Qantas is in discussions to outsource up to 1000 positions to India as part of a deal with consulting giant Accenture, as it works on cutting costs and overhauling its operations using artificial intelligence.

It comes as several big corporates including Woolworths, Telstra and National Australia Bank offshore jobs as part of the AI revolution.

Known as Project iQ, the Qantas plan would include outsourcing part of the airline’s marketing, finance, human resources and other back-office positions, according to the AFR. The report says Qantas plans to employ more customer facing staff as part of the deal.

A decision on whether to proceed with the plan and how many jobs will be cut is expected this year.

Outsourcing is a tricky business for Qantas, who has fallen foul of both the law and public opinion in recent years over management of staff. Most notably, two years ago it was found to have unlawfully outsourced 1,820 ground-handling jobs, and ordered to pay a record $90 million fine, plus $120 million in compensation to the affected workers.

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Greed-o-meter

2026 is looking like the year cinema came back to life. Spider-Man: Brand New Day hit local screens last weekend, and delivered the second biggest opening weekend of all time in Australia. The superhero flick took more than $30 million from Thursday to Sunday - and broke the all-time records for both Saturday and Sunday. It comes just a few weeks after The Odyssey did huge numbers at the local and international box office, and gives rise to hopes of a cinema revival. Curiously, both films star married couple Tom Holland and Zendaya - which suggests Hollywood may have found its new golden goose (or geese, in this case).

Source: FilmInk, Media Week

Fear & Greed Q+A today

On the real story behind immigration, including why we need to have a more nuanced discussion about what can be a very thorny political issue:

 

“One of the things Australia has done really well is target its migration system towards people who bring skills that we need. On average they're more highly skilled than the average Australian and they're filling gaps that businesses otherwise couldn't fill. They're bringing skills, knowledge and expertise that lift the capability of the broader workforce.

 

They also tend to earn higher incomes—some visa categories actually have minimum income thresholds—and they pay taxes. Typically they're younger than the average Australian and consume fewer government-funded services. In Treasury language, they make a positive contribution to the budget because they pay more in tax than they receive in services.”

News in brief

The S&P/ASX 200 yesterday closed at its highest level in five months and is just half a per cent off its all-time record. By the finish, the bourse had risen 1.4 per cent during the session to 9146 points.

Household spending rose during June, as people spent more on electric vehicles and air travel. Spending has held up well, and during the June quarter was higher than population growth, which means on average, people are spending more.

The federal government is under fire for declining property prices, just as National Australia Bank forecast a ten per cent dip in the market.

Betting giants Sportsbet and Tabcorp appeared before a Senate inquiry yesterday and denied allegations VIP account managers offered drugs and escorts to gamblers to keep them punting.

The River Rhine has fallen to record low levels in several locations in Germany and the Netherlands as prolonged heatwaves continue across Europe. Other major European rivers with important transport, industrial and agricultural functions have also seen record low levels, including the Danube, which flows through 10 countries, and Italy's Po river.

Fear-o-meter

EY Chief Economist Cherelle Murphy

Household spending rose by 0.8 per cent in June in nominal terms, driven by higher spending on transport and recreation and culture. This followed a solid rise of 1.2 per cent in May, taking the annual pace to 6.0 per cent.

Other data released yesterday also had a positive tilt, with ANZ Roy Morgan Consumer Sentiment data up 3.5 points in the final week of July, while inflationary expectations were down a little. The ANZ job ads indicator also rose, by 0.8 per cent in July.

Household spending is moving forward at a reasonable pace, and the pick-up in consumer sentiment last week may have reflected the better-than-expected June quarter inflation result, which was seen as taking some pressure off the Reserve Bank to lift rates further.

However, these data aren’t making the policy challenge any easier. If real spending remains resilient while inflation is too high, the RBA will tilt in favour of more rate hikes.

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