Economic Updates

Economic Updates

The ‘R’ Word

In recent weeks fears of a recession have gripped the market. With record high inflation levels and growth slowing down, is the perfect storm about to hit or will the markets be spared? Recessions are when there is negative growth for two consecutive quarters across the economy. Recession has often hit at times with high global uncertainty includin...

July 8, 2022
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Are we at risk of ‘Stagflation’?

The world economy is grappling with inflation that is surging out of control. Inflation rates have surged to decade highs across multiple countries. Central banks across the globe have been doing their best to reduce growth by raising interest rates. “The World economy is in danger,” World Bank president David Malpass wrote in a report. High in...

June 10, 2022
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Pressure builds on the Construction Industry

The construction industry, which is a major cog in the Australian economy, could be under threat from external pressures. Inflationary pressures have pushed up costs these increases are beginning to take their toll on sector. Specifically higher Labour and materials costs have increased pressure on the margins of the large construction companies. F...

June 3, 2022
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NIO’s May delivery numbers have arrived

NIO Inc. (NIO) reported its latest delivery numbers for May on Wednesday. The Chinese electric vehicle company delivered 7,024 cars in the previous month – a 11.8% increase year-over-year. Production and deliveries have been recovering from the constraints caused by COVID-19 outbreaks in China, according to the company, however, it still ha...

June 2, 2022
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EU Leaders Further Tighten Oil Dependency

The European Union has advised of a proposal to further limit the export of Russian oil. They are looking to ban the buying of the liquid gold to further limit Russia’s spending power in their current invasion of Ukraine. The sanctions would forbid the purchase of crude oil and petroleum products from Russia delivered to member states by sea ...

June 1, 2022
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Lithium stocks drop after calls that Battery ‘Bull Market’ is over

Australian lithium stocks have fallen remarkably after analysts from Goldman Sachs predicted that the material’s price has reached a peaked. Their predictions outline are that the price may fall 76% from its current highs. The predicted price drop is due to an oversupply that has been produced in the short-term outpacing the demand. In addition, ...

June 1, 2022
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Salesforce beats Q1 estimates – stock jumps in after-hours

Salesforce Inc. (CRM) reported its first quarter financial results after market close on Tuesday. The company beat both revenue and earnings per share estimates. World’s leading customer relationship management reported revenue of $7.411 billion for the quarter vs. $7.328 billion expected. Earnings per share reported at $0.98 per share for ...

June 1, 2022
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Are the Iron Ore players set to rebound?

Australian Iron ore miners have faced a tough period after a golden era largely due to the strong economic growth in China. The industry was pumping whilst China was reliant on the material for its own industry and growth. However with China’s economy slowing down and the pandemic adding restraints on this, the sector has seen a slowdown and the ...

May 27, 2022
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Alibaba beats estimates – the stock is rising

Alibaba Group Holding Limited (BABA) reported its latest financial results for the quarter ended March 31, 2022 before the market open on Thursday. The Chinese e-commerce giant posted better than expected results, sending the stock price higher. The company reported revenue of $32.167 billion in the quarter (up 9% year-over-year) vs. $31.444 bil...

May 27, 2022
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Semi-conductor supply crunch

The global market has seen what can happen when there are disruptions to critical supply chains. However a lesser known critical material or part of the electronic supply chain is the delicate supply of semi-conductors. The Covid -19 Pandemic and the Russian and Ukraine war have highlighted how vulnerable secure supply chains can be to global volat...

May 24, 2022
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Xpeng tops first quarter expectations – the stock falls on future outlook

Xpeng tops first quarter expectations – the stock falls on future outlook Xpeng Inc. (XPEV) reported its first quarter financial results before the opening bell on Wall Street on Monday. The Chinese electric vehicle company reported revenue of $1.175 billion in the quarter (up by 152.6% year-over-year) vs. $1.165 billion expected. The co...

May 24, 2022
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Deere & Co. tops estimates

Deere & Co. (DE) reported its financial results on Friday for the second quarter ended May 1, 2022. The American manufacturer of farm machinery and industrial equipment reported revenue of $13.37 billion in the quarter (up by 11% year-over-year), topping analyst estimate of $13.231 billion. Earnings per share also coming in above expectat...

May 22, 2022
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China’s dominance of Rare Earths and the West’s opportunity

What are Rare Earths? Neodymium and praseodymium (NdPr) are two resources that you have probably never heard of, but you use every day. They are not like Gold, Iron ore or even Lithium. They are the two most important light Rare Earths, and they have outstanding magnetic and conductive properties. The name ‘Rare Earths’ is a bit of a misnome...

May 22, 2022
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Why are US retail giants bleeding?

Retail and consumer staples Walmart and Target have seen dramatic drops in their share prices in the last week as the cost of inflation begins to take its toll. Both retail in the USA have become unstuck as the consequences of high inflation begins to take effect. The companies saw a big drop in profitability as rising costs continue to put pressur...

May 20, 2022
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Target Q1 results announced

Target Corporation (TGT) reported its Q1 financial results before the market open in the US on Wednesday. The US department store chain reported revenue of $25.17 billion in Q1 (up by 4% vs. the same period last year), slightly beating analyst estimate of $24.475 billion. The company missed analyst expectations for earnings per share for the ...

May 19, 2022
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