1. Consumer cracks…
We continue to watch the consumer. This week we saw weak results from the likes of Walgreens Boots, Nike and H&M. And in Australia we have seen the Amazon.com.au site visitation turn negative from May 2024, joining the likes of Catch, Kogan and MyDeal who have been negative for some time.
Source: UBS (June 2024)
2. Business bears…
The latest Aussie insolvency data from ASIC shows May 2024 running +44% on May 2023. And April was +60% on the pcp. The 2 largest sectors for insolvency are Construction and Accommodation & Food Services. The number of firms entering insolvency across those 2 sectors is up 38%. Interestingly, as we are seeing rising insolvencies, we are also seeing record levels of new company registrations!
Source: E&P (June 2024)
Source: E&P (June 2024)
3. All aboard…
On Sunday 23 June, the TSA broke the record for the most individuals screened on a single day at 2.99m, and called out expectations for further strong numbers over upcoming holidays. This continues to bode well for our travel exposed holdings across the Funds including Flight Centre and Booking.
Source: DHS, Bloomberg, Macrobond, ANZ Research (June 2024)
Companies mentioned are illustrative only and not a recommendation to buy or sell any particular security.