01 May THE 90 PER CENT ECONOMY; THE RETURN TO WORK; DON’T PUT PROFIT BEFORE YOUR PEOPLE
Welcome to a new month of Cannings’ business and media intelligence, with insights collected over the past 24-hours as NSW lifts restrictions today and Canberra becomes the first jurisdiction in Australia to eliminate all known cases of coronavirus.
- JET-SETTERS STILL DREAMING, JUST THIS TIME IT’S LOCAL
- A total of 164 airlines across the globe have grounded entire fleets. Another 91 are using less than 10 per cent of theirs. It seems as if travel restrictions are here to stay for some time. However, according to Sojern, an ad-tech firm, interest in flights scheduled for later in the year is peaking. Read more on how travel may go local in The Economist. (Subscriber access)
- THE 90 PER CENT ECONOMY WILL BE FAR FROM NORMAL
- As the overwhelming desire to return to normal takes hold, cue the 90 per cent economy. While better than a total lockdown, The Economist argues that the longer the world must endure a 90 per cent economy, the less likely it is to snap back after the pandemic. Read more here.
- EMISSIONS DECLINE NOT EXACTLY GOOD NEWS
- According to new research by the International Energy Agency, an “unprecedented” fall in fossil fuel use, driven by the Covid-19 crisis, is likely to lead to a nearly eight per cent drop in global greenhouse gas emissions. But experts caution the drop should not be seen simplistically, as emissions could easily soar again unless governments make concerted efforts to shift to cleaner energy. Read more in The New York Times.
Australian company news
- YES, WE WILL BE RETURNING TO OUR OFFICES, BUT NOT LIKE YOU KNOW IT
- Working from home is looking like it will stick around for the remainder of the year, and possibly even longer. Short-term, businesses will keep occupancy at less than 50 per cent. Over the long-term, many experts predict offices may become places to collaborate, with day-to-day tasks being performed at home. Read how businesses are planning to return to work and considerations in doing so in The AFR here. (Subscriber access)
- LEADERS: DON’T PUT PROFIT BEFORE YOUR PEOPLE
- According to Tessa Van Duyn, CEO of commercial law firm Moores, true leaders sacrifice the numbers to save the people, they don’t sacrifice the people to save the numbers. Controversially, Van Duyn argues that decisions like cutting hours, pro-rata adjusted salaries and requesting staff take annual leave are not the actions of true leaders. Read more in The AFR here. (Subscriber access)
- BIG FOUR DEBATE: DIVIDENDS VS CAPITAL RAISING
- ANZ Bank positioned itself as more prudent and better managed than its rivals when the Board deferred its decision on the first-half dividend until August. After considering a range of scenarios over recent weeks, the bank decided that handing cash out to shareholders now and risk damaging the organisation is not in the long-term interests of shareholders. Some shareholders beg to differ, especially self-funded retirees. Read more in The AFR here. (Subscriber access)
- THE NEW NORMAL, ACCORDING TO WOOLIES
- Woolworths boss Brad Banducci has had a front row seat to the changes in consumer mindset over the COVID-19 crisis, and he argues the scars are going to take time to heal. But it’s what happened since the panic buying that gives the community and investors more insight into the post-COVID world, with James Thomson in The AFR asking the big question for investors: where to from here? (Subscriber access)
- SHUTDOWNS WILL HAVE PROFUND CHANGES IN RETAIL AND ENERGY SECTORS
- Veteran commentator Robert Gottliebsen in The Australian sheds light on the areas that look most vulnerable to longer-term damage: the retail sector and energy. The big rise in online purchases will moderate but we are unlikely to go back to the old ways, causing many shopping centers to suffer. But the most staggering commercial outcome from the pandemic has been falling energy consumption. As a major energy exporter, Australia will suffer unless there is a reversal. Read more in The Australian here. (Subscriber access)
Our daily briefing is not meant to be a summary of media coverage but rather, insights that may be helpful in understanding how organisations are communicating with stakeholders in a time of crisis – and what comes next. Sign up via email.