Earnings Watch: Another busy week as global earnings see record high

The earnings rebound is driven by the massive fiscal stimulus on top of very loose monetary conditions while spot commodity prices have reached the highest levels since 2015 pushing nominal prices and GDP much higher globally. The US economy is currently operating at -19% fiscal budget to nominal GDP with the GDP output gap expected to be closed within the coming quarters. This means that the US economy will be operating at stimulus level not observed since WWII and could lead to severe overheating of the economy. As a result, we remain positive on global equities.

The Q1 earnings season is continuing unabated this week with blistering pace and the list below shows the most important earnings to watch. We will focus on A.P. Moller – Maersk which operates the world’s largest container network and last week revised its outlook dramatically higher on elevated container freight prices that the company expects to remain elevated. Volkswagen is also interesting this week given its latest splash on electric vehicles expansion going after Tesla’s leading position in this new technology. Rio Tinto is important given the inflationary pressures building in commodities and management outlook will give clues to the strength of rising commodity prices.

Monday: Westpac Banking, Estee Lauder Cos, Nutrien, Siemens Healthineers, Zoom

Tuesday: T-Mobile US, Activision Blizzard, Pfizer, CVS Health, ConocoPhillips, Infineon Technologies, Ferrari

Wednesday: Novo Nordisk, MercadoLibre, Deutsche Post, General Motors, Booking, PayPal, Uber Technologies, A.P. Moller – Maersk, Vestas Wind Systems, Genmab, Siemens Energy, Intesa Sanpaolo

Thursday: National Australia Bank, Anheuser-Busch InBev, Nintendo, Linde, Becton Dickinson, Rio Tinto, Square, Enel, Volkswagen, Fidelity National Information, Zoetis, Moderna, Coloplast, Zalando, Unicredit, ArcelorMittal

Friday: Siemens, BMW, Cigna, Enbridge, Credit Agricole, Adidas