The European Central Bank’s (ECB’s) latest interest rate cut, to 0.5%, is too little too late, and more will be needed, according to Neil Williams, Chief Economist for Hermes’ Global Government & Inflation Bonds, in his May Ahead of the Curve. In particular, the ‘raid’ on Cypriot bank deposits, no-confidence motion in Portugal’s coalition, extension of Ireland and Portugal’s bail-out loans, and Italy’s political void suggest complacency in bond markets following President Draghi’s promise of a bond-buying programme that has yet to be activated.
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Hermes Commodities, one of the UK’s largest institutional long-only commodity managers with over US$2.3bn assets under management*, announces the strengthening of its team with the appointment of Joseph Murphy as Senior Analyst.
In his Quarterly Economic Outlook at the end of Q1 2013, Neil Williams, Chief Economist for Hermes’ Global Government & Inflation Bonds, highlights that fundamentals may be weak, but it should still be a constructive year for growth & inflation assets. However, the main support is unlikely to come from growth itself, as G5 economies again struggle to reach potential. But, rather from the swirl of cheap cash looking for a home, as central banks tolerate nothing less than inflation.
Asmita Kapadia Tel: +44 (0) 20 7680 2120 Mobile: +44 (0) 7738 916 122 Email: a.kapadia@hermes.co.uk
Jean Dumas Tel: +44 (0) 20 7680 2152 Mobile: +44 (0) 7841 324061 Email: j.dumas@hermes.co.uk
Melanie Shelley Tel: +44 (0) 2076802110 Mobile: +44 (0) 7767162317 Email: m.shelley@hermes.co.uk Visit Media Centre