7 June 2021 | Weekly Snapshot

Did you know?

156 million litres of water per day (over 60 Olympic swimming pools) is required to manufacture semiconductors at the world’s largest producer TSMC. The Taiwanese company is operating in the middle of a severe drought just to add to shortage complications.

Market Movements

Australian Share Market (ASX200) – Up 2% last week. The Australian market continued to set new highs with a solid rally across most sectors. Telstra also managed to hit yearly highs joining the positive sentiment that has lifted banks and miners of late.

US Share Market (S&P 500) – Up 0.6% last week. Major indices posted weekly gains with the S&P retesting highs but breaking through like our domestic market. Volatility and interest rates are lower after a quiet week and Friday night’s employment figures took some upwards pressure of rates, helping the equity outlook for now.

Portfolio Movements

Apple (AAPL.NAS) – Apple has another hidden ecosystem driver – CarPlay which was introduced in 2014 to integrate the iPhone and a car’s dashboard and is now sold around the world in 80% of all new cars. It remains an under-appreciated asset of Apple that despite it not contributing directly to revenue or profits it does ensure ongoing loyalty of iPhone users AND collects valuable data on drivers which gives Apple a pathway into expanding into the industry. CarPlay also offers other benefits such as making Apple Music subscriptions more valuable and CarPlay makes controlling Coldplay whilst driving, easier. Analysts have estimated CarPlay could add up to $2B to Apple’s annual services sales and gives even greater depth to the company.

Volkswagen (VW. ETR) – The Greek PM and the VW CEO took part in a delivery ceremony of 8 electric police and port authority cars in the first step towards turning the Greek island of Astypalea’s transport system green. This is intended to become a model for the rest of the country and in turn Europe. The cars will be used by police, coastguard and at the local airport, the beginning of a larger fleet aimed at replacing the island’s 1,500 cars with EVs and reducing cars by a third. The bus system will be replaced by a ride-sharing scheme with 200 electric vehicles available for locals and tourists to rent. There will be subsidies for the island’s 1300 inhabitants to buy EVs, bikes and chargers. Some 12 chargers have already been installed with 16 more to follow. Financial terms were not disclosed but the promotional aspect of this deal for VW would be priceless.

Woolworths (WOW.ASX) – Woolworths is set to offer its cloud-based payments platform to other Australian merchants on an as-a-service offering via a new stand-alone payments business unit – Wpay and is set to become a major competitor in the $700B payments industry. More than 1.3B transactions worth more than $50B are currently processed by WOW annually making it the 5th largest processor of card payments in Australia. This inhouse payments platform has grown since 2007 and will broaden WOW’s ecosystem outside of supermarkets. This system will become the payments provider for Dan Murphy’s and BWS once the demerger completes. Other merchants will have access to digital in-store payment solutions, including payment terminals, analytics, fraud management, funds settlement and gift card support.

The week ahead

Domestically, a quieter week with economic releases limited to minor figures such as consumer confidence and building permits. The key focus will be more centred on whether Victoria will be released from lockdown on Thursday as this is having a meaningful impact on the economy.

China releases inflation figures along with the US which will be the highlight for the week. The US will also release balance of trade figures. The UK and Japan have GDP results and Japan also has their own inflation measure due with PPI figures due.

General Advice Warning: This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.
Investment Performance: Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns.

Saward Dawson Wealth Advisors Pty Ltd, a Corporate Authorised Representative of Akambo Pty Ltd t/a Accountants Private Advice

The information presented in this publication is general information only, and is not intended to be financial product advice. It has not been prepared taking into account your investment objectives, financial situation or needs, and should not be used as the basis for making an investment decision. Before making any investment decision you need to consider (with your financial adviser) your particular investment needs, objectives and financial circumstances.

Some numerical figures in this publication have been subject to rounding adjustments. Akambo Pty Ltd (including any of its directors, officers or employees) will not accept liability for any loss or damage as a result of any reliance on this information. The market commentary reflect Akambo Pty Ltd’s views and beliefs at the time of preparation, which are subject to change without notice.