2014 Will Be Year of Consolidation: Chillingworth

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March 6 (Bloomberg) -- Julian Chillingworth, Chief Investment Officer at Rathbone Unit Trust Management, discusses monetary policy, Europe telecom, and his economic outlook for worldwide markets. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

What would you like to see coming from the ecb?

I think that what we would like to see is a clear determination by mario draghi to make sure that disinflation is not something that is going to be hampering the recovery.

I think that the one thing that has been achieved is the element of surprise and with that comes the amplitude of the effect.

If he surprises the markets, he can get greater bang for his.

You bought bonds a number of years ago.

What would be a surprise?

Something along a lending scheme, which a lot of commentators say would be a good thing for the periphery and you also need to have a reasonably strong banking system around to achieve it.

We have a stress test coming up in europe.

Would be too big of a gamble?

I think it would.

It would be a surprise for markets.

Is the euro too high?

It is too high.

Where should be?

It should be weaker than it is and i think that it should be like the sterling.

With that in mind, we talk about the european place and the european equity place and the banks with the stress tests.

The telecoms look like they are consolidating.

What stands as a key play in europe?

I think the overall scenario is no huge surprise.

They have stated that they were sellers and is a matter of how it would roll out and consolidation would work.

We will see more consolidation of cross the whole of the telecom space and you may see other players step in.

Obviously, there has been much discussion about at&t possibly coming into europe to become a major player across the european landscape and there are a lot of people looking to do things.

As your commentators said, i think that 2014 is a year consolidation.

There will not be too many winners in the zone.

Will they end up paying too much?

You will see a lot of pricing and a lot of public spending to come in to get in.

Are you carrying telecoms at the moment?

But we do some telecom stocks, mainly in vodafone and it is more of the yield to lay than anything else.

Japan has mentions that the biggest pension fund is going to look beyond their shores with government bonds.

Do you still believe in abenomics?

How will that work?

We like japan and we think that he has given it his best effort so far.

We believe that there is a greater percentage chance of it working and turning the economy around them we have seen in the last 25 years.

He is pulling another lever for him to pull and he is trying everything to try to get the economy going.

There is inflation coming into the basket and i think that a little inflation and a weaker yen is all helpful.

Japan is when to be a market -- is going to be a market you want to participate in.

We will leave it there.

We will see what he brings us.

Julian is a chief investment officer.

Thank you very much.

Will vivendi scrap the spinoff?

They have a bid on the table.

We will discuss the issue with caroline hyde next.

This text has been automatically generated. It may not be 100% accurate.

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