Earnings, Inflation & Europe

Check out the accompanying pdf and chart collection. Executive Summary: Industry analysts are starting to lower their earnings estimates for some of the companies they follow. They aren’t doing so because they suddenly see an imminent recession but rather profit margins getting squeezed. …We don’t expect this morning’s June CPI release to show a peaking of inflation just yet. July’s CPI should do so. We see inflation moderating during the second half of this year and further in 2023. … Also: A peek into the world of Europe’s credit markets. These markets have been buffeted lately, first by the ECB’s hawkishness, then by its reassurances of help for the most indebted of the Eurozone’s nations.