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Is a Recession Coming? Investors Turn to Earnings for Clues

  • Energy crisis, inflation, weaker euro are all in focus
  • Lockdowns in China have also cast a shadow on profits
Bloomberg business news
What Recession?

A looming recession, runaway inflation, an energy crisis in Europe and a euro that’s sunk to near parity with the dollar: corporate earnings worldwide face a laundry list of challenges this season that could create another reason to dump stocks.

After a tumultuous first half for global equities, with $18 trillion in value wiped out, investors are anxious to see if profits are holding up or if companies will cut guidance amid the intensifying threats to demand. Businesses may use the dour economic picture to be even more conservative than otherwise about the future.