GLOBAL - Notwithstanding market concerns about pricing power, the US corporate sector should deliver a robust increase in profits in 2002, according to Keith Wade, Schroders' chief economist.
Schroders’ forecast is for economic profits to rise just over 15% in 2002 (q4/q4). At the market level (S&P500) this roughly translates into operating earnings per share of $46.5 (20.3% y/y) and reported earnings per share of $36 (up 45% y/y).
Whether this will satisfy the expectations built into markets is debatable, although by the time the figures are reported analysts will be looking on to 2003.
AXA Investment Managers’ Nigel Richardson commented on AXA IM’s increased overweight position in equities. He said: “Our increased conviction of a synchronised global recovery has been supported by further evidence from leading indicators suggesting a growth trajectory that could attain at least 3% by 2003 in the US, Europe and Asia (ex-Japan).”
However, regarding equities, State Street global Advisors, in its latest market commentary, says investors are “as changeable as new England weather.”
SSgA predicts “a rather erratic market until the economy stabilises and corporate profits materialise.”
By Luke Clancy
Sir Philip Green's restructuring proposals for his retail giant Arcadia will not "adequately protect" its pension schemes' members, The Pensions Regulator (TPR) has said.
The Marks and Spencer Pension Scheme has completed buy-in deals worth £1.4bn with two insurers, mirroring similar transactions last year.
There have now been a total of 47 buy-in and buyout deals of over £500m announced since 2007. The full list, provided courtesy of LCP, is as follows...