Bloomberg Daybreak: US Edition Daybreak Weekend: Broken Capitalism and a 2026 Stock Outlook
21 snips
Dec 26, 2025 
John Authers, a Bloomberg Opinion columnist, dives into the forces that have reshaped capitalism, discussing its historical transformations and the tensions between AI-driven change and state intervention. Tim Craighead, Director of Equity Research, shares insights on European stocks set to shine in 2026, including key industrials and biotech opportunities. John Lee, focusing on Asian markets, analyzes the impact of AI, China’s mixed economic outlook, and opportunities in robotics and space. Get ready for a deep dive into the future of global markets!
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Seek Earnings, Not Multiple Expansion
- Investors should expect limited multiple expansion in Europe and look for earnings growth to sustain markets in 2026.
- Tim Craighead advises focusing on companies with catalysts that can drive earnings rather than relying on valuation rerating.
Pick Industrials With Clear, Local Catalysts
- Look for industry-specific industrial plays tied to AI, electrification, and infrastructure to capture diverse growth.
- Tim Craighead highlights names like ACS, Alstom, and Kion as examples of concrete, differentiated catalysts.
Banks Could Benefit From A Curve Shift
- European banks could benefit from a steepening yield curve and improved net interest margins if ECB policy pivots.
- Craighead sees dividend and payout improvements for banks like Danske and OTP as part of that story.