1. Bringing home the Turkey…
Happy Black Friday. May the sales be ever in your favour. Australians spent $6 billion in the Black Friday and Cyber Monday sales last year. And the Australian Retailers Association expects shoppers will spend $6.2 billion over the 4-day period this year.
And it looks like Americans are good at spending too. Credit card balances are up, savings are down, and inventory is ready to be cleared.
Source: NY Fed Consumer Credit Panel, Equifax
Source: NY Fed Consumer Credit Panel, Equifax
Source: The Daily Shot
2. Flying high…
Qantas came out with another upgrade this week, as they are yet to see any weakness in demand. We spoke about their strong profit forecasts last month on COTW (check it out here). They are now expecting 1H23 profit before tax to be in the range of $1.35bn – $1.45 billion, versus the full year FY19 PBT coming in at $1.2bn. This comes as departures have only reached ~80% of pre-Covid levels at Sydney airport. Webjet also announced last week they are seeing domestic bookings at 85% of pre-Covid levels, and international at 72%.
Source: BITRE, flightradar24.com, Macrobond, Macquarie Macro Strategy
Illustrative only and not a recommendation to buy or sell any particular security.
3. It’s coming home…
No not the World Cup. Well maybe…the Americans technically still have a chance. More likely is the most anticipated recession ever!
Source: Federal Reserve Bank of Philadelphia