Retail sales were weak. Are you already seeing three Fed cuts this year?
Lizzie Burton
Raffaella Chiri-Ceré
Our economists are not expecting any rate cuts this year, expecting stabilization in jobs and a peak in tariff-induced inflation in Q2.
You've said there's room for gilts to outperform. Where along the curve?
Lizzie Burton
Raffaella Chiri-Ceré
We avoid the long end due to insufficient compensation. The sweet spot is the belly of the curve for an attractive one-year return.
Is there a level of Euro strength that could provoke more ECB activity?
Lizzie Burton
Raffaella Chiri-Ceré
If the Euro continues to strengthen, it will exert disinflationary pressure. If inflation trends further from target, it could bring a rate cut back on the table.