Davy Cajko’s Post

Like a red thread the #CapitalMarketUnion in Europe connects the thought-provoking and inspiring events that I have attended and contributed to in the past few days: DZ Bank Capital Markets Conference, BDB Bankentag, TSI Conference, and an Atlantik Brücke Discussion. I take the interest in the topic as a good sign that things are moving. Reflecting on excellent speeches that I heard, the insightful discussions and conversations that I had, three points appear critical to me: ◾ In a challenging geo-strategic environment the pressure to improve Europe’s competitive edge is up: While Europe has managed recent shocks such as COVID and the energy crisis fairly well and a soft landing seems to be within reach, risks lie in the further development of the Russia-Ukraine war and the outcome of the US-election. An escalation of the conflict in the middle East poses a direct risk to energy prices and could inhibit the soft landing of the global economy. At the same time there are long-term challenges as for example the digital and green #transformation that requires the mobilisation of large amounts of private investment. For this investment to take place in Europe, the competitiveness of the business environment as well as strong European markets are more critical than ever. ◾ Moving forward with the capital markets union is a worthwhile and highly relevant element of Europe‘s competitiveness: Even though there are no more low-hanging fruits and possible next steps to push forward the capital market union such as a more integrated EU capital markets supervision, a European Code of Business Law or harmonizing national regulations including insolvency and tax law as suggested in the Letta Report will require polititcal will at the national level, the benefits appear tangible. Even though Europe’s financing is much more bank based, a simple comparison with the US suggests that facilitating capital market financing for corporates and start-ups would have considerable positive effects in Europe: The US capital market relativ to economic activity is double as large as Europe‘s (449% compared to 233% of GDP respectively), in the case of the #VCMarket which is key to bring innovations to market the relation is even 10 to 1(1% of GDP in the US versus 0,1% in Europe). ◾ To unlock the full benefit of capital markets for Europe, more private capital needs to go there i.e. through capital-based pension schemes or with the help of securitization. To achieve deeper and more liquid markets, capital market union is essential. At the same time, a focus on financial literacy and offering capital-based pension schemes would be a necessary complement. Finally, strenghtening securitization would provide a bridge between the benefits of a more bank-based financing tradition and the development of deeper, more liquid and unified capital markets. Lots remains to be done, I sensed readiness to act by relevant market participants and policy makers. This is encouraging. KfW

Bold Action Needed to Boost Europe’s Capital Markets to Deliver the New Competitive Europe By Adam Farkas, Chief Executive Officer, AFME (Association for Financial Markets in Europe) https://lnkd.in/erb8sHUd

We/YardHouse Global Partners are hoping to see you, at this year YardHouse Global Investor Conference held in the beautiful capital of Spain, Madrid –> alternative option also to attend online. The structure of this conference has a clear focus, as one day will focus upon the fundamentals and the macro picture for the liquid part of all major asset classes and one day for illiquid assets, presented by some of the best managers and specialist from all over the World. We will also add specialized and highly topical themes, as AI and Geopolitics, plus create an open discussion for our panel of investment professionals from both family offices, foundations, and institutional investors based in the Nordics, Benelux and Switzerland. Below. confirmed speakers: Tuesday 7th May 2024 Morning: 9am until 1pm (Equities / Listed) Mark Ciacopazzi, CIO, Bestinver – Global Equities Ignacio Arnau Bru Arnau, LatAm PM, Bestinver – Latam Equities Jualian Garel Jones, Partner & PM, Polunin Capital Partners Limited – GEM equities Joe Bauernfreund, CIO, Asset Value Investors – Japanese Equities Afternoon: 3pm until 5.30pm (Fixed Income / Listed & Macro) Manuel Mendívil Mandivil, CIO (credit), Arcano Partners – European Credit, High Yield & Leveraged Loans Ignacio de la Torre, Head of Macro Research, Arcano Research (topic: Geopolitical environment & China)   Wednesday 8th May 2024 Ricardo Miró-Quesada Miro-Quesada, Partner & Head of Private Equity, Arcano Partners Alex Bruyelle, Partner & Head of Private Credit, Arcano Partners Eduardo Fernandez-Cuesta, Partner & Head of Real Estate, Arcano Pierre Saenz Lafourcade, Partner & Head of Infra, Arcano Partners Ignacio de la Torre, Head of Macro Research, Arcano Research (topics: Technology and AI)   You can sign-up for only one day or attend exactly the sessions of interest to you and your organization –> sign-up through the link below: https://lnkd.in/gtugKuQn We really hope to see you in Madrid or online in May and please let us know, if you’ve any comments or questions related to this invite?. Thanks in advance. Remarks: We can also support you with logistical support through our travel agent, if you want our help in organizing your flights and hotels, just let us know your preferences?. A small video from last year conference in Copenhagen: https://lnkd.in/dWhZE723 Best regards / Venlig hilsen / Bestu kveðjur / Vänlig hälsning /Vennlig hilsen / Vriendelijke groet / Cordiali Saluti / Ystävällisin terveisin Team YardHouse Aleksi Salonen Johan Visti Becker #yardhouseglobalpartners #yardhouseglobalinvestorconference2024 #madrid #macro #listedequities #privatemarkets #geopolitics

Keynote speech from Verena Ross at #EUROFI Financial Forum on the CMU 🔹 A new label for "basic" investment products and "simplified" advice "We believe that in general, European investors need simpler investment products. Rather than putting ever more complex and costly products on the market, which might cater to a small minority of investors, we should create a voluntary EU-label for “basic” investment products. Such a label could be used by certain financial instruments, such as for example a sub-set of UCITS funds or a plain vanilla corporate bond. Simple advice that meets basic investment needs should go hand in hand with that. Such "simplified" advice (which could be based on streamlined suitability assessments) would be a step that could also benefit firms by reducing compliance costs. With a new label and simplified advice, we propose to pave the way for easy-to-access and cost-efficient products. This will empower European retail investors to make informed decisions - based on simple, accurate and reliable information and support." https://lnkd.in/d9RxiJMi #CMU #CapitalMarketsUnion #RIS #RetailInvestmentStrategy #MiFID #PRIIPs #FIDA #OpenFinance #AI #Benchmarking #SingleMarket #Regulation #Investments #FinancialRegulation #CapitalMarkets #EU #Innovation

The report "Unlocking Opportunities: How Financial Institutions and Governments Can Accelerate the EU Capital Markets Union 2024" delivers an in-depth analysis of strategic initiatives to drive the European Union’s Capital Markets Union (CMU) forward. It outlines the role that #financialinstitutions and #governments must play to overcome structural and regulatory barriers and build a unified, accessible, and resilient #capitalmarket across #Europe. The Boston Consulting Group (BCG)'s authors underscore how a fully integrated CMU could stimulate #economicgrowth, attract #globalinvestments, and support #financialstability across the EU. Strategic Recommendations: Breaking Down Regulatory Barriers: The report identifies complex, fragmented regulations across member states as a major hurdle to a seamless capital market. Harmonizing rules for securities, taxation, and investment processes is highlighted as essential. A single, standardized regulatory framework could enhance market efficiency, reduce costs, and increase cross-border investment within the EU. Strengthening Financial Market Infrastructure: Modernizing infrastructure, especially around #digitalplatforms and data systems, is seen as crucial to improve transparency and efficiency. Emphasis is placed on advancing #digitaltechnologies such as #blockchain and #centralbankdigitalcurrencies (#CBDCs) to streamline settlement processes and enhance #investor confidence. Fostering Cross-Border Investments and Inclusivity: To encourage #crossborderinvestment, the report recommends measures to simplify access for both #retail and #institutional #investors. Initiatives that democratize market access, such as expanding retail investor #education and #financialliteracyprograms, are viewed as central to fostering an inclusive CMU. Public-Private Partnerships to Drive Innovation: Collaboration between governments and financial institutions is identified as a way to spur innovation and fund critical projects. The report suggests public-private partnerships as essential vehicles for promoting sustainable investments, green bonds, and other instruments aligned with the EU’s climate goals. This approach would not only advance the CMU but also contribute to Europe’s broader sustainability objectives. Addressing Market Fragmentation and Liquidity Constraints: Market fragmentation is seen as a key barrier to efficient capital allocation. The report highlights the need for mechanisms to improve liquidity, especially in #smallerandemergingEUmarkets, by creating interconnected platforms and incentivizing market makers to increase trade volumes. Enhancing Investor Protection and Financial Stability: A core recommendation is to establish robust investor protection mechanisms and transparent reporting standards. The report stresses that strengthening these aspects will increase confidence in the CMU, making it a more attractive option for global investors and protecting domestic investors from volatility.

More relevant than ever... "While the US will inevitably remain a benchmark, Europe’s aim should be to position itself not in comparison but as a leader in areas that align with its unique strengths and long-term goals. This strategy is not about avoiding competition but about redefining the terms of competition on Europe’s own terms. By focusing on sustainability, regulatory stability, corporate governance, financial inclusion and digital innovation, Europe can offer a financial model that is not just an alternative to the US but a preferable one for investors, businesses and societies alike. This approach demonstrates a confident assertion of Europe’s distinct financial identity, capable of setting global standards and driving innovation while advancing a more resilient and equitable global economy." #UniqueSellingProposition #WorkingTogether #Leadership Dr. Apostolos Thomadakis

📢 𝐓𝐡𝐞 𝐑𝐢𝐬𝐞 𝐨𝐟 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐅𝐢𝐧𝐚𝐧𝐜𝐞: “𝐒𝐚𝐟𝐞𝐠𝐮𝐚𝐫𝐝𝐢𝐧𝐠 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐢𝐧 𝐚 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲-𝐃𝐫𝐢𝐯𝐞𝐧 𝐅𝐮𝐭𝐮𝐫𝐞” 📢 Rita Beyrouthy, CFA, member of the Financial Literacy Committee of CFA Society Cyprus, emphasizes the evolving financial landscape and the critical role of technology and digital finance in shaping how investors access markets. As we mark World Investor Week (WIW) 2024, it's essential to focus on how these innovations can both empower and protect investors while maintaining fair and efficient markets. To read the article, please click on the following link: https://lnkd.in/e_jGM8su #CFASocietyCyprus #FinancialLiteracy #WIW2024 #DigitalFinance #CFAInstitute

Key voices in trade, finance, and innovation will shape the discussions at OMFIF’s China-UK investor forum: 👉Baroness Manzila Uddin (UK House of Lords) will explore trade flows, market access, and regulatory frameworks critical to UK-China relations. 👉Taimur Baig (DBS Bank) will provide insights into renminbi internationalisation, London’s financial hub role, and opportunities for closer UK-China financial collaboration. 👉Stephen Barr (Microsoft) will address AI’s impact on financial stability, economic growth, and global innovation partnerships. 👉Benjamin Fanger (ShoreVest Partners) will examine the macroeconomic and investment landscape shaping UK-China and global dynamics. Find out more and register to attend the forum: https://lnkd.in/epXJueAA

PUBLICATIONS OF THE WEEK 🏦 European capital markets union: make it or break it Capital markets union has not delivered, but it should be given a last chance, with a focus on supervisory integration. Explore the European Union’s capital markets union (CMU) project by reading Nicolas Veron's latest First glance. https://lnkd.in/eN6r4pz2

That's very important in the way of tackling the accumulation of public debt and in economic growth! As Maria Demertzis showed in this very interesting study [Batsaikhan, U., & Demertzis, M. (2018). Financial literacy and inclusive growth in the European Union (No. 2018/08). Bruegel Policy Contribution, https://lnkd.in/dFp67nSv)] financial literacy has a strongly positive relationship with private savings and economic growth. The levels of private savings in Europe are already at a satisfactory level and many times higher than in other OECD countries. Unfortunately, Greece is an exception as it is currently the only country in Europe with negative savings, i.e. private debt. The lack of financial literacy and savings culture that largely led to Greece's sovereign debt crisis in 2009 does not seem to have been reversed. https://lnkd.in/dt2VbryB