>>> Talanx has USD 6bn for US buys

Talanx has USD 6bn for US buys (translated)
12 FEB 2018
Talanx [TLX.DE], a German insurance company, could acquire in the US, Neue Zuercher Zeitung reported. The Swiss daily said Talanx Chairman Herbert Haas stated he is looking at the US for buys. Talanx has EUR 5bn (USD 6.12bn) available and US expansion should improve the profit balance between units as the re-insurance business is currently too dominant, the report stated.
The original article was published today on page 19.

WSJ : Comcast Considers Reviving Pursuit of Fox After Higher Bid Was Rejected

Comcast Considers Reviving Pursuit of Fox After Higher Bid Was Rejected
Cable giant’s offer for Fox’s entertainment assets was in the low $60 billions, exceeding Disney’s winning offer

Cable giant Comcast Corp. CMCSA 1.00% is contemplating reviving its pursuit of 21st Century Fox , FOX 3.23% after its bid for the company’s entertainment assets was turned down despite being over 15% higher than that of eventual buyer Walt Disney Co. DIS 1.72% , according to people familiar with the situation.

Disney struck a deal with Fox in December, agreeing to pay $52.4 billion in stock. Fox turned down a Comcast offer that was in the low-$60 billions range, the people said. The assets on the table in both offers were essentially the same, including the Twentieth Century Fox movie and TV studio, international pay TV properties and some U.S. cable networks.

Fox’s primary concern about the Comcast bid was that a tie-up between the companies would face significant antitrust risks, people familiar with the discussions said.

A Comcast acquisition of Fox would be a “vertical” deal adding more cable TV channels to a company that also is a powerhouse in channel-distribution. The government signaled concerns about vertical deals when it sued to block AT&T Inc.’s acquisition of Time Warner Inc., a case that heads to trial next month. Some Wall Street analysts noted the potential roadblocks in Washington to a Comcast-Fox deal.

Comcast believed it had offered substantial protections in its offer against antitrust risk, some of the people familiar with the situation said.


Fox executives positioned the Disney deal as a chance for its investors to benefit from Disney’s vast content machine and plans to battle the likes of Netflix Inc. with direct-to-consumer streaming services. After an asset sale, the remaining “new Fox” would have properties including the Fox broadcast network, Fox News and Fox Sports 1.

21st Century Fox Chief Executive James Murdoch, son of Executive Chairman Rupert Murdoch, may get a position at Disney if the deal is completed. It is also possible the younger Mr. Murdoch could strike out on his own.

The Murdoch family controls a 39% voting interest in both 21st Century Fox and Wall Street Journal-parent News Corp.

A Disney spokeswoman didn’t immediately respond to a request for comment.

Comcast may choose to take no further action. One key development that could influence its thinking is Fox’s release of a proxy statement on the merger, which would likely indicate the general process that led up to sealing a deal. It is unclear when Fox will file its proxy with regulators, ahead of a shareholder vote on the deal.

Though such documents don’t generally use specific company names, they can reveal how many bidders were serious contenders. Comcast will be looking for whether the proxy is clear that its bid was far higher than Disney’s, and for signs that it was considered seriously, some of the people familiar with the situation said.

Another key factor is the AT&T-Time Warner case, as earlier reported by CNBC. If the deal survives the government’s challenge, Comcast would be emboldened because it would believe Fox’s argument of antitrust risk in a Comcast-Fox deal would be weakened, those people said.

Comcast might be prepared to offer protections to Fox such as agreeing to remove certain assets from the deal that prove controversial in Washington, including regional sports channels, one of the people familiar with the situation said. It is also possible that instead of re-engaging in pursuit of all of the Fox assets, Comcast could zero in on something in particular, such as European pay TV giant Sky, some of the people said. Fox’s attempt to purchase the remaining 61% of Sky it doesn’t own has run into turbulence in the U.K.

Comcast, like Disney, believes Fox’s assets could help it bulk up in content production, get more exposure to growing international assets like Fox’s Star India, and allow it to increase its stake in online video service Hulu, which is co-owned by Comcast, Disney and Fox. Consolidation in the cable and media industries has pressured companies to explore big transactions.


There are a range of factors that can influence a company’s decision to turn down a higher purchase offer. In stock deals, the future value of the buyer’s stock is an issue, as is the control powerful constituents would have.

Comcast has a dual-class share structure that gives Chief Executive Brian Roberts one-third of the shares’ combined voting power, while Disney has only one class of shares. The Murdoch family would be influential shareholders at Disney.

>>> Abertis bidders Atlantia, Hochtief, make progress in talks over Hispasat

Abertis bidders Atlantia, Hochtief, make progress in talks over Hispasat - report (translated)
12 FEB 2018
The two Abertis [BME:ABE] bidders Atlantia [BIT:ATL] and Hochtief [FRA:HOT] (German unit of Spanish infrastructure group ACS [BME:ACS] are making progress in their talks with the Spanish Ministry for Energy over Hispasat, Europa Press reported.
According to the article, which cited sources privy to the discussions, the two companies are moving forward in their efforts to obtain the relevant authorisation for the satellite subsidiary of the Spanish motorway concessionaire.
Although Hispasa is not of interest to any of the bidders, that have already declared their intention to sell if their takeover bids succeed, both companies must request the mandatory authorization of the Ministry of Energy, since satellites is a sector considered strategic for the Spanish state.
A possible delay in completing this procedure derives from the companies’ ignorance regarding the satellite sector, the report went on to say. The Ministry of Energy has given both Atlantia and Hochtief, in the various contacts maintained, appropriate guidance on the documents to submit, Europa Press said.
As reported, Abertis agreed to sell 57% of Hispasat to Red Electrica de Espana [BME:REE] (REE) for EUR 656m. Abertis also plans to transfer to REE its deal to acquire 33.69% of Hispasat held by French firm EutelsatCommunications [EPA:ETL].

>>> What to look at today - 12th of February 2018

 Investors got a reprieve from the recent turmoil with Asian stocks recovering from their worst weekly rout since 2011 as volatility swept global markets. The dollar declined against major peers ahead of key U.S. inflation data.
Shares in Hong Kong and China, which bore the brunt of last week’s selloff, rose as did South Korean equities after the S&P 500 Index jumped on Friday and the futures extended gains as the trading week got underway in Asia. Japan is closed for a holiday. Australian banks weighed on the benchmark there at the start of a sweeping inquiry into the nation’s financial system. Oil traded below $60 a barrel.

Nikkei Closed Hang Seng +0,59% CSI +1.29% Shanghai +0.78% Shenzen +2.65%

Eur$ 1.2286 CNH 6.3157 CNY 6.3052 JPY 108.65 GBP 1.3853 CHF 0.9383 RUB 57.93 WTI

S&P +0.68% EuroStoxx +1,90% FTSE 1.62% DAX 1.93% SMI +1.65%

Macro :
- EU’s Vestager ‘Disappointed’ No Class-Action Suits in Europe: RP
- JPMorgan Sees ‘Severe’ Unwind by Systematic Strategies Ending
- Goldman Says Energy Selloff is Chance to Build Long Positions
- XIV Is Just the Tip of the Iceberg for This Hedge Fund Investor
- U.S. Budget Director Warns Interest Rates May ‘Spike’ on Deficit
- U.K. Household Spending Has First January Dip Since 2013: Visa

Keep an eye on :
- AIR FP : Airbus Has Halted Deliveries of Pratt-Powered A320neos: IndiGo
- AIR FP : Airbus: Munich Prosecutor Ends Eurofighter Austria Probe
- AIR FP : Airbus Firms First Batch of $16 Billion Emirates Order for A380s
- AKRX US : Akorn Up as Much as 4.5%; Fresenius Spokesman Says No Updates
- AKZA NA : Apollo, PGGM Is Said to Be in Joint Bid for Akzo Unit: FT
- AMZN US : Amazon-Driven Jitters Make FedEx a Buying Opportunity: Cowen
- MT NA : ArcelorMittal Is Said to Be Reviving $4.7b India Unit Plan: DNA
- BABA US : Alibaba to Invest 5.45b Yuan for 15% Stake in Beijing Easyhome
- BAS GY : BASF Is Said to Have Been Defrauded by Contractors: Rheinpfalz
- ARW US : Arrowhead Pharma 1Q Loss Per Share Wider Than Est.
- BKIA SM : Bankia, Unions Reach Accord on Staff Reduction: Europa Press
- BMC SOft IPO : BMC Software Is Said to Explore IPO With >$10B Valuation: Rtrs
- BMPS IM : Paschi Chairman Says Possible Govt Change Won’t Affect Bank Plan
- BPE IM : BPER Banca CEO Says Lender Focused on NPLs Reduction Plan
- BPL PL : Banco BPM May Consider M&A Opportunities From End of 2019: CEO
- AFX GY : Carl Zeiss Meditec First Quarter Ebit EU38.9 Mln
- CGG FP : CGG Says 71.9M New Shares to Be Isssued in Restructuring
- DAI GY : Daimler CEO Said to Have Earned Less Than EU10m in 2017: FAS
- DELIVEROO IPO : Deliveroo Is Said to Consider IPO in Next 12-18 Mos.: S. Times
- DEZ GY : Deutz Flags Improved 2017 Sales, Profit on Engine Demand: Welt
- ENGI FP : Engie Holds Extraordinary Meeting on Tuesday: Les Echos
- ELE FP : Euler Hermes Full Year Net Income 1.2% Below Estimates
- GPLG BB : Galapagos CEO Seeking Protection Against Possible Takeover: FD
- FPM LN : Faroe Sells Fenja Stake in Norway to Suncor for $54.5M Cash
- ICAD FP : Icade Posts FY Net of EU170.3M; to Acquire ANF Immobilier
- ISP IM : Intesa Sanpaolo Chairman Says ‘Confident’ on Reaching NPL Deal
- JMT PL : Jeronimo Martins Plans to Seek New Market to Grow, Expresso Says
- KORS US : Michael Kors Growth Profile Questionable, JPMorgan Says
- GVC LN : Ladbrokes Coral Says FY Op. Profit at Top End of Forecasts
- HEIA NA : Heineken NV Full Year Organic Beer Volume Misses Estimates
- LLOY LN : Lloyds to Gauge Interest on EU5b Mortgage Book Sale: S. Times
- MELI US : MercadoLibre Falls Most Since Oct. Amid Amazon Warehouse Reports
- NOVN VX : Novartis Loses Bid to Challenge One AbbVie Patent on Humira
- NOVN VX : Novartis Says Unaware of Swiss Investigation Linked to Greece
- OME BB : Perrigo Demands EU1.9B Over Omega Pharma Sale: De Standaard
- PHIA NA : Philips to End Cleveland Diagnostic Imaging Manufacturing Ops
- PAH3 GY : Audi, Porsche to Share Electric Car Platform:Stuttgarter Zeitung
- RNO FP : Renault Performance Chief Mueller Is Said to Step Down: Reuters
- RNO FP : Renault Board Member Desmarest Is Said to Resign: Reuters
- RIO LN : Rio Tinto Is Said to Consider Pacific Aluminium Unit IPO: AFR
- ROG SW : Genentech’s Antibody RG7716 Shows Improvements in Phase II Study
- RYA LN : Ryanair Says It Will Shed U.K. Investors in Hard Brexit: Times
- SDRL NO : Seadrill Says It’s Close to Resolution of Restructuring Conflict
- SIXT GY : Sixt Sees Earnings for 2017 to Be ‘Substantially’ Higher
- SNAP US : Snap Lures Instagram Advertisers by Offering Free Ads: Recode
- TDC DC : TDC Chairman Says Would Be Wrong to Split Up Company: Berlingske
- TSCO LN : UK’s Tesco Is Planning A Chain of Discount Stores: Reuters
- VIV FP : Universal’s ‘Fifty Shades’ Tops Weekend Box Office: ComScore
- VONN SS : Vontobel Agrees on Untaxed Asset Settlement W/German Authorities
- WG/ LN : John Wood Group Wins Five-Year Contract With Saudi Aramco

>>>Europe : Brokers Upgrades & Downgrades - 12th of February 201

>>> Up
* Beazer Homes Upgraded to Market Perform at JMP
* BP Upgraded to Buy at SocGen; PT 6.15 Pounds
* Cineworld Upgraded to Buy at Peel Hunt
* Endesa Upgraded to Overweight at JPMorgan; Price Target 20 Euros
* Entra Upgraded to Hold at DNB Markets; PT 110 Kroner
* Euronav Upgraded to Overweight at Morgan Stanley
* Evraz Upgraded to Buy at Goldman
* KAZ Minerals Upgraded to Hold at HSBC; Price Target 7.70 Pounds
* Philips Raised at Berenberg as Risk-Reward Turns Attractive
* Teva ADRs Upgraded to Outperform at Credit Suisse; PT $23
* T-Mobile Raised to Strong Buy at Raymond James; Price Target $76
* Umicore Upgraded to Buy at KBC Securities; PT 52 Euros
* Umicore Upgraded to Inline at Evercore ISI; PT 38 Euros

>>> Down
* Connect Group Downgraded to Hold at Peel Hunt
* ElringKlinger Downgraded to Hold at Kepler Cheuvreux
* Norwegian Property Cut to Hold at DNB Markets; PT 11.50 Kroner
* PGS Downgraded to Underperform at Credit Suisse; PT 18 Kroner
* RELX Downgraded to Equal-weight at Barclays; PT 17.90 Euros

>>> Initiation
* Meyer Burger Rated New Buy at Research Partners; PT 2.40 Francs


>>> Call

>>> Asian Update

Asia Market Update: Markets stabilize mostly higher after last weeks volatility

***Headlines/Economic Data***
General Trend:
- USD/JPY volatility muted amid Japanese holiday
-Singapore exchange falls most since Nov 2008, as exchanges in India announced plans to end licensing of data
- Hong Kong property developer (Shui On Land) M&A canceled on recent ‘turbulence’ and volatility in the capital and debt markets
- Energy company CNOOC to be added to Hang Seng China Enterprises Index
- WTI Crude Oil Futures gain over 1% after falling below $60/bbl on Friday
- Chinese airlines higher on stronger yuan
- Taiwan, China, Hong Kong and South Korea will start to wind down ahead of Lunar New year holiday, starting mid-week: China’s Lunar New Year begins on Friday, Feb 16th
- (CN) Moody’s Report: Says the impact of intensified regulation [in China] is no longer limited to the de-risking of the financial sector, but now starting to impact supply of credit to the real economy
- Key data due later this week: US Jan CPI and Retail Sales data due to be released on Wed, Feb 14th
- Australia Jan Employment Change due for release on Thursday, Feb 15th

Japan
-Nikkei 225 closed for holiday
- (JP) Reportedly Japan govt set to reappoint Kuroda as Gov of BOJ to a new 5-year term (as expected) - Kyodo News
- (JP) Japan government said to consider promoting current BoJ Exec Dir Amamiya to the position of Deputy Gov – Japanese Media
- JR East [9020.JP] union said to consider strike related to pay levels - Japan Press

Korea
-Kospi opened +0.7%
- Financials trade generally higher: Hana Financial, KB Financial and Industrial Bank of Korea all gain by more than 1%
- Samsung Electronics gains over 1.5%
- (KR) South Korea sells KRW850B 5-year bonds:pre-issuance yield 2.55%
-(KR) Bank of Korea (BoK) sells KRW910B in 1-year monetary stabilization bonds(MSBs): yield 1.90%
-Samsung, 005935.KR More funds of Chairman Lee Kun-hee found in borrowed name accounts -Korean press
-(KR) According to the Korea Automobile Manufacturers Association rising costs have become a growing source of concern for carmakers operating in South Korea
-(KR) South Korea Trade Ministry: will seek ways to better protect investor rights from arbitrary regulations when holding talks with China to expand the scope of the two countries' free trade agreement to the service and investment sector - Korean press

China/Hong Kong
-Hang Seng opened +0.7%, Shanghai Composite +0.1%
- Hang Seng Information Tech Index +2%, Services +1.6%, Consumer Goods +1.5%, Materials +1.2%; Energy -0.8%, Property/Construction -0.2%
- Shanghai Property Sub-index has moved between gains and losses after dropping over 6% on Friday
- (CN) China Banking Regulatory Commission (CBRC) official: Tighter financial regulations have prompted Chinese banks to apportion greater resources to the real economy and improve the overall quality of financial services while keeping risks at controllable levels – CD
-(CN) Asset manager under the State Council, China Chengtong Holdings Group Ltd Official: Planning to bring in more private capital to finance the mixed-ownership reform of the country's State-owned enterprises
-(CN) China Banking Regulatory Commission (CBRC) reports 2017 Commercial Non-performing Loan Ratio (NPL) 1.74%
-(CN) China to allow states to keep electric car subsidies and cap local subsidies at 50% of central govt level
-(CN) China National Development and Reform Commission (NDRC) pledges there willbe an adequate supply of coal throughout the Spring Festival holiday season,after four top coal producers recently struggled to keep up with demand and raised prices
-(CN) China National and Development Reform Commission (NDRC) spokeswoman: To create millions of new jobs under "employment first" policies
- (CN) China PBoC: Skips Open Market Operation (OMO) for the 13th straight session
- USD/CNY (CN) PBOC SETS YUAN REFERENCE RATE AT 6.3001 V 6.3194 PRIOR
- (CN) China National Development and Reform Commission (NDRC): Releases list of sensitive areas where it intends to restrict overseas investments, putting a specific curb on deals related to real estate, hotels, cinema, entertainment, sports clubs
Looking Ahead: China Jan New Loans data may be released during Monday’s European session

Australia/New Zealand
-ASX 200 opened flat; closed %
- ASX 200 Utilities Index -2%, Telecom -1%, Consumer Discretionary -0.8%, Energy -0.7%, Financials -0.6%; Resources +0.8%
- (NZ) New Zealand Jan CardSpending Retail M/M: 1.4% v 0.5%e; Card Spending Total M/M: 0.6% v 0.2% prior
-JPHi-FI, JBH.AU Reports H1 (A$) net 151.7M v148Me; Rev 3.69B v 3.6Be
- Ansell, ANN.AU Reports H1 Net $428.2M* v$69.8M y/y, Rev $722.2M v $664M y/y
-(AU) Australia starts commission to examine its banks' misconduct - press
-AUD/USD CBA sees A$ close to A$0.83 by the end of 2018
Looking Ahead: RBA Assistant Gov Ellis may speak on Tuesday

North America
- (US) OMB Head Mulvaney comments ahead of US budget release: Budget to seek $3.0T cut in deficit over 10 years [**Note:President Trump is expected to release his 2019 budget proposal on Monday, Feb12th]
- (US) White House: 2019 budget plan will project 3% growth; Projects 3.2% growth to 2020, 3% to 2025, and 2.8% to 2029
- (US) Said that the White House is sticking with its calls for sharp cuts to non-defense programs, even after the Congress budget deal lifted spending caps on domestic spending by $300B over the next 2-yrs – Politico
(US) US budget is said to not project a balance in 10-years, according to a Washington Post report.
- CDK Global [CDK]: Reportedly Carlyle Group/Silver Lake consortium are near agreement to acquire CDK Global; could be valued at over $10B – press
Fox [FOXA]: Comcast said to consider restarting approach of Fox - US financial press
-Broadcom said to receive up to $100B in debt financing for bid for Qualcomm - US financial press

Europe
- Ryanair [RYA.UK] CEO O'Leary warns British investors will be forced to sell stock in hard Brexit - UK press; To keep its planes flying in EU, Ryanair must demonstrate to European regulators that a majority of investors are EU citizens. Currently, 56% of shareholders are European, and within that about 20% are from the UK.
-(UK) BoE Chief Economist Haldane reiterated BoE is in ‘no rush’ to raise rates– financial press
- (UK) George Soros said to pledge an additional £100K for anti-Brexit group – UK Press
-(DE) German Central Bank (Bundesbank): Decision to hold some currency reserves in Chinese yuan is part of a long-term strategy, and the investment will be effected as long as the preparations have been completed - Xinhua interview
- (DE) Fitch affirms Germany AAA; outlook stable (from Feb 9th)
-(EU) ECB's Nowotny (Austria): Concerned about attempts by the US to politically influence the exchange rate, his was a theme addressed at Davos and will be discussed again at the upcoming G20 summit
- (EU) ECB’s Visco (Italy): ECB will be patient in pursuit of its inflation target; its been difficult to push up inflation expectations; FX volatility is a major risk to the inflation outlook(from Feb 10th)
- (IE) Ireland Jan Consumer Confidence Index: 110.4 v 103.2 prior
- (IE) Ireland Jan Construction PMI: 61.4 v 58 prior
- GKN [GKN.UK]: Expected to announce cash payout plans to shareholders this week, as it works to stave off Melrose's £7B hostile takeover bid - FT
Looking Ahead: OPEC Monthly Report may be released during Monday’s European session


***Levels as of 01:00ET***
- Nikkei225 closed, Hang Seng +0.6%; Shanghai Composite +0.7%; ASX200 -0.3%, Kospi +1.2%
- Equity Futures: S&P500 +0.7%; Nasdaq100 +0.5%,Dax +0.6%; FTSE100 +0.5%
- EUR 1.2297-1.2243; JPY108.93-108.56; AUD 0.7839-0.7804;NZD 0.7277-0.7239
- Apr Gold +0.8% at $1,325/oz; Mar Crude Oil +1%at $59.80/brl; Mar Copper +1.1% at $3.08/lb

Recode.net : Intel’s drone light show never got off the ground for the 2018 Wint

Intel’s drone light show never got off the ground for the 2018 Winter Olympics opening ceremony

They aired pre-recorded footage anyway.
By Rani Molla Feb 10, 2018, 11:58am EST
Intel
Last-minute “impromptu logistical changes” kept Intel from performing its drone light show live during the opening ceremonies for the 2018 Winter Olympics in PyeongChang, South Korea. But that didn’t stop NBC from airing footage of it for those watching the taped delayed version nor did it stop Intel from celebrating the feat on Twitter.
U.S. viewers tuned in to a tape-delayed broadcast on Friday night that showed pre-recorded footage from December, when Intel’s light show broke the Guinness World Record for flying the most drones, 1,218, simultaneously.
The live show was intended to be a pared down version of the feat, with 300 drones flying at the end of the opening ceremony, but that too was scrapped.
“During the Ceremony, POCOG made the decision to not go ahead with the show because there were too many spectators standing in the area where the live drone show was supposed to take place,” according to a statement from the Olympic organizing committee.
Here’s what the opening ceremonies were supposed to look like live. Images of the December rehearsal show the “Shooting Star” drones lighting up the sky with Olympic rings, a snowboarder and a dove.
Intel
Intel
Intel
And this is what an individual light drone looks like:
The Winter Olympics rehearsal surpassed Intel’s 2016 Guinness World Record of 500 drones flown simultaneously in Germany.

Here’s Intel’s behind-the-scenes video of the rehearsal:

Update: This post has been updated with a quote from the Olympic organizing committee and to correct the number of drones to 1,218 from 1,280.

FT : Bridgewater investment chief sees new era of volatility

Bridgewater investment chief sees new era of volatility
World’s biggest hedge fund expects end of easy money to trigger market ‘shakeout’

The world’s biggest hedge fund has warned that global markets are entering a new era of volatility as the world adjusts to higher interest rates after a decade of ultra-loose monetary policy. 

Bob Prince, co-chief investment officer at Bridgewater, said last week’s market turbulence, which helped trigger record outflows from global stock funds, was set to continue. 

"There had been a lot of complacency built up in markets over a long time, so we don't think this shakeout will be over in a matter of days,” Mr Prince, who runs Bridgewater’s $160bn of investments alongside the fund’s founder Ray Dalio, said in an interview. “We'll probably have a much bigger shakeout coming." 

Markets were thrown into a tailspin last week when rising bond yields triggered a sell-off in stocks that was exacerbated by the collapse of several complex volatility-linked funds and algorithmic trading strategies also tied to the level of stock market choppiness. 

US equities managed to stage a late comeback on Friday, lifting the S&P 500 index to a 1.4 per cent gain and paring what at one point looked set to be the worst week for stocks since the financial crisis. Instead, the US equity benchmark managed to pare back its weekly loss to 5.2 per cent, the biggest decline since early 2016. 

Mr Dalio has also become increasingly gloomy over the past year, concerned at the deepening political polarisation in Washington and a shift in central bank policy.

At the World Economic Forum in Davos last month, he said markets were still in a “goldilocks” period, but warned that the current cycle was in its final stages and would be acutely sensitive to shifts in expectations for interest rate increases. 

Most analysts expect markets to recover their footing further once investors refocus on the healthy economic backdrop, but volatility remains elevated and Mr Prince, cautioned that there could more pain in the pipeline. 

“Last year equity markets had a free run. But this year we are going from central banks contemplating tightening policy to actually doing it,” Mr Prince said. “We will have more volatility as we are entering a new macroeconomic environment.” Brian Levine, co-head of global equities trading at Goldman Sachs, on Friday sent out an email to the investment bank’s bigger clients that also warned that the market probably still has not hit its bottom. 

“Historically shocks of this magnitude find their troughs in panicky selling,” he said in the email, seen by the FT. “I’ve been amazed at how little ‘capitulation selling’ we’ve seen on the desk . . . The ‘buy on the dip’ mentality needs to be thoroughly punished before we find the bottom.” 

While last week’s turmoil was primarily fuelled by the unwinding of “short-volatility” bets, Mr Prince predicted that the broader economic backdrop was setting the stage for more turbulence later this year.

The improving health of the global economy has sparked concerns that long-dormant inflationary pressures will finally emerge, forcing central banks to reduce bond-buying programmes and raise interest rates more aggressively than expected. 

While Mr Prince doubted inflation would become a real problem, he expected central banks to start draining the global economy of some of the trillions of dollars they have pumped into the financial system in recent years — further challenging the post-crisis bull market. 

That meshes with the view of Mr Levine at Goldman Sachs, who said that “longer term, I do believe this is a genuine regime change, one where you sell-the-rallies rather than buy-the-dips”. 

However, Mr Prince expects global growth will stay on track despite tighter monetary policy and more turbulent markets. “The real economy will outperform financial economy this year, the opposite of what we've seen in recent years,” he said.