The City’s conclusion is that, in relation to their size, the US private equity firms could dedicate more time and deploy more capital in Europe, to the benefit of everyone. But these firms still have doubts about the future of the Eurozone after Brexit. Other non-US and non-European actors are grabbing those opportunities reticent US investors are letting pass by.
Articles by Victor Jimenez
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Top economists and heads of UK institutions and companies are demanding a clear strategy from Downing Street on how the government will collaborate to weather the Brexit storm. Many are sceptical about the overly-optimistic picture painted by Theresa May and Philip Hammond about the economic future.
Multinationals such as Airbus or Aviva Investors are arguing in favour of the ‘In’ vote, warning that a possible Brexit would push the UK into recession before year-end.
Brexit supporters do not need to make any noise. They have been decades using the EU as a scapegoat for their problems of excessive regulation, arbitrary taxation, lack of transparency… Now it’s Cameron who must prove the opposite.
The European financial center still cherishes the hope that the debt markets will brighten up before the end of the year. It would help if the catastrophic headlines stopped.
LONDON | March 18, 2015 | By Víctor Jiménez | The effects of QE have already begun to reverberate through the arteries of Europe’s financial heart in the City of London. Indeed, there is a tsunami of money flooding the market, corporate bonds sub-investment market. That below triple B ratings market is the ‘acid test’: the ECB’s bet has been dragging down the price of investors and asset managers’ portfolios, who are desperate to find substantial interest rates and return to positive territory.
LONDON | By Víctor Jiménez | Raise the main interest rate? Certainly not. Or not yet, anyway. While the US economy is not showing clear signs of having overcome the assisted breathing phase (i.e. printing money or the recently wound up phase of quantitative easing that the Fed finished two weeks ago), the chances are that the Bank of England will keep the price of the pound at a very low level.
LONDON | By Víctor Jiménez | We leave the Thameslink station, in the southern section of Ludgate Hill Street that leads to the door of St. Paul’s Cathedral in London. We are close to Square Mile. On our way to his office, the veteran financial journalist Jon Hay explains that Euromoney (one of the large market information publishing companies in Europe) has started to hire new reporters to cover, for instance, the latest data on the collateralised loan obligations (‘CLOs’), which are one of the debt structures that got deflated after the 2007 credit bubble burst.
LONDON | By Víctor Jiménez | The financial services industry in Scotland is more than twice as large as that of the rest of the UK when compared to the gross domestic product. But where the unionism points out an unaffordable risk, some analysts see an opportunity. (Image: The first minister of Scotland, Alex Salmond by Robert Perry/EPA)
LONDON | By Víctor Jiménez | The image of the Bank of England’s monetary policy Committee, which met in early July to not issue any decision on interest rates, was at the same time historic and false.