India is making China look old
LONDON | May 1, 2015 | By Asoka Wöhrmann, Chief Investment Officer at Deutsche AWM | The stock markets in India and China both still have potential. But arguments for investing in India are currently more convincing.
Markets
BNP sees risks in QE implementation
The Corner | April 30, 2015 | For BNP Paribas analysts Mario Draghi will find it increasingly difficult over the next few months to execute its planned EUR45bn monthly purchases of sovereign bonds.
“Greek market access is in doubt given rising country risk premium”
The Corner | April 29, 2015 | Amid speculations about a Greek deal (see examples of the bipolar opinion landscape here and here), market makers seemed more apeased yesterday but still have their doubts about the post June situation. “The yield on 3-year Greek debt remains very elevated and suggests that ‘market access’ is unlikely to be afforded to Greece at acceptable interest rates any time soon,” experts at BNP commented.
IN DEPTH- This time, no different from earlier: FX risk hidden from borrowers
LONDON | April 29, 2015 | By Sigrún Davídsdóttir | The 2008 crisis put some damper on FX lending, did not stop it though and in addition legacy issues remain. Now, actions by foreign currency borrowers in various countries are also unveiling a less glorious aspect: mis-selling and breach of European Directives on consumer protection.
Earnings growth expected to rebound in Spain and Italy (UBS)
April 27, 2015 | UBS | After a period of significant negative earnings growth Italy and Spain earnings show a strong rebound in 2015E. Italy is expected to grow at c. 18% and Spain is expected to yield c. 13% earnings growth.
A lot of Greece worries are already priced
The Corner | April 24, 2015 | Greek PM Tsipras is expected to meet with Chancellor Merkel on the Eurogroup sidelines on Friday. The next key focuses will be the IMF payment (€200mn) on 1 May and the Eurogroup meeting on 11 May. But as Barclays analysts remind, lot of worry is already priced; Greek spreads tightened for a second day.
Average S&P500 firm has grown revenues by 2.9% yoy, while EPS grew by 20.1%
The Corner | April 24, 2015 | The Nasdaq closed on Thursday at an all-time high, surpassing record set 15 years ago, at the very dot com boom. But while US equities have been supported by positive earnings, the current market environment is very different from the late 90s.
The game of US earnings season’s big day
The Corner | April 2015 | Welcome to the heart of earnings season, with one-third of the S&P 500’s firms reporting today –Google, Amazon, Pepsico, Procter & Gamble and Starbucks amonth them. Analysts are pointing that 75% of the companies have beat forecasts, which is better than the 63% average since 1994. “Everyone knows the game: analysts reduce investors’ EPS expectations so firms can beat them,” experts at Link commented.
Lowflation is not over
April 22, 2015 | BNP Paribas | There is further upside risks on global consumption, especially in lower-income EM countries and the Eurozone. However, we do not believe that global deleveraging has come to an end: wage growth and inflation will likely continue to trend low over the coming years.
Euro area: Don’t fight the ECB
LONDON | April 21, 2015 | Barclays | The ECB remains committed to deliver its QE target of a more than €1.1trn balance sheet expansion through asset purchases and sought to dispel fears over asset scarcity.