Beitrag von Hubertus Väth

Es war wichtig diese Finanzierungskonferenz in Frankfurt abzuhalten. Nur so kann sich der Finanzplatz als der Ort an dem die Finanzierung der Transformation gestemmt wird positionieren. Unser Dank gilt dem Bundesministerium für Wirtschaft und Klimaschutz, der KfW, der Deutschen Bank AG und den zahlreichen Gästen aus dem IN- und Ausland!

Frankfurt Main Finance travelled to the UK just ahead of the election to gain a better understanding of what to expect. The changes will be profound but unspectacular. The election led to a massive shift in power with very few additional votes needed. Labour won 33.9% of the vote, a gain of just 1.9%. However, it secured 411 seats (a gain of 213). In a parliament of 650 seats, this constitutes a very strong majority. The Europe friendly Liberal Democrats won with just 12.2% ( 0.4%) of the votes a total of 71 seats ( 63). With a shift as small as that, we see a significant shift in power. Reform UK, led by arch-Brexiteer Nigel Farage, won 14.3% of the votes but only 4 seats. Nevertheless, he was decisive in the battering of the Conservatives, who garnered 23.7% of the votes (a loss of 19.7%) and 119 seats (a loss of 250 seats). This raises the question: What can we expect? Less volatility, more predictability! Post-Brexit, we witnessed several tumultuous changes in the direction of the UK. We are now in for a period of much warranted stability. Anticipate a much more friendly and pragmatic relationship with Brussels and the governments on the continent. Expect improved trading, but not a customs union. Priority will be on easier import of agricultural produce as food inflation is politically contentious. The market reacted calmly and little changed. Any revision of Brexit is far off and earliest possible in one or two legislative periods after. Expect more investment in health and infrastructure, financed through some targeted tax hikes, some of which will impact the City (non-domiciled residents are expected to lose tax privileges). The City will only be mildly affected. Gerhard Wiesheu, Lord Jonathan Hill, Miguel Berger, Katharine Braddick, Miles Celic

Happy Founding Day, #AMLA! 🇩🇪 Wir freuen uns, die EU-Behörde zur Geldwäschebekämpfung bald am Finanzplatz #Frankfurt begrüßen zu dürfen. Die Ansiedlung der AMLA stärkt den Finanzplatz und wird ihn zum Magneten für AFC und Big Data Experten machen. Wir rechnen bereits im ersten Hochlauf mit 400 direkten neuen Arbeitsplätze sowie potenziell weiteren 2.400 Arbeitsplätzen in den unterstützenden Funktionen. 🇬🇧 We welcome the EU Anti-Money Laundering Authority in Frankfurt. Pay attention to all AFC and Big Data experts: the establishment of AMLA will make Frankfurt a magnet for professionals in your fields. In the initial phase, we expect to 400 direct new and potentially another 2,400 supporting roles. https://lnkd.in/eY3_TPPP

Insights from the 15th Lujiazui Forum in #Shanghai 🌏 I had the honour of moderating a panel discussion at the Lujiazui Forum 2024, held on June 19-20. This year's theme, "Promoting World Economic Growth with High-quality Financial Development," brought together global leaders to address economic challenges and explore innovative solutions. The forum emphasized sustainable, inclusive financial systems, focusing on digital transformation and low-carbon development to drive future growth amid global inflation and economic uncertainties. Our session on institutional innovation and green finance incentives highlighted strategies for achieving carbon neutrality, enhancing China's #greenfinance ecosystem, and improving the efficiency of its carbon market, with a focus on fostering cooperation with Europe. The distinguished panel featured: • Tu Guangshao, Chairman of the Executive Council of Shanghai Finance Institute • Krishna Srinivasan, Director of the Asia and Pacific Department of the International Monetary Fund • Ma Jianyang, Chairman of Shanghai Clearing House • Dr. Thomas Schindler, CFO of Allianz Global Investors • Zhu Jian, Chairman of Guotai Junan Securities Co., Ltd • Phil Brown, CEO of Clearstream Banking S.A. • Roland Boehm, Divisional Board Member at Commerzbank AG #Frankfurt and Shanghai are linked by a strong partnership, solidified by a Memorandum of Understanding in 2021, promoting financial excellence and sustainable development. China's goals of carbon peaking by 2030 and neutrality by 2060, along with Germany's targets to cut emissions by 2045 to zero, underscore the need for innovative mechanisms and market incentives to fund these projects. The panel highlighted the importance of institutional innovation and market incentives in advancing green finance. We discussed enhancing #ESG investment ecosystems, learning from European experiences, and encouraging commercial institutions to innovate in green financial products. The #LujiazuiForum remains a crucial platform for dialogue, driving solutions for global economic growth. Thanks to the organizers for a thought-provoking event and to all the panellists for their contributions. Looking forward to seeing the positive impacts of these discussions unfold.

Is #China a good place to invest? That was one of the questions I was asked during my interview with China News Service 中国新闻社 at the Shanghai Lujiazui Forum 2024. My answer? You cannot afford not to invest in China. It is a must. Another key topic was the cooperation between Frankfurt Main Finance and Shanghai Lujiazui Financial City. Since the signing of the Memorandum of Understanding in 2021, both financial centres have focused on green finance matters. #SustainableFinance is at the core of our partnership: There's only one planet, and it's great that both our governments really focus on sustainability and are both using finance tools such as carbon trading to further the path to Net-Zero. As I‘ve been traveling to Shanghai for over 30 years, I said: „It feels great to be back in Shanghai and to see the rapid recovery post lockdown.“ https://lnkd.in/g9E_fCe5

The Lujiazui Forum 2024 is promoting world economic growth through high-quality financial development. Here are some key insights from the opening ceremony and the first plenary session: Mr CHEN Jining, Secretary of the CPC Shanghai Committee, stresses the ambitious goals for the financial industry in technology and trade. Mrs Kristalina Georgieva, Managing Director of the International Monetary Fund, opens the IMF Shanghai regional centre. Mr WU Qing, Chairman of China Securities Regulatory Commission, wants to support capital markets and enhance investor protection. Mr GONG Zheng, Mayor of Shanghai, wants to make Shanghai an international financial centre and highlights the new top ranking of Shanghai as a scientific cluster. Mr PAN Gongsheng, Governor of the the People’s Bank of China, stresses that monetary police will remain supportive. Monetary supplying is growing at 8.4 % in May. Mr LI Yunze, Minister of National Financial Regulatory Administration, stresses the importance of the insurance industry. Mr ZHU Hexin, Deputy Governor of the People’s Bank of China and Administrator of the State Administration of Foreign Exchange, praised Shanghai for its pioneering reforms. The average growth rate of foreign holdings of Chinese banks is more than 9 %, is more than 1,000 institutions being active.

The bi-annual meeting between TheCityUK and Frankfurt Main Finance took place under Chatham House rules. Here are some insights without sources: The UK election on July 4th is expected to lead to a Labour landslide, contrasting with the European elections. The Labour Party Manifesto 2024: https://lnkd.in/e5bPbVZx has just been published. What to expect? How close will Labour be to Brussels? 1. On Policy: Don't expect “Rejoin”. The goal is predictability, rebuilding trust after surprises from previous administrations. A new Customs union isn’t guaranteed; rather, a good working relationship and reduced food prices are priorities. 2. On mutual relationship: With a potential Trump II presidency, European defense will be crucial. 3. On Regulation: No race to the bottom is anticipated. 4. On Emission Trading: The UK and EU are likely to stay close or even getting closer. 5. On Investment: A major investment conference in Autumn aims to highlight the UK's renewed predictability for long-term investments. 6. On Decentralization: Empowering local leaders to drive investments after planning law eases. European Parliament Election results: 1. European Parliament elections are traditionally not strong predictors for national elections. 2. Increased Voter Turnout: In 2024, turnout rose to 56%, reflecting growing engagement, especially among young voters. 3. Resurgent right: Identity and Democracy gained seats, with Eurosceptic and nationalist parties rising in France and Austria. Concerns include a potential combined AFD and BSW governance in Eastern German states, with state elections in Brandenburg, Saxony, and Thuringia in September. 4. The Centre holds: Despite challenges from right-wing populists, centrist parties still hold over 60% of the seats. 5. Impact on EU Policies: The new parliament is expected to make competitiveness the top priority, followed by resilience and a revised migration policy. Sustainability will remain a priority as well. Lastly, we discussed the Letta Report, recommended reading: https://lnkd.in/eWB33Hyp and Bundesbank's related press release: https://lnkd.in/eE4ynaCh. Key points: • EU’s share of global market capitalization: 11%; US: 45% • Investments in stocks: EU: 21%; US: 31% • Cash holdings: EU: 31%; US: 13% • Number of stock markets: EU: 41; US: 16 • Number of clearers: EU: 18; US: 1 • Size of investment funds EU/US: 1/6 This disparity, worsened post-2008, is due to lower financial literacy, higher costs from fragmentation, and less dynamism and investment due to capital costs. The different paths of regulation have contributed. Embracing risk and capital investment is essential for progress. My call to decision-makers: When in a hole, stop digging.

Insights from the Sustainability Standards Conference by IFRS Foundation at Goethe-Universität Frankfurt 💡 The conference gathered finance and sustainability leaders to discuss a global baseline for sustainability reporting. Prof. Dr. Ralph Alexander Lorz, Minister of Finance of Hesse, opened the event, stressing the need for standardized reporting. Emmanuel Faber, Chairman of the ISSB which has its seat of the board based in Frankfurt, highlighted progress, including the integration of SASB Standards into the ISSB framework and their potential interoperability with EFRAG. He noted China's adoption of the International Sustainability Standards Board (ISSB) baseline, marking a step towards global acceptance. In the first panel, Faber, Dr. Ingrid Hengster from Barclays, and Stephan Leithner from Deutsche Börse, moderated by Veronika Pountcheva of ISSB, discussed the market-driven nature of ISSB’s work, stakeholder engagement, and the role of sustainability in business decision-making. They emphasized that better information leads to better decisions and highlighted the dangers of fragmented ESG standards. The second panel focused on achieving global comparability in sustainability reporting, featuring Prof. Dr. Tobias Berg, Jenny Bofinger-Schuster from ISSB, Prof. Dr. Kerstin Lopatta from EFRAG, Lushendren Pather from the Bank for International Settlements – BIS, and Dr. Gerald Podobnik from Deutsche Bank. They discussed interoperability, integrating climate into risk frameworks, and developing biodiversity metrics. Podobnik noted the benefits of a global baseline, while Bofinger-Schuster highlighted the ISSB’s launch at COP 26 as pivotal. Other panellists included: Prof. Stefan Reichelstein (Universität Mannheim), Ndidi, Dr Nnoli-Edozien (ISSB), Dr. Michael Verbücheln (Value Balancing Alliance), Prof. Dr. Alexander Wagner (Universität Zürich), Prof. Dr. Katrin Böhning-Gaese (Senkenberg Research Centre), Michael Schmidt, CFA (DVFA e. V.), Gülşah Günay (KGK Group), Prof. Loriana Pelizzon (Leibniz-Institut für Finanzmarktforschung SAFE), Nadja Picard (PwC), Adam Pradela (DHL), Prof. Dr. Axel Weber (CFS), and Irene Heemskerk (Europäische Zentralbank), Patrick Hoedjes (EIOPA). The conference highlighted significant achievements and ongoing efforts in sustainability reporting, underscoring the ISSB’s role in driving global standards. Thanks to the organizers for a thought-provoking event!