2 November 2011

Video: Secretary General of CFA France on the Eurozone Crisis, Employment Outlook

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In an interview preceding the start of the fourth annual CFA Institute European Investment Conference in Paris, Philippe Maupas, CFA, secretary general of CFA France, discusses the French perspective on the Eurozone crisis; the employment outlook for finance professionals in France; and the steps CFA France is taking to support its members during this turbulent time in the markets.

Maupas also names the upcoming European Investment Conference sessions that he’s most looking forward to attending — and that are not to be missed by those following the rapidly unfolding events in the eurozone (hint: see Johnson, Münchau, and de Boissieu).

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31 October 2011

Five Geopolitical Tipping Points from the CEO of Oxford Analytica

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Nader MousavizadehDuring his time spent as special assistant to U.N. Secretary-General Kofi Annan and working as a U.N. political officer in Bosnia-Herzegovina, Nader Mousavizadeh learned firsthand about the ways that world powers resolve their differences on the global stage.

Now, in his current role as CEO of Oxford Analytica, a global analysis and advisory firm, Mousavizadeh has continued to keep an eye on political, social, and regulatory developments world-wide, managing a network of contributors that monitor and analyze macroeconomic issues for a range of clients. Next week in Paris, Mousavizadeh will share his views on geopolitics with delegates at the fourth annual CFA Institute European Investment Conference in a session titled, “Geopolitical Risks and Investment Opportunities: The Emergence of an Archipelago World.”

As a prelude to Mousavizadeh’s presentation in Paris, here are five geopolitical tipping points gleaned from his monthly column for Reuters:

  • Current world powers must acknowledge the rise of the BRICs. In his Reuters column, “Who Fills the Global Power Vacuum?” Mousavizadeh noted that global leadership is in short supply, with “little doubt that the U.S. would not be returning to its pre-eminent leadership position any time soon.” With no one country — or even a group of countries — ready to step in and implement solutions for international crises, the power vacuum ends up being filled by previously overlooked nation-states that can now act unopposed. According to Mousavizadeh, “Rising powers like Brazil and Turkey are casting off decades of weakness and stepping into strategic vacuums left by failed Western-led strategies — in arenas as diverse as development, climate change and the Iranian nuclear challenge,” and as these countries get used to exerting their influence, they will become increasingly ready to wield it.

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28 October 2011

Three Perspectives on Crisis Economics

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How can governments and multilateral institutions successfully manage the ongoing sovereign debt crises and restore health to the global economy? At the fourth annual CFA Institute European Investment Conference in Paris next week, three monetary and fiscal policy experts will share their perspectives on managing economic emergencies.

Former International Monetary Fund chief economist Simon Johnson, who opens the Conference on 2 November, says policymakers should focus on “too big to save” rather than “too big to fail.” The Bank for International Settlements’ Stephen G. Cecchetti, who addresses delegates on 3 November, is an advocate for increasing the policy tools available to central bankers. And Richard C. Koo — the chief economist at Nomura Research Institute who will take the podium later that afternoon — contends that governments in crisis-stricken economies should increase spending.

Simon Johnson

Simon Johnson

Johnson, an author and MIT professor, has ruffled feathers around the world by questioning the “too big to fail” doctrine. His argument that “too big to save” is the bigger risk* is based on the fact that bank assets in many cases exceed the gross domestic product of the countries in which they are domiciled. Johnson therefore encourages policy makers, investors, and businesses to rethink the blank check bailouts of the past. Any true “fiscal conservatism,” he argues, must insist on language forbidding “too big to fail.” In his talk at the European Investment Conference, entitled “The Next Financial Crisis,” Johnson will cover the different types of fiscal crises, lay out a long-term solution for the European sovereign debt crisis, and explore how to counteract the moral hazard of the previous financial crisis.
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27 October 2011

Europe’s Plan for Saving the Euro

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The European Central Bank

The European Central Bank

Was 27 October 2011 the day that European politicians solved their sovereign debt and financial crisis?

That question will surely be addressed at the fourth annual CFA Institute European Investment Conference, which gets under way next week in Paris. The euro zone crisis will be the focus of multiple sessions, including those headlined by:

  • Martin Merlin, of the European Commision, speaking on “Reforming the European Financial Supervision System”
  • The University of Paris’s Christian de Boissieu’s examination of the “EU at the Crossroads”
  • Wolfgang Münchau of the Financial Times, who will address “Crisis and Consequences: The Way Forward for the Eurozone”

But exactly what measures were included by European leaders in the crisis plan? Here is a handy guide to the proposal.

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18 October 2011

MiFID II Changes to Be Announced: Responding to Regulation

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Marcus Hooper As the European Commission readies its proposal for reforming the Markets in Financial Instruments Directive (also known as “MiFID II”), financial professionals are left waiting to see how the new regulations will change the way that they do business. The reforms, which aim to increase transparency in the trading of stocks, bonds, and commodities, are also expected to have an effect on high-frequency trading and internal risk controls. More detailed coverage of the proposed changes and the way that some industry figures are reacting to them can be read at Reuters and Global Financial Strategy.

A panel discussion at the Fourth Annual CFA Insitute European Investment Conference will discuss MiFID II and some of its expected reforms, including proposed changes in secondary market structure and venue classifications. The session, moderated by Rhodri Preece, CFA, Director of Capital Markets Policy at CFA Institute, will draw on the expertise of Marcus Hooper of Pipeline Financial Group, Frédéric Romand of Generali Investments, and Jasper Jorritsma of the European Commission.

Register now to attend the CFA Institute Fourth Annual European Investment Conference in Paris, and learn firsthand about proposed MiFID II changes and ways you can prepare for them.

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17 October 2011

On Greece and Governments: Roger Bootle and Robert Jenkins

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Roger Bootle, managing director of Capital Economics and speaker at the Fourth Annual CFA Institute European Investment Conference, has issued a warning and some harsh criticism in his latest column for The Telegraph.

In the column, Mr. Bootle states that we are now in “an interlinked crisis of both the banking system and the public finances,” brought about by governments that “have been blithely insouciant towards the dangers posed by huge levels of public sector debt.” He also traces problems back to the formation of the European Union, calling the euro “a halfway house,” and stating that “To work effectively, monetary union would need to be combined with fiscal union, and fiscal union would require political union.”

Meanwhile, Robert Jenkins — a member of the Bank of England’s interim financial policy committee and session moderator at the European Investment Conference — agreed with Mr. Bootle’s earlier assertion that a Greek default outside of the European Union could be “the greatest threat to the continuing existence of the euro.”

Mr. Jenkins recently wrote a column for Financial News (subscription required) in which he outlines a hypothetical scenario where Greece leaves the European Union and subsequently defaults on its debts. The results are dramatic (“EU economic activity stops”).

You can gain additional insight from Mr. Bootle, Mr. Jenkins, and other leading thinkers at the CFA Institute Fourth Annual European Investment Conference. Register now to join them in Paris as they explore some of the most vital financial issues facing Europe and the rest of the world.

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12 October 2011

Speakers in the News: William De Vijlder forecasts “Perfect Storm” with past CFA speakers

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William De VijlderWilliam De Vijlder, chief investment officer of strategy & partners at BNP Paribas and presenter at the upcoming Fourth Annual CFA Institute European Investment Conference, recently made headlines with a group of chief investment officers called the “300 Club.”

The 300 Club warns of a ‘perfect storm’ in the investment industry, noting that investment products have become more complex while focus has shifted away from investor needs. These factors, combined with a lack of capital investment in developed countries, could lead to dire consequences unless the markets’ major investors and regulators start to think differently.

Of the 300 Club’s 10 members, two others besides Mr. De Vijlder have spoken at past CFA Institute events. Dylan Grice of Société Générale discussed Japan’s struggles with a bankrupt government and a shrinking population at the CFA Institute 64th Annual Conference in Edinburgh (webcast available). Alan Brown of Schroders spoke at the Edinburgh conference and also shared “war stories” from the global financial crisis at the 2009 European GIPS Standards Conference (webcast available).

To hear more from Mr. De Vijlder and other thought leaders addressing the most critical financial issues facing Europe and the rest of the world, you can register to attend the Fourth Annual CFA Institute European Investment Conference in Paris.

27 September 2011

Is There Life After Debt?

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Kevin Gardiner is managing director of research, economics, and strategy at Barclays Wealth and has recently been in the news discussing the need for investors to reduce their exposure to government bonds. At the Fourth Annual CFA Institute European Investment Conference in Paris, he’ll be asking “Is There Life After Debt?” in a session covering asset allocation for private client portfolios.

Mr. Gardiner gained notoriety from being the first to use the phrase “Celtic Tiger” to describe the Irish economy. In a Morgan Stanley newsletter in 1994,  he used the term to draw comparisons between Ireland’s sudden economic surge and the “tiger” economies of Asia. The image resonated throughout the financial world and even made it into T.P. Dolan’s book, A Dictionary of Hiberno-English, published a decade later.

In this interview on Bloomberg Television’s “The Pulse,” Mr. Gardiner speaks with host Francine Lacqua about the current volatility in the markets and his recommended allocations for cash, bonds, and equities:

Register now to attend Mr. Gardiner’s presentation and learn more about managing private client portfolios at the Fourth Annual CFA Institute European Investment Conference in Paris.

Time Is Running out for the Early Registration Discount

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If you register by this Friday, 30 September, you can still save €150 on tickets for the Fourth Annual CFA Institute European Investment Conference in Paris!

CFA Institute members and candidates already receive a €200 discount from the listed rate of €1,200 (+ VAT), but an additional discount is being offered for a limited time to encourage delegates to register now.

Conference delegates will be able to hear from leading economists, researchers, and practitioners including Simon Johnson of MIT Sloan School of Management and Wolfgang Münchau of Financial Times.

Learn more about the conference agenda and featured speakers here on the microsite. Once you’ve seen some of the unique regional issues and global investment topics that will be addressed in Paris, you can register to attend and build rewarding relationships with other delegates and take home the latest perspectives, research, and practical solutions to European and global investment challenges.

20 September 2011

Speakers in the News: Roger Bootle

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Roger Bootle, managing director of Capital Economics and speaker at the Fourth Annual CFA Institute European Investment Conference, has called for a division of the euro in his latest column for The Telegraph.

As discussion swirls around whether or not Greece should leave or be forced out of the European Union, Mr. Bootle argues in his column that “if Greece were to leave, the greatest threat to the continuing existence of the euro would come from the possibility that a combination of default and depreciation would improve her economic performance.” He further points out that economic improvement in Greece stemming from its departure from the euro might encourage other weak European economies to disengage from the euro and go back to their own currencies.

Instead, Mr. Bootle proposes that Germany leave the euro, “along with her satellites,” to create two currencies: a northern euro and a southern euro. Mr. Bootle favors a dual currency solution because “this splitting of the euro into two would provide support for the weaker countries in that they would still be part of a currency grouping, their government debt would still be in their own currency (the euro) and they would avoid the severe legal and technical problems involved in creating a new currency.”

You can read the complete column at The Telegraph‘s website

At the Fourth Annual CFA Institute European Investment Conference, Mr. Bootle will be discussing The Trouble with Markets in a presentation that examines a number of topics, including the flaws inherent in central banks and whether a laissez-faire approach is an effective solution to financial problems.