Uwe Zoellner, the head of pan-European equities at Franklin Templeton Investments, talks about opportunities investing in European equities.
What is the asset class and geography you are focused on?
I currently manage European equities but previously I ran US equity funds and global funds as well. Managing European equity is an exciting job at the moment – after some difficult years, the region is turning around and there are interesting investment opportunities coming up.
What is your outlook for the coming months? What should investors look for?
By now the consensus has taken on board that structural change is happening in peripheral Europe and that the combination of austerity and deregulation over the last few years has started to deliver benefits to countries such as Spain and Portugal. People also see that Italy is moving towards a more reform-minded course of action. But at the same time, we see more concerns about the economic growth outlook. One issue of debate has been the sharp decrease in inflation and the worry of a possible risk of a Japan-style period of deflation. The ECB, however, has been sending strong signals that they will take any effort to avoid such a scenario. In the United Kingdom, on the other hand, people worry about an increase in interest rates as a result of the improved economic outlook. The result of those investor fears was not a drop in the overall market but instead a rotation out of cyclical stocks and in the UK also out of interest-sensitive stocks to the benefit of more defensive names. In general, the mood is a bit more cautious after a long period of stronger European equity markets and investors seem to look for new guidance and further market direction.
We are still positive for the outlook of European markets. After the strong run, I would not be surprised if markets take a breather and the concerns about the economic cycle might be a catalyst for such a profit-taking. But we would see any setback as a buying opportunity. We never expected a quick spectacular turnaround of the European periphery but see the current signs of stabilisation combined with the outlook for modest growth next year as the starting point of a sustainable path of recovery and see no reason to change that point of view.
What are the main risks, either upside or downside, to the outlook?
I think the main risk to the positive outlook for European equities would be if the economic recovery in the United States does not come through as we need better global growth to support the recovering European economies. I think people have low expectations on China; so if anything, I would expect positive surprises from that part of the world. I don’t think any of the current geopolitical problems will have a long-term impact on global economies.
What was the best investment you were ever involved in?
Dialog Semiconductor: This German company had been a popular hype-stock around the year 2000, followed by a period of disappointment for many years to come and then suddenly the company turned the corner and became a leader in power management chips and the supplier of those chips for Apple. Due to the difficult history, investors did not pick up on the change initially and we got into the stock at €4 and exited less than a year later at €16.
What was the worst?
Probably Homeserve. The company had a very interesting business model offering maintenance for private households to take care of their appliances and heating systems – basically insurance combined with full technical service. Unfortunately, the company came under investigation for alleged mis-selling of their services and the stock dropped heavily. Given that it was impossible for us to forecast the outcome of a regulatory review and any possible fines or constraints to the business, we decided to sell out at a significant loss.
mkassem@thenational.ae
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Director: Laila Abbas
Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum
Rating: 4/5
The bio
Job: Coder, website designer and chief executive, Trinet solutions
School: Year 8 pupil at Elite English School in Abu Hail, Deira
Role Models: Mark Zuckerberg and Elon Musk
Dream City: San Francisco
Hometown: Dubai
City of birth: Thiruvilla, Kerala
The major Hashd factions linked to Iran:
Badr Organisation: Seen as the most militarily capable faction in the Hashd. Iraqi Shiite exiles opposed to Saddam Hussein set up the group in Tehran in the early 1980s as the Badr Corps under the supervision of the Iran Revolutionary Guards Corps (IRGC). The militia exalts Iran’s Supreme Leader Ali Khamenei but intermittently cooperated with the US military.
Saraya Al Salam (Peace Brigade): Comprised of former members of the officially defunct Mahdi Army, a militia that was commanded by Iraqi cleric Moqtada Al Sadr and fought US and Iraqi government and other forces between 2004 and 2008. As part of a political overhaul aimed as casting Mr Al Sadr as a more nationalist and less sectarian figure, the cleric formed Saraya Al Salam in 2014. The group’s relations with Iran has been volatile.
Kataeb Hezbollah: The group, which is fighting on behalf of the Bashar Al Assad government in Syria, traces its origins to attacks on US forces in Iraq in 2004 and adopts a tough stance against Washington, calling the United States “the enemy of humanity”.
Asaeb Ahl Al Haq: An offshoot of the Mahdi Army active in Syria. Asaeb Ahl Al Haq’s leader Qais al Khazali was a student of Mr Al Moqtada’s late father Mohammed Sadeq Al Sadr, a prominent Shiite cleric who was killed during Saddam Hussein’s rule.
Harakat Hezbollah Al Nujaba: Formed in 2013 to fight alongside Mr Al Assad’s loyalists in Syria before joining the Hashd. The group is seen as among the most ideological and sectarian-driven Hashd militias in Syria and is the major recruiter of foreign fighters to Syria.
Saraya Al Khorasani: The ICRG formed Saraya Al Khorasani in the mid-1990s and the group is seen as the most ideologically attached to Iran among Tehran’s satellites in Iraq.
(Source: The Wilson Centre, the International Centre for the Study of Radicalisation)
Vaccine Progress in the Middle East
F1 2020 calendar
March 15 - Australia, Melbourne; March 22 - Bahrain, Sakhir; April 5 - Vietnam, Hanoi; April 19 - China, Shanghai; May 3 - Netherlands, Zandvoort; May 20 - Spain, Barcelona; May 24 - Monaco, Monaco; June 7 - Azerbaijan, Baku; June 14 - Canada, Montreal; June 28 - France, Le Castellet; July 5 - Austria, Spielberg; July 19 - Great Britain, Silverstone; August 2 - Hungary, Budapest; August 30 - Belgium, Spa; September 6 - Italy, Monza; September 20 - Singapore, Singapore; September 27 - Russia, Sochi; October 11 - Japan, Suzuka; October 25 - United States, Austin; November 1 - Mexico City, Mexico City; November 15 - Brazil, Sao Paulo; November 29 - Abu Dhabi, Abu Dhabi.
Essentials
The flights
Etihad (etihad.ae) and flydubai (flydubai.com) fly direct to Baku three times a week from Dh1,250 return, including taxes.
The stay
A seven-night “Fundamental Detox” programme at the Chenot Palace (chenotpalace.com/en) costs from €3,000 (Dh13,197) per person, including taxes, accommodation, 3 medical consultations, 2 nutritional consultations, a detox diet, a body composition analysis, a bio-energetic check-up, four Chenot bio-energetic treatments, six Chenot energetic massages, six hydro-aromatherapy treatments, six phyto-mud treatments, six hydro-jet treatments and access to the gym, indoor pool, sauna and steam room. Additional tests and treatments cost extra.
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Company profile
Date started: Founded in May 2017 and operational since April 2018
Founders: co-founder and chief executive, Doaa Aref; Dr Rasha Rady, co-founder and chief operating officer.
Based: Cairo, Egypt
Sector: Health-tech
Size: 22 employees
Funding: Seed funding
Investors: Flat6labs, 500 Falcons, three angel investors
The Saga Continues
Wu-Tang Clan
(36 Chambers / Entertainment One)
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
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Russia's Muslim Heartlands
Dominic Rubin, Oxford
Liverpool’s fixtures until end of 2019
Saturday, November 30, Brighton (h)
Wednesday, December 4, Everton (h)
Saturday, December 7, Bournemouth (a)
Tuesday, December 10, Salzburg (a) CL
Saturday, December 14, Watford (h)
Tuesday, December 17, Aston Villa (a) League Cup
Wednesday, December 18, Club World Cup in Qatar
Saturday, December 21, Club World Cup in Qatar
Thursday, December 26, Leicester (a)
Sunday, December 29, Wolves (h)
COMPANY%20PROFILE
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Company Profile:
Name: The Protein Bakeshop
Date of start: 2013
Founders: Rashi Chowdhary and Saad Umerani
Based: Dubai
Size, number of employees: 12
Funding/investors: $400,000 (2018)
'Gehraiyaan'
Director:Shakun Batra
Stars:Deepika Padukone, Siddhant Chaturvedi, Ananya Panday, Dhairya Karwa
Rating: 4/5
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