Consumer Staples

Woolworths has announced an earnings downgrade and the departure of its CEO. To brokers the developments add a great deal of uncertainty to the outlook.

Michael Gable of Fairmont Equities notes Wesfarmers has traded down to a longstanding support level.

The Chartist suggests risk remains to the downside for Woolworths.

Global forecasters fear a strong El Nino is upon us, which would impact on commodity input prices for various industries.

Changes to housing lending; issues for Oz banks in NZ; Upside for A-REIT values; disparities in like-for-like retail sales; Bell Potter initiates on Donaco.

Woolworths has acknowledged it needs to change, paying more attention to customers, but brokers question whether the retailer has gone far enough.

March quarter sales were strong across Wesfarmers’ main retail divisions but brokers highlight the challenges of keeping all the balls in the air.

Diminishing food inflation in Australian supermarkets is alarming some brokers as competition threatens already slim margins.

Michael Gable of Fairmont Equities reports the signals suggest a pullback for Coca-Cola Amatil following its price recovery.

Weak outlook for supermarkets; international industrials key picks for Macquarie; packaging outlook positive; airlines rebound; health insurer claims rising; and media soft.