Investing

The European Parliament in Strasbourg on Wednesday (15 February) adopted the eagerly anticipated upgrade of the EU regulation for long-term investment funds, a package known as Eltif 2.0. An overwhelming majority of 492 members, or 70 percent, voted in favour.

LPeC, an international association for listed private capital, has become part of Invest Europe, the Brussels-based trade association for the European private equity, venture capital and infrastructure sectors. LPeC will continue as Invest Europe’s Listed Private Capital Roundtable.

The US economy created more than half a million jobs in January. That was almost three (!) times more than expected. Most importantly, such a job growth figure does not fit with a coming recession, but neither does it fit with a much hoped-for soft landing. On the contrary.

It indicates that the US labour market is still glowing even after 450 basis points of tightening.

The European Securities and Markets Authority, the EU’s financial markets regulator and supervisor known as Esma, on Thursday warned investors that they should prepare for further market corrections, given a “confluence of high risks”. 

As the European Parliament, during this month’s plenary session in Strasbourg, debated the proposed changes to the EU’s regulation for long-term investment funds, a plan also known as Eltif 2.0, Luxembourg was discussing a “lighter” special tax regime for this new type of fund that can target investors in 30 European countries under a single passport.

Stocks have continued their rebound into 2023, delivering one of the best openings to a calendar year since January 2000. Morgan Stanley however believes the gains are just another bear market bounce. 

The inverted yield curve in the US, the curious outperformance of gold, and falling demand for oil in the US are three factors that warrant particular attention, Lisa Shalett, Morgan Stanley’s chief investment officer , told investors this week.

As an international financial hub, Luxembourg is seen as well positioned to play a key role in talks about strengthening and financing the recovery of Ukraine’s economy once the war is over. A Luxembourg roundtable, scheduled for 22 February, will discuss Luxembourg’s potential role and seeks to create a number of expert-based working groups.  (Free to read)

Private markets, in particular those for digital infrastructure investments, continue to appeal to European institutional investors, according to a global survey among 480 institutional investors presented on Tuesday by State Street. The survey also shows that European investors are a bit more reluctant than others to invest in private equity.

Luxembourg stock exchange listed private equity firm Luxempart on Monday said it entered into an investment agreement that will give it a stake of approximately 26 percent in Kestrel Vision for about 110 million euros.

Global financial markets are entering a riskier phase where some corporate earnings could disappoint while opportunities remain in China, emerging markets and investment grade bonds, Europe’s biggest asset manager Amundi said.

In their February note to investors, Amundi’s group chief investment officer Vincent Mortier and deputy group CIO Matteo Germano spoke of a subdued earnings and economic backdrop that calls for a cautious, well-diversified approach.