French Brokers Gear Up for European Research
French brokers are planning to give their continental and US colleagues a run for their money in the pan-European research contest. Firms such as CAI Cheuvreux, KBC Securities and Natexis Capital are making a concerted effort in the hope of posing a serious challenge to their competitors, according to AQ's latest Euro 100 analyst accuracy league tables.
Graham Field, editor of AQ, says: "We found that the French firms are making a serious play for it. This comes partly from the success of Euronext, which is clearly ahead of London and Deutsche Borse in the battle to become an integrated pan-European exchange. This enables the French houses, especially those with strong ties extending into Benelux, to build out their expertise and create a valuable equities business for themselves.
"Although the Anglo Saxon firms have a lead, I think the French realise they can be as effective. Overall, if continental houses ignore this opportunity, they risk being steamrollered out of existence by the pan-European sector research that is being produced out of London."
Field notes that while global research is increasingly becoming the order of the day, there is still a need for pan-European coverage. "The larger, more sophisticated investor wants a global view, but the typical European investor is still not looking beyond its eurozone and EU borders for investment opportunities. …