DB Today -Global/Macro:Tuesday,8August 2017

Europe Strategy - European Equity Strategy - Wolf von Rotberg

    With 74% of Stoxx 600 constituents having reported, 54% of companies havebeaten EPS expectations, in line with the long-term average and our pre-seasonprojection, but below the exceptionally strong Q1 beat ratio of 64%. EPS growthis running at 19%, ahead of the 8% consensus expectation for the companiesthat have reported so far. EPS beats have been strongest for tech (69%), energy(67%) and financials (66%), while utilities, staples, health care and industrialshave seen net misses. EPS growth has been heavily tilted towards energy andfinancials, which have contributed a combined 16 percentage points to totalgrowth. Excluding energy and financials, EPS growth drops to ~3%, the lowestunderlying growth rate since Q1 2016.

    Credit Strategy - Early Morning Reid - Jim Reid

    To put the steady but relentless rally in the S&P in context, it is now 73 tradingdays since the S&P increased by more than 1% in any one day. Give it anotherdays and we will beat the prior record set back in November 06 and March 07.

    Although, given the current lull in the activity (VIX now back to below 10), wemight even get close to the 100 day record set back in mid-July 1995 to earlyDec 1995.

    European Equity Strategy - Weekly Fund Flows - Andreas Bruckner

    Last week’s (Wed-Wed) review of funds’ in/outflows as % of funds’ AuM.Fundflow momentum remained subdued last week as investors looked noncommittal,moving into money market funds in sizeable proportions for the second weekrunning but keeping changes for other asset classes to a minimum. Inflows intoequity funds slowed to a six-week low, and while US equity indices broke intonew all-time highs last week, a strong Q2 earnings season paired with a weakerdollar and supportive US economic data still failed to entice new inflows for USequity funds as they suffered the seventh straight week of redemptions instead.