ECB to hold with first cut locked in for June
The ECB plans to maintain the deposit rate at 4% in its upcoming meeting, holding steady for the fifth time.
Amid a backdrop of easing inflation nearing the 2% goal, the ECB hints at rate cuts starting June, with an eye on wage growth and economic indicators. This cautious step reflects efforts to balance recovery and inflation risks, even as peer institutions in Switzerland and the U.S. navigate their paths.
Investors and economists are now keenly watching for the ECB's pace and strategy beyond the initial cut, amidst a global landscape of shifting monetary policies.
Barings is on a hiring spree to rebuild private loan business
Barings is gearing up to rejuvenate its private loan division by bringing on board new talent. Following a significant team shift, where over 20 top staff members moved to a competitor, Barings aims to calm investor worries by planning to hire three managing directors in North America and another three in Europe.
Additionally, they’re filling two key portfolio monitoring roles. This move comes after a challenging period marked by a legal battle with the new employer of their former staff.
Despite the setbacks, Barings is pushing forward with leadership adjustments and meetings to reassure investors, underscoring their commitment to long-term client value.
Thames water bondholder warns haircut risk
A top Thames Water creditor, Royal London Asset Management, cautions against potential government interventions that might force bondholders to accept losses. This warning comes after Thames Water’s parent company defaulted on £1.4 billion in debt amid disputes with the regulator, Ofwat.
The fear is that such actions could scare off investment in UK infrastructure by raising doubts about the security of regulated assets.
As Thames Water grapples with high debt and the UK government resists putting the company under special administration, the broader implications for investment in the nation’s infrastructure and consumer costs are under scrutiny.
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