The stock market’s earnings problem: Morning Brief

Laveta Brigham

Tuesday, September 22, 2020

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Earnings are expected to improve dramatically. Which isn’t always great for stocks.

The stock market’s tough September continued on Monday.

All three major indices fell to start the week with the S&P 500 declining for its fourth-straight day, its longest losing streak since February.

And so after the market enjoyed its best August in decades and the rally off of the March lows seemed unstoppable, bulls are now facing the biggest test since the spring. And the upcoming earnings season poses a huge challenge to the market’s current narrative.

In a note to clients on Monday, Nick Colas, co-founder at DataTrek Research, flagged the following chart from FactSet, which shows how investors expect corporate earnings to evolve in the coming year.

S&P 500 earnings are expected to have inflected. (Factset)
S&P 500 earnings are expected to have
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China must reform financial markets to ward off US financial sanctions, think tank urges

Laveta Brigham

China should make its own financial markets big enough and open enough to foil any attempt by the United States to decouple financially, according to a semi-official Chinese research group.

trade war and efforts to restrain China’s technological development in the name of national security.” data-reactid=”20″The tactics suggested in a report released on Sunday by the China Finance 40 Forum (CF40), a think tank comprising senior Chinese regulatory officials and financial experts, comes amid worries that the United States will expand the conflict between the world’s two largest economies beyond the trade war and efforts to restrain China’s technological development in the name of national security.

“[We] must firmly oppose and properly handle the United States’ long-arm jurisdiction [of applying US law outside its borders] and financial sanctions, and in the meantime make contingency plans against extreme conditions,” according to a report excerpt released on the group’s social media

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Technology to Play Increasing Role in Film Festivals and Markets, Locarno Panelists Say

Laveta Brigham

Day three of the Locarno Film Festival StepIn 2020, moderated by Variety‘s Leo Barraclough and hosted by the Variety Streaming Room platform, brought professionals from various parts of the film festival and market sectors together for a panel on the Future of Film Festivals and Film Markets.

Jérôme Paillard, executive director of Cannes Film Market; Lili Hinstin, artistic director of the Locarno Film Festival; Alberto Barbera, artistic director of the Venice Film Festival; Sarah Schweitzman, from CAA’s Film Finance and Sales Group, which helped set up the agency-led virtual film market at Cannes; and Tabitha Jackson, director of Sundance Film Festival, made up the panel’s members.

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As many events this year have gone virtual on account of the COVID-19 pandemic, some film festivals also had to adapt and utilize online platforms, including Cannes. The panelists noted that the virtual route has so far offered both positive

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Stocks Rise While Tech Rally Falters; Oil Gains: Markets Wrap

Laveta Brigham

(Bloomberg) — U.S. stocks rose for a third day, though the surge in megacap tech shares wobbled with Congress negotiating a fresh relief package and European leaders agreeing on a landmark recovery plan. Oil jumped.

The S&P 500 added to its highest level since late February, with corporate earnings and positive vaccine news adding to sentiment that has powered an 8% rally since June 26. Four shares advanced for every one that fell. IBM Corp. jumped after sales estimates topped forecasts. United Airlines and Texas Instruments report after the close.

Risk assets remained in demand across the globe Tuesday, spurred by Europe’s 750 billion-euro ($860 billion) stimulus package that also tightens the region’s financial ties. A gauge of risk in Europe’s investment-grade debt dropped to the lowest since February and the shared currency was flat. The dollar fell and oil rose above $42 a barrel in New York.

The Nasdaq

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Crypto Markets Are Maturing, but Gen Z Is Rewriting How Markets Work

Laveta Brigham

Now, I have no idea how old you are, nor do I want to make any assumptions. I will assume, though, that since you are reading this, you have an interest in markets and/or crypto assets. And since this is a newsletter aimed at professional investors, I will assume that you care about a bit more than prices going up/down/sideways. That should put us on more or less the same page as to what we explore here. 

However, this week I want us all to question the lens through which we judge the evolution of markets. Not just crypto markets – all markets, because it is becoming increasingly clear that sooner or later the distinction will be irrelevant.

You’re reading Crypto Long & Short, a newsletter that looks closely at the forces driving cryptocurrency markets. Authored by CoinDesk’s head of research, Noelle Acheson, it goes out every Sunday and

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What’s Next for TV Markets? Survey Highlights Reduced Delegations, Year-Round Online Events

Laveta Brigham

Click here to read the full article.

As the industry gets used to working within the virtual space, U.K. media consultancy K7 Media has surveyed 40 clients — made up of some of the biggest international TV distributors, broadcasters, and production studios  — to learn more about their experience with these new virtual events and the role trade shows will play in the ‘new normal.’ K7 Media’s head of strategy Girts Licis looks at what’s next for TV markets and conferences.

As it became increasingly clear that physical events would be unable to go ahead as planned, we noticed everyone — from existing event organizers to publishers and analysts — rush to establish an online footprint.

There’s no doubt the industry has adapted well to ‘attending’ events online, with 55% of clients surveyed reporting watching or listening to an online session curated by a TV event. Highly anticipated annual markets,

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12 Buzzy Films for Sale at the Cannes Virtual Markets, From Michael Mann to Elisabeth Moss

Laveta Brigham

Click here to read the full article.

No splashy premieres at the Palais. No Croisette-apartment dealmaking. While there won’t be a physical Cannes Film Festival this year, this just might be the most important Cannes ever for getting business done.

As much of the industry’s work has been restricted to development amid the pandemic, agents and buyers are counting on two concurrent virtual markets that start this week to help move those projects forward. And with the fate of fall festivals up in the air, the Cannes markets could be the only opportunity to conduct business en masse for the entirety of 2020.

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The markets — one spearheaded by American sales agencies and the other run by the official Marché du Film — represent the first major virtual markets to go live since the pandemic roiled the world. Agents say the two are complimentary, rather than competitive:

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