The share of light trucks (such as pickups and heavy sport utility vehicles) in total vehicle sales has increased noticeably in the US of late, reaching a new high of over 60% at the end of 2015. This came at the expense of conventional passenger car sales. The huge slide in oil prices…
Italian banking sector is under pressure on the markets with a 20% negative performance since the start of the year. In Standard & Poor’s view three are the main weaknesses: nonperforming assets, structural rigidities and fragmentation.
Euro area January final manufacturing PMIs were unchanged from the flash reading at 52.3, consolidating December’s one and a half year high. Lower output and new orders…
Equity markets tumbled and volatility spiked at multi-year highs. After a short break driven by Ecb’s meeting and Mario Draghi’s press conference, the new week looks like to resemble the preceeding one. Financial markets remain volatile but there is no evidence of a more pronounced economic slowdown. Thus the recent selling looks overdone.
Recent market volatility in Italy has highlighted the vulnerability of some banks that are still in the process of restructuring. A prolonged period of high market volatility and uncertainty could affect Italia banks’ ongoing restructuring plans.
BlackRock expects a ongoing volatility, but remember that while rates are no longer at zero, they remain extremely low, and will likely remain low for some time.
We see limited upside to equities in 2016. Our US Portfolio Strategy team has a 2016 price target of 2,100 for the S&P 500, suggesting a very modest return of 5% (from current levels). Their framework assumes that 1) earnings per share will rise 10.1%, driven partly by ‘base effects’ in the energy sector and partly by improvements in global growth more generally, but that 2) the price-earnings multiple will fall approximately 5% (to 16.3x from 17.1x), as typically happens during rate-hike cycles.
Generali Group announces that Alfred Leu, currently CEO of Generali Switzerland Holding, has been appointed as CEO of Generali Holding Vienna AG and Generali Versicherung AG as from the 1st January 2016. Peter Thirring will resign as CEO of both companies for personal reasons. Jaime Anchustegui, head of EMEA Regional Office, will lead the Generali Switzerland Holding in the interim-period.
