I hope everyone who read this had a wonderful Thanksgiving full of family, love and laughter. Even if it wasn’t your experience, there is still something to be thankful for. Below are three graphics that I’m most grateful for right now.
1. Americans seem to be flying again.
The United States recently hit a new pandemic high in commercial air traffic. More than 2.45 million people boarded passenger planes on Sunday, November 28, according to data from the Transportation Security Administration (TSA). This is the highest amount since February 2020 and a reduction of around 15% compared to the same travel day in 2019.
Anticipating strong vacation-related trips, US carriers have scrambled to recruit staff, offering significant bonuses and signing bonuses to attract new talent. International travel from Europe has also been encouraging, despite the emergence of a new variant of the coronavirus.
Speaking to Barron’s, Cowen Airlines analyst Helane Becker said she believed “summer 2022 will see a strong comeback in international travel, likely at 2019 levels at least.” This forecast matches that of Airlines for America (A4A), which expects US airlines’ revenues to return to pre-pandemic levels in the second half of next year.
2. Container shipping companies are making huge sums of money.
By now, everyone is aware of the shipping bottlenecks that have plagued the global supply chain. It has been a huge logistical headache for the container shipping companies, but if I were them I wouldn’t be complaining too much.
The reason I say this is that the global container shipping industry posted a record net income of $ 48.1 billion in the third quarter of this year, according to a new report from John McCown of Blue Alpha Capital. This represents the fourth consecutive quarter of record profits due to higher shipping rates.
What is even more striking is that the $ 48.1 billion in profits were “almost 50% greater than FANG’s total profits,” said McCown, collectively referring to tech giants Facebook, Amazon, Netflix and Google. “Compared to the profits of the giants Apple and Microsoft combined, the profits of the container shipping industry were still nearly 15% higher with a profit margin nearly 30% higher” during the third quarter.
That said, maybe someone should come up with a cute FANG-like acronym for listed shipping companies. I offer MECH, for Maersk, Evergreen Marine, COSCO and Hapag-Lloyd.
3. Bitcoin is consolidating but still giving a bullish signal.
My third and final chart is for Bitcoin. The price of the world’s most popular cryptocurrency fell last week, hitting $ 55,460 on Tuesday, its lowest level in more than a month, over fears that interest rates could be raised earlier and higher quickly than expected. It fell further Sunday, Nov. 28, to $ 53,482, before rebounding to its support level of $ 57,000.
Despite the hindsight, one analyst points out that Bitcoin is still trading in a bullish channel. According to CoinDesk’s Omkar Godbole, the outlook for crypto “remains constructive despite the recent pulldown,” reaching higher highs and lower lows since July.
Bitcoin institutions and whales have been largely responsible for the recent surge in prices, and while activity has slowed somewhat, the hiatus only appears to be temporary.
On the one hand, Citigroup is reportedly looking to hire 100 people to bolster its digital asset business for institutional investors. And according to CoinTelegraph, the Commonwealth Bank of Australia (CommBank) will become the first of Australia’s “big four” banks to offer crypto services. The move comes after its CEO, Matt Comyn, determined that missing out on opportunities in cryptos was more risky than participating in them.
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Holdings may change daily. Holdings are reported at the end of the most recent quarter. The following securities mentioned in the article were held by one or more accounts managed by US Global Investors as of 09/30/2021: Amazon.com Inc., Apple Inc., AP Moller-Maersk A / S, COSCO SHIPPING Holdings Co. Ltd.