Macau outlook gloomy in short term, growth seen in 2016, Sterne Agee says

Sterne Agee says the headwinds facing Macau’s gaming market have not changed and it expects a fall in November gross gaming revenue of 17-21 percent year-on-year.
The report notes little change in the near term concerns, such as China’ anti-corruption campaign, the “choppy” economic outlook in China and the upcoming visit in December of China’s President Xi.
The firm’s calendar year GGR forecast is for a drop of 2.0 percent. “We continue to forecast mostly negative high-to-mid single-digit growth decline for early next year,” the report said.
This is seen as marking an improvement from a 22 percent decline in the Q4, 2014 GGR growth forecast. This would be followed by “solid mid-teens” GGR growth in the second half of 2015, leading to a CY2015 GGR growth forecast of 5.0 percent.
But the analysts are more optimistic for 2016, with the market rebounding to over 20 percent growth for the year.