Corporate, Consumer Confidence Buoy Markets: Lynch

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April 24 (Bloomberg) -- Andrew Lynch, Portfolio Manager at Schroder Investment Management, discusses the current environment for investors and his global economic outlook. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

Have data from the eurozone.

We also have these megamergers.

We have tech stocks on the move.

What do you feel is a great way for investors to take advantage of?

If you look at mergers and tech stocks, it shows where sentiment at the corporate level is improving.

Ge aren't going to be looking to spend massive amounts of money on alstom unless they feel confident about the trends in the underlying economy.

You buy when you can see the upside in growth potential going forward.

If you look at the apple numbers, selling that many iphones, at the consumer level people are prepared to sign up either for a long-term contract or to pay out of pocket.

Again, there is confidence of the consumer level.

That is quite supportive of the market.

And yet we see hardly any growth.

You're not concerned about deflation here?

The fact that we are still not really adjusted to having less liquidity on the market.

I think the growth tends to come later.

You normally get an improvement in confidence as the green sheets come through.

Then it starts following the hard economic data 6, 9 months later on.

A decision by a company to invest, it takes some time.

There is always a bit of a time lag.

The strength of the euro is absolutely a concern.

If you were a german exporter competing with japanese technology companies with a strongly weakening yen, that is going to be a headwind for you.

Probably not in the current year because you have almost certainly hedged your currency exposure.

Into 2015, that becomes a real problem for your profitability.

You have to do something else to make your products more attractive.

We will talk more about this possible french deal.

Give me a glance of what you like.

You like insurance stocks.

I do.

I think interest-rate are going to be going higher from here over the neck few years.

Insurance stocks, particularly life insurance are a great beneficiary of that.

They pay 20, 30 years into the future.

Those become worth less as interest rates grow up.

I think that is a great play on economic normalization and finally stepping out from the crisis we have been suffering for the last five years.

Thank you so much for now, anti-lynch stays with us.

Here is what else is coming up on "on the move." alstom shares surged at a bloomberg exclusive.

Ge could be prepared to drop $13 billion for the company.

Alstom gaining some 17%. it may be bumpy for barclays.

A basketball legend shares the secret to his larger than life business deals.

Stay with us.

We are "on the move" and we are just getting started.


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