Goldman Sachs

Goldman Cuts S&P500 Earnings Forecasts For The Next Three Years

"We cut our S&P 500 earnings estimates for each of the next several years. Our revised operating EPS forecasts now equal $105 (2016), $116 (2017), and $122 (2018) reflecting annual growth of 5%, 10%, and 5%, respectively. Low interest rates and peaking margins constrain profit growth in Information Technology, Financials, and Telecom and drive the reduction in our index-level EPS forecast." - Goldman Sachs

Global Stocks Jump On Mega Merger Monday, Buoyed By Earnings, PMIs, Politics

Global stocks jumped around the globe, with Europe's Stoxx 600 and US equity futures rising more than 0.5% on a surge in merger announcements over the weekend including the $85 billion mega takeout of AT&T for Time Warner, the $6.4 billion acquisition of B/E Aerospace by Rockwell Collins, the $2.7 billion deal targeting Genworth by China Oceanwide and the just announced $4 billion purchase of Scotttrade by Ameritrade.

The Chinese Buyers Are Back: China Oceanwide Acquires Genworth For $2.7 Billion

China Oceanwide Holdings, a Chinese financial conglomerate, agreed to buy US insurer Genworth Financial for $2.7 billion in cash, a 4% premium to closing, and pledging to help the U.S. firm manage its debt and strengthen life insurance units after it was hurt by higher-than-expected losses tied to long-term care coverage.

Did The White House Just Declare War On Russia?

History doesn’t occur in a vacuum; when the U.S. and Russia confront each other directly, it won’t be because of a mere incident occurring in Syrian airspace. It will be because the two nuclear powers have been confronting each other with little resistance from the corporate media, which keeps us well entertained and preoccupied with political charades, celebrity gossip, and outright propaganda.

Frontrunning: October 19

  • China third quarter GDP grows 6.7 percent as expected as construction booms, debt rises (Reuters)
  • China Growing at 6.7% Opens Window to Deliver Debt-Curb Vow (BBG)
  • U.S. expects Islamic State to wield chemical weapons in Mosul fight (Reuters)
  • Iraq urges U.S.-led coalition to prevent Islamic State escape to Syria (Reuters)
  • Fox national poll shows Clinton leading by six points (Hill)

ECB Preview: What Wall Street Thinks Mario Draghi Will Say Tomorrow

While expectations are low from Thursday's ECB meeting,  it may ultimately boil down to Draghi’s communication about asset purchases. Any hint of QE tapering would spur a large-scale sell-off in the rates market, according to most Wall Street strategists. Here is what else the sellside thinks will happen.

Frontrunning: October 18

  • Commodity stocks lift global shares, inflation in focus (Reuters)
  • FBI Papers Show State Department Fought Clinton Email Classification (WSJ)
  • Russia Declares Pause in Aleppo Bombing so Rebels, Civilians Can Flee (NBC)
  • Syria rebels reject Aleppo withdrawal after Russian statement (Reuters)
  • UK lawmakers will 'very likely' have to ratify final Brexit deal: government lawyer (Reuters)