16
Mia M.
“ What do you think the ECB should do ? ”

Mia M. asked a question
during the live chat Meet the Team
to Citi Recruitment Team

on 25/10/2017
301
37 Live chat
on 25/10/2017
Director, Research: London, Citi

Hello Mia. We think that it should end its net asset purchase programme relatively quickly during 2018 (mid-year), confirm that it will reinvest the proceeds of bonds maturing for the foreseeable future and reaffirm its intention to keep short-dated interest rates very low for some time, at least until they are confident of a self-sustained increase in headline inflation towards their medium term target of, "below, but close to, 2%"

Mia M.
on 25/10/2017
Mia M.

Thank you for your answer.
What about the FED ? Do you expect an increase of interest rates by the FED by December ?

on 25/10/2017
Director, Research: London, Citi

Yes, it is very likely that it will happen again. We look for another three rates hikes by the Federal Reserve in 2018 also

Mia M.
on 25/10/2017
Mia M.

Do you think that the increase of interete rate will be accelerate by inflation in the US ?

Hiba A.
on 25/10/2017
Hiba A.

Hello,

This is really interesting but don't you think that this spread of interest rate between Europe and the US will devaluate the Euro?

Many thanks,

on 25/10/2017
Director, Research: London, Citi

A central bank is monitoring risks around its inflation forecasts as well as financial stability risks associated with a long period of low interest rates. As a result, there will probably be an increase in the cost of money, regardless of whether inflation increases much from current levels

Mia M.
on 25/10/2017
Mia M.

Thank you very much
Who do you think should lie the next leader of the FED ?

on 25/10/2017
Director, Research: London, Citi

The name of the chairman does not matter in my view. These decisions are taken by committee and the importance of the role has diminished since the Greenspan days

Karis O.
on 25/10/2017
Karis O.

Hello, How do you think this balance sheet normalisation will affect other asset classes? Equities for instance.

Mia M.
on 25/10/2017
Mia M.

Thank you, if I ask which stock to invest today, which one would you choose and why please ?

on 25/10/2017
Director, Research: London, Citi

It should at the margin reduce the attractiveness of riskier assets, but we suspect that this will not be immediate because central banks' balance sheets will stay very large for a significant period of time. The focus in terms of global economics at present is a period of synchronised global growth. This is typically positive for risky asset unless inflation were to surprise to the upside meaningfully. I am not allowed to make investment recommendations.

Karis O.
on 25/10/2017
Karis O.

Thank you

Anon user
on 25/10/2017
Anon user

Mia, forget stocks. They only go up! Go to something that go up and down.

Mia M.
on 25/10/2017
Mia M.

What about the IBEX ?

Anon user
on 25/10/2017
Anon user

IBEX 30 or is 35? Or 25?

Mia M.
on 25/10/2017
Mia M.

35, regarding the situation in Spain

on 25/10/2017
Director, Research: London, Citi

Same answer as before. This stock market has declined in price because of political risk, both at the central government level and in Catalonia. If a solution to the standoff is found soon, investors will see the potential economic performance in Spain in a more positive light

Anon user
on 25/10/2017
Anon user

Invest money in Ibex 25 because it is less than Ibex 35. Difference is 10 profit for you.
I am an expert, soon you will see my bank in the Citi

Mia M.
on 25/10/2017
Mia M.

Thank you for your answer. What do you think happened after Trump election that we didn't expect on the markets ?

Anon user
on 25/10/2017
Anon user

Time. He is planning 4+4 years in the job

on 25/10/2017
Director, Research: London, Citi

Markets were surprised by Trump's victory. And were expecting a lot of pro-business measures to be implemented quickly, including rolling back on regulations, as well as a tax reform + fiscal stimulus. Some of this is likely to happen during 2018

Anon user
on 25/10/2017
Anon user

More jobs are coming in January 2018. The business will open doors for jobs and work.

Mia M.
on 25/10/2017
Mia M.

Thank you very much. What do you think would be the impact of Brexit on inflation ? on currency ?

on 25/10/2017
Director, Research: London, Citi

You have seen it already. lower sterling and higher inflation

Karis O.
on 25/10/2017
Karis O.

In your opinion, would you say QE has been successful in the US, Europe and Japan?

Mia M.
on 25/10/2017
Mia M.

Do you think that these effects will be more significants once the Brexit is effective ?

on 25/10/2017
Director, Research: London, Citi

In the first two, more so than in the latter. This judgement can only be benchmarked against the counterfactual of no QE.

Mia M.
on 25/10/2017
Mia M.

I mean differences in impacts whether it is soft Brexit and hard Brexit ?

on 25/10/2017
Director, Research: London, Citi

No deal would likely see a further fall in sterling, whereas a transition period of at least two years, with progress on a free trade agreement in the future appears to be priced in

Mia M.
on 25/10/2017
Mia M.

Thank you. What is the relationship between Bitcoin and Q.E please ?

on 25/10/2017
Director, Research: London, Citi

There isn't one, fundamentally

Mia M.
on 25/10/2017
Mia M.

Thank you, last question : What do you think are the top news that are likely to impact the markets except Brexit, FED, ECB ?

on 25/10/2017
Director, Research: London, Citi

Global growth stories, inflation dynamics, geopolitics and more references to the great financial crisis being behind us

Gianluca F.
on 25/10/2017
Gianluca F.

Do you personally believe that crypto-currencies have the potential to shape the financial industry of the near future?

on 25/10/2017
Director, Research: London, Citi

Not particularly. A lot of people still like cash, especially in an environment where negative interest might become more normal

Gianluca F.
on 25/10/2017
Gianluca F.

How is automation going to change the daily-tasks of bankers within Citi?

on 25/10/2017
Director, Research: London, Citi

Not sure it will fundamentally. Investment banking remains a highly-skilled and high-touch profession that requires personal interactions with clients, not machines

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