Amundi, Pictet Lead Contrarian Wave to US Stock Exceptionalism
- US Economic Outlook: US economic growth slowed to a two-year low last quarter, while inflation remained high, leading some investors to question the sustainability of the record-breaking rally on Wall Street.
- Investor Sentiment Shift: Contrarians suggest that US exceptionalism is overrated, advocating for better investment opportunities in Europe and Asia due to more favorable valuations and inflation outlooks.
- Asset Allocation Changes: Asset managers like Pictet and Amundi are reallocating funds away from the US towards Europe and Asia, favoring sectors like consumer goods, banks, and UK stocks.
- Asia as an Investment Destination: T. Rowe Price has increased its Asian equity investments, citing potential outperformance by dollar-based exporters and countries with strong domestic growth stories amid US economic uncertainty.
- Market Performance: Hong Kong and India have seen positive market performance recently, with Asia historically tending to outperform the US during Fed easing cycles, according to experts.
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Credit Agricole of France Aims to Increase Earnings Through European Expansion
Expansion Plans: Credit Agricole aims to grow outside its home market as part of a new three-year plan to enhance earnings.
Profit Goals: The bank targets over 8.5 billion euros in net profit by 2028, up from 6.9 billion euros in 2024.
Revenue Growth: Credit Agricole expects revenue to grow by more than 3.5% annually, surpassing 30 billion euros by the end of the plan period.
Strategic Focus: The strategy emphasizes deepening the bank's presence beyond its borders to achieve its financial objectives.
Europe's Shift: Troubled Economies Now Located Further North
Role Reversal in European Economies: The early 2010s European debt crisis depicted a divide between fiscally responsible core countries and the spendthrift southern periphery, but now the largest economies are experiencing weak growth and increasing budget deficits.
France's Budget and Political Crisis: France is at the center of this economic shift, facing significant budgetary and political challenges.
U.K. Tax Hikes: The United Kingdom is considering tax increases to address its budget deficits and maintain market stability.
Germany and Netherlands Increasing Debt: Traditionally frugal countries like Germany and the Netherlands are now taking on more debt, although from previously lower levels.
Credit Agricole Sees Profit Increase Driven by Customer Engagement in France
- Profit Increase: Credit Agricole reported a 10% increase in net profit for Q3, reaching 1.84 billion euros ($2.14 billion) compared to the same period last year.
- Business Activity: The growth in profit was attributed to sustained activity across its business lines and an increase in customer numbers.
Aberdeen Investments Expands Active ETF Suite with Fixed Income and International Small Cap
ETF Expansion: Aberdeen Investments has expanded its active ETF platform by converting two mutual funds into fully transparent ETFs, contributing to its U.S. ETF franchise surpassing $18 billion in assets under management for the first time.
Investment Strategy: The newly launched abrdn Ultra Short Municipal Income Active ETF and abrdn International Small Cap Active ETF aim to provide investors with efficient access to tax-exempt income strategies and growth opportunities in international small-cap companies, respectively.
France’s Credit Agricole Posts Lower Profit on Exceptional Tax Hit
Profit Decline: Credit Agricole reported a 4.2% decrease in net profit for the first quarter, totaling 1.82 billion euros, primarily due to an exceptional tax impact.
Revenue Increase: Despite the profit dip, the French lender experienced higher revenues during the same period ending March 31.
Amundi’s assets under management rise 6% on ETF growth, UK client By Reuters
Amundi's Quarterly Performance: Amundi, Europe's largest fund manager, reported net inflows of 31 billion euros in the first quarter, exceeding analyst expectations and bringing total assets under management to a record 2.25 trillion euros. The growth was driven by increased investments in European equities and a significant new mandate from the People’s Pension.
Market Trends and Challenges: CEO Valerie Baudson noted a shift in investment preferences from U.S. to European equities amidst market volatility following Trump's tariff announcements, while also addressing concerns over a temporary tax hike affecting Amundi's income. The company remains focused on growth through acquisitions despite these challenges.
Credit Agricole of France Aims to Increase Earnings Through European Expansion
Expansion Plans: Credit Agricole aims to grow outside its home market as part of a new three-year plan to enhance earnings.
Profit Goals: The bank targets over 8.5 billion euros in net profit by 2028, up from 6.9 billion euros in 2024.
Revenue Growth: Credit Agricole expects revenue to grow by more than 3.5% annually, surpassing 30 billion euros by the end of the plan period.
Strategic Focus: The strategy emphasizes deepening the bank's presence beyond its borders to achieve its financial objectives.
Europe's Shift: Troubled Economies Now Located Further North
Role Reversal in European Economies: The early 2010s European debt crisis depicted a divide between fiscally responsible core countries and the spendthrift southern periphery, but now the largest economies are experiencing weak growth and increasing budget deficits.
France's Budget and Political Crisis: France is at the center of this economic shift, facing significant budgetary and political challenges.
U.K. Tax Hikes: The United Kingdom is considering tax increases to address its budget deficits and maintain market stability.
Germany and Netherlands Increasing Debt: Traditionally frugal countries like Germany and the Netherlands are now taking on more debt, although from previously lower levels.
Credit Agricole Sees Profit Increase Driven by Customer Engagement in France
- Profit Increase: Credit Agricole reported a 10% increase in net profit for Q3, reaching 1.84 billion euros ($2.14 billion) compared to the same period last year.
- Business Activity: The growth in profit was attributed to sustained activity across its business lines and an increase in customer numbers.
Aberdeen Investments Expands Active ETF Suite with Fixed Income and International Small Cap
ETF Expansion: Aberdeen Investments has expanded its active ETF platform by converting two mutual funds into fully transparent ETFs, contributing to its U.S. ETF franchise surpassing $18 billion in assets under management for the first time.
Investment Strategy: The newly launched abrdn Ultra Short Municipal Income Active ETF and abrdn International Small Cap Active ETF aim to provide investors with efficient access to tax-exempt income strategies and growth opportunities in international small-cap companies, respectively.
France’s Credit Agricole Posts Lower Profit on Exceptional Tax Hit
Profit Decline: Credit Agricole reported a 4.2% decrease in net profit for the first quarter, totaling 1.82 billion euros, primarily due to an exceptional tax impact.
Revenue Increase: Despite the profit dip, the French lender experienced higher revenues during the same period ending March 31.
Amundi’s assets under management rise 6% on ETF growth, UK client By Reuters
Amundi's Quarterly Performance: Amundi, Europe's largest fund manager, reported net inflows of 31 billion euros in the first quarter, exceeding analyst expectations and bringing total assets under management to a record 2.25 trillion euros. The growth was driven by increased investments in European equities and a significant new mandate from the People’s Pension.
Market Trends and Challenges: CEO Valerie Baudson noted a shift in investment preferences from U.S. to European equities amidst market volatility following Trump's tariff announcements, while also addressing concerns over a temporary tax hike affecting Amundi's income. The company remains focused on growth through acquisitions despite these challenges.
