🦘 ASX Soars On US Rate Cut Hopes, Right To Disconnect Laws In Effect, New Airline Customer Rights

G’day everyone!

Here’s what we’ve got in store for you today:

• ASX Soars On US Rate Cut Hopes

• Right To Disconnect Laws In Effect

• New Airline Customer Rights

Let’s have a look at the market snapshot before jumping into the news:

ASX Soars as US Hints at Rate Cuts

The ASX got a nice boost yesterday after the US Federal Reserve hinted at cutting interest rates in September.

Investors are ready to party, thinking lower rates in the US will be a win.

The ASX200 index jumped 60.6 points to close at 8084.5, and the All Ordinaries wasn't far behind, climbing 62.4 points to 8311.5.

• Tech stocks had a pretty good day, nudging up by 0.74%.

• Financials really stole the show, jumping 1.23%.

• The big banks were all smiles: Commonwealth Bank up 1.47%, NAB 2.2%, Westpac 2.13%, and ANZ 1.26%.

Things were already looking good after a strong rally on Wall Street last Friday, spurred by a dovish speech from Fed Chairman Jerome Powell. Powell dropped some hints that rate cuts are on the horizon, and the market ate it up.

Miners had a solid day too, with iron ore futures climbing nearly 4%. BHP, Rio Tinto, and Fortescue all saw gains.

Uranium miners were the day’s rock stars:

Deep Yellow shot up 17%, while Boss Energy and Paladin Energy surged 7.56% and 11.81%, respectively, after Kazatomprom warned of lower uranium production in 2025.

Not everyone had a great day, though. Endeavour Group fell 6.87% after reporting a drop in net profits, and bus and ferry operator Kelsian Group tumbled a whopping 23.75%.

If the Fed cuts rates in mid-September, we might see even more market fireworks. Stay tuned!

Businesses Keep the Faith Despite Inflation Pains

A new survey by National Australia Bank (NAB) shows increasing confidence among Australian companies.

Conducted with 700 small- and medium-sized enterprises, the survey reveals that a whopping 60% of businesses plan to invest in growth next year.

This optimism is a silver lining amidst rising inflation, sticky interest rates, and increasing corporate insolvency.

Krissie Jones, NAB’s new executive GM for small business, notes a “two-speed economy,” where some businesses are thriving while others struggle.

Still, the overall sentiment remains upbeat.

Michael Vacy-Lyle from Commonwealth Bank of Australia (CBA) echoes the positivity, highlighting robust lending pipelines and healthy balance sheets among businesses with turnovers between $5 million and $50 million.

Plans to ramp up investment are especially strong in Queensland and Victoria, led by the finance, insurance, property, and business services sectors.

Companies are keen to hire, retain, and train staff despite a slow rise in unemployment, which hit 4.2% in July and might peak at 4.6%.

NAB has recorded an 11% increase in small business equipment finance in the June quarter, signaling an investment-friendly climate.

Meanwhile, CBA saw its lending balance grow by 11% to $145 billion, raking in a cash profit of $3.8 billion.

So, while the economic seas are choppy, Aussie businesses are tightening their sails and gearing up for smoother voyages ahead.

Airline Customer Rights Take Flight With New Government Charter

Attention, frequent flyers!

The federal government has just unveiled a bold new "Charter of Rights" for airline customers, giving you the power to seek refunds and compensation for those all-too-common flight delays and cancellations.

This development is part of the freshly released Aviation White Paper, aimed at rejuvenating the country's aviation sector after a turbulent period marked by the collapse of two airlines and skyrocketing costs.

Transport Minister Catherine King emphasized the importance of fair treatment for passengers, stressing that if airlines fail to deliver the services expected, customers should get their money back or an equivalent service.

The charter will be overseen by a new body capable of resolving disputes and holding airlines accountable for their actions.

In addition to this, the Aviation Industry Ombuds Scheme will keep airlines on their toes, requiring them to justify delays or cancellations and mandating support for alternative travel arrangements.

Despite pushback from Qantas, which warned of potential fare increases, this initiative aims to restore confidence in an industry rocked by allegations of misconduct and excessive executive payouts.

With plans to implement the scheme by 2026, the government is also setting new standards to ensure accessibility for passengers with disabilities, making air travel more fair and inclusive for all Aussies.

Safe travels!

Aussies Can Officially "Clock Off"

Aussies just scored a major win in the work-life balance game with new legislation that lets them legally ignore after-hours work calls and emails. 

Starting Monday, bosses could face hefty fines of up to $93,000 for pestering employees outside official working hours.

Prime Minister Anthony Albanese believes this change will turbocharge productivity and address mental health concerns.

He pointed out that just like salaries don’t cover 24-hour days, work shouldn’t either.

"For many Australians, it’s frustrating to be tethered to phones and emails round-the-clock. This is a mental health issue," Albanese said.

Australia joins the ranks of France, Spain, and Belgium in protecting employees' "right to disconnect."

But not everyone’s thrilled. Business groups, like the Australian Chamber of Commerce and Industry, think it's a hasty move without enough consultation.

Minister Murray Watt said disputes over after-hours contact will primarily go to the Fair Work Commission but hopes that most issues will be sorted out through friendly chit-chats.

Initially, this perk applies to medium and large companies, giving small businesses a 12-month grace period before they have to play ball.

This move marks a significant stride towards better mental health and work-life harmony for Aussie workers.

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