Pavel Bandilov, CEO of BPD Industrial FNI REIT, The World Is Business, 23.10.2020
The guest predicts that perhaps the whole year and the beginning of the other will pass under the influence of the pandemic.
According to him, besides the uncertainty of the pandemic, the markets are currently very strongly influenced by the upcoming presidential elections in the US.
“One candidate already knows what to expect, and the other one has some uncertainty, and we have to say that specifically in the last few weeks movements are determined by this famous package, which must be agreed between Democrats and Republicans, and they have differences not only in terms of size, but also in terms of timing in view of elections.”
Since we are in the reporting season, Bandilov said he is most interested in the results of the banks both in the US and in Europe.
“I was worried about Christine Lagarde’s statement last week. She said the European Central Bank has more weapons. What I found out is that we’re going to get more of the same, and an analysis of whether this works yet.”
According to the guest, the negative interest rates and the purchase of corporate bonds are instruments that were recently taboos, and now, along with the large amount of incentives, distort the picture of the economy.
The difference between European and US markets is in their way of funding, said Bandilov and added that the infrastructure itself in Europe is at a very low level.
“But what concerns me the most is that the European view is not aimed at stimulating the private sector and the emergence of new companies, but rather at dealing with problems of a completely different nature.”
Bandilov also commented on the ways of Bulgaria to deal with the influence of the pandemic.
“What could have been done in Bulgaria is to be more working measures to stimulate the business,” he said.
“We certainly should have been more flexible, and what concerns me is that we have recently withdrawn a loan for which we have no clarity on how it will be spent. If it were countercyclical, i.e. aimed at fighting Covid-19, it would be good to put it on the table and discuss it with everyone.”
According to him, in the last few months, the country’s expenditures have increased a lot, but no expenditure is being made to turn into revenue into future, but rather to suppress tensions.
“And the lack of vision also bothers me, i.e. we do not have a program for a year or two ahead or at least one to be presented to the public.”
The guest expressed hope that in the next year, tensions may decrease if a vaccine is developed, but said that there is no crisis in the markets.
“Juiting on asset prices, there is no crisis in the markets, but there is a break-up from the real economy,” he said.
The whole conversation, look in the video.
