Michael Hintze's end of year note to investors

In his end of year message to investors, Sir Michael Hintze has warned of the potential impact of dropping oil prices on global markets and advised on the effect of the end of quantitative easing (QE). According to Business Insider, Hintze's message to CQS investors read in part:

“There are many crosscurrents globally in terms of economic growth, central bank policies and geopolitical risks. While the completion of Taper in the US is in effect a tightening of monetary policy, Governor Yellen’s Fed will likely be accommodative and ‘behind the curve’ as it relates to any interest rate hikes and the central bank policies of China, the Eurozone and Japan continue to be positively accommodative. We believe the US dollar should continue to strengthen. The near 40% fall in Oil prices over the last six months should be supportive of global GDP growth in the medium-term. In addition to being supply-led, it may also be a reflection of weakening end-demand and add to the deflationary bias, which we believe will likely create cause for concern among more indebted countries in the longer term. Geopolitical issues also continue to threaten stability.”

 

"A Once Bullish Crispin Odey Fears Recession In Emerging Markets" - ValueWalk

ValueWalk reports on Crispin Odey's fears of recession in emerging markets:

Top U.K. hedge fund manager, Crispin Odey, thinks recessions are “very likely” to occur in the emerging markets, but this could be exacerbated by the strength in the U.S. dollar. He says by its very nature of the U.S. dollar being the worldwide reserve currency, when the dollar is in demand, it drains emerging markets from dollars. As a result, the only defense the emerging market countries have to stop outflows is to raise interest rates.  The problem is when the country is heading into recession, or they are in a recession, raising interest rates is difficult because it would cut of economic development in the region. While they might try and defend their currencies, ultimately “many will follow where the ruble and yen lead,” he wrote.

Keep reading on ValueWalk.

 

FT: Spain delays Europe's largest potential 2014 IPO

From the FT:

The Spanish government has decided to push back the privatization of airports operator Aena, in a painful setback to what was billed as the biggest initial public offering in Europe this year…

Earlier this month, the government revealed that it had selected The Children´s Investment Fund, the hedge fund run by Chris Hohn, as one of the three core investors, along with Spanish infrastructure group Ferrovial and Grupo Alba.

Read more on FT