Investors feel the pinch of thriftier consumers on company profits

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 45 sec. here
  • 49 min. at publisher
  • 📊 Quality Score:
  • News: 185%
  • Publisher: 92%

Canadian News News

Canada News,Breaking News Video,Canadian Breaking News

Stock pickers now need to identify those businesses that won’t suffer from a normalization of spending patterns, let alone from an economic recession

Investors in large consumer-goods companies are having to up their stock-picking game, as a post-pandemic spending splurge dries up and increasingly price-sensitive shoppers start to erode corporate pricing power.

“Consumers have been able to absorb price increases thanks also to the exceptionally high level of savings accumulated . It seems that now this is coming to an end,” Chiara Robba, head of LDI equity at Generali Asset Management in Paris, said. Notable examples include Nestle and Ryanair in Europe and McDonald’s in the U.S., along with payment firms such as Visa and Worldline. In many cases, share prices have tumbled.

“Weak brands that had been jumping on the bandwagon and increased prices materially are forced now to correct through discounts and promotions,” he said. “This is happening because middle-class consumers in the West are sobering up from the post-pandemic euphoria.” “There is certainly a sense of consumer resistance to higher prices, given the ongoing cost of living crisis,” Sanjiv Tumkur, head of equities at Rathbones Investment Management, said.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in NG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock market today: World stocks fall as investors are underwhelmed by Big Tech earningsWorld stocks fell Wednesday as the earnings reporting season ramped up for big companies, with investors showing a lack of enthusiasm for results so far.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stock market news today: US stocks set for rebound as investors wait for key inflation dataInvestors are looking to the Fed-favored inflation data to calibrate the timing and depth of rate cuts.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »