range.

By Tristan Harrison: The Temple & Webster share price has fallen heavily in 2022, which I think has created an opportunistic time to buy.

The company continues to grow strongly, with its latest trading update showing 23% revenue growth year-on-year.

The ASX retailer is adding new growth avenues, such as its ‘The Build’ website for home improvement. It’s also aiming to increase its productivity and customer experience by investing in areas such as data, personalisation, AI, augmented reality and logistics.

I believe greater scale can benefit Temple & Webster’s unit economics and enable further re-investment. Plus, it’s considering “opportunistic inorganic activity”, meaning potential acquisitions.

Motley Fool contributor Tristan Harrison does not own shares of Temple & Webster Group Ltd.

Charter Hall Long WALE REIT

What it does: Charter Hall Long WALE REIT is a real estate investment trust (REIT). It owns a portfolio of properties with long weighted average lease expiries (WALE).

By Sebastian Bowen: I believe Charter Hall Long WALE REIT is an investment worth considering as we head into the last month of winter. This property trust specializes in holding real estate assets with long WALEs, as its name implies. These include distribution centers, offices, and pubs, among others.

Many of these properties are held with lease agreements spanning more than a decade, with inflation-linked rental increases built into many. This arguably provides investors today with much-needed certainty in an uncertain investing environment.

Even better, on recent pricing, this REIT offers a trailing distribution yield of close to 7%. As such, it could well be worth a look this August.

Motley Fool contributor Sebastian Bowen owns units of Charter Hall Long WALE REIT.

Treasury Wine Estates Ltd

What it does: Treasury Wine is the maker, marketer, and supplier of iconic Australian wine brands including Penfolds, Wolf Blass, and 19 Crimes.

By Brooke Cooper: The Treasury Wine share price has had a rough trot over the last few years.

It’s been impacted by the pandemic, Chinese tariffs on Australian wine, and general market weakness.

In fact, the stock is around 24% lower than it was at the start of 2020, trading at $12.25. However, brokers are tipping a turnaround.

Morgans has slapped Treasury Wines shares with an ‘add’ rating and a $13.93 price target.

The broker believes the company is gearing up to post a few years of strong earnings growth, starting with the six months ended 30 June.

Motley Fool contributor Brooke Cooper does not own shares of Treasury Wine Estates Ltd.

South32 Ltd

What it does: South32 is one of Australia’s largest miners. It has a portfolio of world-class assets across a range of locations and commodities, including aluminum, copper, and nickel.

By James Mickleboro: I think South32 shares could be a top option for investors in August. Last month, the miner released its fourth quarter and FY2022 production update and revealed it had another solid year despite battling weather, COVID, and labor headwinds.

In light of this, and the strong prices South32 is commanding for a number of the commodities it produces, the company appears well-placed to deliver bumper free cash flow when it releases its full-year results later this month. And thanks to its strong balance sheet, this could potentially mean big dividends for shareholders.

Looking ahead, I believe the future is bright for South32 due to its exposure to commodities that are integral to the decarbonisation megatrend. So with its shares changing hands for just 0.75x net asset value, compared to Fortescue Metals Group Limited (ASX: FMG) at ~1.4x, this could make South32 great value today.

Motley Fool contributor James Mickleboro does not own shares of South32 Ltd.

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What caused crypto to crash in 2022? Will it survive?

What caused crypto to crash in 2022? Will it survive?

Some systems connect lenders with borrowers, and depending on how much demand there is on either side, calculate an ‘interest rate’ for investors who tip money in.

These are called “automated lending protocols”, and the biggest ones are Aave, Maker and Compound, which have failed 65 per cent, 59 per cent and 72 per cent respectively.

DeFi also boasts “automated market makers” or decentralized exchanges, which automatically connect buyers and sellers and also provide liquidity to marketplaces.

The biggest ones are Uniswap, Curve and PancakeSwap which are down 60 per cent, 78 per cent and 67 per cent respectively since January 1. Australian DeFi projects include Synthetix, which is down 38 per cent, Maple Finance, which is down 14 per cent .

Although the token prices are the most obvious way to track the performance of a DeFi project, the yields show how much demand there is for the system.

For example, if many people want to lend their money out, yields are high. When people don’t want to lend it out, yields are low. Yields in January were between 10 and 20 per cent, whereas yields are between 0.5 per cent and 5 per cent now, showing just how much money has pulled out of crypto markets.

NFTs, or non-fungible-tokens, have been hit the hardest in this latest crypto selloff. NFTs are any digital asset fixed to a token, and saw an explosion of popularity in the digital art market.

The popularity of digital artworks fixed to NFT technology meant many people who previously had never been interested in crypto markets poured their money in.

Australian businesses exposed to the NFT market are NFT marketplace builder ImmutableX, which is down 73 per cent, and video game Illuvium, which is down 86 per cent since the start of the year.

The only types of digital assets that have seen inflows are stablecoins. These are cryptocurrencies that trade in line with another asset like the US dollar or Australian dollar.

Although the market capitalization of Bitcoin has fallen 70 per cent this year, the market capitalization of all stablecoins has only decreased by 11 per cent. Most analysts say this is an indication that money has rushed out of many digital assets, but hasn’t entirely left the ecosystem.

What is causing the sell-off (and is it just crypto)?

There are two main reasons why cryptocurrencies of all stripes have sold off.

The first is a macroeconomic one. For a long time, low-interest rates meant bonds and other “safe” investments yielded very little, so investors were pushed out to equities and sometimes crypto to try and find some returns.

Digital assets are notoriously volatile and subject to market sentiment and momentum, rather than fundamental analysis, so there were many excited traders trying to make money on the movements.

Combined with the rise of lucrative DeFi yields, and a rush of speculation on NFTs, and crypto markets soared over the past few years.

But rising interest rates around the world means investors want to avoid holding risky assets right now.

Since the US Federal Reserve started increasing interest rates in March – the first time in three years – and signaled there would be many more rises, investors have yanked their money out of riskier markets. The US central bank acted again on July 27, lifting rates another 0.75 of a percentage point.

This “risk-off attitude” is visible in the indiscriminate crunch in high-growth technology stocks which have failed as much as 70 per cent.

What is causing so many crypto ‘banks’ to collapse?

The second reason cryptocurrencies are being sold off is the widespread collapse of several large crypto “banks” and hedge funds. Most notably, Three Arrows Capital and crypto lender Celsius, both of which have filed for bankruptcy.

Just like in the global financial crisis, these collapses come down to huge amounts of leverage and borrowing in this latest crypto cycle.

In May, an algorithmic stablecoin called Terra/Luna collapsed. It was meant to remain firmly pegged to the US dollar through a trading mechanism. But the team behind the coin was paying traders 18 per cent interest to keep the coin stable.

Terra/Luna was very widely held as a stablecoin and when it suddenly fell to $0, many businesses were in trouble.

One was Singapore-based Three Arrows Capital. Not only was it heavily exposed to Terra/Luna, but it had also taken out loans it was unable to pay back once the crypto collapse took place.

Another collapsed crypto business was Celsius, which offered customers returns over 18 per cent for depositing their digital assets. Celsius had taken those deposits and traded them in high-risk markets behind the scenes to earn the interest to pay back to customers.

One investment was actually in Three Arrows Capital; an illustration of the market contagion that has crypto investors nervous. Just how many large players are exposed to each other?

It turns out a lot. Greyscale Trust, BlockFi, Voyager are just some of the names that had huge holes blown in their balance sheets when Three Arrows Collapsed.

Another crypto bank, Babel Finance, is also struggling to stay solvent. Turns out Babel was also taking depositor money and trading it without any risk controls behind the scenes.

Australian-founded cryptocurrency exchange Zipmex has been caught up in the turmoil, last month announcing it was trying to claw back $69 million it had slowed to the rocky “bank”.

It’s worth noting these businesses are all centralized organisations. They are run by teams of people who made decisions about how much they wanted to borrow against their deposits.

Unlike traditional stock exchanges, which have automated “circuit breakers” that halt trading if the market starts selling off drastically, crypto businesses couldn’t stop the flow of money out the door in time.

They were also borrowing more and more crypto to turbocharge their returns. They took huge risks and it blew up.

The contagion within crypto markets hasn’t spilled over into other markets, but looking under the hood reveals just how interlinked many of these crypto projects are.

How does this compare to previous crashes?

This is not the first crypto crash. In fact, in the 10-ish year history of bitcoin there have been several 70 per cent falls, as well as an eye-watering 90 per cent fall.

Ethereum, which emerged in 2015 with its cryptographic smart contract blockchain, has also suffered at least two 70 per cent collapses.

During those crashes, it was fairly clear what had caused the sell-offs. It was either a hack, an exchange shut down, regulators were banning crypto-use or the macro picture had investors of all stripes cashing out their investments.

This time round though, there are more complex reasons as to why cryptocurrencies – and there are 19,000 of them – are being sold off.

But sophisticated crypto investors don’t seem particularly worried about the pull-back.

If you have done your homework on the types of projects being developed, and are examining the unit economics on-chain, many investors see a buying opportunity. Just like tech investors in the stock market.

Can crypto bounce back from this?

Like many venture capital-backed or speculative businesses, crypto start-ups have laid off waves of workers to conserve cash.

But at the heart of much of the crypto industry’s “wash-out” is an internal debate, or a re-examination, of decentralized businesses versus centralized ones.

To market observers, the crypto organizations built on-chain using decentralized systems have withstood the widespread carnage.

They say the blockchain-based technology that connects buyers and sellers, or lenders and borrowers, may be experiencing less activity than usual, and their automated yield calculations might be lower, but the technology itself hasn’t broken.

In fact, many investors are pleased the selloff has swept some of the over-hyped, frenzied and unsophisticated investors obsessed with speculation out of the market.

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The Iconic’s Best July Sales For 2022 Revealed

The Iconic's Best July Sales For 2022 Revealed

With EOFY sales now firmly in the rear view mirror, there’s plenty to get excited about during THE ICONIC’s July sale event — which ends at midnight tonight.

THE ICONIC has slashed the price of tens of thousands of popular items including coats, ankle boots, beauty and more.

Read on for our guide to the best deals to be had at THE ICONIC. The bestbit? You can shop all the best deals online, no leaving the house required.

Our pick? These Levis Ribcage Straight Ankle jeans, which are now 40 per cent off.

BEST THE ICONIC JULY SALE OVERALL DEALS

•20 per cent off selected women’s designer from brands like Coach, Saint Laurent, Kate Spade and more

•30 per cent off selected men’s designer from brands like RM Williams, Polo Ralph Lauren, Montblanc and more

•30 per cent off selected new-in styles from brands like Marc Jacobs, Guess, AERE, Abrand and more

•Take 30 per cent off a range of Ray-Ban sunglasses

•40 per cent off selected winter clothing and accessories

•30 per cent off selected travel and luggage items

BEST THE ICONIC JULY SALE FASHION DEALS

Women

•40 per cent off selected women’s sleepwear and lingerie from brands like Ann Summers, Calvin Klein and more.

•Atmos&Here Bonnie Coat, $95.99 (down from $159.99)

•Aere Two Toned Oversized Knit Jumper, $126 (down from $180)

•Abrand A High Skinny Ankle Basher Jeans, $59.97 (down from $99.95)

•Atmos&Here Harper PU Biker Jacket, $59.97 (down from $99.95)

•Abrand A Carrie Jeans, $90.97 (down from $129.95)

•Dazie The Throw On Cardigan, $35.99 (down from $59.99)

•Levis Ribcage Straight Ankle Jeans, $89.97 (down from $149.95)

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•40 per cent off selected men’s sweats from brands like Lee, Wrangler, Ellesse and more

•Lee Reversible Puffer, $179.97 (down from $249.95)

•Calli Basic Denim Jacket, $54.58 (down from $129.95)

•Archie Puffer Vest Blazer, $71.40 (down from $119)

•Polo Ralph Lauren Cotton Oxford Sports Shirt, $118.30 (down from $169)

BEST THE ICONIC JULY SALE ACCESSORIES DEALS

•Ray-Ban Clubmaster Polarized RB3016, $192.50 (down from $275)

•Ray-Ban Round Metal Polarized, $192.50 (down from $275)

•RM Williams 1 1/2” 3 Piece Solid Hide Belt, $97.30 (down from $139)

•RM Williams Logo Scarf, $69.30 (down from $99)

•Relic Jewelery Boyfriend Chain Necklace, $125.30 (down from $179)

•RM Williams Tri-Fold Yearling Wallet, $125.30 (down from $179)

•Coach Signature Hoop Earrings, $100 (down from $125)
•Versace The Clans VE4361, $273 (down from $390)

BEST THE ICONIC JULY SALE BAG DEALS

•Guess Kristle Top Handle Flap, $118.30 (down from $169)

•Peta And Jain Saint Tote Bag, $53.97 (down from $89.95)

•Herschel Novel, $112 (down from $160)

•Brie Leon Mini Camille Bag, $111.30 (down from $159)

•Guess Abey Crossbody Flap, $125.30 (down from $179)

BEST THE ICONIC JULY SALE SHOES DEALS

•RM Williams Lady Yearling Rubber Sole in dusty brown – ICONIC EXCLUSIVE, $416.50 (down from $595)

•ASICS Japan S – Men’s, $84 (down from $120)

•Timberland Womens 6-Inch Premium Lace Up Boots, $167.99 (down from $279.99)

•Alias ​​Mae Tori, $202.97 (down from $289.95)

•Dr Martens Unisex 1490 Smooth 10-Eye Lace Up Boots, $204 (down from $340)

•VANS SK8-Low – Unisex, $97.97 (down from $139.95)

•Birkenstock London Oiled Leather – Unisex, $153 (down from $255)

BEST THE ICONIC JULY SALE SPORTS DEALS

•30 per cent off selected yoga and studio activewear from brands like Nike, Lorna Jane and Adidas

•30 per cent off sports winter clothing and activewear from brands like The North Face, Nike, Cotton On Body Active and more

•Nike Sportswear Tech Fleece Full-Zip Hoodie – Men’s, $98 (down from $140)

•Lorna Jane Lotus Ankle Biter Tights, $63 (down from $90)

BEST THE ICONIC JULY SALE BEAUTY DEALS

•Save up to 20 per cent off selected GHD hair tools

•GHD Max Wide Plate Straightener, $264 (down from $330)

•FOREO UFO Smart Mask Treatment – Pearl Pink, $223.30 (down from $319)

•FOREO LUNA play smart 2 Mint For You, $104.30 (down from $149)

•FOREO LUNA Mini 3 Facial Cleansing Massager – Lavender, $174.30 (down from $249)

•FOREO LUNA Go for MEN, $11.30 (down from $159)

•FOREO UFO Pearl Pink Set ft. Manuka Honey, $223.30 (down from $319)

•Save 20 per cent off a range of select Napoleon Perdis beauty products

•Who Is Elijah His Her 100ml, $127.20 (down from $159)

•Save 20 to 30 per cent off selected Scent Australia Home

•Elie Saab’s Le Parfum EDP 30ml, $73.50 (down from $105)

BEST THE ICONIC JULY SALE KIDS DEALS

•20 per cent off selected LEGO toys

•FOREO ISSA Mikro Toothbrush- Sunflower Yellow, $90.30 (down from $129)

•20 per cent off Jellycat toys

•30 to 40 per cent off selected Huxbaby babies and kids clothing, accessories

•30 to 40 per cent of selected Cotton On Kids clothing, shoes and accessories

•30 to 40 per cent off selected Tommy Hilfiger kids and teens clothing

BEST THE ICONIC JULY SALE HOME DEALS

•Up to 40 per cent off selected Hommey

•30 to 40 per cent off selected Sheridan bedding and towels

•Sheridan Limited Edition Lanham Silk Standard Pillowcase & Eyemask Set, $119.99 (down from $199.99)

•Crosley Mercury Turntable – Green, $229.46 (down from $269.95)

•LIND DNA 2-Set Table Mat Curve, $63 (down from $80)

•Aere Home Linen Quilt Cover Set in Queen, $154 (down from $220)

•Kip&Co Turkish Towel Range Bath Towel, $55.30 (down from $79)

•Joseph Joseph Flex Steel Toilet Brush, $48.97 (down from $69.95)

In the meantime, for some discounts to tide you over, don’t miss out on the news.com.au Coupons section. There, you can find savings on retailers like THE ICONIC, Myer, Adore Beauty and much more.

Finally, to ensure you’re on top of all the shopping news you need to know about, sign up to the Best Of Shopping newsletter here

Hannah Paine

Hannah PaineLifestyle Reporter

Hannah got her start in journalism writing for newspapers The Armidale Express and The Daily Advertiser, covering everything from cattle sales to psychic pigs. After her stint in regional journalism, Hannah returned to Sydney and followed her passion for reality TV by writing entertainment stories for Daily Mail Australia. While obsessed with all things to do with Married At First Sight and The Bachelor, she is still on the lookout for her de ella next big yarn involving a farm animal with ESP.

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Categories
Business

The nightmare of today’s air travel

The nightmare of today's air travel

This thought came to mind last week as I stood in a long queue at a small Spanish airport, where I saw something I had never seen in more than 30 years of flying.

The line was full of people boarding two flights to London, one to Gatwick, which I was on, and one to Stansted, both due to leave at about 11am. We were queuing to get our passports stamped, as one does post-Brexit, just a few meters from exit doors beyond which waiting plans were clearly visible.

As the clock ticked towards 11 o’clock and fears of closed gates grew, a ruckus broke out at the front of the queue. Passengers bound for Stansted, including parents who had been queuing for ages with toddlers in tow, started shouting at an airline attendant for not calling them to the front of the line earlier.

All at once, several barged past the passport station and made a break for the exit. A burly policeman bolted out of the station and ordered everyone to stay put. The would-be escapees returned, forlorn, reporting the gate had closed, and they had been left to book new flights, with no airline help in sight.

This was just one small drama among the thousands that have turned flying into a chaotic hellscape of canceled flights, lost luggage and unspeakable queues across the world this year.

The pandemic staff shortages and supply chain glitches driving this upheaval are less visible than the Icelandic volcano ash and 9/11 terrorist attacks that caused past air travel woes, but they are just as troubling.

Last week, bosses at Heathrow airport and Qatar Airways warned industry disruption could last a lot longer than expected. “I think that it will last for a couple of years,” Qatar Airways’ chief executive, Akbar Al Baker, told the FT.

Predictably, a cottage industry has emerged to advise travelers what to do. Some tips are obvious: prepare for queues; fly direct; take only hand luggage and if you must check bags, bring medicine and other necessities with you in the cabin.

Some ideas seem daft: you can check your bags the evening before an early morning flight with some airlines and a lot of experts recommend it, on the grounds you can sail through calmly the next day. But it requires an extra trip to the nightmare that is today’s airport.

Other advice was new to me. It’s best to fly as early in the day as possible because first flights are rarely cancelled, a flight attendant wrote in New York Times the other week.

Later flights are more vulnerable to thunderstorms that build as days get warmer, plus rising traffic at busy airports and flight crews reaching duty limits.

For what it’s worth, my brush with summer travel has taught me this: it’s more important than ever to fly on weekdays if you can.

If you are in a long queue, do not be afraid to ask staff to take you to the front of the line if it is getting close to boarding time.

Finally, be pleasant to those staff. Most are doing their best on the front lines of a bleak situation they cannot avoid. You, with luck, are only passing through.

Financial Times

Categories
Business

Crypto clients beg for their cash back after lender’s crash

Crypto clients beg for their cash back after lender's crash

An Irishman at risk of losing his farm. An American having suicidal thoughts. An 84-year-old widow’s lost life savings: People caught in the meltdown of crypto lender Celsius are pleading for their money back.

Hundreds of letters have poured into the judge overseeing the firm’s multi-billion-dollar bankruptcy and they are heavy with anger, shame, desperation and, frequently, regret.

Celsius and its CEO Alex Mashinsky had billed the platform as a safe place for people to deposit their crypto currencies in exchange for high interest, while the firm slowed out and those invested deposits.

The company owed $4.7 billion to its users, according to a court filing earlier this month, and the endgame is unclear.

“From that hard-working single mom in Texas struggling with past-due bills, to the teacher in India with all his hard-earned money deposited in Celsius — I believe I can speak for most of us when I say I feel betrayed, ashamed, depressed, angry,” wrote one client who signed their letter EL

“I have been a loyal Celsius customer since 2019 and feel completely lied to by Alex Mashinsky,” wrote a client who AFP is not identifying to protect his privacy. “Alex would talk about how Celsius is safer than banks.”

– Repeated assurances before fail –

“We have made it through crypto downturns before (this is our fourth!). Celsius is prepared,” the firm wrote.

One client, who reported having $32,000 in crypto locked up at Celsius, noted the impact.

But that changed quickly, and on June 12 Celsius announced the freeze: “We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations.”

“By the time I finished the e-mail, I had collapsed onto the floor with my head in my hands and I fought back tears,” wrote one man who had about $50,000 in assets with Celsius.

Others reported heavy stress, lack of sleep and feelings of deep shame for putting their retirement savings or their children’s college money into a platform that was far riskier than they knew.

Celsius did not reply to a request for comment on the clients’ letters.

“It’s just not unusual for people to come out of something like this with zero,” said Don Coker, an expert witness on banking and finance.

jm/des

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