“The repositioning on the European markets has already been underway for a few months. It has mainly taken the path of the sovereign debt market, but also that of the equity markets, and this trend will accelerate further when there is finally a significant return on earnings”. This was stated by Blackrock's investment director, Bruno Rovelli.
“The greatest possibilities for an acceleration are right here in Europe – the managers continued on the microphones of Radiocor – and in particular in the peripheral countries, where the crisis has been more severe. It is no coincidence that Wall Street is at its peak and Europe is not. The reason is simple: the profits of American companies are at historic highs and instead those of European companies are still very far from the levels reached before the outbreak of the crisis in 2007”.
According to Rovelli, however, no time was wasted in Europe, particularly in peripheral countries where numerous reforms have been approved and are now beginning to bear the hoped-for results.
As for the ECB's next moves in terms of monetary policy, Rovelli deems it entirely unlikely that the central institution could actually launch a quantitative easing program, because it would be similar to a "socialization of debt", a solution that Germany has always rejected .
According to Rovelli, the Eurotower could therefore go back to using the instruments already used in recent years: a new 3-year Ltro and an unlimited amount, as well as a possible further intervention on the cost of money.
