Inflation concerns once again dominated the global stock market narrative last week as the headline CPI reading came in at 6.2% year-over-year, the highest level since 1990.
Johnson & Johnson ‘ripped off the band-aid’ last week, declaring plans to break off its consumer health division—home to brands such as Band-Aid, Listerine, Nicorette and Neutrogena—as a separate company, leaving its prescription drug and medical device businesses to operate under the J&J banner. Two other major conglomerates to announce their plans to split last week were GE and Toshiba, in an effort to maximise value to shareholders and enable investors to focus on specific sectors.
In the Eurozone, around three quarters of European companies have reported Q3 earnings so far and 57% have beaten on EPS. This is above the historical average of 52%, however it is the weakest level since the start of the recovery indicating that growth is slowing. You can read more about this below.