Thursday, October 25, 2012

CEO Words of Gloom Cast Shadow Over Earnings Season

An earnings season described even by the most optimistic as muted has been made even more worrying by the pessimism shown by chief executives at globally dominant companies.
Three key themes have emerged from the Europe-based business leaders CNBC has spoken to this week. First, the atmosphere of worry and doubt is not going anywhere. Second, no part of the world or sector of the economy seems to be immune from concerns. And third, mass liquidity injections by central banks are being met with a distinct lack of enthusiasm in the real economy.
Sir Martin Sorrell, chief executive of the world’s largest advertising group WPP, told CNBC Thursday: “The monetary action taken by Mario Draghi, the Fed, Japan, makes the market feel better, but in the real world people are still concerned.”
He added: “As you look towards 2013, this is the atmosphere that will persist.”
While markets around the world have welcomed unprecedented levels of liquidity injections by central banks during the credit crisis, this does not seem to have filtered down to businesses at the coal-face.
This gloom is permeating companies’ hiring decisions, which could in itself affect the broader economy.

Read more: http://www.cnbc.com/id/49531389

No comments: