Lately the markets are moving more to the beat of the big central banks’ drums than to the trend in corporate earnings. That’s the only way to explain how the Ibex is saving face, given that third quarter results presented so far (by 20 out of the 35 companies in the index) are 16% lower than expected, according to Bloomberg.
After the damp squib of the Chinese plenary session, the ongoing weakness in manufacturing surveys offers little comfort. Combination of US monetary policy risk, weak earnings season & manufacturing and recent rally make the directional outlook more vulnerable. Meanwhile, Europe’s recovery remains far more tangible.
UBS | The earnings season is right around the corner. We have seen pricing and utilization pressure begin again due to the continued weakness in oil prices and the U.S . rig count. The oil service industry will still remain structurally challenged throughout 2016 and into 2017.
Tao Jingzhou via Caixin | The government must act to clean up a scourge that hurts the public interest yet sees few people ever punished.
On the day that his book “Courage to Act” was released, on Monday, October 5, 2015, he wrote an op-ed at the WSJ “modestly” titled How the Fed Saved the Economy?.The central bank did its job. What about everyone else?
BARCLAYS | Global equities are closing in on their worst quarter since 2011, with a number of factors fuelling fears in an already jittery market.
While Yellen bet on increasing rates, China’s slowdown concerns Draghi, but he is not considering further stimulus for the time being, says Gabriel Marqués at Intermoney.
LONDON | BNP Paribas | Even after a very dovish FOMC meeting…the USD reaction has been muted. BUT the USD has strengthened against the EM currencies…
By Fernando Barciela | Board member at Ferrovial, amongst other Spanish listed companies, Juan Arena was President of Bankinter from 2002 to 2007. “The crisis comes when assets prices drop. Then we have to choose between debt haircuts or raising asset prices via inflation and money printing,” he says.