In a year marked by geopolitical uncertainty, market volatility, and advancements in AI, what can investors anticipate for 2025? How can they effectively address the challenges ahead? Those were the key questions addressed by Natixis Investment Managers and affiliates on November 13, as the firms delved into the 2025 market outlook on global and local trends.
In 2025, global growth trends are expected to diverge: the US and UK will pursue pragmatic strategies, while Europe faces constraints, according to Mabrouk Chetouane, head of global market strategy at Natixis Investment Management, Under Trump, the US will focus on pro-business policies, with stable corporate taxes but restrictive immigration and fiscal policies that might spark inflation rather than growth. The UK’s investment drive could boost growth by 1.7-2%, benefiting smaller firms, though a strong pound may impact FTSE100 earnings. Europe, with limited fiscal flexibility and ongoing geopolitical pressures, may see subdued investment growth.
A panel discussion on “2025 Investment Landscape: Insights on Equities, Bonds, and Real Assets,” moderated by Darren Pilbeam, Head of UK Sales at Natixis IM, included speakers Hans Vrensen, head of strategy & research, AEW Europe; Alexandre Zilliox, Co-Manager, AI & robotics fund, Thematics AM and Agathe Foussard, portfolio manager, Mirova Global Green Bond fund, Mirova.
Preparation for 2025 SFDR update recommended, analysis shows
Vrensen highlighted that he sees encouraging signs in European real estate as easing inflation could reduce debt pressures on the market. While high borrowing costs previously impacted property values, capital declines are slowing, and investor sentiment is lifting. “European office spaces, with vacancy rates generally below 10%, appear resilient compared to the US,” said Vrensen, adding that he particularly favours regions like Benelux and France. He also noted that energy-efficient, high-quality properties are outperforming older ones, with the UK leading in ESG integration. To sum up, he anticipates a cautious but steady recovery for the sector, with long-term strength in office spaces.
Zilliox highlighted that he sees strong growth potential in several thematic areas, especially data providers like MSCI and Nasdaq, whose valuable datasets drive AI advancements. He highlighted cybersecurity as a critical investment area, noting increased regulatory focus from entities like the The US Securities and Exchange Commission amid rising cyber threats. In healthcare, sectors such as diagnostics and bioprocessing offer solid growth and attractive valuations. Robotics is set to deepen its role in the economy, added Zilliox, enhancing AI efficiencies with affordable, specialised models. He also shared that his firm is closely watching the semiconductor sector.
Moving on, Foussard expressed her optimism for Europe, anticipating that the ECB will ease monetary policies, creating a favourable environment for fixed income investments. She held a positive outlook on European credit, particularly in Eastern Europe, while staying “cautious on the US and sensitive to developments in China”. Foussard also highlighted her expectations of inflows into fixed income funds, driven by investors seeking attractive yields beyond monetary funds, “The green bond market, comparable to conventional bonds in diversification, continues to expand, offering a growing investment universe,” she added.
