“A major theme for pension funds in the 2020s will be the growing influence of politics in the economy, the investment head of one of Europe’s biggest pension investors has said, telling funds they will need to learn more about how politics work.” – by Rachel Fixsen
Covid
Fragile European Banks Bracing for Covid-Era Distressed Loans (Bloomberg)
“Another round of widespread lockdowns, for instance, could add more than $1 trillion in non-performing loans to the pile, according to the European Central Bank, and put the explosive issue of bank bailouts back on the table.” – by Marion Halftermeyer, Alexander Weber and Antonio Vanuzzo
Britain’s banks brace for $22 billion loan losses as outlook darkens (Reuters)
“All five UK banks have under-performed, falling by between 42% and 55% this year compared to a 36% fall in the European banking index .SX7P.” – by Iain Withers and Lawrence White
EU leaders strike deal on recovery fund after marathon summit (FT)
“EU leaders have struck a deal on a landmark coronavirus recovery package that will involve the European Commission undertaking mass borrowing for the first time.” – by Sam Fleming, Jim Brunsden and Mehreen Khan
European investors’ appetite for risk growing (Pension & Investments)
“As European countries are easing travel restrictions and governments and central banks have stepped up monetary and fiscal support, investors are looking for opportunities to take on more risk.” – by Paulina Pielichata