SocGen’s Kaloyan Favors Utilities Over Telecoms

The video discusses the current reporting season, highlighting that while many companies report above expectations, the bar was set low. Analysts are optimistic about 2020 EPS growth, despite macroeconomic challenges. The video also compares telecoms and utilities sectors, noting telecoms' lack of pricing power and utilities' better EPS visibility. French PMI data is briefly mentioned, indicating a slight improvement.

What is one reason the current reporting season appears positive?

• The bar of expectations was set high.

• Companies are reporting above expectations.

• All companies are reporting well below expectations.

• EPS growth is higher than last year.

What is the expected EPS growth for 2019 compared to 2018?

• 8% for 2019, 0.6% for 2018

• 0.6% for 2019, 8% for 2018

• Both years have 0.6% growth

• Both years have 8% growth

Why might the 2020 EPS growth outlook be considered overly optimistic?

• Analysts expect a decrease in top-line growth.

• The macroeconomic outlook suggests slower growth.

• There is no consensus among analysts.

• Companies have not provided any guidance.

What is the significance of the French October manufacturing PMI numbers?

• They are worse than the preliminary reading.

• They indicate a strong economic expansion.

• They suggest a rapid economic recovery.

• They show a slight improvement but still a contraction.

Which sector is expected to perform better due to increased energy demand?

• Utilities

• Basic industries

• Technology

• Telecom

What challenge does the telecom sector face according to the discussion?

• Stable earnings

• High pricing power

• Decreasing capital expenditure

• Lack of pricing power

Which sectors are considered defensive according to the discussion?

• Technology and healthcare

• Telecoms and utilities

• Basic industries and finance

• Consumer goods and services