Magellan Dive – The past 6 months have already been tough for fund manager Magellan (ASX:MFG). December saw their mandate with St James’s Place terminated, which represented approximately 12% of Magellan’s annual revenues. This week, Magellan announce their Chief Investment Officer, Hamish Douglass will be taking a medical leave of absence, seeing the stock fall to a low of $16.40, a 71% decrease from the July high of $56.18, a 7 year low. The past 8 weeks has seen $23billion in funds under management lost.
Australia reopens – Travel stocks flew on Monday after it was announced that Australia borders will reopen in a matter of weeks. Travel stocks have now recovered most of their omicron inflicted losses. The announcement comes almost 2 years after the borders were closed. The past two weeks has seen Flight Centre surge 30%, and WebJet and Qantas up more than 20%.
Inflation – Inflation in the US has hit a 40 year high of 7.5% in January after food, electricity and shelter drove a larger than expected rise in the CPI. US markets are now pricing in a 0.5% hike in rates in March. The 10 year bond yield broke 2% for the first time since 2019.
Hydrogen – The hydrogen market has been tipped to take off in Australia sooner than previously expected. Global interest has grown substantially as countries implement plans to reach net zero emission by 2050. ANZ tips that most Australian companies are yet to comprehend the market and its opportunities. The news comes days after Fortescue Metals unveiled a huge wind and solar park in WA.
Renewables – Australia’s battery capacity is set to double in 2022 as more major projects come online. Capacity is set to grow from 0.4 gW in 2021 to as much as 1.1gW in the back half of 2022. The surge will intensify pressure on coal power generators who are already beginning to struggle to compete against cheaper renewable energy.
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