DAVOS, Switzerland (Reuters) - A trade war between the United States and China and a strengthening dollar are among the biggest threats to a brightening global economic outlook, according to leading economists at the World Economic Forum in Davos.
Credit Suisse has initiated coverage on Crompton Greaves with outperform rating as it expects 23 percent earnings CAGR over FY17-19.
If corporate spending in the US increases on account of factors like taxes, Indian IT companies will benefit, said Neelkanth Mishra of Credit Suisse.
Ajay Kapur of Bank of America Merrill Lynch remains underweight on India, a view he has had since December 2015 although he acknowledges the recent drop in Risk-Love there.
Credit Suisse has initiated coverage on Bharat Electronics (BEL) with an outperform rating and target price of Rs 1,800 based on steady growth visibility. It says valuations look reasonable in the context of global defence and Indian cap goods peers. The stock surged 5 percent intraday Tuesday.
Neelkanth Mishra of Credit Suisse expects a slowdown in real estate and continued stress in the banking system to hurt growth for longer than current market expectations.
The penalties stem from an initiative launched by U.S. President Barack Obama to pursue banks for selling sub-prime debt without warning of the risks, a practice that led to the worst economic crisis since the Great Depression.
"Under the terms of the settlement, Credit Suisse would pay to the DoJ (US Department of Justice) a civil monetary penalty of USD 2.48 billion," the Swiss banking giant said in a statement.
Credit Suisse says it remained cautious on the cement space as commentary from cement companies turned more negative.
The US Department of JusticeÂ has asked Credit Suisse to pay between USD 5 billion and USD 7 billion to settle a probe over its sale of toxic mortgage securities in the run-up to the 2008 financial crisis, a source with knowledge of the matter said, but the bank has resisted settling for that amount.
Nomura has upgraded Axis Bank to buy from neutral with increased target price at Rs 550 (from Rs 540 earlier) as asset quality risks priced in.
â€œThe valuation is now looking much more reasonable against the background of likely very good growth in the first half if not the whole of next year,â€ Parker told CNBC-TV18, adding that downside risks at current levels are pretty low.
Credit Suisse says delinking pension fund should pave way for Thyssenkrupp JV, which could take 6-12 months to materialise. The brokerage firm maintains outperform rating with target unchanged at Rs 515 per share.
Earlier, Credit Suisse pledged to cut another 1 billion Swiss francs (USD 991.5 million) in costs and pared back profit targets amid challenging markets which have made it harder for banks to make money.
The Stoxx 600 started Wednesday 0.26 percent higher with most sectors trading in the green.
Just over a year since Thiam laid out his strategy for Switzerland's second-biggest bank, analysts had expected Credit Suisse to take another axe to costs and pare back profit targets which had long been viewed as too optimistic.
We would advise investors to be cautious now. In addition to the difficulties in distribution and the informal sector benefitting from formalisation, there is the risk of an economic slowdown, says Neelkanth Mishra of Credit Suisse.
"(EMs) have a lower exposure to an export-driven (growth) model than is generally assumed. They have a better, balanced-type of growth model," said Hechler Fayd'herbe, adding a large majority of EM countries have only a third of their gross domestic product (GDP) that is dependent on international trade.
The recruiters from day one of placement season included names like Microsoft India, Oracle India, Goldman Sachs, Credit Suisse. It also included start-ups like Uber India
Credit Suisse expects India's growth slowdown due to demonetisation to be limited. It sees only minor disruption in high frequency indicators like power demand, rabi sowing and diesel demand.
CLSA in its report called â€˜The demonetisation reset‘ points out that this would lead to large disruptions in the near term but sees long term story attractive. Various broking firms have tried to gauge the impact of short term disruption that sucked cash out from the economy.
Rupee fell to a record low of 68.85 per dollar as foreign institutional investors withdrew from emerging markets. And that's what brought much needed relief to the technology companies as depreciating rupee drives more revenue for export oriented firms.
While most economists and financial market experts have hailed the move as a long term positive for the economy, they see it hurting growth in the short term. Many broking firms have lowered their GDP estimates for FY17, and some economists feel the slowdown could prolong into FY18 as well
Speaking to CNBC-TV18, Ray Farris of Credit Suisse said that the rupee in the emerging market basket of 20 currencies which he covers is relatively strong. The Indian rupee has fallen by over 2 percent since November 8, but it is the best performing currency among the 20 currencies he looks at, he said.
According to the 'Global Wealth Report' compiled by Credit Suisse Research Institute, wealth in the country in dollar terms went down by 0.8 per cent (USD 26 billion) to USD 3.099 trillion in 2016 compared to last year.