Vodafone Biggest U.K. Corporate Event: Jullier

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Feb. 21 (Bloomberg) -- Antonin Jullier, Global Head of Equity Trading Strategies at Citigroup Global Markets, discusses his worldwide economic outlook and subsequent investing strategy. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

Next week.

Thank you so much, jonathan ferro with the latest on rbs.

Still with us, the global head of equity strategy at citigroup.

Vodafone is one of your main focuses for the next two to three weeks.

Talk to me about industry groups.

Do you like financials?

Yes.

We think that the sector went from a huge capital deficit, back to zero, back to growth.

What that does change is -- the earnings were meant to be on the banks.

You could get capital returns.

In this world where we look for yields, that is something which is resonating strongly with investors.

On top of that, the flows have made it that the underweight was monstrous.

We have seen a huge amount of buying coming from institutional accounts following that.

One interesting development recently has been the strength of the spanish banks at the beginning of the year.

Italy kind of followed.

Spain was the leader.

When brazil -- we saw a switch of sentiment refocusing on italian banks.

Would you wait for the asset quality review or do you want to get in there ahead of time?

I think you get in there ahead of time.

You are not getting the capital increases which were expected.

A lot of the underweight was predicated on these capital increases.

They are not coming.

I think the aqr will be interesting.

It is also pretty slow.

We are not going to hear about it for a while.

In the meantime, the neutral positioning of the bank is creating -- from a benchmark point of view.

Talk to me about vodafone.

It is the biggest corporate event in u.k. history.

Verizon -- $110 billion in cash are going to be paid out.

It is going to vodafone shareholders.

Some of them are u.s.-based.

More importantly, many of them are u.k.-based.

The money is going to have to return back into the ftse.

We are talking about very significant numbers.

On a purely tactical relay of the ftse, we expect to billion of demand on tonight's close.

We expect another 5 billion by tuesday night.

Vodafone -- whether you're active or passive, it is still kind of a passive state because it was so big.

Once you have the active flows as well, it adds $12 billion to $26 billion.

All in, call it 17 to 35. the average volume of the ftse is about a alien.

Database eight -- about 8 billion.

It is an interesting story.

It is also going to go back in the high-yielding names.

You can expect the performance of the hsbc as well.

Is there any more value being made?

We go on to the congress next year -- next week.

It seems that a lot of the carriers, there is going to be a lot of money involved in terms of and they.

At the same time it is going to be a struggle for these mobile carriers to make money through tech like they used to.

I think vodafone is an angle to the story.

The -- [indiscernible] softbank has been mentioned.

As soon as we go towards -- the value is just too interesting to miss out.

I think vodafone is a stock we have liked for a while.

Ftse is a story we like as an aside.

Because of growth here?

Growth, evaluation.

We are turning a lot more lish on minors which are 30% of the ftse.

The stars are aligning and it is all going in the same direction.

If you look at the market right now, you have the earnings which are -- in the u.s. [indiscernible] this is something which is -- for the u.k., is there political risk?

Do you factor that in or wait until the end of the year when we have elections that will give us an indication where the u.k. will vote?

I am more on the trading strategy side.

For now it is ok.

We have seen ongoing inflows.

Even three weeks ago with the selloff, the inflows continued.

You can't really go down and remain bullish.

Interesting, thank you so much for that.

Coming up, kering says it approaches 2014 with confidence.

Investors may not feel the same way.

We will break down the earnings report, coming up next.

?

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

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