Edition:
United States

Josephine Mason

Risk of U.S. corporate recession rises as earnings outlook dims

Feb 15 2019

LONDON The outlook for Wall Street earnings has deteriorated significantly in recent months, data shows, raising the risk that companies in the United States may slip into recession before its economy does - with Europe close behind.

GRAPHIC-Risk of U.S. corporate recession rises as earnings outlook dims

Feb 15 2019

By Josephine Mason and Helen Reid LONDON, Feb 15 The outlook for Wall Street earnings has deteriorated significantly in recent months, data shows, raising the risk that companies in the United States may slip into recession before its economy does - with Europe close behind. Analysts on average expect the S&P 500's first-quarter earnings per share to drop 0.3 percent year-on-year, according to I/B/E/S Refinitiv data. That's a big drop from the 8.2 percent rise expected as recently as October and would mark the first contraction in U.S. company earnings in three years. Analysts have also made deep cuts to forecasts for the rest of the year. They still expect growth in the remaining three quarters, meaning Wall Street would avoid a technical recession typically defined as a fall in two consecutive quarters. But only just, as the lowered growth forecasts are meagre. For a graphic on U.S. earnings estimates over time: https://tmsnrt.rs/2TRqqof The swift pace and size of the cuts have kindled concerns that the downward trend will continue, particularly as companies struggle with squeezed margins and large amounts of debt. The full-year estimate stands at just 4.2 percent now, down more than half from 10.2 percent in October. It's pretty gloomy on the other side of the Atlantic too. Analysts anticipate barely any growth among European companies listed on the STOXX 600 at the slowest in 18 months, data shows. For a graphic on European earnings estimates over time: https://tmsnrt.rs/2EaTT7f (Reporting by Josephine Mason and Helen Reid; editing by John Stonestreet)

European shares give up three-month highs after shock U.S. data

Feb 14 2019

LONDON European shares gave up three-month highs on Thursday after a surprise sharp decline in U.S. retail sales pulled stocks lower in afternoon trading, spoiling an initially upbeat session that saw blue-chips such as Nestle shine on strong earnings.

European shares rise on trade talks optimism; Michelin inflates autos

Feb 12 2019

LONDON European shares closed higher on Tuesday as investors cheered positivity around U.S.-China trade talks and signs of a compromise to avoid another U.S. government shutdown, while Michelin's results pumped up automotive stocks.

European shares ease as Publicis, GEA and TUI earnings weigh

Feb 07 2019

LONDON European shares eased from 12-week highs on Thursday as weak earnings from Publicis, GEA and TUI offset gains in banks following better-than-expected results from Italy's Unicredit.

Siemens deal collapse fuels Alstom-Bombardier tie-up talk, shares rally

Feb 06 2019

LONDON/MONTREAL The European Commission's decision to block a tie-up between Alstom and Germany's Siemens is fueling speculation over possible merger talks between the French rail business and Canada's Bombardier, lifting both companies' shares on Wednesday.

Italian banks, tech boost European stocks to 12-week highs

Feb 06 2019

LONDON European shares inched up to touch 12-week highs on Wednesday, fueled by strong gains in Italian banks and tech stocks, while Ubisoft sank following a revenue warning from U.S. videogame maker Electronic Arts. | Video

U.S. jobs data lift European shares even as bank earnings weigh

Feb 01 2019

LONDON European shares ended higher on Friday, as upbeat U.S. jobs data in January and fresh optimism about the U.S.-China trade spat offset weak bank earnings, gloomy euro-zone macro data and a rout in Germany's Wirecard after a report of fraud spooked.

Investors pile into safe haven bonds, shun U.S., European stocks: BAML

Feb 01 2019

LONDON Investors piled into bonds in the past week and pulled billions of dollars from U.S. and European stocks as they sought safety in assets seen as less risky in times of economic uncertainty, Bank of America Merrill Lynch (BAML) said on Friday.

Sterling slide, oil majors lift FTSE 100 after parliament votes on Brexit

Jan 30 2019

LONDON Britain's blue-chip index jumped on Wednesday after a sharp fall in sterling overnight when British lawmakers voted down a proposal in parliament that aimed to prevent a potentially chaotic "no-deal" Brexit. | Video

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