Ofelia Marín- Lozano | For some sectors there has not been a stock market crisis. However, others – banks, telecoms, oil,… – have in nine months gone from trading at 19x PER to trading at less than 5x. If everything returns to ‘normal,’ this does not seem sustainable. As a example, in Spain, for the price of the largest retailer (Inditex), we have the two largest banks (Santander and BBVA), the largest insurance company (Mapfre) or the largest oil company (Repsol).Read More
Michelle Meyer & Alexander Lin (BofA Global Research) | The May jobs report was nothing short of stunning. The labor market recovery started earlier than expected as job growth rebounded by 2.5mn in May. In total, 22mn jobs were lost with a peak U-rate of 14.7%. The quick bounce in job growth reflects the “easy” rehiring. The path becomes more challenging thereaſter, with a long road to full employment.