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Weekly Broker Wrap: The rise of Robo advice, China’s growth U-turn, lockdown hits GDP, listed property feels lockdown impact
-Robo advice could potentially be a $60bn market in Australia
-China’s retreat from technology to trigger a shift back to manufacturing/consumption
-Landlords with retail exposure have greatest exposure to lockdowns
By Mark Story
Robo advice on the march
Rainmaker Information believes the rapid fall in investment adviser numbers, courtesy of the recent industry shakeout, has led to a corresponding rise in digitally delivered robo advice, which the researcher suggests has the potential to be a multi-billion-dollar market in Australia.
Jul 23 2021
Weekly Broker Wrap: Oz equities momentum, investor confidence, strategies for living with covid, global housing ripe for price reversal
-Wilsons suspects peak earnings momentum may be reached this quarter
-Investor expectation of economy recovering well post-covid, drives ‘mum & dad’ confidence in ASX-listed companies above pre-pandemic levels
-Major Asian economies are expected to shift from ‘zero covid’ to ‘low covid’ strategies
By Mark Story
Oz equities: Is earnings momentum about to peak?
With both the ASX200 index and forward earnings estimates now sitting higher than pre-covid level highs, the question Wilsons suggests investors are now pondering is whether growth is peaking.
-Positive for residential real estate, office concerns easing and caution on Melbourne malls
-Two top picks in the small-cap defence sector
-Citi’s bullish view on the global fertiliser outlook
By Mark Woodruff
Real Estate: Fresh perspectives
In the early stages of a post-covid world, some fresh real estate perspectives from Morgan Stanley alleviate some concerns around suburban offices and highlight that residential intentions remain bullish. There is, however, another reason to be cautious on retail mall landlords, when they have high exposure to Melbourne/Victoria assets.
Of the office workers surveyed by the broker, 28% flagged that their employers have taken up more space since returning to work from covid versus 25% who have taken less, suggesting office pessimists may be too bearish.
-Snap lockdowns to undermine discretionary retail earnings/share prices
-Proposed EU-based consumer credit regulations may affect growth for Afterpay/Zip Co
-Major rebound in buybacks, special dividends, and return to normal dividend payout ratios on the cards
By Mark Story
Discretionary retail: Lockdowns tarnish second half earnings
Despite the accelerated vaccine roll-out nationally, Jarden sees the real risk of Australia remaining closed for longer, which will likely delay the reopening trade.
To reflect snap lockdowns in NSW and Victoria, partial lockdowns in QLD, WA and the NT, plus a growing cost of doing business pressures (CODB), Jarden has cut FY21 earning per share (EPS) forecasts by an average -5% across a handful of discretionary retailers.