Senior executives at Calyon Corporate and Investment Bank, the banking investment arm of Credit Agricole SA, the world's seventh largest bank by asset portfolio, hosted 200 investment institutions at a conference on Monday on "Israel and New Markets - A Road Map for Investment Strategies." The conference was held to mark the expansion of the group's activity in Israel.
Calyon's executives said they still felt quite positive about Asia. "Some of the equities markets there are still trading at attractive prices, and after having been dragged down in recent years, the Singaporean and Taiwanese dollars are now offering good opportunities," said Calyon head of emerging market research Claire Dissaux.
Globes: You call them new markets. Why?
Dissaux: "The definition stems from a feeling that there is a second wave of emerging markets in East European countries and in India, which are only just making their big break now. There is a difference between these and the more traditional emerging markets such in China, which have grown to a level where its investors are investing in Western European countries, rather than the other way around."
Herve Uzan, senior banker and head of Calyon's Israel desk added an interesting insight of his own. "Our feeling is that defining these markets as emerging markets could create a negative connotation among investors. We feel that in Israel the concept of an emerging country has been misconstrued. If markets with a tremendous potential, such as those in East European countries, are perceived as emerging markets, the gap between them and Western countries could become too wide. That gap has been closed."
Is Israel formally an emerging market?
"In our view, it is most certainly not an emerging market. Israel is on the verge of joining the OECD, and as a businessman, I think that's a good thing. The question is how this success story can be turned into an opportunity for investors, companies, and Israeli institutions. We feel that there are some interesting success stories in Israel, which should be brought to the attention of investors in Europe, and it's our job to spread the word. Israel should be getting more attention from investors, especially in Europe, and perhaps even hold offerings there. We can offer investors opportunities in other markets including in Asia."
Do Israeli investors tend to concentrate their investments in Israel?
"People don't feel comfortable investing in a country that they don't reside in, but one should not put all the eggs in one basket, especially if it's small," concluded Uzan. "This is where we can help."
Published by Globes [online], Israel business news - www.globes.co.il - on June 6, 2007
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