Norway wealth fund urges EU to unify capital markets quicker
The fund urged the bloc's executive to harmonise withholding-tax rules, lower settlement costs and create a better digital infrastructure. — Bloomberg
OSLO: Norway's sovereign wealth fund, the world's largest, is calling on the European Union (EU) to accelerate efforts to unify its capital markets.
It's sent a 14-page letter to the European Commission on Tuesday in response to a consultation on streamlining the union's financial systems.
The fund urged the bloc's executive to harmonise withholding-tax rules, lower settlement costs and create a better digital infrastructure.
Norway's US$1.9 trillion wealth fund is the biggest single owner of stocks in the world, with about 1.5% of global stocks.
It's also the largest owner of European stocks and securities, according to the letter seen by Bloomberg. The Financial Times reported the news earlier.
'We share the concern that European markets over time have fallen behind in terms of business dynamism and the provision of new investment opportunities to institutional investors,' said the fund, known as Norges Bank Investment Management (NBIM).
At the end of 2024, NBIM held €285bil (US$325bil) in securities issued by EU member states and European corporates, according to the letter.
Its response is part of an EU consultation on the establishment of a Savings and Investments Union framework.
The EU should centralise supervision of capital markets to ensure all member states apply rules consistently as the current patchwork of national regulators fosters regulatory arbitrage and legal uncertainty, the fund said.
'Better and simpler regulation is key to facilitate capital market evolution,' the fund said. — Bloomberg
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
an hour ago
- New Straits Times
Oil surges, stocks fall on Middle East fears as Israel strikes Iran
HONG KONG: Oil prices soared and stocks sank Friday after Israel launched "preemptive" strikes on Iran's nuclear and military sites and warned of more to come, stoking fears of a full-blown war. Investors ran for the hills on news of the attacks and a warning that retaliatory action from Tehran was possible, after US President Donald Trump said a "massive conflict" in the region was possible. While Tel Aviv said it had struck military and nuclear targets Iran said residential buildings had been hit. Israeli Prime Minister Benjamin Netanyahu said in a video statement: "This operation will continue for as many days as it takes to remove this threat. "We struck at the heart of Iran's nuclear enrichment programme. We targeted Iran's main enrichment facility at Natanz. We also struck at the heart of Iran's ballistic missile programme," he added. Iranian nuclear scientists "working on the Iranian bomb" had also been hit, he said. Israeli Defence Minister Israel Katz cautioned that "a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future." Trump had previously warned that an attack could be on the cards, telling reporters at the White House: "I don't want to say imminent, but it looks like it's something that could very well happen." The US leader said he believed a "pretty good" deal on Iran's nuclear programme was "fairly close", but that an Israeli strike on the country could wreck the chances of an agreement. A US official said there had been no US involvement in the operation. Still there are worries the United States could be sucked into the crisis after Iran threatened this week to target US military bases in the region if a regional conflict broke out. Both main oil contracts, which had rallied earlier in the week on rising tensions, spiked more than eight percent amid fears about supplies of the commodity. The rush from risk assets to safe havens saw equity markets across Asia tumble and bonds rally with gold. US and European equity futures were deep in the red. "The Middle East powder keg just blew the lid off global markets," said Stephen Innes at SPI Asset Management. "Equity futures are plummeting. Bond yields are sinking. Gold and oil are skyrocketing," he added. "Brent crude futures are racing toward the mid-US$70s range – but if the Strait of Hormuz, which accounts for 20 per cent of global oil flows, finds itself in the blast radius, you can add another US$15 to the bid. "If Iran holds back, we get a relief bounce. But if missiles start raining down on Tel Aviv or Tehran retaliates with real teeth, we're staring down a scenario that could redefine the macro narrative for the rest of 2025." Banking giant JPMorgan Chase had warned just this week that prices could top US$130 if the worst-case scenario developed. Market sentiment had already been low after Trump sounded his trade war klaxon again by saying he would be sending letters within the next two weeks to other countries' governments to announce unilateral levies on their exports to the United States. The "take it or leave it" deal spurred fears he would reimpose the eye-watering tolls announced on April 2 that tanked markets before he announced a 90-day pause. West Texas Intermediate: UP 8.6 per cent at US$73.86 per barrel Brent North Sea Crude: UP 8.2 per cent US$75.03 per barrel Tokyo - Nikkei 225: DOWN 1.5 per cent at 37,606.72 Hong Kong - Hang Seng Index: DOWN 0.3 per cent at 23,959.81 Shanghai - Composite: DOWN 0.2 per cent at 3,39748 Dollar/yen: DOWN at 143.18 yen from 143.56 yen on Thursday Euro/dollar: DOWN at US$1.1543 from US$1.1583 Pound/dollar: DOWN at US$1.3557 from US$1.3605 Euro/pound: UP at 85.12 pence from 85.11 pence New York - Dow: UP 0.2 per cent at 42,967.62 (close)
The Star
4 hours ago
- The Star
As global tumult grows, UK Plc's stability, bargains appeal to dealmakers
MORE than US$10bil in bids for British companies announced on Monday, this year's busiest day according to Dealogic data, shows how low valuations and the market's relative stability were attracting rivals and funds after a volatility-induced pause. Companies may also be using the opportunity to enter the United Kingdom market before potential further weakening of the dollar or strengthening of the pound made future transactions more expensive, analysts said. Takeover offers Among those to announce takeover offers for UK firms on Monday were US chipmaker Qualcomm, private equity firm Advent, and France's L'Oreal. While US President Donald Trump's announcement of sweeping tariffs and the resulting volatility hampered dealmaking for weeks, some companies are now finding the right conditions to agree on transactions. Niccolo de Masi, CEO of Maryland-based IonQ, which on Monday announced a US$1.08bil acquisition of British quantum computing firm Oxford Ionics, said that in addition to Britain's talent pool, the geopolitical backdrop made the deal more compelling as governments want more 'sovereign quantum networks,' he said. 'People want things on-premise and they want things to be local,' de Masi told Reuters. So far this year, there have already been 30 bids for UK companies valued at more than £100mil (US$135mil), compared with 26 over the same period of last year and 45 for the whole of 2024, according to Peel Hunt. Compelling deals The total value of £24bil of deals announced to date compared with £36bil in the year-ago period, which was skewed by a few large deals, such as International Paper's US$7.1bil bid for D.S Smith. Years of outflows from UK equities that depressed valuations for British companies compared with their competitors listed on other European or US exchanges, have played a role in making them more attractive as acquisition targets. For example, the discount between the FTSE 100 and the US S&P 500 benchmarks peaked at about 49.5% in January and is about 41% now. 'Management teams have been happier to accept bids because sometimes that is an easier way to crystallise the valuations and as equity markets have been so challenging for so long,' said Amanda Yeaman, the co-manager of the abrdn UK Smaller Companies Fund and the abrdn UK Smaller Companies Growth Trust plc. Moreover, bidders are being drawn to a relatively stable UK economic and political backdrop. 'We now have an improving economic environment in the United Kingdom, and the regulatory position is much more predictable,' said Charles Hall, head of research at Peel Hunt. Less risky 'Buying a UK company at the moment is likely to be less risky than, say, buying a US business.' The trade deals that Britain has pursued also show the country is 'open for business,' Yeaman said. And with no general election due soon, Britain promises political stability. 'Our markets really like stability and for the next four years, that is something that we have, which is less predictable in other geographies,' she said. Analysts also say the pound's strength does not seem to act as a deterrent. 'Particularly global investors, US investors are thinking, let's grab as much as we can before things get more expensive and currency tailwinds are still there,' said Magesh Kumar, equity strategist at Barclays. This year's largest bids so far were all announced this week, with Advent offering £3.7bil for scientific instruments maker Spectris and Qualcomm's £1.8bil bid for Alphawave, and some advisers expect many more to come. Erik O'Connor, partner at Clifford Chance, said that while economic uncertainties could weigh on the merger and acquisition market, factors such as more predictable outlook for interest rates and UK companies' improved balance sheets should encourage dealmaking. 'There's a sense that key fundamentals are in the right place to transact,' O'Connor said, pointing to technology and real estate, the busiest sectors so far this year according to Dealogic, as those less susceptible to recent market volatility. 'I would not be surprised if we continue at a similar pace,' he said. — Reuters Amy-Jo Crowley, Yadarisa Shabong and Purvi Agarwal write for Reuters. The views expressed here are the writers' own.
New Straits Times
5 hours ago
- New Straits Times
Tottenham hire Brentford's Frank as new manager
LONDON: Tottenham hired Brentford's Thomas Frank as their new manager on Thursday as the Dane replaced the sacked Ange Postecoglou. Frank agreed a three-year contract with Tottenham and becomes the north London club's fourth permanent boss since June 2021. "We are delighted to announce the appointment of Thomas Frank as our new head coach on a contract that runs until 2028," a Tottenham statement said. "In Thomas we are appointing one of the most progressive and innovative head coaches within the game. "He has a proven track record in player and squad development and we look forward to him leading the team as we prepare for the season ahead." Tottenham set their sights on Frank after chairman Daniel Levy axed Postecoglou last week, just 16 days after he won the Europa League final against Manchester United to end the club's 17-year trophy drought. Frank is the 14th permanent manager of Levy's 24-year tenure. Levy made an official approach to Brentford earlier this week, with the deal concluded after Tottenham agreed to allow the Dane to hire his Bees assistant coach Justin Cochrane. Frank's Brentford contract was set to run until 2027, with a reported release clause of about £10 million ($13.6 million). The 51-year-old led Brentford back to the top flight in 2021 after an absence of 74 years and has established the west London club in the Premier League. Now he will be tasked with lifting Tottenham back among the Premier League's elite. Tottenham will play in the Champions League next season thanks to their Europa League success in Bilbao, where they beat Manchester United 1-0. Tottenham's first European trophy for 41 years delivered on Postecoglou's boast that he always wins silverware in his second season. However, the Australian paid the price for a miserable Premier League season as Tottenham finished 17th after losing 22 of their 38 games. Tottenham finished seven places and 18 points below Frank's Brentford. While Postecoglou was criticised for an overly-attacking game-plan for much of his two-season reign, Frank has been credited with a tactically flexible approach and a deft man-management style. Frank will also bring head of performance Chris Haslam and first-team analyst Joe Newton with him from Brentford, while another assistant coach, Andreas Georgson, arrives from Manchester United. Georgson spent a year at Brentford as a set-piece coach, while Tottenham's technical director Johan Lange worked with Frank at Lyngby in Denmark. Brentford director of football Phil Giles saluted Frank's role in his club's remarkable rise. "From the moment he replaced Dean Smith, he understood what we were trying to build and his wisdom, coaching ability and emotional intelligence have helped transform the club," Giles said. "But it's not just what you see on the pitch. He forged a special connection with our fans, helped develop and improve players, and was instrumental in implementing the culture that has seen Brentford go from strength to strength." Frank began his coaching career in the youth set-up of the Danish national team before a three-year stint at Brondby. He initially joined Brentford as an assistant coach before stepping to replace Dean Smith seven years ago. After losing out in the 2020 Championship play-off final, Brentford bounced back to win promotion through the play-offs a year later. Since then, the Bees have finished 13th, ninth, 16th and 10th despite consistently selling some of their best players. Ipswich boss Kieran McKenna is the bookmakers' favourite to replace Frank at Brentford. Frank will manage Tottenham for the first time competitively on August 13 in the UEFA Super Cup against Champions League winners Paris Saint-Germain. - AFP
