This week, Egypt and Greece have been added to the red-flagged list once again. Since the last update, these countries' EPS yields have fallen below local interest rates. Furthermore, the Philippines, India and Ireland remain on the red-flagged list, as their EPS yields have yet to improve.
In another line of thought, the European region currently has the largest spread between its local interest rate and EPS yield of all world regions. You can see this development in the chart below.
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