{"id":82611,"date":"2022-04-21T11:20:44","date_gmt":"2022-04-21T09:20:44","guid":{"rendered":"https:\/\/test2023.luxus-plus.com\/?p=82611"},"modified":"2022-04-21T11:23:56","modified_gmt":"2022-04-21T09:23:56","slug":"inflation-guards-european-earnings","status":"publish","type":"post","link":"https:\/\/luxus-plus.com\/en\/inflation-guards-european-earnings\/","title":{"rendered":"Inflation guards European earnings"},"content":{"rendered":"

After record inflation in the first quarter, European companies and investors are concerned about the outlook for the rest of the year.<\/h4>\n

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As the months go by, concerns persist about an economic slowdown in the euro zone<\/strong> due to the war in Ukraine<\/strong>. The International Monetary Fund estimated on Tuesday 19 April the cost of this at more than one point of GDP this year kliknij po wi\u0119cej informacji<\/a>. The IMF now expects 2.8% growth in the eurozone countries<\/strong>, a big slowdown after the 3.9% anticipated in the previous forecast in January.<\/p>\n

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“The war in Ukraine is severely affecting the eurozone economy,<\/em>” explained Christine Lagarde<\/strong>, President of the European Central Bank<\/strong>, on Thursday 14 April. The ECB also revised its optimism downwards last month, expecting only 3.7% growth this year and a sharp rise in inflation.<\/strong><\/p>\n

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First quarter on the rise<\/h2>\n

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As companies release their first-quarter results, Kasper Elmgreen<\/strong>, head of equities at Amundi<\/strong>, expects first-quarter results to be “decent<\/em>” but focuses on price pressures and uncertainty from the war in Europe.<\/p>\n

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“It’s super, super, super important for us to understand what companies’ abilities are to pass on cost increases to consumers<\/em>,” he comments. “What are they going to say on price? What are they going to say on volume? What about mix margins? And can they say anything about the demand outlook?<\/em>” he added.<\/p>\n

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Companies in the benchmark STOXX 600<\/strong> regional equity index are expected to report a 24.7% increase in first-quarter earnings<\/strong>, according to the latest Refinitiv<\/strong><\/em> data, compared with a 14.6% growth rate expected at the start of 2022.<\/p>\n

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But much of that increase is due to the energy sector<\/strong>, which has a 5.9% weighting in the index and is expected to grow earnings by just 6.8%.<\/p>\n

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Concerns<\/h2>\n

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Morgan Stanley<\/strong> expects earnings to beat estimates this quarter, but says that given the stagflationary environment and margin pressures, a new round of earnings declines could occur. “Corporate guidance will likely be more important than ever this quarter and should set the tone for price action,<\/em>” the U.S. investment bank said in a note, pointing to the potential for earnings gains in sectors such as energy, pharmaceuticals and even utilities.<\/strong><\/p>\n

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Luxury goods are also considered resistant to inflationary pressures because of their pricing power.<\/strong> Last week, LVMH<\/strong> said it would continue to raise prices despite geopolitical tensions and blockades in China.<\/p>\n

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Data from Refinitiv shows that analysts now expect 2022 earnings in Europe to rise more than 11%, up from 7% in January.<\/strong> This is despite the fact that earnings revisions, the number of upward revisions minus downward revisions, have turned negative for the first time since late 2020, a sign of slowing momentum.<\/p>\n

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Read also >\u00a0STOCKS FALL AND INFLATIONARY WORRIES FOR THE ASIAN STOCK MARKET<\/a><\/p>\n

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Featured photo : \u00a9 Pixabay<\/p>\n","protected":false},"excerpt":{"rendered":"

After record inflation in the first quarter, European companies and investors are concerned about the outlook for the rest of the year.<\/p>\n","protected":false},"author":380,"featured_media":82613,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"%%post_title%% %%sep%% %%sitetitle%%","_seopress_titles_desc":"After record inflation in the first quarter, European companies and investors are concerned about the outlook for the rest of the year.","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"none","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":301,"_seopress_analysis_target_kw":"LVMH,Christine Lagarde,European central bank,earnings,results,war,ukraine,europe,euro zone,euro,IMF,concerns","footnotes":""},"categories":[24],"tags":[],"class_list":["post-82611","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/luxus-plus.com\/en\/wp-json\/wp\/v2\/posts\/82611","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/luxus-plus.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/luxus-plus.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/luxus-plus.com\/en\/wp-json\/wp\/v2\/users\/380"}],"replies":[{"embeddable":true,"href":"https:\/\/luxus-plus.com\/en\/wp-json\/wp\/v2\/comments?post=82611"}],"version-history":[{"count":0,"href":"https:\/\/luxus-plus.com\/en\/wp-json\/wp\/v2\/posts\/82611\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/luxus-plus.com\/en\/wp-json\/wp\/v2\/media\/82613"}],"wp:attachment":[{"href":"https:\/\/luxus-plus.com\/en\/wp-json\/wp\/v2\/media?parent=82611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/luxus-plus.com\/en\/wp-json\/wp\/v2\/categories?post=82611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/luxus-plus.com\/en\/wp-json\/wp\/v2\/tags?post=82611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}