The UK real yields are likely to rise and close part of the gap with neutral rates. The analysts of AXA IM retain open long-volatility positions via options on Treasury notes. As they explain “sovereign bonds posted mixed performances over the month Since mid-September, European bonds have earned 0.6% and 0.5% respectively in UK and Germany, while US and Japanese bonds lost respectively 0.2% and 0.4%.”
Ratings agency Fitch has warned that a property bubble is evident in the centres of Spain’s large cities. But it makes it clear that it does not anticipate any generalised bubble in housing prices in the country in the short-term. This is due to the high level of stock which still has to be absorbed and the restrictions on buying a home.
The recovery seen in the banks’ activity at an international level at the beginning of this year has been temporary. In line with data from the BIS, the banks’ international activity fell $91 in the second quarter from the first. With the exception of loans to non-banking institutions.
BME announced yesterday that it will adapt its fixed income market so that intermediaries can transfer all their operations to the regulated market and comply with the new transparency and reporting requirements of MiFID II.
As expected by markets, the ECB announced that it will continue buying bonds in 2018, albeit at a reduced pace of monthly €30bn for another nine months until September 2018.
Banco Santander earned attributable profit of € 5,077 M to Sept this year, a rise of 10 % compared to the same period last year after €515 million of one-off items. These are the first results presentation after Banco Popular integration last June.
The ECB is expected to announce a reduction, or tapering, of its asset purchasing programme at today’s council meeting. In opinion of David Kohl, chief currency strategist at Julius Baer, “financial markets are well prepared for less support from monetary policy.”
After several months of buildup, the Trump’s tax reform was finally unveiled on September 27. To better understand the potential implications for investors, Curt Overway, CFA from Natixis Global AM offers insight on what the tax reform proposal means for investors’ portfolios. A few observations can be made.
Since it announced the sale of its concessions division in Mexico, its biggest source of earnings, OHL is expected to look for alliances to regain muscle. A merger with another European construction company could be a possibility.
John Bruton | The current political system in the United Kingdom, and the anxieties and obsessions it has generated, determine the British position on Brexit. This expresses itself in an artificially inflexible and brittle interpretation of the 2016 referendum result. Scope and time are needed for creative thinking.