Earnings Flu for Europe, Too?

Even as analysts sharply downgrade forecasts on the Continent, HSBC Securities' Jason James says the pain will be even worse

With profit warnings flying thick and fast from U.S. companies, are European corporate earnings about to hit the skids, too? It sure looked that way on Mar. 12, when Swedish telecommunications-equipment maker Ericsson projected a first-quarter loss of up to $500 million, fueling a sharp plunge in the Nasdaq and in European technology markets. Mar. 13 saw more nervousness when Germany's Siemens cut its earnings targets because of weakened demand for semiconductors produced by its Infineon unit.

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