Market take

Uneven earnings call for granularity

Dec 2, 2024
Corporate earnings growth shows a stark contrast globally. The U.S. thrives, largely thanks to the AI sector, while regions like Japan and parts of Europe face challenges. Experts discuss how to identify unique opportunities driven by these regional trends. Strategic investment choices are critical in navigating this uneven landscape.
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INSIGHT

Uneven Earnings Growth

  • US earnings grew by 9% in the last 12 months, compared to 1% for the rest of the world.
  • This divergence highlights the need for granular investment strategies.
INSIGHT

AI's Expanding Influence

  • AI is driving US earnings growth, but its impact will broaden to other sectors.
  • Utilities, industrials, energy, and real estate companies providing AI inputs offer investment potential.
INSIGHT

Japan's Earnings Outperformance

  • Japan's earnings growth has surpassed the US due to inflation and corporate reforms.
  • A strong domestic outlook could offset risks like US protectionism and a rising yen.
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