Latest news with #MateosyLago
Hamilton Spectator
9 hours ago
- Business
- Hamilton Spectator
Canada could gain as global investors rethink U.S. emphasis: BNP economist
TORONTO - Canada stands to gain as global investors rethink their focus on the United States, the chief economist at one of Europe's largest banks says. BNP Paribas chief economist Isabelle Mateos y Lago said in an interview that the volatility in the U.S. is making investors regain an appreciation of the value of stable returns and predictability, even if it means giving up some of the outsized gains it has offered in recent years. 'The general situation is every investor on the face of the planet has been very overweight (the) U.S. economy, and is now going through a thought process of thinking, maybe I shouldn't be so overweight the U.S. economy, and I need to diversify and find alternatives,' she said. 'So every other geography is going through a bit of a beauty contest right now in the eyes of global investors, and has an opportunity to shine, and I think Canada is one of those.' Mateos y Lago, who was in Toronto this week visiting clients, said Canada's recent election helps give the country some momentum, while efforts to address structural barriers like internal trade will also help growth. 'It's a moment of opportunity and so I would be shocked if Canada didn't benefit from it.' The effects of investors shifting away from the U.S. can already be seen in Canada's main stock index, as the S&P/TSX composite hit record highs this week. Mateos y Lago, who was chief markets strategist at U.S. investment manager BlackRock before taking the top economist job at BNP last year, said the focus on the U.S. in recent years has also meant other markets are relatively cheap, helping make them opportunities worth looking at. European countries are looking to Canada as a source of trade diversification, just as Canada is looking across the Atlantic. Geography does present challenges, but otherwise there's much going for increased ties including language, culture and regulations, she said. 'There are obvious complementarities, and things that should make this easier than with some other potential trade counterparts,' said Mateos y Lago. 'There's a renewed momentum on both sides to try and diversify from the U.S. market, and so this mutual interest, I'm sure the talks will be fruitful.' While Canada already has free trade deals in place with Europe, along with many other partners, Mateos y Lago said there's room to be more ambitious by further reducing tariffs and trade barriers between partners. Prime Minister Mark Carney will have an opportunity to talk directly with his European counterparts as G7 leaders, which include France, Germany, Italy and the United Kingdom along with Japan and the U.S., are set to meet next week in Alberta. As chair of the G7 this year, Canada has an important role to play in trying to save and preserve the rules-based global order that has benefited so many, said Mateos y Lago. 'Canada is one of the countries that can help emphasize the interests that all the key economies have in common, and keep working together and trying to safeguard as much of the existing system of rules as can be because that will be to the benefit of all,' she said. 'The more we see that there is common ground still across all the members of the G7, and maybe on some issues with the broader invited guests, I think the more that will be a sign to economic agents everywhere that it's OK, that the house is still standing.' This report by The Canadian Press was first published June 12, 2025.
Winnipeg Free Press
15 hours ago
- Business
- Winnipeg Free Press
Canada could gain as global investors rethink U.S. emphasis: BNP economist
TORONTO – The chief economist at one of Europe's largest banks says Canada stands to gain as global investors rethink their focus on the United States. BNP Paribas chief economist Isabelle Mateos y Lago says the volatility in the U.S. is making investors regain an appreciation of the value of stable returns and predictability, even if it means giving up some outsized gains. She says countries around the world are now in a sort of beauty contest as they market themselves to investors looking to diversify from the U.S., and she would be shocked if Canada doesn't benefit. Mateos y Lago, who was chief markets strategist at U.S. investment manager BlackRock before moving over to BNP last year, says the recent Canadian election also helps create momentum and that long-overdue structural reforms will also boost interest. While Canada already has many free trade deals in place, she says there is room to improve them by further lowering barriers as a way to help the country expand its scale and markets. Monday Mornings The latest local business news and a lookahead to the coming week. Mateos y Lago says Canada also has an important role as chair of the G7, which meets in Alberta next week, by doing what it can to save and preserve as much of the existing international rules and order that have benefited so many. This report by The Canadian Press was first published June 12, 2025.
Yahoo
16 hours ago
- Business
- Yahoo
Canada could gain as global investors rethink U.S. emphasis: BNP economist
TORONTO — The chief economist at one of Europe's largest banks says Canada stands to gain as global investors rethink their focus on the United States. BNP Paribas chief economist Isabelle Mateos y Lago says the volatility in the U.S. is making investors regain an appreciation of the value of stable returns and predictability, even if it means giving up some outsized gains. She says countries around the world are now in a sort of beauty contest as they market themselves to investors looking to diversify from the U.S., and she would be shocked if Canada doesn't benefit. Mateos y Lago, who was chief markets strategist at U.S. investment manager BlackRock before moving over to BNP last year, says the recent Canadian election also helps create momentum and that long-overdue structural reforms will also boost interest. While Canada already has many free trade deals in place, she says there is room to improve them by further lowering barriers as a way to help the country expand its scale and markets. Mateos y Lago says Canada also has an important role as chair of the G7, which meets in Alberta next week, by doing what it can to save and preserve as much of the existing international rules and order that have benefited so many. This report by The Canadian Press was first published June 12, 2025. The Canadian Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
27-04-2025
- Business
- CNBC
European deregulation push creates 'moment of opportunity' to boost growth
Spurring European deregulation and economic growth was a powerful theme that emerged as an answer to challenges raised by the U.S. tariff campaign and questions about American "exceptionalism" at the International Monetary Fund's annual spring meeting in Washington last week. European officials pointed to the idea of regulatory "simplification" as a way to boost business after years of sclerotic growth. "We have gone too far in regulating the risk, and we've forgotten about regulating the growth," Rachel Reeves, the U.K. Chancellor of the Exchequer, said during a panel discussion moderated by CNBC's Sara Eisen on Thursday. At the same forum, German Finance Minister Jorg Kukies highlighted the need to lower "duplicative and multiplicative" regulations on companies. "We do have to also encourage and grow and make more prosperous the venture capital investing scheme in Germany, in the European Union," Kukies said. Britain and Germany are Europe's two largest economies. Sentiment shift The views from London and Berlin are part of a notable sentiment shift throughout Europe, long plagued by slower growing economies and stock markets that until recently have lagged the U.S. ever since the Global Financial Crisis. Over the past few months, European Commission President Ursula Von der Leyen and former European Central Bank President Mario Draghi each raised concern about the region's lack of competitiveness and fading productivity. In response, the European Commission, the executive arm of the European Union, adopted a package of proposals in February that it said "will cut red tape and simplify EU rules for citizens and business," aiming to "reduce administrative burdens by 25%, and by 35% for small- and medium-sized businesses" sometime in 2029. Reeves in the U.K. has also taken aim at excessive regulation, especially environmental rules governing major infrastructure projects. Kukies, the German finance minister, has a history in the private sector that's informed his push for deregulation, according to Isabelle Mateos y Lago, chief economist at BNP Paribas, the largest bank in France. "He's been one of the strongest proponents of deregulation, and I think he actually means deregulation, not just simplification," Mateos y Lago told CNBC. "And then in the U.K., they've already made a number of high profile decisions around permitting that really show that there is now a desire to make growth really a priority — and not the number five priority, after a lot of other things." The economist, who calls herself "a permanent, perennial, indefatigable optimist about Europe," pointed to increasingly positive sentiment toward European growth. "Most of the time, you feel lonely being in that mindset, especially in the U.S.," said Mateos y Lago. 'Moment of opportunity' "But I cannot tell you the number of panels or meetings or conversations I've had this week, where you hear people say, 'this is a moment of opportunity for Europe,'" she added. "There is really reason to be optimistic, because there's this consensus at the policy level. There is a blueprint now [and] the intention to get all this — administrative simplification — done." The culture shift on the continent and U.K. — plus easier credit from the Bank of England and European Central Bank — has excited investors about economic growth prospects, especially against a backdrop of tariff-induced instability and weakening confidence in U.S. exceptionalism and dollar dominance. Both the continent's Stoxx Europe 600 Index and the U.K.'s FTSE 100 Index are up about 3% in 2025 while the S & P 500 has fallen 6%. Including reinvested dividends, the recent outperformance is even greater. But Europe has a long way to go to turn things around and convince the skeptics. Since the financial crisis in 2008, the Stoxx 600 index has returned 223% and the FTSE 100 even less, at 191%, according to FactSet data. The S & P 500 has soared 510%. —CNBC's Michael Bloom contributed to this report. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today's dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You'll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
