RankiaPro Europe joined the digital discussion sessions of Principal Global Investors on global economic and investment implications of the COVID-19 pandemic and opportunities in the markets. The webinar had two sections, in the first section Stephanie shared very insightful knowledge on the intentions of the government as a former Chief Economist. In the second half of the conference the impact of central banks and goverments actions on investig was the topic of the roundtable.
Stephanie Kelton
Former Chief Economist on the U.S. Senate Budget Committee
Stephanie Kelton is a leading authority on Modern Monetary Theory, a new approach to economics that is taking the world by storm. She is considered one of the most important voices influencing the policy debate today. Her forthcoming book, The Deficit Myth: Modern Monetary Theory and Creating an Economy for the People (summer 2020), shows how to break free of the flawed thinking that has hamstrung policy makers around the world.
In addition to her many academic publications, she has been a contributor at Bloomberg Opinion and has written for the New York Times, The Los Angeles Times, U.S. News & World Reports, CNN, and others. Professor Kelton has worked in both academia and politics. She served as chief economist on the U.S. Senate Budget Committee (Democratic staff) in 2015 and as a senior economic adviser to Bernie Sanders’ 2016 and 2020 presidential campaigns.
She currently works as a Professor of Economics and Public Policy at Stony Brook University, and she holds Visiting Professorships at The New School of Social Research, the University of Ljubljana, and the University of Adelaide. She is a member of the TopWonks network of the nation’s best thinkers and one of POLITICO’s 50 Most Influential Thinkers (2016). She was previously Chair of the Department of Economics at the University of Missouri, Kansas City.
Prices don’t just rise, something rose those prices. How do prices begin to increase? There is a struggle over income shares, there is a struggle between labour and capital. Part of the reality is that capital has won that battle for the last 30-35 years. Capital has been winning the battle over the struggle over income shares, in other words wages just don’t increase, alongside that you have issues of globalization and technological advances, and other things that contribute to this low inflation environment globally. The inability of workers to push wages higher, even as unemployment rates plummet to new lows is also part of whats going on.
Stephanie Kelton
Seema Shah
Chief Strategist
Principal Global Investors
The Webinar was moderated by Semma, who is Chief Strategist at Principal Global Investors. Based in London, she oversees global market strategy and advises investment staff across the firm in making economically sound asset allocation calls. She is responsible for the creation of global economic macro and secular event research, closely monitoring global central bank policy and political developments. Seema is a regular participant in conferences and forums speaking about global macro market issues. She is frequently quoted by the financial news media and appears regularly on CNBC and Bloomberg TV. Seema joined the firm in 2010, previously working as a strategist within Principal Global Fixed Income. Prior to joining Principal, Seema served as an economist at Capital Economics. She also worked with the macro consulting group at PricewaterhouseCoopers, and as an economist at HM Treasury. She received a master’s degree and bachelor’s degree with honours in economics from the London School of Economics.
Investment Implications
During the webinar with the three professionals, Damien Buchet, Andrew Thorton and Howe Ching discussed the investment implications of central banks and goverments.
We are concerned about sustainability. The number of ways that are already some aspects being put to work in a number of emerging countries, ultimately the flexibility has to come from the financial system, pension funds, insurance companies – a more sophisticated financial sector, which is able to buy even longer duration. One reason why the South African economy has not worsened more, is that is benefits from a fairly mature financial system, unfortunately not all countries can’t afford that.
Damien Buchet
Partner, Portfolio Manager and CIO, EM Liquid Alternatives and Total Return
Finisterre
Damien joined Finisterre in September 2015 as a Portfolio Manager and Chief Investment Officer for the Total Return Strategy. Prior to joining Finisterre, he was the Global Head for Emerging Markets Fixed Income at AXA Investment Managers from 2010 to 2015, overseeing $7bn in EM FI assets and leading the EM team located in Paris, London and Hong Kong. From 2007 to 2010, Damien was Head of Sovereign & Emerging Markets Proprietary Trading at Dexia Credit Local in Paris, where he was responsible for two 3bn EUR relative value trading books, in EM hard and local currency assets. Damien was Portfolio Manager and Head of Emerging Markets at CCR Gestion, Commerzbank Group in Paris from 2005 to 2007. From 1996 to 2005, Damien was a Senior Fund Manager, Deputy Head of Alternative EM Funds at Barep Asset Management in Paris, the alternative asset manager of Societe Generale. He started his career in Hong Kong as an Asian Equity Fund Manager at Euro Pacific Advisers Ltd from 1993 to 1996, and a FinancialAnalyst, China Desk at Societe Generale Hong Kong Branch from 1992 to 1993. Damien graduated from EDHEC School of Business Administration in Lille, France (1991) and is also a CFA charter holder.
Andrew Thornton
Chief Executive Officer
Principal Real Estate Europe
Andrew Thornton is Chief Executive of Principal Real Estate Europe, a business previously known as Internos Global Investors, which he formed with Jos Short in 2007. In 2018, Internos became part of the Principal Financial Group. Principal Real Estate Europe specialises in cross-border investment management, typically providing real estate investment solutions to experienced capital that wishes to expand outside of its domestic markets. The company employs over 100 people in eight European countries, bringing deep local intelligence and expertise together with a strategic global perspective. Prior to Principal, Andrew established and led Invesco’s European real estate investment platform, worked with developer Lend Lease from 1993-1996 and started his career as a chartered surveyor with Weatheralls in 1988. Andrew holds an MA in Economics and Land Economy from Cambridge University and an MBA from Cranfield School of Management. He is a Fellow of the RICS, CISI and CIM.
Howe Chung Wan
Managing Director and Head of Asian Fixed Income
Principal Global Investors
Howe is Managing Director and Head of Asian Fixed Income at Principal Global Investors. He has regional oversight and management of the fixed income portfolio management, research and trading team in Asia. Howe joined from Amundi Asset Management where he was Director and Head of Asian Fixed Income and before that as portfolio manager in the emerging market team at Standish Mellon Asset Management. Prior to Standish, Howe was Lead Portfolio Manager, Global Fixed Income at the Reserves Management Department of the Monetary Authority of Singapore based in London and Singapore. Howe’s portfolio management experience encompasses a wide array of portfolio styles including Asian and emerging markets dedicated portfolios, multi asset strategies and absolute return funds. He began his career at the Ministry of Trade and Industry as a management associate of the Singapore Administrative Service, covering economic and trade relations with Asian countries and was based in both China and Singapore. Howe received a Master of Science in Aeronautics and Astronautics from Stanford University and a Bachelor of Science with double majors in Mechanical Engineering and Economics from Carnegie Mellon University.
