Epstein Secrets

g October consumer prices +4.3% from a year earlier versus estimate +4.5% and +4.6% prior Leading European Sectors: Healthcare +0.25%, Banks +0.20%, Utilities +0.20% Lagging European Sectors: Basic Res -0.92%, Tech -0.53%, Retail -0.52% JCI raised buyback & dividend — BV ceo to step down — FFHL earnings l

de LGEN LN, Citi downgrade SW FP, ALV GY • Danske upgrade ROCKB DC, DBK upgrade EBS AV, RBI AV, MAQ downgrade SVT LN ••• GS upgrade European Banks, Telecoms, UK Homebuilders, downgrade European Media, Industrials, Chemicals ••• HSBC downgrade ML FP, SIX2 GY, initiate ARM LN (ow), upgrade PC IM, • Nordea

perspective. Financials are now trading around median relative valuation levels. Healthcare PE relative is at the bottom of the historical range and Utilities relative PE is also close to the prior low hit in 2013. Food & Beverage still commands a large premium and PE- relative is 6-10% above the 2010 / 201

clawed back around 2/3 of their underperformance vs Defensives. Of course it depends how you frame the question since we have included Utilities and Telecoms in the defensive basket. But when we downgraded Banks 10 days or so ago they had outperformed Food and Beverage by ~50% since the lows of early July.

hnology 647 14.9% 20% -9% Materials 24 40% 23% 3% Telecom 1 0.2% 29% 0% Utilities 2 0.3% 28% 0% S&P 500 ex.

ould be able to retain half of the benefit ($8) and the remainder would be passed on to customers or competed away. For instance, a lasting impact to Utilities’ profits is unlikely, as the benefit would be passed on via regulated pricing. Repatriation: Buybacks could boost EPS by 3% Both Trump and the Blue

nue to like Healthcare as it offers solid long-term earnings prospects with low volatility and strong balance sheets. We reiterate our underweight in Telecoms, where we expect ongoing weak revenue growth as well as margin pressure. ¢ We are negative on Consumer Discretionary as earnings expectations may be

arnings growth. Our sector stance in the US Sectors Consumer Discretionary Consumer Staples Energy Financials T Healthcare ndustrials Telecom Utilities aterials Viclelulsalel vy) vial ws Source: UBS Note: Past performance is not an indication of future returns. For further information please con