Qantas Airways has been in the news a great deal lately as it receives a multi-million-dollar fine for unlawfully firing 1,800 workers during COVID. This impending legal challenge comes amidst a backdrop of fluctuating global markets, with various indices showing mixed performance over the past week.
On Friday, the ASX 200 hit an all-time closing high of 8,939 points, or 1.5% higher for the week. According to futures trading, the index is likely to open down today, down 0.6%. At the same time, the Australian dollar appreciated, buying 65.04 US cents, up 0.2%.
Qantas’s Legal Troubles Loom
The Australian airline Qantas has come under fire for its actions during the COVID-19 pandemic, specifically regarding the termination of nearly 2,000 employees. The airline retaliated by firing all these workers and then illegally went through the proper legal procedures. Instead, they now run the very real risk of receiving a six-figure penalty. This new development raises many concerns regarding corporate morality and labor rights in extraordinary times.
According to legal experts, the result of this case is likely to set a precedent for employment practices across Australia. Stakeholders are closely observing how Qantas navigates this challenge and what it will mean for its reputation and financial standing moving forward.
Global Market Reactions
In the big picture, global markets were mixed on the week. North American markets On the U.S. mainland, stocks climbed by an average of 0.9%. Conversely, the Dow Jones Industrial Average saw an overall gain of only 0.1%. Heck, even UnitedHealth saw a jaw-dropping 12% upswing. This spike came on the heels of an announcement that Warren Buffett’s Berkshire Hathaway was buying back its stock.
Brent Crude oil prices decreased by about $US1/barrel or 1.5%, to end at $US65.85. This sharp decline is indicative of continued volatility in energy markets and will likely have an impact on associated industries in Australia and around the world.
Weekly Performance Across Regions
On an international basis, most major markets showed strong positive improvement over the week. China to come in with a solid advance of 2.4%, but Japan to take the laurels with an eye-popping jump of 3.7%. Europe had a strong showing, up 1.6% overall across its markets. Collectively, these findings paint a bizarre economic picture, one in which communities across the country react profoundly differently to the same types of market forces, disruptions, and global events.
For others, such as Qantas, the crisis has worse consequences. Despite this, sentiment on the overall market is cautiously optimistic, as investors continue to look for value amid ongoing uncertainty.
