Thredbo, Computer Shipments, and Baby Bunting

Australian News

• Australian suppliers have increased prices by 8.3% on average over the last year, however about half are not planning to hike prices further in 2023.

• NAB’s September business survey showed labour cost growth eased to 2% over the last 3 months and purchase cost growth actually declined to 1.8%.

• Thredbo is one step closer to getting new accommodation for the first time in 30 years as the ski resort owner’s application to subdivide Thredbo golf course for development was approved by the NSW Government.

• Australian supply chains are underfunded and poorly prepared compared to global peers in handling new challenges, threatening to cause fresh disruption after upheaval during the pandemic.

• The Seven Network has declared victory in the television ratings stakes for 2023 after the latest ­results revealed it had been the most-watched network this year - despite 8 weeks still remaining in the ratings year.

Global News

• Worldwide computer shipments declined 9% in Q3 - corporate customers may be approaching their next purchasing cycle on the back of Microsoft’s Windows 11 upgrade.

• Gold has risen at its fastest rate since May on increased safe-haven demand after tensions ramped up in the wake of the Hamas attack on Israel.

• Major airlines suspend Israel flights following attacks.

• The global population is expected to expand by around 1.5B from nearly 8B in 2022 to about 9.5B by 2045.

• Demand for office space has slumped further, with vacancies reaching at least 20-year highs in the US and London.

• KPMG’s Future of Supply Chain report finds 47% of global businesses surveyed felt vulnerable to disruption from macro factors.

• Germany and France will hold a 2-day retreat to reset relations amid disagreements on energy, industry and defence policies.

• EU gas prices rise on the back of Aussie strikes, Middle East tensions, and pipeline issues.

• Chinese coal prices are approaching 6-month highs as the northern hemisphere heads into winter.

Company News

• Retailer Baby Bunting has warned that the financial strains experienced by younger parents, especially millennials, are placing pressure on discretionary spending on prams, toys, strollers and clothing.

• Investors in failed delivery start-up Milkrun will receive less than 20% of their $86M investment.

• While food price inflation is set to ease, discount chain Aldi is gaining market share from the major supermarkets.

• The ACCC approved Brookfield and MidOcean’s $18.7B buyout of Australia’s largest electricity and gas wholesaler Origin Energy.

• Barrenjoey Capital Partners will pay banker bonuses in monthly instalments, instead of quarterly, as investment banks ride out the downturn in fees and come up with creative ways to mitigate defections.

• Tabcorp is under question for its recent $30M investment in Dabble, a start-up bookmaker in trouble for advertising on TikTok and luring millennials with “social betting”.

• Revenge travel following the pandemic helped drive a 124% increase in Virgin Airlines revenue to $5B, with the airline returning to profitability for the first time in 11 years.

• Boston Consulting Group sacked 4 personnel from its business in Australia and New Zealand after receiving 10 formal complaints about their behaviour during the past 5 years.

• Samsung’s Q3 profit set to slump 80% as chip losses persist.

• Tesla’s EVs now compete directly with petrol cars after recent price cuts.

• MUFG and Japanese banks disrupted by glitches in its money transfer system.

Other Picks

• Of all the TV programs to air this year, the top 5 most-watched have been on Seven, including the Matildas’ semi-final (7.32M), Matildas v France post game (4.52M), Australia v France (4.23M), the AFL grand final between Collingwood and Brisbane (3.75M) and the Women’s World Cup match between the Matildas and Denmark (3.57M).

• Nike finally released a replica jersey for England goalkeeper Mary Earps on Monday, after facing widespread criticism for not selling the popular Women’s World Cup finalist’s shirt.

• Robert F. Kennedy Jr. shifts to Independent presidential bid.

• Crypto traders suffered US$100M in liquidation losses on Monday after Ethereum prices fell ~4%.

This Week’s All Star Picks

• One-third of home buyers were supported by the Federal government’s Home Guarantee Scheme in FY23, a significant increase on the previous year.

• Revenue NSW is chasing over 17,000 people who have not paid their Covid hotel quarantine bill, as the government is still owed almost $40M in unpaid fees.

• Compared to last year, beef steaks are 10% cheaper, lamb leg prices are down 13.5%, lamb cutlets are only down 5%, and sausage prices are flat.

• Spanish police have seized 74 tonnes of stolen olives in the southern province of Seville, the latest theft triggered by soaring prices caused by a dwindling harvest.

• Barrenjoey reckons Westpac has hit a “pivotal” moment in its turnaround, and it could finally correct 15 years of under-investment in its technology systems.

• Michelin Guide to start ranking hotels in addition to restaurants.

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