Esma faces uphill battle to emerge as European SEC
In an interview with Investment Officer, Esma chair Verena Ross outlined her vision and the significant challenges ahead as the regulatory body aims to become Europe’s equivalent to the US SEC.
‘Euro stablecoin stands or falls with support from major banks’
A dozen major European banks have joined forces to offer a euro stablecoin to clients by the end of this year. “We have a better chance of creating a broadly supported stablecoin than fintechs,” said Floris Lugt, CFO of Qivalis, the joint venture that will issue the crypto payment instrument.
Beijing’s handshake
While the whole world was watching the Serena Hotel in Islamabad, where the ceasefire negotiations on Iran were taking place, the real news last week unfolded 6,000 kilometers away.
Chart of the week: inflation peak
I have been watching the financial markets with some amazement for the past few weeks. A US president threatening the eradication of an entire society, while equity markets remain largely unchanged. Then a fresh TACO triggers a recovery rally of several percent, even though there is nothing more than a two-week ceasefire and ongoing uncertainty. For anyone looking even slightly ahead, a clear bump appears that we will all have to get over.
Morningstar: Invesco vs First Sentier in global emerging markets equity
Emerging markets started the year strongly, but geopolitical tensions stemming from the US/Israel–Iran conflict have since tempered sentiment.
Eastern Europe outpaces the West, but investors remain absent
Eastern Europe has been growing faster than the West for years. Western European companies are benefiting from that growth through large-scale factory investments. International investors, however, have completely missed the bull market. They left after the war in Ukraine and have not returned. According to analysts at Fidelity International and Karoll Capital, it is time to come back.
Platforms are shifting power dynamics in European fund distribution
The way capital flows is changing. Alongside banks and traditional networks, digital platforms are increasingly claiming a prominent place in this chain. This shift is altering access points to markets and strengthening the role of standardized products in portfolio construction, such as ETFs.
Transfers: Apex, NBIM, Generali, L&G, HSBC, Amundi, Vistra
Our weekly update of people moves in Luxembourg and elsehwere in the world.
Governance gaps draw CSSF scrutiny
Luxembourg’s fund regulator is shifting its supervisory focus from rule-setting to enforcement, zeroing in on governance failures, operational fragility, and liquidity risks as structural vulnerabilities in the sector become harder to ignore.
The acceleration
The world was already electrifying at a rapid pace. But two developments are now pushing this process into an acceleration that would have seemed unthinkable just a few years ago.