BNP Paribas Is Still 'Underweight' South Korea: Raychaudhuri

The video discusses the ongoing downgrade cycle in earnings, particularly in Asia and South Korea. It highlights the negative growth estimates for MCA Japan and the impact of share buybacks on EPS growth. The discussion extends to GDP growth rates, future projections, and the potential for mean reversion. South Korea's economic challenges, including earnings downgrades and DRAM price fluctuations, are examined. Despite these challenges, Korean tech companies have shown resilience, with significant share price increases, indicating market optimism.

What is the forecasted growth rate for MCA Japan in 2020 according to consensus?

• 10.2%

• 5.6%

• 13.4%

• 7.5%

How does the compounded annual growth rate in earnings across 2018-2020 compare to the nominal GDP growth rate in large economies?

• It is higher than the nominal GDP growth rate.

• It is about the same as the nominal GDP growth rate.

• It is significantly higher than the nominal GDP growth rate.

• It is lower than the nominal GDP growth rate.

What is the expected change in DRAM prices in South Korea next year?

• They are expected to increase significantly.

• They are expected to decrease significantly.

• They are expected to fluctuate unpredictably.

• They are expected to remain stable.

What has been the impact of earnings downgrades on South Korea's economy?

• Moderate impact with a 15% decline in earnings estimates.

• Minimal impact with stable growth.

• Significant impact with a 35% decline in earnings estimates.

• No impact on the economy.

Despite the economic challenges, which sector in South Korea has shown resilience in share prices?

• Technology

• Automotive

• Banking

• Consumer goods