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

Apple shows new entertainment services

Large U.S. Study Finds Detection Of Irregular Heart Beat By Apple Watch

Apple to present Netflix competitor at the end of March

Live Human Under-Skin Chip Implantation Takes Place At Barcelona

IDC: Wearable tech gadgets market is booming

Second Patient In 12 Years Becomes HIV Free By Bone Marrow Transplantation

Car-Sharing Platforms Could hold The Key To 5G & Auto Industry Collaboration

Bezos tells about his space plans

Fast Company: Apple isn't the most innovative anymore

U.S. Space Program Could Be Delayed Due To SpaceX, Boeing Design Risks: Reuters

World Politics

World & Politics

China's expansion into Europe: Italy’s ports are next

US watchdog is accused of violating aircraft certification process

Large Section Of Citizens Unhappy With Public Services & Benefits: OECD Survey

Largest companies reveal volumes of plastic produced by them

US Warning To Germany About Intelligence Sharing Over Huawei Ban

Mercer reveals the world’s safest cities

No vaccinations, no school: Italy’s new law

Why the new Aachen Treaty cannot save France-Germany relation