21 Jul HELLO ALDI – INFLATION BITES; BUT WE STILL WANT OUR NETFLIX
HELLO ALDI – INFLATION BITES
A new survey of consumer goods suppliers by bankers at UBS has found that food inflation hit 4.8 per cent in the past 12 months which is forcing consumers to “trade down to smaller pack sizes, private label and/or to Aldi”.
Good news for the German supermarket chain.
Compared to its major rivals – Woolworths, Coles, and IGA – Aldi gained the most market share in the last six months to June 30.
BUT WE STILL WANT OUR NETFLIX
Despite inflation and interest rates tightening purse strings, it seems we are still willing to pay around $16.99 – the equivalent of three and a half coffees at Sydney prices – for our Netflix.
In its latest quarterly trading update, the streaming giant announced that it added 5.9 million new subscribers in the past three months after cracking down on password sharing – more than double what analysts had expected!
Netflix also announced that the company made a profit of over $1.8 billion during the period, its best second-quarter performance since the depths of the pandemic three years ago.
CHANGING GUIDANCE
Only one week to go before earnings season starts, and investors are bracing for profit downgrades.
Consensus earnings expectations for 2024 have dropped almost four per cent in the last three months as slowing economic growth weighs on margins.
Just this week, CSL, Ansell and Lendlease announced downgrades due to higher input costs.
We may be in for another shaky earnings season… And if you want to know more on what to expect, check out these insights by our associate director Michelle Loh.
HUNTING FOR NEW UNICORNS
IP Group Australia, a leader in university research commercialisation and a Cannings’ client, announced this week that it received a further $100 million commitment from Hostplus to the IP Group Hostplus Innovation Fund.
This brings the total commitment from Hostplus to $310 million.
Managing Director Michael Molinari spoke to The Australia Financial Review’s Paul Smith about the announcement and IP Group’s mission to find and develop deep-tech companies that could become new industry giants.
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