The experts at Swissquote are devoting themselves to a new yet right up-to-date topic: the post-pandemic recovery. The financial specialists are concentrating on sectors for which an upturn is projected when the population has been inoculated, a critical mass returns and private households are spending money again. It is primarily those industries which were particularly affected by the numerous lockdowns and restrictions that are still lagging well behind. Swissquote includes among these aviation, hospitality, hotels and integrated oil companies. The latter groups are reliant on national economies recovering right across the board, which will in turn heighten global demand for oil and gas products. Recently, for instance, major players such as BP and Total have had to absorb significant hits on profits. The companies are not standing idly by, however: in the transition from fossil fuels to regenerative alternatives, these groups are investing billions in renewable energies and thus setting the points for a highly promising future.
Covid-19 is having particularly far-reaching consequences for the travel sector. This applies not only for hotels and booking platforms – the majority of cruise ships are now also lying at anchor in ports. Moreover, it is not yet certain when the luxury liners will be allowed to set sail again. Over the last few months, for instance, the relaunch in the USA has constantly been postponed. In Asia and Europe, by contrast, some ships have already put out to sea again. Even the world's largest cruise operator, Carnival, however, does not expect any rapid improvement. Group CEO Arnold Donald does not expect the industry to return to its pre-virus levels until 2023. Meanwhile, its competitor Norwegian Cruise Line is sending a glimmer of hope: at the end of February, the company announced that cumulative total bookings for the first half of 2022 were well above the figure for the same period in 2019. Although the share price of Norwegian Cruise Line has recently ticked up in the prospect of a tangible recovery, it is still trading at some 50% below its all-time high. For Carnival, the gap is even greater.
The tourism sector enjoys a high weighting in the Swissquote Recovery Index: together with the aviation industry, it accounts for more than one third of the total 30 companies in the index. The freshly created benchmark covers other leisure activities too, though, with Starbucks, the world's largest coffee shop chain, also on board, for instance. Its prospects have recently brightened due to the loosening of restrictions on eating out from California to New York, which came sooner than expected. Corona-related state aid in the USA is lending additional support, which means that restaurants can now profit from the release of pent-up demand. The cinema industry likewise finds itself in the middle of a wave of reopenings – cinema chain Cinemark has just unlocked its doors in Los Angeles, to give one example. According to figures from the company, that means around 90 per cent of its motion-picture theatres in the USA are open again. The share is already on the rebound, but – in contrast to Starbucks – it is still a long way off its old highs.
The actively managed certificate from Leonteq gives investors convenient yet low-cost access to the internationally focused Swissquote Recovery Index. The new tracker reflects the performance of the index 1:1 less total annual costs of 0.85 per cent. Quoted in USD, the product got off to a great start: the participation certificate has already appreciated by around 15 per cent since it was launched on 8 December 2020. The index is reviewed on a quarterly basis to ensure its composition always keeps pace with the latest developments on the market.
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