Financial Times FT.com

The Short View: Beware the calm before the storm

By John Authers, US Markets Editor

Published: July 13 2006 18:20 | Last updated: July 13 2006 18:20

Stock markets have set themselves up for some nasty surprises from the second-quarter earnings season. Normally, the game played by companies’ investor relations departments and the analysts covering them plays out in predictable fashion.

Companies gently talk down their earnings in the month leading up to an announcement, and then marginally beat the new expectations they have set for themselves, thus getting brief “pop” in their share price.

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