Compared to American companies, European companies have a higher average dividend yield and lower valuations, which are attractive for those investors who prefer to be more defensive in the last stages of the cycle.
Norbert Rücker (Julius Baer) | The oil market is off to a rocky start as the tensions between the United States and Iran escalate. The situation brings lots of uncertainty and geopolitical tea-leaf reading on reactions. While the closure of the Strait of Hormuz remains a very unlikely event, the deterioration in Iraq bears supply risks. Geopolitics tend to be a temporary force on oil markets and we believe this time is no different. We raise our near-term forecast to USD 65 per barrel, and maintain a Neutral view on oil.
Dave Yin (Caixin) | China is making major revisions to its antitrust law for the first time in more than 11 years to give it more teeth while reining in the dominance of the country’s internet goliaths.China is making major revisions to its antitrust law for the first time in more than 11 years to give it more teeth while reining in the dominance of the country’s internet goliaths.
Telefónica’s decision to reduce its reliance on Huawei is in line with the company’s strategy to have several different providers for the equipment for its 5G networks, which is expected to be widely deployed by 2022.
The ECB recently published a paper in which it reviews its monetary policy over the last 20 years. Among other points, the central bank says that interest rates in EMU countries could deepen further into negative territory before being counterproductive.
After issuing €1,62 bn at 5 years, €1,31bn at 10 years and €510 M at 30 years, the Treasury ruled out any further debt issuances in 2019. On the other hand, the net issuance amounted to almost € 20 bn, the lowest figure since 2007.
Alejandro Arevalo (Jupiter’s Head of Strategy, Emerging Markets) | One might think that emerging market debt has had difficult year, but it’s been quite the opposite. At the time of writing, the major EM hard currency indices have all returned more than 11% year to date.
José Ramón Díez Guijarro (Bankia Estudios) | The end of the year has served to dismiss some of the doubts that have distorted the decisions of the economic agents during the last months, ballasting the growth rates of the activity. Visibility has improved in the short term, yet uncertainty is here to stay
Banca March | By 2020, 14 countries of the European Union and the Eurozone will ask their banks to raise their capital buffers, in order to cushion future financial shocks.
M&G | The year 2019 is going to close with strong advances of most of the world indexes, above 20% in Europe and the United States.