The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
Allianz SE is reportedly exploring potential partnerships and tie-ups for its asset management division, Allianz Global Investors (Allianz GI), as part of efforts to expand its asset management business, according to a source familiar with the matter. These early discussions do not include plans for a full or majority sale, but could involve a merger or partial sale, with Allianz possibly relinquishing control in such a deal, as per Reuters.
While Allianz GI is focused on active asset management with €555 billion in assets under management as of the second quarter, the global asset management industry is increasingly shifting towards passive products and lower-cost offerings, leading to significant consolidation in the sector. Examples include BNP Paribas' purchase of Axa SA's asset management unit and Goldman Sachs' acquisition of NN Group's asset management arm.
Allianz is scheduled to release its third-quarter results on Nov. 13, following stronger-than-expected second-quarter earnings driven by its life-health insurance and asset management businesses. Allianz GI could be valued at over €4 billion, including debt, according to the Reuters report. Pimco, another asset management firm owned by Allianz, is reportedly not part of these discussions.
This move aligns with broader trends in the industry, where firms are looking to scale up and compete with lower fees in a rapidly evolving market.
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