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Earnings: US upbeat, but Europe more mixed

Tuesday, April 25, 2017 - 01:46

There are mixed fortunes for some of Europe's top companies as Q1 reporting season gets into full swing. But as David Pollard reports, three quarters of the top firms in the S&P 500 who have reported so far have beaten expectations.

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The cast of Dog Years rings the closing bell on Wall Street. In an earnings season which is showing some bite. 77% of S&P 500 firms reporting their first quarter so far, beating expectations ... SOUNDBITE (English) IG SENIOR ANALYST, CHRIS BEAUCHAMP, SAYING: "Q1 last year of course was quite bleak so the comparatives are working in everyone's favour at the moment, which is helping. You have got reason to be confident about the outlook for the US economy for the rest of the year, too." That plus the lift in sentiment on France's election was a green light for Europe. Stocks broadly rising as Volvo and AMS beat forecasts ... the Austrian chipmaker's shares surging 17 per cent. Puma shares were at an all-time high - the German sportswear firm racing, it says, to keep up with demand. And SAP climbed above its record from Monday - despite slightly-lower-than expected core profits. SOUNDBITE (English) IG SENIOR ANALYST, CHRIS BEAUCHAMP, SAYING: "We've seen a general improvement in the European economic data, as well, matching if not really exceeding what we've had in the US. So there are grounds for optimism there as well." M&A action boosted French luxury retailers as Christian Dior and LVMH announced a deal to strengthen their ties. Ericsson fell out of fashion after announcing a $1.4 billion first-quarter operating loss. As did Britain's Whitbread: its shares seven per cent down - after the Costa Coffee owner warned consumer confidence in the UK might be losing its froth. If that's not an issue elsewhere. SOUNDBITE (English) IG SENIOR ANALYST, CHRIS BEAUCHAMP, SAYING: "You'll also see consumer firms across the globe - those global ones such as Unilever and Reckitt and Diageo - really pointing towards improvement and seeing further growth in emerging markets but also in developed ones as well." Rich pickings - possibly - still ahead .....

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Earnings: US upbeat, but Europe more mixed

Tuesday, April 25, 2017 - 01:46