Natixis analyses economic policies and the future of the dollar on FTSE Global Markets

Over the past week, Natixis’ chief economist, Patrick Artus, posted three blogs on FTSE Global Markets.

The first, “For how long will the United States be able to prevent the dollar from rising” questions what limit the Federal Reserve will set on liquidity creation. This is in light of the dollar possibly appreciating as the US becomes increasingly attractive to investors – thanks to its reindustrialisation, growing energy independence and shrinking external deficit.

The following post saw Artus ask “Can monetary policy replace federalism?” in which he considered the two and applied them to the euro zone, arguing that although federalism will be incredibly difficult to implement in the currency area, the ECB’s monetary policies can only ever be a temporary substitute for it.

And finally, the argument that “Long-term policies give European countries more resilience” was evaluated in his most recent post. Artus compares the policies of those European countries that have best weathered the euro zone crisis to those that continue to suffer from its effects – in correlation to three characteristics: fiscal policy, labour markets, and sophistication of the economy.

Collaboration is needed in trade finance, says BNY Mellon

By increasing bank-corporate communication – on a local and global level – banks can become more responsive and pre-emptive to corporate concerns, writes Mauro Bonacina, EMEA sales officer, BNY Mellon Treasury Services, in a blog for Trade and Forfaiting Review. Such an approach, he says, is needed in today’s post-crisis environment, where limitations on sourcing working capital finance continues to become evident.

To read the full article, please click here

BNY Mellon provides opinion for FX-MM country focus

In this month’s FX-MM country focus on the United Arab Emirates, BNY Mellon’s Mark Fenner, Head of EMEA Developing Markets, shares his views on the region’s future growth, and in particular, how it is faring as the effects of the global financial crisis continue to impact markets.

To read the full article, please click here (please note, free log-in to FX-MM is required to view the full article)


PensionsFirst Capital: Why transparency is key to getting the right longevity swap deal

Life expectancy has increased considerably over the past 50 years in the western world, driving up pension scheme liability valuations as more members are expected to live further and further into their 90s and beyond. And because the financial health of so many of the UK’s large public companies is intrinsically linked to their DB pension schemes, many treasurers and finance directors are rightly convinced that improvements in mortality rates spell a real threat to their company’s financial survival. Against this backdrop, it is clear why the management of longevity risk has now become an issue of good corporate governance and why schemes are interested in hedging the risk in the nascent longevity swap market. But given the long-term nature of the risk, how can treasurers evaluate, and then justify to board-level executives, the value of such a longevity swap? Writing for gtnews, Hugo James, CEO of PensionsFirst Capital suggests that the onus is not only on pension schemes to seek more sophistication in their risk valuation processes, but also on the swap providers to provide complete transparency around the potential transactions.

To read the full article please click here


November Bracken column: Natixis looks at the UK’s Funding for Lending scheme

In light of the recent introduction of the Bank of England’s Funding for Lending scheme, Anthony Whittaker, Natixis’ head of UK and Australasian bank asset and liability management and origination, was featured in this month’s The Banker to provide his view on the incentive. In the op-ed column, he discusses its unintended side-effects, how it changes the way banks are planning their mid- to long-term funding strategies, and in particular, how it could hit the wholesale bank funding markets.

Please click here to read the full article

BNY Mellon looks at communication and social technology: emeafinance

In his regular ‘Making the Connection’ column for EMEA finance, Peter Hazou, BNY Mellon’s Head of Market Development for Treasury Services, approaches another BNY Mellon team member to gauge their expert opinion on a particular industry trend.

For the August/September edition, Hazou chose Mauro Bonacina, EMEA Sales Officer, to discuss the benefits of increased communication between banks and corporates – and in particular, how collaboration can quell corporate concerns over trade and working capital finance in today’s volatile financial environment

To read the full article, please click here

For the next edition (October/November), the topic of social technology in the workplace was raised. Team member Marc Librizzi, CIO for EMEA, discusses how such innovation can (positively) change the way we work.

To read the full article, please click here

(please note, these links lie behind a paywall)

Natixis explores the end of the euro

In his latest FTSE Global Markets blog, Natixis’ chief economist Patrick Artus explores the notion of scrapping the euro, pointing out that the consequences would be so enormous – in terms of financial, economic and political costs – that the most likely scenario is the euro’s long-term survival. However, the current situation, where the euro no longer provides many of the advantages it was expected to, cannot continue. New approaches and macroeconomic adjustments are needed, particularly if we are to prevent a country from one day being forced to accept the costs of a euro break-up.

To read the full article, please click here

S&P discusses what factors will affect how hard utilities are hit by Europe’s strict limits on carbon emissions

Following on from Moorgate’s news release last week, Michael Wilkins, Managing Director for Infrastructure Finance Ratings at Standard & Poor’s, writes for Infrastructure Journal that the impact on credit quality associated with carbon exposure will vary markedly between high and low emitters of CO2. Where utilities fall along this continuum will depend on, among other things, the auction price of EUAs, world events affecting energy supply and policy, individual countries policies on emissions, and companies’ own current energy mix and dependence on different fuels.

To read the article in full, please click here

News announcement for Natixis infra debt distribution deal with Ageas

Following the signing of Natixis’ joint venture agreement with Ageas – a deal that sees the insurance company agree to invest in all future infrastructure loans arranged by Natixis – we ensured the news was carried by all the relevant specialist infrastructure and project finance publications in the UK. News coverage resulted in Infrastructure Journal, Infra News, PPP Bulletin, Project Finance International, Project Finance and Inspiritia.

Due to the innovative nature of this distribution arrangement, we will be undertaking a specific campaign to support Natixis in its efforts to replicate it in the UK. Further interviews, including one already undertaken with Partnerships Bulletin magazine, will support the campaign. The Partnerships Bulletin article, published in the November edition, concludes that ultimately it will be lenders’ appetite for infrastructure debt that will dictate how future infrastructure projects are funded. Following the Ageas agreement, Natixis is described as one of the few banks that is showing ‘the way forward’ and ‘getting their heads together and coming up with solutions to the funding crisis’.

To read the Partnerships Bulletin article, please click here