Seeking Alpha

Dr Christophe A...'s  Instablog

Dr Christophe Aubin Nury De Malicorne
Send Message
Dr. Christophe AUBIN-NURY de Malicorne-Director, International Board for Asset Management at SCMS/SCMS Capital Group Ltd; Lecturer of Economics-Finance and Member of CEDIN Research Center at University of Paris 10.
  • The Global Economy-A New Vision For The Euro

    Dr. Christophe AUBIN-NURY de Malicorne is Director, International Board for Asset Management at SCMS/ SCMS Capital Group Ltd; Lecturer of Economics-Finance and Member of CEDIN Research Center at University of Paris 10.

    In the midst of European governance disaster, consequences for European countries and population are dramatic at all levels including especially social and economic aspects.
    The future is gloomy at best for European economies due to the lack of vision, responsibility and incompetence of European authorities and national governments which have clearly failed to protect their populations. Now, these authorities are putting the burden of their actions on European people. Notwithstanding that in the corporate world these matters would have most likely ended in the legal arena, one of the urgent and crucial issues is at least how to partially resolve this European economic mess in light of the two other major currencies influencing the trading world?
    The Yuan is evidently manipulated by Chinese authorities in order to protect their expanding economic growth and the US government is flooding their economy with "quantitative easing" measures, printing dollars by trillions to support their national interest. These actions are leaving European economy with a currency which is definitely not at a sustainable level in order to compete in today business world as the Euro has gained over 25 to 30 percent from its intended "parity" with the US dollar particularly.
    From the dramatic Greek, Portugal, Ireland, Italian and Portuguese crisis, plus the pending troubles in UK and French economies it seems that the time has come for Europeans to do something for their own economic destiny geared toward the survival of the European Union as this synergistic model is the only one viable to remain strong enough against the American and Asian economic blocs.
    From our research, one of the key to restore European competitiveness appears to be the change of how the Euro is being calculated in order to reflect the recent weakness of the here above cited European countries economy. In our model, each European country currency should not have a fixed parity in the Euro but should be allowed to float and therefore reflect their real economic power or weakness under a proportional weight adjusted basis in accord with the size of the economy of each country. As a result, the Euro would be representing the real value of the European economy and as of today, it would subsequently drop by a minimum of 20 percent against the US dollar, which in turn would not only support greatly European finances but also would favor drastically European exports as well as to reduce imports and contribute to numerous positive aspects for the immediate benefit of European Union economy and population.
    In nowadays global economy, European trading partners must learn how to play "global" and a change of parity between the Euro, the Yuan and the US dollar is consequently inevitable.
    Mar 21 12:53 PM | Link | Comment!
  • The Deregulation In European Trading
    Dr. Christophe AUBIN-NURY de Malicorne is Director, International Board for Asset Management at SCMS/ SCMS Capital Group Ltd; Lecturer of Economics-Finance and Member of CEDIN Research Center at University of Paris 10.

    In Europe, since the mid 2000s the deregulation has also been applied to trading, notably through the implementation of online trading platforms and alternative trading systems which have been authorized by the European Commission, initially in order to provide an increase of liquidity in financial markets.
    However, the lack of strict regulations and the level of anonymity for trading partners in such trading organizations have in part increased the level of liquidity but most importantly have contributed to the rapid emergence of high frequency trading and the rise of capital groups powerful enough to influence abnormally the pricing of securities.
    Acknowledging the lack of transparency of these organizations, European Authorities have put in place a center in order to disclose all transactions made by these alternative trading organizations under the supervisory authority of the European Financial Market Agency.
    The European Commission seems to have understood the risks attached to these, until now, unregulated trading platforms. Unfortunately, no disciplinary actions are yet vested in the recently formed supervisory body which is not only unsatisfactory but as well raises the issue of a possible and efficient cooperation at European level regarding the good governance in financial markets, in light of the power struggle between French, German and English financial centers.

    Mar 20 11:54 AM | Link | Comment!
  • Perspectives on French Public Sector (21 August 2010)

    Author: Dr. Christophe Aubin-Nury de Malicorne is Lecturer of Economics-Finance at University of Paris 10; Director-International Board for Government Asset Management at SCMS; and Member of CEDIN Research Center.

    For public undertakings as for any undertaking, especially since the implementation of the European Single Act in 1985, the domestic market is now the European market. In light of the competing environment of the European market and the globalization of world markets, public undertakings require financing beyond the capacity of the State. The elaboration of an international strategy, which conditions the future of French public undertakings, requires an effort of efficiency, transparency in management and modernization in governance, as well as adjustment to European regulations. Some changes in the legal form of undertakings are therefore inevitable. This evolution is also the key to private financing and foreign markets. Consequently, public administration must undergo some deep changes because it burdens undertakings with cumbersome and intricate processes, like authorizations and approvals or with budget issues, which affect the dividends they give or the subsidies and grants they can receive.

    The existence of missions of public service, whose necessity and legitimacy are not questioned, in no way exempts other undertakings from their indispensable modernization. These missions have to be clearly identified and financially compensated or opened to competition. Even in this domain, everything thus converges toward the need for increasing efforts of productivity. For the rest, everything that contributes to turning public undertakings into ordinary undertakings in terms of status, governance and relations with the State makes it possible to answer the criticism, which has been intensifying, of the unfair advantages granted by the State to the public sector in a market economy. Therefore, despite the recent financial crisis and overall State interference in the economy, French government policy needs to return to focus as soon as possible on its regalian domains of activity because turning public undertakings into ordinary undertakings also means giving them the means for competitiveness and consequently survival, as well as the ability to better contribute to national economic prosperity.

     



    Disclosure: no position
    Aug 21 8:35 AM | Link | Comment!
Full index of posts »
Latest Followers
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.