Jefferies is getting more optimistic on rising wages, seeing a shift in several global labor markets as helping companies which sell to consumers.
"An embryonic wage cycle is appearing in Japan, US, Netherlands and Germany as tight labor markets force companies to raise salaries," Jefferies analyst Sean Darby wrote in a note published Thursday.
Whether it be e-commerce giants like Amazon or luxury goods sellers like Tiffany, the firm said there will be "retail and service surprises" as corporate earnings are reinvested.
"Our point is that finally companies are recycling their profits back into their economies and that there is a growing likelihood that the breadth of consumer beneficiaries will widen," Darby said.
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