Article / 25 July 2016 at 8:39 GMT

From the Floor: Pokémon Go won't do it all for Nintendo

Your Next Trade

  • Massive earnings week gets under way
  • The likes of Apple, Nintendo, Facebook, Amazon and Bayer will report this week
  • FOMC meeting on Wednesday is seen likely to issue midly hawkish noise
  • Click on this link for a replay of our morning call


By Clemens Bomsdorf

Summer reading usually means spending time with good fiction, but this week you might need to swap your thriller for a bunch of quarterly reports as this, Saxo Bank's equity strategy chief Peter Garnry says, is a "monster week for earnings".  (Read also Garnry's most recent Earnings Watch here.)

Roughly 700 out of the 2,000 companies that Saxo Bank tracks are due to report quarterly results this week. This includes heavyweights as McDonald's, Apple, Verizon (all Tuesday), Bayer, Facebook and BASF (all Wednesday) to mention only a few. 

Also Nintendo will be out with numbers on Wednesday. Expectations are high as droves of people seem to be playing Pokémon Go on their mobile phones everywhere. But Nintendo has already signaled the impact of this one game might be overestimated, Garnry says. 

Daimler and Ryanair are two of the companies Garnry is positive about. The latter just published earnings. "We are of the opinion that Ryanair is still in a much better competitive sitauation than its peers," says Garny, citing factors such as the airline's higher load factor. Historically the budget carrier has taken market shares in tough times, and because of rampant terrorism fears, we are currently living in such times.

Daimler stock should benefit from the company's pick-up in China and, as a cyclical share, leading indicators in Europe and the US turning higher should also lend support.

Mildly hawkish Fed

The Federal Open Markets Committee meeting on Wednesday is the centrepiece of the trading week in FX and fixed income. “Expecattions are for a mildly hawkish message,” says John J Hardy, head of FX strategy at Saxo Bankadding that Fed is preparing for a possible September or December move and it will aim to avoid making such moves as surprise.
Friday the Bank of Japan is due with a statement. "Expectations are minimal," says Hardy, referring to the background of strong risk appetite, which tends to act against JPY strength.

The USD positioning is not the same across the board, and, according to Hardy, there is room for further expansion of a USD long.

In fixed income, the focus this week will be on financials as the stress test of Italian banks is due on Friday. 

The 10-year Italian government bond has earlier performed similarly to the Spanish one, but is now coming with a clearly higher yield while it was the other way around until a few months ago, says Saxo's fixed income trader Michael Boye. So the market might be a bit worried ahead of the stress test, he says.

It will also be interesting to see what solution will be found for the subordinated debt of Italian banking group Monte Paschi. A resolution might be ready before Friday. The way this case will be handled could indicate what will happen to other financial institutions, so it could have wide implications. If private investors see losses, this could lead to repricing on a larger scale, including equities.

Pokemon Go
 Is Pokémon Go here to stay and how much can it boost Nintendo earnings? Photo: iStock

Clemens Bomsdorf is consulting editor at

Editor’s note: From the Floor takes advantage of's unique real-time access to Saxo Bank’s various trading desks around the globe to put our community in touch with the developments that matter to their portfolios 


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail