Editor, Investment Strategy. Europe, Middle East and Africa, London
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Dec 11, 2012

Templeton’s Mobius still buying Egypt stocks

LONDON (Reuters) – Protests in Egypt have failed to deter veteran emerging market investor Mark Mobius, who said on Tuesday he is holding onto his Egyptian stock position and is looking to add more even as the latest crisis unfolds.

Mobius, executive chairman of Franklin Templeton’s emerging markets group, told Reuters in a telephone interview that while there was an international focus on the protests over Egyptian President Mohamed Mursi’s plans to vote on a new constitution, business continued as usual in many parts of the country.

Dec 6, 2012
via Global Investing

Weekly Radar: China and Fed steal the show

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Even though US cliff talks remain unresolved, many of the edges have been taken off seasonal yearend jitters elsewhere. Euro pressures have been kept under wraps since the Greek deal,  the possibility of yet another Fed QE manoeuvre next Wednesday is back in play and a significant pulse has been recorded in the global economy via the latest PMIs – thanks in large part to China and the US service sector.US payrolls loom again tomorrow, but the picture is one of stabilisation if not full-scale recovery.

All this has kept markets pretty calm with a positive tilt as investors parse 2013. The Greek deal has proved to be a very important juncture for the euro zone, with Italian 10-year yields down yet another 14bp Wednesday-to-Wednesday. The parallel recentr lunge in Spanish yields backed up a few notches after this week’s auction disappointed some traders. Yet even here the relative ease with which a supposedly-cornered Madrid raised more than 4 billion euros for next year’s coffers keeps the financial side of their crisis, if not the economic one, in context for now at least.

Dec 3, 2012

‘Known unknowns’ seem less menacing

LONDON, Nov 30 (Reuters) – The big “known unknowns”, to
borrow from former U.S. defence secretary Donald Rumsfeld, are
now so familiar to most global investors that they have to think
long and hard about risks looming in 2013.

That’s not to say money managers see no big pitfalls for
next year. On the contrary: the world economy has rarely faced
so many threats of political, policy and financial accidents.

Nov 30, 2012

Big “known unknowns” seem less menacing in 2013

LONDON (Reuters) – The big “known unknowns”, to borrow from former U.S. defense secretary Donald Rumsfeld, are now so familiar to most global investors that they have to think long and hard about risks looming in 2013.

That’s not to say money managers see no big pitfalls for next year. On the contrary: the world economy has rarely faced so many threats of political, policy and financial accidents.

Nov 28, 2012

Confusing hard and soft power in emerging markets

LONDON (Reuters) – Deserting debt-laden, recession-racked North Atlantic and Japan for the fast-growing emerging market world may have been irresistible for some investors but many others still remain timid.

Why? It may be a case of “hard power” versus “soft power”.

Nov 28, 2012

Analysis: Confusing hard and soft power in emerging markets

LONDON (Reuters) – Deserting debt-laden, recession-racked North Atlantic and Japan for the fast-growing emerging market world may have been irresistible for some investors but many others still remain timid.

Why? It may be a case of “hard power” versus “soft power”.

Nov 26, 2012

Funds dismiss “death of equity”

LONDON (Reuters) – Senior European fund managers on Monday dismissed claims that equity investing was a thing of the past, with two top investors heralding double-digit gains in European stocks next year and beyond.

Speaking in London on the first day of Reuters Global Investment Outlook Summit for 2013, the managers reckoned there was sufficient stabilization of the financial and economic world after five year of crisis to bring relative valuations back into play and history showed the darkest hour is often before dawn.

Nov 26, 2012

Build up euro equity as new emerging market: Pioneer

LONDON (Reuters) – Euro zone equities will be the star performers of 2013 and investors should seize all opportunities to build up this portfolio, Pioneer Investments’ Chief Investment Officer said on Monday.

Branding European equities as “The Next Emerging Markets”, Pioneer Group CIO Giordano Lombardo told the Reuters Global Investment Outlook Summit for 2013 that euro zone equities were undervalued, under owned and would benefit from a stabilization of both the underlying euro zone economy and the wider investment climate.

Nov 22, 2012
via Global Investing

Weekly Radar: Bounceback as year winds down

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Yet another Greek impasse, a French downgrade, ongoing DC cliff dodging and a downturn in Citi’s G10 economic surprise index (though not yet in the US one) could have been plausible reasons this week to extend the post-election global markets swoon. But at 8 consecutive days in the red up to last Friday, that was the longest losing streak since last November, and a lot of froth had been shaken off these year-end markets already.

We’ve seen a decent bounceback in nearly all risks assets instead. That may be partly due to volume-sapping Thanksgiving week and partly due to the fact that more and more funds think the year is effectively over now anyhow. The only big wildcard left is the timing of an fiscal agreement stateside and few managers now honestly believe there won’t be some sort of a deal. (Deutsche, for the record, said this week that the divide between the sides over tax is much less than many assume).  Greece is a slower burner but again, few people believe it will be hung out to dry any time soon and a deal on the next tranche – whatever about deep and meaningful OSI, payment moratoriums and loan rate cuts – will most likely be reached next week at the latest. Talk of a EFSF-funded Greek debt buyback meantime has helped pushed its debt yields to the lowest since the restructuring.  And the French downgrade was probably the least surprising move of the past five years.

Nov 16, 2012

Bulls, not bears, go into hibernation

LONDON, Nov 16 (Reuters) – The longest losing streak on
world markets since the darkest days of the euro crisis in late
2011 shows how reluctant investors are to trust in any sustained
recovery after years of crisis.

Global equity indices on Friday flirted with
a record eight consecutive days in the red for the first time in
a year. Do a sweep of all related risky assets around the world
and there’s been a similar pattern of pullback.

    • About Mike

      "Mike Dolan is Reuters' Investment Strategy Editor in Europe. He has been a correspondent and editor for the past 20 years, working for Reuters from London and Washington DC in a variety of roles covering global policymaking, economics and investment trends."
      Joined Reuters:
      1995
      Awards:
      Reuters Editor of the Year, 2009. Reuters multimedia journalist of the year award, 2011
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