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Podcast: All into Account
Episode: Equity Strategy: Earnings outlook - consensus is implying both a margins and topline reacceleration next year
Description: Speaker: Mislav Matejka, CFA, Head of Global Equity Strategy
Earnings growth this year is on track for a largely flattish outcome. For next year, consensus is implying a significant pickup, at 10% EPS growth globally. Both topline and margins are expected to improve vs this year. There are risks to this, in our view, especially given that the corporate earnings are at present above historical trends, and that the starting point of profit margins is elevated. The consensus view goes against the reducing pricing power that corporates are starting to face - as PPIs have entered negative territory...