The company posted an underlying pre-tax loss of A$1.86 billion ($1.29 billion) for the 2022 financial year. “While the first three quarters of the year were defined by border closures and waves of uncertainty caused by Covid variants, the fourth quarter saw the highest sustained levels of travel demand since the start of the pandemic,” Qantas said in a statement. It also announced plans to buy back up to A$400 million worth of shares, according to a filing. “This is the first return to shareholders since 2019 and follows $1.4 billion in equity raised at the start of the pandemic,” the company said. — Abigail Off
CNBC Pro: Why Goldman Sachs thinks this FAANG stock is a sell
FAANG stocks delivered mixed second-quarter gains, but Goldman Sachs maintains buy ratings on nearly the entire group. Only one share is for sale, according to the bank. Professional subscribers can read the story here. — Zavier Ong
HKEX delays morning session due to typhoon, to resume in afternoon
The windows of a restaurant at The Peak are boarded up in Hong Kong on August 24, 2022, as the Hong Kong Observatory issued a Typhoon Signal No. 8 earlier in the morning. HKEX canceled its morning session depending on the T8 version. (Photo by ISAAC LAWRENCE/AFP) (Photo by ISAAC LAWRENCE/AFP via Getty Images) Isaac Lawrence | Afp | Getty Images Hong Kong delayed its morning session due to the issuance of Typhoon Signal No. 8, the exchange announced on its website. The session is likely to continue in the afternoon as the signal has now been downgraded to T3. “If the Typhoon signal No. 8 or above, or any severe condition announcement, remains issued at 9:00 a.m., morning trading sessions for all markets will be canceled,” it says. HKEX’s guidance on its website regarding the resumption of its session says, “trading will begin in the first half hour approximately two hours after the Typhoon No. 8 signal or any extreme conditions announcement is discontinued.” — Jihye Li
Bank of Korea raises interest rates
The Bank of Korea raised the country’s benchmark interest rate by 25 basis points to 2.50%. The move was in line with a Reuters poll in which all but one of 36 economists had forecast the increase. One expected an increase of 50 basis points. That follows an increase of 50 basis points in July – the biggest increase since the bank adopted the monetary policy framework in 1999, while it expects gross domestic product to grow “below May’s forecast of 2.7%.” Central bank governor Rhee Chang-yong is expected to hold a press conference clarifying today’s decision later in the morning. — Jihye Li
CNBC Pro: Morgan Stanley, UBS prefer these ‘cheap’ stocks, even in recession
The risk of a recession is rising, according to Canaccord Genuity analysts led by Tony Dwyer. “Our indicators suggest that a recession is increasingly likely as we move into next year, especially if the Fed continues to raise interest rates,” according to an Aug. 22 research note. But according to Morgan Stanley and UBS, some stocks still look cheap — even with the risk of a price slowdown. Here are some of the stocks they prefer. Professional subscribers can read the story here. — Zavier Ong
Treasury yields rise on expectations of a hawkish Jackson Hole Fed meeting
Bond yields rose ahead of the Federal Reserve’s annual meeting in Jackson Hole, Wyo., on the idea that the market view was riskier than the central bank. The three-day event begins on Thursday and the market is most focused on a Friday morning speech by Fed Chairman Jerome Powell. The market expects a hawkish Fed based on pre-meeting comments. For example, some Fed officials pushed back against the market view that the Fed could cut interest rates shortly after they finish raising them next year. Yields, which move against prices, are moving higher on expectations that Powell will emphasize an aggressive policy to fight inflation and keep interest rates high for longer. The 10-year yield hit 3.11% on Wednesday morning, the highest since late June. “I think what the bond market wants to understand is Powell’s view of this policy reversal in 2023,” said Jim Caron of Morgan Stanley Investment Management. — Patty Dom
