Main themes in the next few days

FROM 19 TO 25 OCTOBER 2020

BUSINESS CONFIDENCE, EARNINGS, ITALY RATINGS

Business Confidence

On Friday, initial data on October business confidence in the manufacturing and services sectors (advance PMI indices) will be released in the US, the Eurozone and Japan. The releases will provide important indications on the impact of the rise in new infections and of the containment measures put in place by the governments to contain them. Expectations point to a deterioration of confidence in the Eurozone (where the contagion curve worsened more), and to a rough stabilization in the US.

 Earnings Reporting Season

The release of data on 3Q corporate earnings continues. This week, around 20% of S&P500 companies will report their results, mostly concentrated in the IT, industrial, financial, and discretionary consumer goods sectors. Consensus forecasts point to lower profits by around 20% y/y, albeit on the rise by 19% compared to the previous quarter.

 Italy Rating

On Friday evening, rating agency Standard & Poor’s will disclose its decision on Italy’s credit merit, currently set at BBB (tow notches above High Yield status), with Negative Outlook. Given the recent agency downgrades of the sovereign ratings of countries such as France and the United Kingdom, the risk of Italy being downgraded should not be overlooked.

 

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The information contained herein is updated on a weekly basis.
The opinions, forecasts or estimates contained in this section are given as at the date of publication and there is no guarantee that results or any other future event shall be consistent with the opinions, forecasts or estimates contained herein.
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