From Deutsche today comes more progress on earnings season:
For companies that have reported so far, June half earnings are ~½% below DB expectations.The change to FY14F earnings is a little larger at ~1½%, but that is still not particularly large, especially given there is still good growth being forecast. At the sector level, resources have surprised negatively while banks were at the other extreme in delivering positive surprises. Industrials were in the middle – FY13 broadly in-line with modest cuts to FY14F earnings.
Not bad and with China providing a stronger tail wind than I thought a few week ago, the latter half of this year will be better for miners. For FY14 however, the risk are all to the downside with the iron ore deluge and mining investment cliff holding back Australian expenditure.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
