Archive for June, 2015

WSJ: Greek Deal or No Deal: Investors Question Which Is Worse for Euro

“The whole of Europe might need to sacrifice to save Greece,” said Stephen Jen, partner at investment company SLJ Macro Partners.

The ECB would be more inclined to stick with its bond-buying stimulus for longer, effectively printing more euros and dragging down the currency, according to Mr. Jen.

“They would need to continue to inoculate the rest of the euro area,” he said.

Read the original article on the ‘WSJ’ website.

FT: Greek drama poses long-term risk for euro

The social and political consequences of the recovery may be severe. But structural reforms are the only way to make the single currency resilient, says Stephen Jen, head of currency hedge fund SLJ Macro. Right now, he says, “the EMU is brittle”.

Read the original article on the ‘FT’ website.

The Telegraph: The eurozone must either integrate or disintegrate

New research shows that the single currency is amplifying the differences between its members, making the euro in its current form unsustainable

Read the original article on the ‘Telegraph’ website.

Bloomberg: Greece Is No Lehman Brothers to European Markets

“Greece might be symbolically important for Europe but it’s no financial Lehman,” said Stephen Jen, managing partner of SLJ Macro Partners LLP in London. “The impact of default or exit will be bad on Greece, but any contagion will be limited. The European Central Bank is printing money, yields are still low, and the economy is experiencing a cyclical rebound.”

“Greece is not important in the long run,” said Jen. “A failure in Greece would effectively be an admission by the Europeans of a past mistake of admitting a country which clearly did not have the requisite strengths and discipline to be a member. It is this reputational risk and the difficulties in admitting past errors that I think are more important to the Europeans.”

Read the original article on the ‘Bloomberg’ website.

Bloomberg: Who Wins, Who Loses When Fed Raises Rates

Brazil, Turkey and South Africa will likely have a tough time in the second half of 2015 because money will flow toward the U.S., said Stephen L. Jen, managing partner and co-founder of SLJ Macro Partners LLP in London.

“Already, the currency markets are again showing signs of stress and I feel that there will be moments later this year that investors will smell panic in these markets,” Jen said.

Read the original article on the ‘Bloomberg’ website.