EU BANKS: BIG EQUITY OUTFLOWS BUT REMAIN UPBEAT ON REFLATION TRADE: SALES TOP PICKS = SOC GEN, INTESA, NORDEA
[{"sender": "Ens, Amanda", "recipients": ["jeffrey E. [jeevacation@gmail.com]", "Richard Kahn [nn"], "timestamp": "4/7/2017 12:24:59 PM", "subject": "EU BANKS: BIG EQUITY OUTFLOWS BUT REMAIN UPBEAT ON REFLATION TRADE: SALES TOP PICKS = SOC GEN, INTESA, NORDEA", "body": "We remain positive on banks that can make acceptable returns in the current environment and are geared into the upside when rates begin to recover... ING, KBC, Intesa, Unicredit, SocGen, Erste, BKIR are all Buy rated.\n\nGlobal Equities Z\n\nBank of America\n\nSpecialist Sales — European Financials Merrill Lynch\n\nMAR disclosure\n\nEU BANKS: BIG EQUITY OUTFLOWS BUT REMAIN UPBEAT ON REFLATION TRADE\n\nSpec Sales Comment:\n\nBofAML SESE See ee oe oe eee outflows in 40 weeks and first outflows YTD (click here). Our BofAML Bull & Bear Indicator is now at 7.1, the highest level since Jul'14 and not far from \"sell\" signal. So is this just a pause for breath in the reflation trade? BofAML strategists think so. In our updated thoughts this morning we think reflation is real so stay long equities, short rates, selectively long USD (click here).\n\nChart 12: BofAML B&B Indicator (scale from 0 to 10)\n\nExtreme\nBearish                           Bullish\n\nSource: BofA Merill Lynch Global Investment Strategy\n\nThe main reasons for equity investor concern in recent weeks = the gap between hard and soft data, plus the delay in the Trump fiscal package"}]