Morning Report Thursday 5 June 2014
Are Central Banks losing the intervention battle? Retailers suffer.
Central banks led by the US Fed and European ECB have been pumping monies into their respective economies since the GFC, now almost 5 years ago, yet the ECB is concerned about deflation and are expected this week to lower its economic forecasts and add yet more stimulus / ease monetary policy. One comment on Bloomberg caught my eye this morning as I was eating my cornflakes:
Tesco’s the UK’s largest grocer reported their worst quarterly sales performance this century.
Amazingly amongst all the bullish equities commentary Tesco's shares are currently testing their GFC lows, Australia as we know is the lucky country on many fronts but investors should smile about the relitive performance from both Woolworths and Wesfarmers. However history is no guarentee over what comes next. Let's look at the simple numbers, often the best idea with investing.
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