Offer Societe Generale (S&P rating A) : Multi Return Note MRN

**Admin** Thu Jul 17, 2014 4:06 pm

U.S. benchmark indexes ended last week at all-time highs, with the Dow
topping 17,000 for the first time, as the latest government payrolls report
showed job growth blew past expectations last month and the
unemployment rate fell to the lowest level since before the financial crisis
peaked six years ago.
The S&P 500 trades at a valuation of 18 times reported earnings, the
highest since 2011. However earnings reports have been about 10 % on
average above estimates for the first 49 companies having reported so far.
And a price multiple of 18 on growing earnings appears to be cheap when
compared to 10-year Treasuries which are priced at 40 times the current
yield - see our chart of the day.
U.S. industrial production climbed 0.2 percent in June, capping the
strongest quarter in almost four years. Federal Reserve Chair Janet Yellen
told U.S. lawmakers the central bank must press on with monetary stimulus.
China’s economy expanded 7.5 percent from a year earlier in the second
quarter, the first acceleration in growth in three quarters. The U.K.
government said unemployment slid to the lowest level in 5 1/2 years.
Portuguese 10-year bond yields slid after the central bank said
shareholders in Banco Espirito Santo SA may inject more capital. The stock
jumped 16 percent, after closing at its lowest price since at least 1993.
Bank of Portugal Governor Carlos Costa said the bank has a “capital
cushion” to deal with the risks it faces after a holding company failed to
repay short-term debt.

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