The ECB played it safe, says Columbia Threadneedle Investments

(AOF) – No big surprises at today’s meeting, as the market wasn’t really expecting a reduction in Pandemic Emergency Purchase Program (PEPP) purchases like a few weeks ago, “comments Adrian Hilton, Head of Global Rates and Currencies and Emerging Debt at Columbia Threadneedle Investments.

“But Ms. Lagarde seemed to describe a Board of Governors which only very cautiously increases its optimism on the European economic outlook,” continues the professional.

According to him, by modifying GDP growth and inflation projections slightly upwards for 2021 and 2022, but leaving the outlook for 2023 unchanged, the ECB has indicated that it does not yet see the foundations for a recovery. sustained long-term growth, especially if the labor market remains very sluggish.

“We know the central bank is sensitive to a potential tightening of funding conditions through higher market rates. It is possible that the rise in bund yields last month, when 10-year bonds briefly threatened to trade with a positive return, put the nerves of the ECB in turmoil and make it cautious about a premature withdrawal of political support “, concludes Adrian Hilton.

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Airbus takes first long-haul order of the year

The aircraft manufacturer continues to fill its order book, which includes nearly 7,000 aircraft.

Hard hit by the health crisis, which ground planes for months and weakened its customers, Airbus is finding its colors. Until now, it has mainly accumulated medium-haul orders. On Monday, it obtained an order from Lufthansa for five wide-bodied A350s, the firsts of the year for a long-haul aircraft, the segment most durably affected by the crisis.

In total, the group has recorded seven orders for commercial aircraft since the start of the week. The other two orders are for A 320s for the Mexican low-cost company Volaris. Since January, the aircraft manufacturer has obtained 94 orders. In May, it shipped 50 devices, twice as many as in the same month in 2020, when the world was under wraps. This figure remains far from the 81 planes delivered two years ago. Deliveries are a relatively reliable indicator of future profitability in aeronautics. Customers pay most of the bill at the time

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