Money managers and asset allocators in Europe will not be immune to lingering risks in 2020 even if the Continent can avoid a recession, sources said.
European institutional investors may begin to feel some relief this year as political risks are shifting out of Europe into the U.S. amid an expected Senate impeachment trial of President Donald Trump, sources added. But even with political risks in the U.K. and Italy reduced, following U.K. Prime Minister Boris Johnson receiving parliamentary approval for his Brexit deal and Italy’s budget deficit falling into line with the EU rules, liquidity and regulatory risks compounded by the European Central Bank’s loose monetary policy are still looming large in investors’ minds.
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