The Point for CEEMEA

Citi shifts to Neutral on Polish banks while highlighting significant earnings misses in the South African retail sector. Global macro focus remains on elevated inflation driven by oil price volatility and the ongoing UniCredit bid for Commerzbank.

Key Takeaways

• 1.Citi has downgraded its view on the Polish banking sector to Neutral as the valuation gap with European peers has closed and the cycle of high interest rate-driven earnings growth concludes.
• 2.South African retailers Dischem and Spar Group both reported disappointing financial updates, with Dischem missing DHEPS due to high investment costs and Spar missing significantly on H1'26 guidance.
• 3.Global inflation pressures remain elevated, primarily driven by soaring energy prices following geopolitical conflicts, leading to upward revisions in core inflation projections for the US and Eurozone.

Table of Contents

• Top Call
• South Africa
• Must Read
• Emerging Europe
• Sector
• Monday Mining Minutes
• Global Flights Tracker
• Global Shipping - Weekly
• Strategy & Economics
• Commodities
• Fixed Income & FX
• CEEMEA – Forthcoming Corporate Access
• Key Rating and Target Price Changes

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