Wotif has just issued a downgrade and has been slammed by the market, is this a sign of things to come in Feb 2014

James Marlay

Livewire Markets

Wotif has just issued a downgrade and has been slammed by the market, is this a sign of things to come in Feb 2014? There have been plenty of downgrades over the past few weeks and I think business conditions in the second half of this year have remained challenging. Wotif has cited rising costs for IT and marketing along with competition as key contributors to the downgrade. They also issued some pretty uninspiring forward looking commentary. February reporting could be a real stumbling block for the broader market if earnings growth doesn't come through. There is an interesting piece from PIMCO on why they are expecting sub trend growth in in Australia in 2014. PIMCO's expectations for business investment is low and they are anticipating a sustained period of low interest rates to try and stimulate investment. Worth reading if you have a few minutes (VIEW LINK)


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James Marlay
Co Founder
Livewire Markets

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