Daily Management Review

Thiel From BlckRock Sees Italian Bond Yielding ‘More Market-Friendly Outcome’


09/21/2018


Theil turns more positive towards dollar, as he sees Brexit situation to “become more positive”.



The largest asset manager in the world, BlackRock has made a recent move to a “long position in Italian bonds” as it expects an outcome which will be “market-friendly” to the “budget discussions”. The said information comes from the Deputy Chief Investment Officer of “fixed income” at BlackRock.
 
The recent “violent gyrations” experienced in the Italian markets stemmed from fear of the “coalition government” going on a “spending binge” which will make the debt burdens heavier for the country. Although, to some extent the fear has subdued the Italian trade yield still remain above that of “other southern European” countries.
 
According to Reuters:
“Ten-year Italian yields stand around 2.87 percent compared to 1.5 percent in Spain and 1.8 in Portugal IT10YT=RR ES10YT=RR PT10YT=RR”.
 
Scott Thiel from BlackRock told the media that the debt of Italy “offers an attractive valuation, especially versus other peripheral markets”.
“The Italian situation seems to be moving towards a more market-friendly outcome”.
 
Many government officials who hold high posts stated that the government would abide by the “fiscal discipline” of the EU when conducting its “ongoing budget talks”, while it is said that the “Economy Minister Giovanni Tria”, is going to hold firm on retaining the “budget deficit” under check. In Thiel’s words:
“In our opinion, the two parties are more conscious of how to implement their policies within a European mandate”.
 
Thiel also confirmed turning “more positive” towards British pound, as he saw it higher while nearing teem direction. He said:
“It does appear that the Brexit situation has become more positive”.
 
In fact, he sees “a level of $1.35” a possibility if Britain manage to land an agreement on “trade deal” for Brexit with the EU by the coming March. At present, sterling is being traded around “$1.31 GBP=D3”. In the post month it has rallied nearly 4%, while reports states that both the parties were close to formulating a Brexit agreement.
 
Moreover, the emerging market selloff is an “overdone” thing for Thiel, while the sector has taken a “strong dollar” blow this year with the brewing fear of a “global trade war”.
 
 
References:
reuters.com







Science & Technology

Samsung introduces display technology for folding screens

How retailers use technologies to increase sales

Facebook releases videochat devices Portal and Portal Plus

Smartphone makers will pay for pre-installing Google apps‍

Five loudest data leaks

Airbus announces Moon exploration competition

Former Head Of Google China Thinks Funding In AI Should Be Doubled By US

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

Fuchsia will kill Android by 2023: Top 5 facts about the new OS

World Politics

World & Politics

Bloomberg: Theresa May can face catastrophic defeat in parliament

New Asian Foreign Policy May Be Set By Congress After Democrats Taking Control Of House

Italy refuses to change draft budget

Italy is about to tighten its migration policy

Macron calls to create a pan-European army

Signals Of Mending Of US-China Emerge Before Anticipated G20 Meet

Moscovici: the European Commission may impose sanctions on Italy

US’s Iran Ban Comes Into Force, US Dodges Question On Exemption Of India & China