Capital markets in the UK are the largest in the EU and are roughly twice as deep relative to the size of the economy as in the rest of the EU. But there is plenty of scope for growth and no room for complacency: UK capital markets are only half as developed as in the US, and over the past decade this gap has widened.
Most sectors of the capital markets in the EU have shrunk relative to the size of the economy over the past decade – and the gap in the depth of capital markets with the US has widened. This report highlights the urgent need for action to boost capital markets in the EU – particularly after Brexit – but shows that there is a huge growth opportunity for capital markets in Europe.
The recent attack on the City by the Labour leader Jeremy Corbyn – and the public comments by a bank chief executive on bankers’ bonuses and populism – show that 10 years on from the financial there are few signs of mistrust and anger with the industry going away. If the industry wants to bridge the gap with the rest of society it should start by talking about itself in a different way.
Well-functioning capital markets start with deep pools of long-term capital. But despite some progress in recent years, pensions assets in the EU represent just 35% of GDP and are just one quarter as developed as in the US. Strip out the UK, and pensions assets in the EU27 are just 25% of GDP. At this […]
The shadow of the financial crisis has dominated the banking and finance industry for nearly a decade. This report measures the concrete impact of the crisis on 16 sectors of the capital markets industry – from investment banks and asset managers, to exchanges, trading volumes and regulation – and highlights which sectors have suffered, which have weathered the storm, and which have flourished.
Capital markets union, the EU’s flagship initiative to boost capital markets in Europe and reduce the economy’s reliance on bank lending is three years old. This report analyses the progress so far, the impact of Brexit, and the shift in direction in CMU 2.0, (the revised version of the project that was published last month) – and suggests some more radical longer-term measures to build bigger and better capital markets in Europe.
At this breakfast Niall Bohan, head of unit – capital markets union at DG FISMA, will focus on the progress made by the capital markets union initiative since it was launched in 2014, what the priorities are for the next few years, and what direction CMU may take in light of Brexit. At the event we […]
To people who work in and around the financial industry it is self-evident that capital markets play a vital role in channelling investment into the economy to help drive growth and prosperity. But to most people outside of the industry, what capital markets do and the value of what they provide is less obvious, particularly given the shadow of the financial crisis. This report aims to address that disconnect.
Launch of ‘What have the capital markets ever done for us? And how could they do it better?’ – PR & comms
‘But apart from the sanitation, the medicine, education, wine, public order, irrigation, roads, a fresh water system, and public health – what have the Romans ever done for us?’ Monty Python – Life of Brian This event is part of a series of launch events for senior executives, policy and regulation specialists, and PR & comms, to […]
‘But apart from the sanitation, the medicine, education, wine, public order, irrigation, roads, a fresh water system, and public health – what have the Romans ever done for us?’ Monty Python – Life of Brian This event is the first in a series of launch events for senior executives, policy and regulation specialists, and PR & […]
Whatever the outcome of the negotiations over the next few years, Brexit will have a dramatic impact on capital markets in the UK and the rest of the EU. However, much of the debate in the UK has focused on the impact on the City of London and what the capital markets industry wants from […]
The challenges for financial markets – summary of a speech by Sir Jon Cunliffe, deputy governor of the Bank of England
Financial markets have grown rapidly over the past few decades boosted by globalisation and the revolution in IT. This growth has been accompanied by increased concentration, with economies of scale, lower costs and greater efficiency, creating larger clusters and financial centres. But somewhere along the way the connection between financial markets and society has been lost: rebuilding trust in banking and finance and dealing with the UK’s exit from the European Union will be the main challenges for the industry for many years to come.
What does the City want from Brexit? And what can it reasonably expect? – dinner with Lord Bridges of Headley
The City of London and the wider capital markets industry has a long shopping list of what it wants from Brexit. It is less clear on what it can reasonably expect, given the competing political imperatives in the UK and the rest of the EU. At this private dinner for senior executives and policymakers, Lord […]
Capital markets have made remarkable progress from a standing start in Central and Eastern Europe over the past 25 years. This report, published in collaboration with AFME, shows that there is a huge opportunity for further growth: deeper capital markets in the region could unlock more than €200bn in long-term capital, deliver more than €40bn a year in extra funding for companies, and help restore rapid economic growth
In the wake of the referendum the framework for UK and EU-wide financial regulation faces huge uncertainty. Andrew Bailey, chief executive of the Financial Conduct Authority, said before the referendum that he did not expect there to ‘a bonfire of regulation’ whatever the outcome. At this dinner he will outline his views on the future […]
The latest report from New Financial puts some hard numbers for the first time on where capital markets in the rest of the EU stand without the UK. While capital markets in the EU27 are significantly smaller and less developed than in the EU as a whole, the report shows that there is a huge opportunity for the economy and for the capital markets industry in developing deeper capital markets in the EU beyond Brexit.
So, Brexit it is. And as Theresa May has said, ‘Brexit means Brexit’. However, Brexit will mean very different things for different sectors of the capital markets and to different firms within those sectors. The latest event in our policy breakfast series will bring together different sectors of the capital markets to discuss how Brexit will […]
The outcome of the EU referendum campaign showed that the banking and finance industry has a long way to go in rebuilding trust with the wider public and with policymakers. This speech by our founder and managing director William Wright on ‘Making the positive case for capital markets’ at the annual dinner of the Institutional Money Market […]
The decision by the British people to leave the European Union will have a profound effect on capital markets in Europe. This short paper summarises the main challenges and questions ahead for the capital markets industry in the wake of Brexit, based on peer intelligence from events that we have hosted over the past few months and discussions with European Commission officials, senior market participants and policymakers. The main trade-offs are between access to the single market, free movement of people, and the regulatory framework.
Jonathan is head of the European Commission’s Task Force for Strategic Issues related to the UK Referendum. Having spent more than 30 years at the Commission, including being head of the financial stability and financial services division, and justice and home affairs, it’s hard to think of anyone who knows more than Jonathan about how […]
How capital markets can help drive growth in Europe – dinner with Olivier Guersent, European Commission
Since the financial crisis the European Commission has launched more than 40 significant reforms of banking and finance in Europe. As the fallout from the crisis begins to settle, the industry and the Commission are keen to reflect on the future framework of capital markets. This private dinner for senior executives from across the capital markets will […]
This breakfast workshop will discuss the PR and communications implications of the potential impact of Brexit on capital markets in Europe based on our recent report ‘The potential impact of Brexit on European capital markets‘ The report, which is based on in-depth interviews with 25 different market participants across the capital markets, shows pretty unequivocally that […]
This breakfast workshop will discuss the policy and regulatory implications of the potential impact of Brexit on capital markets in Europe based on our recent report ‘The potential impact of Brexit on European capital markets‘ The report, which is based on in-depth interviews with 25 different market participants across the capital markets, shows pretty unequivocally […]
Capital markets across Europe would be significantly disrupted if the UK votes to leave the EU in the referendum on June 23rd. This would create uncertainty, complexity and increased cost for market participants and their customers in the UK and the rest of the EU – according to our in-depth qualitative survey of the views of market participants from different sectors of the capital markets.
The EU referendum on 23 June and potential Brexit is one of the most important and politically-charged issues facing the financial services industry in the UK and Europe. This breakfast for senior PR and communications professionals will focus not on the case for Remain or for Leave, but on the communications aspects of the Brexit […]
Adair Turner became chairman of Britain’s Financial Services Authority just as the global financial crisis struck in 2008, and he played a leading role in redesigning global financial regulation. In his new book Between debt and the Devil, he sets the record straight about what really caused the crisis. It didn’t happen because banks are […]
Since the financial crisis the European Commission has launched more than 40 significant reforms of banking and finance in Europe. As the fallout from the crisis begins to settle, the industry, the Commission and the European Securities and Markets Authority are keen to reflect on the future framework of capital markets. This private dinner for senior […]
Capital markets union is one of the flagship projects for the European Commission. It aims to identify and reduce the barriers in Europe that are holding capital markets back. Specifically, it aims to increase the range and flow of funding to companies and infrastructure projects that need capital, to widen the range of opportunities for […]
Debate: this house believes that tax relief on debt is a dangerous flaw at the heart of the world economy
Tax relief on debt is an anachronism that distorts management and investment behaviour, increase financial instability, and helps fuel inequality. This is an edited version of a speech given by William Wright, managing director and founder of New Financial, as part of a debate held at the Capital Structure Forum organised by Private Debt Investor. The motion is taken from the cover of The Economist in May 2015.
Over the past few years, changes in regulation, market dynamics and behaviour mean that while individual investors with significant assets to invest face an embarrassment of riches when it comes to advice on how to invest their wealth, an ‘advice gap’ has opened up for savers without significant wealth to invest. In August the Treasury […]