European Conference 2014
European Conference 2014
Opening remarks from Dr Axel Weber
declined due to low interest rates, while risks abound.
All the more important has it become to invest wisely.
There is certainly no shortage of information nor
of analyses out there on the current investment
challenges. On the contrary, there is a vast quantity
of information and analyses available. Actually, there
is too much information – too much to handle for a
single individual or a small institutional investor.
Good morning and welcome to the second and
last day of the fourth UBS Flagship European
Conference.
This is only the fourth UBS European Conference,
but I must admit I am impressed by what I see –
the quantity and quality of the audience, the very
distinguished and professional line-up of speakers,
and, last, but not least, the very professional
organization.
Now in its fourth year, the UBS European
Conference has established itself as one of the most
important annual industry gatherings of corporate
management, policy makers, economists and
institutional investors in Europe.
We are proud to have more than 1'500 client
registrations, more than 50 external expert speakers,
and around 90 corporates attending, all represented
at the highest level.
We are facing a very challenging and complex
investment environment: expected returns have
Our objective is simple: we want to bring you the
best. That’s what our clients are paying us for, and
that’s what you can expect from us, in yesterday’s
and today’s sessions. We want to look through the
maze and provide you with the answers you need.
We have put a great deal of effort into preparing this
conference, and we hope that you find these two days
informative and insightful.
Let me give you a short preview of the day:
Right after my remarks, we will start with today’s
keynote speech by Charles Plosser, who will give us his
insights into US monetary policy.
Afterwards I have the pleasure to moderate a panel
on monetary policy, where we will discuss the future
course of global monetary policy in different parts of
the world.
After that, corporate presentations start. Here in the
“Grand Ballroom”, we will continue with the UBS
Opinion Leaders panel, which deals with the question
of how to invest in a low nominal growth rate
environment. I will moderate that panel as well.
After the crisis, as financial regulatory reform
was being debated, Charles stressed the need to
preserve the Federal Reserve’s independence by
drawing a distinct line between fiscal and monetary
policy. He also argued that reform must end the
notion that any firm is considered too big to fail or
risk sowing the seeds of the next financial crisis.
After that, corporate presentations start. Here in
the “Grand Ballroom”, we will continue with the
UBS Opinion Leaders panel, which deals with the
question of how to invest in a low nominal growth
rate environment. I will moderate that panel as well.
Thereafter, we will have sessions
–– on the reasons which are propelling the US economy forward [“American Exception
alism: What’s propelling the US economy to a pre-eminent position and will it last”]
–– on political risks to the recovery in the UK [“Will political instability undermine eco
nomic recovery”?]
–– and on emerging markets [“Does good governance demand a valuation premium in Emerging Markets?”]
Now, it is a great pleasure to introduce our first
speaker today, who will give us his view on current
events: Charles Plosser, President of the Federal
Reserve Bank of Philadelphia.
Charles joined the Philadelphia Fed in 2006. During
his term, he and his colleagues faced enormous
challenges and took unprecedented action.
Charles believes in a systematic approach to
monetary policy to promote better economic
outcomes and financial stability. He has been a
long-time advocate of the Federal Reserve adopting
an explicit inflation target, which the FOMC did in
January 2012.
Charles is well known for his work on real business
cycles, a term which was actually coined by him.
Specifically, in 1982, he wrote (with Charles R.
Nelson) an influential work on “Trends and Random
Walks in Macroeconomic Time Series” which dealt
with permanent and transitory shocks. Charles was
also co-editor of the Journal of Monetary Economics
for 20 years.
In September, Charles announced that he will retire
on March 1, 2015. Richard Fisher of the Dallas Fed
will also retire next year. This will likely leave the
FOMC a considerably more dovish place.
During his tenure with the Fed, Charles was one
of the sharpest internal critics of the Fed’s loose
monetary policy. He has dissented several times,
including in recent meetings during which he
argued that the Fed needs to raise rates before the
“considerable time” it had vowed to wait.
Charles, please go ahead, the floor is your’s.
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