Thursday, 28 November 2024 Reading time : 2 minutes

A few days before Thanksgiving, which is celebrated this Thursday in the US, Joe Biden made one of his last public appearances as US President to pardon two turkeys, "Peach" and "Blossom". The ceremony, which spares the animals from slaughter, has become a White House tradition. Turkey is traditionally served at Thanksgiving, a nationwide family celebration and one of the most important holidays in the United States. 

Thanksgiving is also crucial for retailers, albeit for different reasons: the day marks the beginning of the holiday shopping season, the busiest sales period of the year. Americans use the Thanksgiving weekend to do their first Christmas shopping. Originally, retailers tried to lure shoppers into their stores the day after the holiday by offering special deals and discounts. Under the buzzwords "Black Friday" and "Cyber Monday", this has evolved into a shopping event that is no longer limited to the United States and extends over several days or even weeks. 

The National Retail Federation (NRF) estimates that consumers will spend between USD 979.5 billion and USD 989 billion this November and December, which would correspond to year-on-year growth of 2.5% to 3.5% and set a new record. The next few days will give the first indication of whether these hopes can be fulfilled, as the industry is likely to face extremely price-sensitive customers who are still struggling with rising petrol, food and other living costs.

As the University of Michigan's consumer sentiment index shows, Americans' spending mood is muted. Although sentiment has improved since the summer, the index is still well below pre-coronavirus levels. Inflation has followed a similar trend: price growth has been steadily declining since its peak in 2022, but is still high by historical standards. According to the Commerce Department, annual inflation was 2.3% in October.

The Barrier Reverse Convertible on Walmart, Costco and Target combines three of the most prominent US department store chains, all of which are included in the S&P 500 and are among the world's largest retailers by revenue.

Barrier Reverse Convertible on US Retailers
10.50% p.a. BRC on Walmart, Costco and Target
Barrier: 66%
Valor: 139 434 414

Indicative terms

 

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