Credit Suisse MADRID (MarketWatch) -- Credit Suisse on Tuesday said it has shifted to a benchmark position on German stocks from overweight. In a note to investors, global equity strategist Andrew Garthwaite gave three reasons for the change: Germanys growth premium relative to Europe is shrinking, which impacts 25% of German equity-market revenues; competitiveness and funding-cost advantages are waning; and the country is exposed to China risk, with triple export exposure compared with Europe. At the same time, CS shifted to overweight from underweight on French stocks in a play on European Central Bank quantitative easing. Bond spreads are consistent with outperformance, and France stands to benefit more than Germany from any ECB easing, said Garthwaite. Furthermore according to reports, CSGN is in negotiations with the Justice Department USA, to pay compensation of 1.6 billion in order to close the case pending against it for encouraging tax evasion to American citizens and businesses. The compromise, if achieved, will be much heavier than the corresponding achieved in 2009 by UBS.
Posted on: Tue, 06 May 2014 09:44:55 +0000
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