Pavel Bandilov, CEO of BPD Industrial Real Estate Fund REIT, in “The World Is Business,” 19.09.2024
The reduction in interest rates on the part of the Federal Reserve was an event the market expected. The question is whether the reduction should have been 0,5% or 0.5%. Although inflation is falling, it is still not at the desired levels of 2%. I hope this isn’t politically motivated. The debt continues to grow and has reached 35 trillion. The growth per year is 400 billion. This is what Pavel Bandilov, CEO of BPD Industrial Real Estate Fund REIT said, in the broadcast “The World Is Business” by Bloomberg TV Bulgaria, hosted by Ivaylo Lakov.
One indication of a possible problem is Warren Buffett’s behavior, which is piling up cash supplies. “The question before investors is whether these 0,5% express concern about the state of the American economy. It all depends on whether the debt will continue to increase and at what pace,” the guest commented.
Duty rates are worth more than the U.S. government gives for health care. According to the interlocutor, the subject of Ukraine is not so ill with geopolitical considerations, but should be seen in the context of increasing debt. This is another expense American taxpayers have to bear. The big winner of the conflict is China, which buys Russian oil at low prices and invests in the former Soviet republics.
The opinion of European investors can be traced in the way they invest funds. More than a few months there are serious net withdrawals from liquid funds. Mario Draghi’s report is one of the few good things the European Union has produced in the last few years. My concern is that we will remain only with the discussion and nothing will change. Germany is one of the obstacles for the EU to reach some final situation. It is very difficult right now to describe what the EU is and what its structure is.
Bandilov noted that over the past 20 years the EU has focused its economic efforts on green policy and the development of socially responsible business. At the same time, American companies were not interested in this, but were pursuing growth and development. Now we pay the price of this policy. Europe has no companies such as Intel, is behind with the production of chips, the development of artificial intelligence and others. There is no support for this industry. All innovative European companies are at some point being moved or acquired by the United States.
The problem in Europe is heavy regulations. For example, in the automotive market the lightmotive for the weak demand for electric cars is constantly emerging. There is no such situation in the United States and China. The guest noted that German car users cannot accept the new reality. And it’s that they don’t sell cars, they sell software that drives a luxury coupe with four wheels. They do not have the ability to compete with Tesla or Chinese producers.
Ekaterina Zaharieva lacks competence in the field of innovation and startups. “European bureaucracy seems to again take the helm of the economy and will hardly produce success. Despite this criticism, at this stage Bulgaria needs to be part of an economic union and the EU has no alternative,” said Bandilov.
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