Corporate Profits
Explore the eight main themes that will drive the returns of European assets in 2024.
According to BCA Research’s Counterpoint service, the AI gold rush will struggle to find any gold. In a gold rush, very few people get rich finding gold. But the guys selling the picks and shovels make a fortune! In the current AI gold rush, the guy…
China’s CPI and PPI releases delivered a negative signal about the domestic economy. The rate of contraction in the CPI index accelerated to -0.5% y/y in November, the sharpest rate of decline in 3 years and disappointing expectations it would remain at -0.2%…
According to BCA Research’s European Investment Strategy service, European equities near cycle highs are vulnerable to weaker earnings. The team’s earnings model for Eurozone equities continues to point to a double-digit profit contraction over the next…
The recent decline in yields has powered European equities higher, however, this rally cannot last if earnings decline meaningfully. With this in mind, are our earnings models flagging risks for stocks next year?
According to BCA Research’s Global Asset Allocation service, recession is still on track to begin in the first half of 2024. Is it the recession that never came? Certainly, the consensus thinks so. Soft landing is now the clear mainstream view. Investment…
Chinese industrial profits for October delivered a pessimistic signal on Monday as the annual growth rate eased to 2.7% y/y. While the latest update marks the third consecutive month of profit growth, it is a sharp slowdown from 17.2% y/y and 11.9% y/y in…
The Q3 earnings season is coming to an end. By Friday, 481 companies in the S&P 500 index had reported earnings. In aggregate, the results are generally favorable. The share of companies whose earnings exceeded analyst expectations (81.9%) is above the…
The Q3 earnings season is nearing its end. By Friday, 92% of S&P 500 companies had already reported and thus far the results are positive. According to FactSet, the S&P 500's 4.1% y/y blended earnings growth rate is the first earnings expansion since…
China's CPI and PPI inflation release for October indicates that deflationary pressures continue to dominate the domestic economy. After remaining unchanged in September, consumer prices declined by 0.2% y/y last month, falling below consensus estimates of a…