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News & Announcement

  • 01 August 2014Kepler Cheuvreux believes that Small & Mid cap research & capital raising is threatened by MiFID IIKepler Cheuvreux believes that draft rules in ESMA’s consultation paper on MiFID II / MiFIR have serious implications for the structure of equity research and the transparency and efficiency of capital markets in Europe. Kepler Cheuvreux fears that there will be negative ramifications for future capital raising by Small & Mid cap companies which will inevitably affect economic growth and jobs inEurope. If current timetables are respected, these rules could come into force in January, 2017.
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Economics & Strategy

  • 29 September 2014Leaders and LemmingsWith the arrival of Q4 this week we focus upon the apparent paradox of this end-cycle period. Financial markets are focused upon America’s monetary transition. The process of discounting the change in the investment environment is advanced. However, this does not mean that market disruption will be avoided. The most characteristic feature of the European equity space is the outperformance of financials, and the simultaneous under-performance of industrial cyclicals and commodity-sensitive stocks, despite currency adjustment. This is the reflation trade. The counterpart is despondency among European investors. We are not surprised to see rising volatility among US growth stocks. The behaviour of credit and currencies in Q3 reinforces our interpretation that Q4 should be used to take profit in equity because America’s monetary return-to-more-normal is just over the horizon. We are beginning gradually to raise our portfolio liquidity ratio from its “fully invested” level from the beginning of October.