How did the industry react to QE?

first_imgThe ECB has sent a strong signal, but it was inevitable at that point, particularly given the anticipation of the equity and bond markets. It is the logical conclusion of the ‘whatever it takes’ rhetoric Draghi initiated almost three years ago.Martin Steward, investment editor, IPEIt’s early days, but if this more optimistic take on things sticks over the next days and weeks, we could be seeing the beginnings of what could be a powerful bull market in European risk assets – but perhaps not the long-overdue and much-needed correction in safe-haven rates.Mark Burgess, CIO at Threadneedle InvestmentsThere has been some discussion about the lack of ‘mutualisation’ or risk sharing of the government bond purchases, but we feel the important issue is the commitment from the ECB to expand its balance sheet.Risk sharing was always likely to be a stumbling block, particularly given strong German opposition to the idea, but it should not reduce the effectiveness of the policy in terms of addressing short-term growth and deflation concerns. Importantly, German policymakers have not questioned the legality of the ECB’s decision to implement sovereign QE, although it is clear many Germans do not like it.Andrew Sheets, Phanikiran L Naraparaju and Serena W Tang of Morgan Stanley ResearchWe view the size as a positive surprise versus market expectations. More risk-sharing would have been better in our view, but at least there was some. The decision to allow buying out to 30-year maturities came as a surprise to markets. Combined with a larger-than-expected buying programme, we’d expect 30-year Spain to outperform.Jon Jonsson, senior portfolio manager at Neuberger BermanOverall, the announcement takes a constructive step in repairing the credibility of the ECB. We anticipate that the impact should generally be positive for risky assets within fixed income, prompting a tightening of spreads in peripheral sovereign markets, as well as European corporate credit. Equities, in turn, are likely to rally on a better economic outlook.Dennis van Ek, actuary at Mercer in the NetherlandsThe causes of the currently low rates – low inflation, as well as the ECB’s policy of suppressing rates – are still present. The purchasing programme will amplify this effect.Filippo Battistini, head of institutional and fund buyers at Allianz Global Investors in ItalyThe traditional carry strategies will no longer be sufficient. There is a potential for more flexible asset management strategies to gain ground, ones that include new alternative asset classes in the fixed income space and are complemented by hedging with derivative instruments.Maria Paola Toschi, global market strategist at JP Morgan in ItalyThe QE decision could initiate a very favourable period for the European economy, including firms and investors. The bond-buying programme should continue to put pressure on peripheral spreads, thus creating positive conditions in terms of debt obligations.We are convinced the ECB announcement and its implications for a weakening euro, coupled with a stable rates environment, could lead to potentially significant change in Europe. This makes us confident Europe will be one of the most promising investment themes of this year. A day after European Central Bank president Mario Draghi unveiled details of a €60bn-a-month asset purchase programme, a European quantitative easing (QE), IPE rounds up reactions from across the Continent to find out if the intervention will be able to pull the single currency out of its disinflationary spiralJohn Vail, chief global strategist at Nikko Asset ManagementFortunately, the ECB positively surprised the market in most every way. It is a historic day for central banking in Europe and, therefore, for the world, too, even if one thinks the economic effects will be marginal. In a sense, the ECB is now the most aggressive central bank in the G-3, as it has both negative policy rates and sovereign QE, but there are some factors to consider going forward.Andrea Beltratti, chairman at Eurizon Capitallast_img read more

Total’s profit jumps as LNG sales edge down

first_imgImage courtesy of TotalFrench energy giant and LNG player Total saw its 2018 adjusted net profit climb 28 percent during the year 2018. The company recorded a full-year adjusted net profit of $13.6 billion with the increase attributed to the rise of oil prices to an average of $71/barrel in 2018, compared to $54/b in 2017.“These excellent results reflect the strong growth of more than 8 percent for the group’s hydrocarbon production, which reached a record level of 2.8 mboe/d in 2018 and led to a 71 percent increase in exploration and production’s adjusted net operating income,” Total’s chairman and CEO Patric Pouyanne said.Total’s liquefied natural gas (LNG) sales during the period under review declined 1 percent compared to 2017.LNG sales were at 11.07 million tons, compared to 11.23 million tonnes in 2017.Looking to benefit from the current favorable cost environment, Total aims to launch a number of projects in 2019, including the Arctic LNG 2 project in Russia in which it purchased a 10 percent stake in May 2018.last_img read more

Fiorentina set to hand former Roma man first coaching role

first_img Loading… According to Corriere dello Sport, De Rossi is among the names being considered to replace Fiorentina boss Beppe Iachini.In turn, the 36-year-old likes the club’s board, in particular sporting director Daniele Prade after they worked together at Roma.However, unlike what Sky Sport Italia reported last night, the newspaper writes he is likelier to take over as Primavera coach, a post which remains vacant.Read Also: Real Betis to appoint Pellegrini on two-year contractDe Rossi’s father Alberto has been in charge of Roma’s Primavera team since 2004.The ex-Italy midfielder retired from professional football in January while playing in Argentina for Boca Juniors.FacebookTwitterWhatsAppEmail分享 Fiorentina are reportedly keen on giving former Roma man Daniele De Rossi his first coaching role.Advertisementcenter_img Promoted Content6 Interesting Ways To Make Money With A Drone10 Risky Jobs Some Women Do8 Scenes That Prove TV Has Gone Too FarThe Very Last Bitcoin Will Be Mined Around 2140. Read MoreWhich Country Is The Most Romantic In The World?8 Superfoods For Growing Hair Back And Stimulating Its GrowthTop 10 Tiniest Phones Ever Made9 Facts You Should Know Before Getting A TattooThe Most Exciting Cities In The World To VisitTop 10 Female Stars Everyone Had A Crush On In The 90sA Runner Uses Strava App To Create Amazing Pieces Of Running ArtThe 10 Best Secondary Education Systems In The Worldlast_img read more