Archive for the ‘Uncategorized’ Category

FT: Slow growth in Mexico casts doubt on merits of Nafta

“Despite joining Nafta, the economic growth rate of Mexico has been remarkably slow in recent decades, not only compared to its own past but also relative to many other Latin American economies,” says Stephen Jen, head of Eurizon SLJ Capital, an investment fund.

“It is just not evident, by eyeballing charts on Mexico’s macro data, that Nafta has had any meaningfully positive effects on the Mexican economy. Mexico is quite a remarkable economy, in a negative sense, unfortunately. It has tried hard but achieved little.”

Read the original article on the ‘FT’ website.

Bloomberg: China’s $1.4 Trillion Silk Road Is Bigger than the Marshall Plan

Dubbed ‘One Belt, One Road,’ the plan to build rail, highways and ports will embolden China’s soft power status by spreading economic prosperity during a time of heightened political uncertainty in both the U.S. and EU, according to Stephen L. Jen, the chief executive officer at Eurizon SLJ Capital Ltd., who estimates a value of $1.4 trillion for the project.

“This is a quintessential example of a geopolitical event that will likely be consequential for the global economy and the balance of political power in the long run,” said Jen, a former International Monetary Fund economist.

“The fact that this is a 30-40 year plan is remarkable as China is the only country with any long-term development plan, and this underscores the policy long-termism in China, in contrast to the dominance of policy short-termism in much of the West,” said Jen.

Read the original article on the ‘Bloomberg’ website.

FT: Eurizon banks on the Italian financial system

Last year, Eurizon entered a joint venture in the UK by partnering with SLJ Macro Partners, a British hedge fund company. The two groups have launched one fund since forming the partnership, in which Eurizon owns a 65 per cent stake, and another fund launch is planned for the autumn.

The new Eurizon SLJ Capital funds will be managed by an investment team based in London but domiciled in Luxembourg.

When questioned whether London, in the wake of the Brexit vote, is the right place for an asset manager looking to grow internationally, Mr Corcos is adamant Britain will remain a big financial centre. This is because of the strength of its laws and its ability to attract talented people, he says.

He appears not to have lost his appreciation of the UK capital since the Brexit vote. “No one knows how we will finish with Brexit, but I still think London is very interesting for companies like ourselves,” he says.

Read the original article on the ‘FT’ website.

SLJ Macro Partners and Eurizon Capital SGR – the asset management arm of the Intesa Sanpaolo Group of Italy, with a total AUM of EUR260 billion – have reached a strategic partnership agreement for the development of the asset management business in the UK

Read the original article on the ‘Eurizon Capital’ website.

FT: Fed interest rate rise falls rapidly down the probability scale

According to Stephen Jen, head of currency hedge fund SLJ Macro, the Fed’s approach to raising rates is “the same strategy as Brussels towards Athens”.

“The most probable scenario is of us lingering in an uncertain state,” says Mr Jen. “The Fed wants to hike, but it doesn’t. It’s like me and my morning jog. I know what’s good for me, but I can’t bring myself to do it.”

Read the original article on the ‘FT’ website.