NEW YORK, April 17, 2000 (PRIMEZONE) -- Paris EUROPLACE, the organization representing the Paris financial marketplace, today hosted its third annual financial forum in New York at the Plaza Hotel. Focusing on the overall theme of "A Unified Europe: Restructuring, Technology and Economic Growth," the conference featured panel and roundtable discussions, workshops and presentations. Keynote speakers included the following:
-- Jean-Claude TRICHET, Governor, Banque de France;
-- The Honorable Paul VOLKER, Former Chairman of the US Federal
Reserve Bank;
-- Richard GRASSO, Chairman and CEO, New York Stock Exchange;
-- Arthur LEVITT, Chairman, Securities Exchange Commission;
-- Michel PRADA, Chairman, COB;
-- Jean-François THEODORE, Chairman and CEO of ParisBourse(SBF)SA.
-- Marc VIENOT, Chairman, Paris EUROPLACE
"This is a very exciting time for the French economy," said Marc VIENOT, chairman, Paris EUROPLACE. "A unified Europe has altered the landscape in terms of how investors and multinationals can benefit from the changes occurring on the continent."
Marc VIENOT pointed out that "the French economy has the most robust growth among the main Euroland countries, with a growth rate of 2.9% in 1999, compared to 1.7% in UK and 1.3% in Germany." The growth rate for France is forecast at 3.7%, for 2000.
Mr. VIENOT points to the restructuring and consolidation, the growth of the technology sector and the attractiveness of the Paris Bourse in terms of trading success as agents of change and increased dynamism in the French market. "Foreign investors have begun to capitalize on the economic growth in France". As a result, more than 35% of French securities are held by international investors. Many of the biggest French companies, including most of the members of the CAC 40 have substantial overseas shareholdings: Alcatel's shares are 40%; L'Oréal 43%; Société Générale 49%; TotalFina 50%.
The Paris financial markets are experiencing rapid growth. With market capitalization at 1,584 billion pounds, Paris is today the leading market in Euroland, ahead of Frankfurt (1,413 billion pounds). In 1999, the CAC 40 Index generated a return of 51.1%. The performance was led by companies in the telecom, electronics, communications, distribution, banking and financial services sectors. Similarly, growth in the fixed income markets is particularly sustained. Paris is the euro benchmark, along with Frankfurt, on the new euro rate curve, and holds a leading position on 5, 7 and 30-year maturities. Paris is also number one in Europe's corporate bond sector with 40% of Euroland's 246 billion pounds outstanding.
According to the high quality of its technological and regulatory infrastructure, Paris is ranked, for the third straight year, as the 2nd most competitive market in the world for order execution (after New York), in terms of price and liquidity, according to the annual study made by the American research firm Elkins/McSherry.
Finally, the Paris market is characterized by the presence of large, international companies. According to a recent study, sales of international corporates located in Paris total close to $ 807 billion, compared to $ 567 billion for those in London and $ 154 billion in Frankfurt. 400 foreign banks and financial firms are active in Paris, making Paris the 2nd location in Europe, after London, for the establishment of overseas operations.
Paris is continuing in its initiatives designed to establish a single Pan-European capital market. A new step was taken recently with the merger, announced in March, of Paris Bourse with the stock exchanges of Amsterdam and Brussels to create EURONEXT.
EURONEXT will be the leading stock exchange in Euroland with over 1,300 companies listed and a total market capitalization of 2,380 pounds billion. Total trading volume amounted to over 1,453 billion pounds, placing it first among European markets in terms of trading activity. Euronext will also be the largest European market for index and share based options contracts, with over 230 million contracts traded in 1999. This once again demonstrates Paris's interest in the creation of a veritable Pan-European market, which is both liquid and transparent, enabling a reduction in costs for operators.
Marc VIENOT concluded, "For all these reasons Paris is today the best point of access to Euroland for US issuers and investors."