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The Qantas Airways Limited (ASX: QAN) share price is in the red today amid record delays and Indonesia border closure calls.

Qantas shares are falling 0.87% and are currently trading at $4.57 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.02% today.

Let’s take a look at what is happening with Australia’s national airline.

Flight delays

The Qantas share price is down, but it is not the only ASX 200 travel share descending today. The Flight Centre Travel Group (ASX: FLT) share price is down 1.13%, Webjet Limited (ASX: WEB) shares are falling 0.73%, and the Regional Express Holdings Ltd (ASX: REX) share price is sinking by 4%.

On-time performance figures from BITRE in June reveal only 59.4% of Qantas network planes arrived on time. This means 40.6% were late. Meanwhile, 20% of Rex planes were late compared to 38.2% of Virgin Australia planes and 40.5% of Jetstar planes.

Overall, 37% of flights from all airlines combined arrived late, the worst result on record. Commenting on these results, BITRE said.

These are the worst on time performance figures recorded since recording commenced in November 2003.

This month’s figures were impacted by weather related events, congestion and other COVID-19 related issues.

In terms of cancellations, 7.5% of planes cancelled were Qantas services, compared to 5.8% Virgin, 5.5% Jetstar, and 0.7% Regional Express. The majority of these cancellations were between Sydney and Melbourne.

Border closure calls

Meanwhile, Opposition home affairs spokesperson Karen Andrews is calling on Australia to shut the borders to Indonesia, Sky News reported.

Commenting on the threat of foot and mouth disease, Andrews said: “If we get foot and mouth disease into this country, it will take us potentially years to recover.”

Agriculture Minister Murray Watt announced on Wednesday that sanitised foot mats will be placed at international airports for flights from Indonesia.

Qantas share price snapshot

The Qantas share price has climbed 0.66% in the past year, while it has fallen nearly 9% year to date.

For perspective, the ASX 200 has shed nearly 8% in a year.

Qantas has a market capitalisation of about $8.6 billion based on the current share price.

The post Qantas share price dips amid record delays appeared first on The Motley Fool Australia.

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More reading

• Will the Qantas share price fly higher in FY23?
• ‘Disappointed’: Qantas share price lifts despite Heathrow chaos
• Clipped wings: Why ASX 200 travel shares are having trouble getting off the ground today
• Qantas share price slips amid COVID’s continuing toll  
• Own ASX travel shares? Here’s the outlook for FY23

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up 0.1% to 6,763.9 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are racing higher:

Kelsian Group Ltd (ASX: KLS)

The Kelsian share price is up over 15% to $6.29. This follows news that the travel company won’t be making an offer for UK-based bus and train operator GoAhead Group. Management explained that it made the decision largely due to difficulties in raising equity in the current environment. Kelsian, formerly known as SeaLink, would have required $1 billion+ in capital to fund the deal based on GoAhead’s market capitalisation.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price is up 12% to $4.45. This morning the company revealed that Dye & Durham has agreed to increase its takeover offer again. Dye & Durham has lifted its offer from $4.57 per share to $4.81 per share. This has been enough for the Link board to recommend the proposal to shareholders. Eligible shareholders will also be entitled to a 13 cents per share consideration from the potential sale of Link’s BCM business.

Liontown Resources Limited (ASX: LTR)

The Liontown share price is up 7.5% to $1.20. Investors have been buying this lithium developer’s shares following the achievement of a “significant milestone.” That milestone is the appointment of Lycopodium Limited (ASX: LYL) to complete the engineering, procurement, construction management (EPCM) and commissioning services for the Kathleen Valley Lithium Project in Western Australia. Despite recent cost inflation in the sector, the contract is in line with previous estimates.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 4% to 69 cents. Investors have been buying this buy now pay later (BNPL) provider’s shares following the release of its quarterly update. Zip reported group quarterly revenue growth of 27% to $160.1 million from its 12 million customers. Management also revealed that it is closing down its Pocketbook, Singapore, and Zip Business operations and looking at options for other Rest of the World businesses, including the UK.

The post Why Kelsian, Link, Liontown, and Zip shares are racing higher appeared first on The Motley Fool Australia.

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More reading

• Guess which $1.4b ASX 200 share just surged 15%
• Liontown share price jumps 7% on ‘significant milestone’
• ASX 200 midday update: ANZ’s capital raising, Link jumps, Zip’s Q4 update
• Link share price jumps 10% on takeover deal
• Zip share price up 5% following Q4 update

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Link Administration Holdings Ltd and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Gold continues its downward spiral and now trades at 12-month lows. The yellow metal has catapulted down from a previous high of US$2,052 per troy ounce and now rests at US$1,692/t.oz.

Meanwhile, economic data continues to defy the last few decades of readings.

US and UK inflation is now over 9% year on year, whereas the risk of recession increasingly grows by the week.

Traditionally, these have been bullish drivers for the gold price, but these relationships have fallen apart at the seams in 2022.

What’s going on?

In order to curb the hot-running global inflation, central banks have embarked on aggressive monetary tightening regimes.

This has dented global demand for gold bullion, Trading Economics says. It notes the metal’s underperformance “indicated technical weakness” despite other headwinds receding.

“[This] could be attributed to expectations that other major central banks will catch up to the Fed’s tightening path,” it said.

Gold is traditionally seen as a hedge against inflation. However, rising interest rates mean investors weigh up the opportunity cost of holding gold bullion/futures, as neither pay any interest.

Meanwhile, the US dollar index (DXY) continues to defy the odds and has surged to its highest value in 5-years.

As seen below, gold has diverged away from the DXY from May, and the ‘crocodile jaws’ continue to widen at the time of writing.

“The US dollar held below two-decade highs against its rivals, making greenback-priced bullion more expensive for buyers holding other currencies,” Reuters reported.

Not only that, but European Union diplomats met on Wednesday to discuss a new round of sanctions against Russia, including banning gold imports from the country.

Alas, the gold price continues in a sharp downtrend that has yet to find a bottom. ASX gold miners have felt the pinch today as well, with the Vaneck Gold Miners ETF (ASX: GDX) down almost 3%.

The post Gold price sinks to post-pandemic low. What’s going on? appeared first on The Motley Fool Australia.

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More reading

• Qantas share price dips amid record delays
• Why Kelsian, Link, Liontown, and Zip shares are racing higher
• ‘We remain cautious’: Could the BHP share price be heading south?
• Guess which $1.4b ASX 200 share just surged 15%
• RBA in the spotlight; and Westpac hikes fixed rates. Scott Phillips on Nine’s Late News

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The BHP Group Ltd (ASX: BHP) share price is in the red in early afternoon trading.

BHP shares closed yesterday at $37.11 and are currently trading for $36.56, down 1.48%.

This comes despite a 3% overnight lift in iron ore prices, bringing the industrial metal back up to just off US$100 per tonne.

The increase has also failed to boost the other S&P/ASX 200 Index (ASX: XJO) iron ore giants today. Fortescue Metals Group Limited (ASX: FMG) shares are down 3.02%, while the Rio Tinto Limited (ASX: RIO) share price is down 2.99% at the time of writing.

Yet, despite today’s fall, UBS analyst Lachlan Shaw still believes the BHP share price is overvalued.

Why is UBS cautious on the outlook for the BHP share price?

The broker’s caution stems from the June quarterly results BHP released on Tuesday morning.

As The Australian reports, it’s led Shaw to cut his target for the BHP share price by nearly 7% to $35.50. Shaw has also reduced his 2023 financial year earnings estimate for the miner by 9% and slashed his FY24 earnings estimate by 23%.

According to Shaw:

We remain cautious on the stock with a neutral rating as we expect earnings and free cash flow to deteriorate in FY23 with costs lifting and prices falling; this will result in lower returns to shareholders.

What did the mining giant report for the June quarter?

The BHP share price fell 1.0% on Tuesday despite the company releasing strong quarterly results. That was more than twice the 0.4% loss posted by the ASX 200 on the day.

The miner reported an 8% quarter-on-quarter increase in its iron ore production, which was within its guidance range. Production of the industrial metal was flat compared to the June quarter in 2021.

Copper production, also in line with guidance, was up 25% quarter-on-quarter but was down 4% year-on-year.

The miner’s nickel production fell short of guidance, hindered by a smelter outage.

BHP share price snapshot

The BHP share price is down 14% in 2022. This compares to a year-to-date loss of 11% posted by the ASX 200.

It has also fallen 27% since this time last year and 10% over the past month.

The post ‘We remain cautious’: Could the BHP share price be heading south? appeared first on The Motley Fool Australia.

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More reading

• Own BHP shares? Here’s why the miner just partnered with one of the world’s biggest steelmakers
• Top brokers name 3 ASX shares to buy today
• Broker gives its verdict on the BHP share price post-Q4 update
• 5 things to watch on the ASX 200 on Wednesday
• ‘We have clearly seen the peak’: Sector veteran gives earnings season warning for ASX mining shares

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Kelsian Group Ltd (ASX: KLS) share price is rocketing higher on Thursday.

In afternoon trade, the travel company formerly known as SeaLink has seen its shares shoot 15% higher to $6.29.

Why is the Kelsian share price rocketing higher?

The Kelsian share price is storming higher today after investors responded very positively to an announcement.

Last month the company confirmed that it was in talks with GoAhead Group regarding the potential acquisition of the UK-based bus and train operator.

While no financial terms were provided, Kelsian advised that any deal would likely to be in cash.

Furthermore, with LSE-listed GoAhead currently commanding a 600 million pounds (~$1 billion) market capitalisation, it would be a significant deal for Kelsian, which has a $1.4 billion market capitalisation following today’s gain.

What’s the latest?

Given the Kelsian share price performance today, readers might now be expecting to read that the company has signed an agreement to acquire GoAhead.

But that’s not the case. In fact, the market has actually responded positively to confirmation that Kelsian will not be making an offer for GoAhead. It appears that investors were not convinced with the plan given the significant capital it would have needed to raise to make the acquisition.

Management blamed volatile equity markets for its decision to scrap the deal. It explained:

Kelsian is always considering growth opportunities and would only pursue an opportunity that is strategically and financially attractive for its shareholders, as well as aligning with Kelsian’s business model and operating culture. Kelsian has a track record of successfully acquiring, integrating and growing Australian and international businesses.

Unfortunately, recent Australian equity markets have been volatile and external events have adversely impacted the Kelsian share price since 14 June 2022 when Kelsian first announced it was considering a possible offer for Go-Ahead. The Kelsian Board consider that Australian equity market conditions at this time do not enable Kelsian to pursue a possible transaction for Go-Ahead despite the long-term strategic and economic rationale of the potential transaction for Kelsian.

The post Guess which $1.4b ASX 200 share just surged 15% appeared first on The Motley Fool Australia.

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More reading

• ‘We remain cautious’: Could the BHP share price be heading south?
• RBA in the spotlight; and Westpac hikes fixed rates. Scott Phillips on Nine’s Late News
• Rio Tinto share price stumbles following near-$1b ATO settlement
• What’s the outlook for the Lynas share price in FY23?
• Down 70% in a year, ASX-listed Ovato calls in administrators

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Motley Fool Australia Chief Investment Officer Scott Phillips joined Michael Thomson for Nine’s Late News on Wednesday night to discuss the review into the RBA’s handling of interest rates, and Westpac Banking Corp’s (ASX: WBC) decision to increase fixed rates, with more probably on the way…

The post RBA in the spotlight; and Westpac hikes fixed rates. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: ANZ’s capital raising, Link jumps, Zip’s Q4 update
• Here’s why Macquarie thinks these 2 ASX 200 shares can outperform
• 5 things to watch on the ASX 200 on Thursday
• The Accent share price has already surged 18% in FY23. What’s next?
• Here are the top 10 ASX shares today

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Lynas Rare Earths Ltd (ASX: LYC) share price is falling today, currently down 2.97% at $8.17.

Investors have sold down Lynas shares since 28 June, with the stock pushing to six-month lows of $7.54 apiece on 12 July (as seen in the graph below).

But what might be in store for the mineral explorer for the rest of FY23?

What next for the Lynas share price?

The Lynas share price made a strong start to the week following the release of the company’s Q4 FY22 earnings report.

In it, the rare earths producer reported a 10% dip in sales but grew cash receipts 34% to a record $350 million. Growth was underscored by robust pricing and strong demand for rare earths.

Noteworthy is that neodymium and praseodymium (NdPr) prices were roughly 70–80% higher year on year, Lynas said.

Additionally, Lynas reported sales revenue of $294.5m, which it said was the second highest quarterly result recorded. This was achieved despite slightly lower production, mainly due to water shortages in Malaysia.

Macquarie analysts are bullish on the Lynas share price, with the broker rating it a buy. It also values the company at $12.50 per share, as my Foolish colleague Tristan Harrison reported today. Macquarie says Lynas is valued at 10 times FY23 estimated earnings.

Moreover, Lynas is rated a buy from two out of three of the analysts covering the share, according to Refinitiv Eikon data.

The average price target from this list is $10.26 apiece, suggesting there could be more upside left in the share yet.

Investors will be hoping Lynas can repeat its performance in FY22 when it soared by 53%. This was particularly impressive given the ASX 200 itself fell some 10% during the period.

In the last 12 months, the Lynas share price has gained 38%.

The post What’s the outlook for the Lynas share price in FY23? appeared first on The Motley Fool Australia.

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More reading

• Here’s why Macquarie thinks these 2 ASX 200 shares can outperform
• Lynas share price higher following record Q4 sales
• Odd one out: Lynas share price inches ahead while miners drill down
• Here are the top 10 ASX shares today
• Could this be why the Lynas share price is rallying 6% today?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Rio Tinto Limited (ASX: RIO) share price is in the red on Thursday, tumbling 2.77% to trade at $95.09.

Its downturn comes amid news the Australian mining giant has agreed to fork out nearly $1 billion in unpaid taxes. It marks one of the largest tax settlements in Australian history.

The stock is currently defying a broadly flat market today. The S&P/ASX 200 Index (ASX: XJO) is down 0.15% right now. At the same time, the All Ordinaries Index (ASX: XAO) has slipped 0.03%.

Let’s take a closer look at the agreement reached between Rio Tinto and the Australian Taxation Office (ATO).

Rio Tinto agrees to near-$1b ATO settlement

The Rio Tinto share price is suffering on Thursday. Meanwhile, news the company has been ordered to fork out hundreds of millions of additional tax has hit headlines.

The ATO and the company have reached a settlement that will see Rio Tinto handing over $613 million in tax for the 12 years between 2010 and 2021. That’s on top of $378 million already paid by the resource giant.

The settlement was born from two disputes. One regarded the pricing of sales of Australian materials, including iron ore and aluminium, to Rio Tinto’s commercial centre in Singapore. The other related to interest on a borrowing used to pay an intragroup dividend in 2015.

It puts an end to a near-decade long investigation by the ATO.

“[The settlement] means that additional profits from the sale of Rio’s Australian owned commodities will be taxed in Australia in the years to come,” ATO deputy commissioner Rebecca Saint said, continuing:

The complexity of properly understanding the global affairs of multinationals … can take years of rigorous investigation. This is the case even when the multinational is fully engaged, shares information, and is motivated to resolve the issue, such as with this settlement.

The company has also entered an agreement with the Inland Revenue Authority of Singapore. Together, the agreements lock in transfer pricing arrangements on materials between Australia and Singapore until 2026 and ensure the company doesn’t face double taxation.

Rio Tinto chief financial officer Petter Cunningham commented on the agreements, saying:

We are glad to have resolved these longstanding disputes and to have gained certainty over future tax outcomes relating to our Singapore marketing arrangements.

Rio Tinto share price snapshot

Today’s dip included, the Rio Tinto share price is around 4% lower than it was at the start of 2022. It has also slipped 24% since this time last year.

For comparison, the ASX 200 has fallen 11% year to date and 7.5% over the last 12 months.

The post Rio Tinto share price stumbles following near-$1b ATO settlement appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• ‘We have clearly seen the peak’: Sector veteran gives earnings season warning for ASX mining shares
• What’s the outlook for the iron ore price in 2023?
• Leading brokers name 3 ASX shares to buy today
• Here’s what brokers are saying about the Rio Tinto share price

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It is a bleak day for shareholders in Ovato Ltd (ASX: OVT) as the company makes the difficult decision to enter voluntary administration.

The appointment of administrators has followed a substantial erosion of the Ovato share price over the past year. During this time, shares in the printing solutions company have tumbled 70% as it contended with various business challenges.

Let’s take a look at what steps the company took today.

Ovato share price comes to a screeching halt

Prior to the market opening on Thursday morning, a request for Ovato shares to be suspended from quotation was made to the ASX.

Ovato also updated investors with the reasoning behind its suspension request. According to its release, the printing company has appointed Chris Hill, Ross Blakeley, and Ben Campbell of FTI Consulting to act as voluntary administrators.

The action was stated to have taken effect immediately, kicking off the voluntary administration process for ASX-listed Ovato.

Furthermore, the company told investors the catalysts for its difficult financial position were threefold. These included the effects of volatile market conditions, the increased cost of raw materials, and legacy cost issues. The appointed team will now assess the viability of the business.

What’s next for ASX-listed Ovato?

In addition to providing an overall assessment, the appointed administrators will soon move ahead with a public sale and recapitalisation process.

Moving forward, the Ovato share price will remain frozen while the company undergoes the administration process. Shareholders can expect to hear more details at a creditors’ meeting slated for early August.

The Ovato share price is down just over 70% from this time a year ago. This has coincided with the company’s revenue continuing to dwindle and operations remaining unprofitable. At the end of December 2021, Ovato reported cash levels of $9.26 million, compared to debt of $49.42 million.

The post Down 70% in a year, ASX-listed Ovato calls in administrators appeared first on The Motley Fool Australia.

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More reading

• Why is the Temple and Webster share price up 7% today?
• Tesla sells 75% of Bitcoin holdings. Here’s why Elon Musk is unloading
• Liontown share price jumps 7% on ‘significant milestone’
• ASX 200 midday update: ANZ’s capital raising, Link jumps, Zip’s Q4 update
• Netflix still has a long way to go

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Temple & Webster Group Ltd (ASX: TPW) share price is soaring in early afternoon trading on Thursday.

At the time of writing, the company’s shares are pushing 7.02% higher to $3.81 apiece. This comes despite no news out of the online furniture retailer.

In broad market moves, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is up 0.75%, while the All Ordinaries Index (ASX: XAO) is 0.06% higher.

What’s up with the Temple and Webster share price?

Investors have been constructive on consumer cyclical shares since mid-June with the consumer discretionary benchmark up 10% in a month. Similarly, the Temple and Webster shares are up 8% over the same period.

Despite softening consumer sentiment out of the US and Australia recently, consumer spending habits likely jumped in FY22, Focus Economics posits.

A combination of accumulated savings and a tight labour market points to strengths in consumer demand, it says.

As a result, the Australian economy looks set to continue growing, and the above points “should feed household spending”, it remarked.

Furthermore, the consumer discretionary sector continues to catch bids in July. The reversal from previous lows looks to have inflected positively on the Temple and Webster share price.

It, too, has reverted course and bounced from 52-week lows of $2.97 on 12 July, as seen below.

As seen in the chart, the two instruments have tracked each other in a strikingly similar fashion over the past 12 months.

In that time, the Temple and Webster share price has fallen 66%. It is also down 64% this year to date.

The post Why is the Temple and Webster share price up 7% today? appeared first on The Motley Fool Australia.

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More reading

• Temple & Webster share price jumps 11% after hitting recent lows
• Does the FY23 outlook make ASX retail shares look like bargains?
• Why are these 2 ASX ecommerce shares hitting two-year lows?
• Why I think the Temple & Webster share price is on sale right now
• Temple and Webster shares tumble 8% amid bleak US consumer confidence

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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