Lady Europa takes on feminine colours
Christine Lagarde and Ursula von der Leyen set for ECB and European
Commission presidency

Sébastien Galy, Sr. Macro Strategist Nordea Asset Management  


Christine Lagarde and Ursula von der Leyen and are set for the European Central Bank (ECB) and European Commission presidency as Lady Europa takes on feminine colors. Both candidates are exceptional, known for their ability to build coalitions and should leave a lasting mark on Europe.

Christine Lagarde has been a stalwart of stability throughout her entire career. She started out in the government of François Fillon, serving in various arenas from economics to agriculture, and favored openness. As a labor lawyer she championed this cause making her neither clear cut from the left nor the right. During negotiations on the European bail out, she stuck with a familiar International Monetary Fund stance putting her firmly in the camps of the hawks. Yet she also reached out to take a significant risk with Argentina. Hence, she should be considered a consensus builder, one that adapts to the situation. She is likely to initially favor more easing as seems evident with the current slowdown and below target inflation. But as the situation reverses, so will her position, much as a pivot member within the Federal Reserve that turns from dove to hawk. Given resistance by the US administration, the use of more negative interest rates is likely to be moderate.

Ursula von der Leyen is noted for her ability to get the job done. She has served continuously in Angela Merkel’s government since 2005, lately as a defense minister. Her international background as a child in Belgium, fluency in French, and habit of dealing with senior figures from birth should serve her well. Her training as a doctor should help her to analyze diagnostic problems and then fix them. Her career as a professor has likely left her with the ease of managing peoples and groups, such as the European People’s Party defense minister group. Indeed, she impressed the French so much they proposed her candidacy to Angela Merkel. Politically, she belongs to the Christian Democratic Union of Germany, which is the center right. Her candidacy, however, is not a sure thing as it needs to be approved by the European Parliament.

This is a unique moment in the history of Europe finally to have not just one, but two female candidates at the Head of the ECB and the Commission. It suggests a change at the top of the European leadership and is a symptom of shifting structures, including attitudes towards gender diversity and climate change.

 

About Nordea Asset Management

Nordea Asset Management (NAM, AuM 217.2bn EUR*), is part of the Nordea Group, the largest financial services group in Northern Europe (AuM 300.2bn EUR*). NAM offers European and global investors’ exposure to a broad set of investment funds. We serve a wide range of clients and distributors which include banks, asset managers, independent financial advisors and insurance companies.

Nordea Asset Management has a presence in Cologne, Copenhagen, Frankfurt, Helsinki, London, Luxembourg, Madrid, Milan, New York, Oslo, Paris, Santiago de Chile, Singapore, Stockholm, Vienna and Zurich. Nordea’s local presence goes hand in hand with the objective of being accessible and offering the best service to clients.

Nordea’s success is based on a sustainable and unique multi-boutique approach that combines the expertise of specialised internal boutiques with exclusive external competences allowing us to deliver alpha in a stable way for the benefit of our clients. NAM solutions cover all asset classes from fixed income and equity to multi asset solutions, and manage local and European as well as US, global and emerging market products.

*Source: Nordea Investment Funds, S.A., 31.03.2019

Nordea Asset Management is the functional name of the asset management business conducted by the legal entities Nordea Investment Funds S.A. and Nordea Investment Management AB (“the Legal Entities”) and their branches, subsidiaries and representative offices. This document is intended to provide the reader with information on Nordea’s specific capabilities. This document (or any views or opinions expressed in this document) does not amount to an investment advice nor does it constitute a recommendation to invest in any financial product, investment structure or instrument, to enter into or unwind any transaction or to participate in any particular trading strategy. This document is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instruments or to participate to any such trading strategy. Any such offering may be made only by an Offering Memorandum, or any similar contractual arrangement. Consequently, the information contained herein will be superseded in its entirety by such Offering Memorandum or contractual arrangement in its final form. Any investment decision should therefore only be based on the final legal documentation, without limitation and if applicable, Offering Memorandum, contractual arrangement, any relevant prospectus and the latest key investor information document (where applicable) relating to the investment. The appropriateness of an investment or strategy will depend on an investor’s full circumstances and objectives. Nordea Investment Management recommends that investors independently evaluate particular investments and strategies as well as encourages investors to seek the advice of independent financial advisors when deemed relevant by the investor. Any products, securities, instruments or strategies discussed in this document may not be suitable for all investors. This document contains information which has been taken from a number of sources. While the information herein is considered to be correct, no representation or warranty can be given on the ultimate accuracy or completeness of such information and investors may use further sources to form a well-informed investment decision. Prospective investors or counterparties should discuss with their professional tax, legal, accounting and other adviser(s) with regards to the potential effect of any investment that they may enter into, including the possible risks and benefits of such investment. Prospective investors or counterparties should also fully understand the potential investment and ascertain that they have made an independent assessment of the appropriateness of such potential investment, based solely on their own intentions and ambitions. Investments in derivative and foreign exchange related transactions may be subject to significant fluctuations which may affect the value of an investment. Investments in Emerging Markets involve a higher element of risk. The value of the investment can greatly fluctuate and cannot be ensured. Investments in equity and debt instruments issued by banks could bear the risk of being subject to the bail-in mechanism (meaning that equity and debt instruments could be written down in order to ensure that most unsecured creditors of an institution bear appropriate losses) as foreseen in EU Directive 2014/59/EU. Nordea Asset Management has decided to bear the cost for research, i.e. such cost is covered by existing fee arrangements (Management-/Administration-Fee). Published and created by the Legal Entities adherent to Nordea Asset Management. The Legal Entities are licensed and supervised by the Financial Supervisory Authority in Sweden and Luxembourg respectively. The Legal Entities’ branches, subsidiaries and representative offices are licensed as well as regulated by their local financial supervisory authority in their respective country of domiciliation. Source (unless otherwise stated): Nordea Investment Funds, S.A. Unless otherwise stated, all views expressed are those of the Legal Entities adherent to Nordea Asset Management and any of the Legal Entities’ branches, subsidiaries and representative offices. This document may not be reproduced or circulated without prior permission. Reference to companies or other investments mentioned within this document should not be construed as a recommendation to the investor to buy or sell the same but is included for the purpose of illustration. The level of tax benefits and liabilities will depend on individual circumstances and may be subject to change in the future. © The Legal Entities adherent to Nordea Asset Management and any of the Legal Entities’ branches, subsidiaries and/or representative offices.

 

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