U.K. is Our Favorite Long in Europe: Jullier

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Nov. 12 (Bloomberg) -- Antonin Jullier, Global Head of Equity Trading Strategies at Citigroup Global Markets, discusses U.K versus other European markets and his subsequent investing strategy. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

Head of equity strategy.

Thank you for coming in.

Talk to us in terms of macro and what exactly you are focused on.

We had the surprise rate cut last week.

A lot of people are suggesting this was the right thing to do.

In the u.k., there is a real worry if we suggest it -- interest rates will hike up, -- it does look like it is focused on macro.

That is becoming important as different regions and different drivers.

To your point on inflation, we have a low print on the european siding on the last few weeks.

We should treat it, the rate cut we saw on the european side.

If you look at the u.k., at the end of the day, it is coming down from a level that was probably a little bit too high.

It is still comfortably above two percent.

I do not see anything that would trigger a rate cut.

If you look at potential growth and valuations, it is more exciting as it stands than the european side of the market.

If you look at a lot of the companies reporting, a lot of them are saying we did not do as well as expected because of currency swings.

Will that be the real theme for the next few months?

It's the strong pound starts hurting exporters?

Let's start with the strong pound.

There is a big short positioning.

Any indicators we will look at tell us for the most part, it is normalized.

Therefore, they should be free to move going forward based not necessarily on positioning.

It may actually provide tailwinds to the u.k. market more than headwinds.

On the european side almond has been cited by many companies in different sectors.

Since then, tapering seems to be back on the table more than it was.

Plus the rate cut on the ecb side.

A weaker euro in the last few weeks.

It is always the same problematic, how long does it stay up?

Most companies will hedge.

If it is a short-term spike, it is ok.

The problem is when you need to roll your hedges.

It is actually a positive.

You also have a bit of it up -- a little bit of talking.

Quest thank you so much for now.

The global head of equity trading strategy stays with us and we will talk about investment groups.

Here is a look at what else is coming up.

Vodafone's cash pile.

Where will it spend its verizon wireless?

First quarter separated from

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

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