“What’s also so exciting is the thriving Australian startup scene, and one of the things I’ve noticed is that so many brilliant founders seem to think global first, and that’s unique…I think that’s why you’ve seen some of these just massive breakout global success stories from Australia. It’s really super exciting” Evan Spiegel, CEO, Snapchat Inc
Technology
“We have not seen any budget cuts from project deferments so far. In conversations with clients, we see continuing investments in technology. Some clients, particularly in Europe, have expressed concerns about the macroeconomic fallout of the ongoing conflict there. But the predominant sense is that technology spending will be resilient” Rajesh Gopinathan, CEO, Tata Consultancy Services [one of the world’s largest IT companies]
“You’re going to see the headwind of the [strong US] dollar right now against well-known technology brands...No one’s going to outrun the currency right now” Bill McDermott, CEO, ServiceNow Inc [major US listed software company]
Startups
“What’s also so exciting is the thriving Australian startup scene, and one of the things I’ve noticed is that so many brilliant founders seem to think global first, and that’s unique…I think that’s why you’ve seen some of these just massive breakout global success stories from Australia. It’s really super exciting” Evan Spiegel, CEO, Snapchat Inc
Retail & Electronics
“And even this year, the start of this rather turbulent period, the last few months, the market has stayed larger than it was pre-pandemic…That said, the online market has stepped back significantly” Alex Baldock, CEO, Currys PLC [major multinational electronics retailer]
Airlines
“We’re not through this [COVID impacts] yet ...This is a marathon, not a sprint. And, by the way, there is another marathon to run” Greg Foran, CEO, Air New Zealand Ltd
“The airline industry is heavily dependent on ticketing platforms whose legacy proprietary model restrict the airline's ability to offer new products and services...This is preventing them from establishing competitive differentiation and resulting in an opportunity loss” Rajesh Gopinathan, CEO, Tata Consultancy Services [one of the world’s largest IT companies]
Food & Beverage
“It’s all really about the drive-through – 60 per cent to 70 percent of our business goes through the drive-through and customers want more than just burgers and chips” Chris Green, CEO, Hungry Jack's
“So, non-sugar I think is an unstoppable trend in the beverage category...Every brand has a non-sugar leg that is going to be the focus leg for the brand in the foreseeable future” Ramon Laguarta, CEO, PepsiCo, Inc
Agriculture
“Across the portfolio the citrus season has seen strong demand and pricing, with fruit continuing to be successfully exported to China and other key Asian markets, with an improvement in shipping services versus the prior year” Market Statement, Costa Group Holdings Ltd
“The farm gate [milk] price increases will benefit farmer suppliers, impact all Australian dairy companies, and is already being reflected in higher product prices in the retail and food service markets” Market Statement, Bega Cheese Ltd
Banking & Finance
“Neobanks looking to the Australian market should have a real sense of how they are different to the incumbents, and where they can offer real value to Australian customers. There is still a burning need to grow competition in Australia” Matt Baxby, CEO, Revolut Australia [Aus & UK-based leading neobank]
“Businesses, when you talk to them, they’re in good shape, they are doing fine. We’ve never seen business credit be better in our lifetimes” Jamie Dimon, CEO, JPMorgan Chase & Co
Labour Markets & Remuneration
“Chronic worker and skills shortages, and supply chain challenges are pushing up costs and kneecapping productivity” Jennifer Westacott, CEO, Business Council of Australia
“After their lowest year on record, big bonuses [for CEOs] have returned, but they haven’t just rebounded, they’ve hit new heights” Ed John, Executive Manager, Australian Council of Superannuation Investors
Resources & Mining Services
“I think it's clear to absolutely everyone that the energy transition will be highly metal-intensive and that's expected to drive enormous copper and nickel demand over the next 2 decades to levels that are sort of hard to imagine when you think about how capital intensive the mining industry is” Marc Lafleche, CEO, Anglo Pacific plc [major natural resources royalties business]
“Order book growth has been recorded in all of Austin’s operating regions across Australia, Indonesia, North America and South America. Increased demand for truck trays and buckets, and an increase in contract wins has contributed to the result” Market Statement, Austin Engineering Ltd
Superannuation Industry
“Based on current industry estimates, these [financial] conditions are indicating that the industry median return [in FY22] for Balanced options could settle in the red” David Elia, CEO, Hostplus
Cryptocurrency
“Crypto is an investment in nothing, and the guy who’s trying to sell you an investment in nothing says, ‘I have a special kind of nothing that’s difficult to make more of’. I don’t want to buy a piece of nothing, even if somebody tells me they can’t make more of it” Charlie Munger, Vice-Chairman, Berkshire Hathaway Inc
For all enquiries please contact enquiries@naos.com.au
Important information: This material has been prepared by NAOS Asset Management Limited (ABN 23 107 624 126, AFSL 273529) (NAOS) for general information purposes only and must not be construed as investment advice. Certain economic, market or company information contained in this material may have been obtained from published sources prepared by third parties. Nothing contained herein should be construed as granting by implication or otherwise, any license or right to use such third party content without the written permission of the owner.
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