Recent bank failures highlight that regulation must be effectively applied and that confidence is a key element for lenders, UniCredit SpA Chief Executive Officer Andrea Orcel said at the Bloomberg New Economy Gateway Europe.
(Bloomberg) — Recent bank failures highlight that regulation must be effectively applied and that confidence is a key element for lenders, UniCredit SpA Chief Executive Officer Andrea Orcel said at the Bloomberg New Economy Gateway Europe.
The New Economy Gateway series brings together leaders from the private and public sectors to discuss, analyze and propose solutions to the economy’s most pressing problems. This week’s event near Dublin is focusing on the theme of “Reglobalization” — exploring the forces transforming trade and industry, from banking to aviation and energy to semiconductors.
Join us for conversations today with DeepMind’s Lila Ibrahim, the European Central Bank’s Pablo Hernandez de Cos, Eurogroup President Paschal Donohoe and Magic Leap’s Peggy Johnson, among many others. We also have an exclusive Bloomberg TV interview with Ryanair’s Michael O’Leary.
Key Developments
- ECB’s Lane Sees Rate Hike in May, Data to Determine Size
- UniCredit’s Orcel Says It’s Time for Banks to Be Conservative
- Europe Emerges as Test Bed for New Green Aviation Technologies
- US and Europe Wrangle Over Green Subsidies to Avoid a Trade War
(All times CET)
Bank Failures ‘Isolated Cases’: Orcel (11:15 a.m.)
Orcel said that while bank failures “were isolated cases” and “were pretty much idiosyncratic,” they also “highlighted that regulation has to be applied consistently across not only banks of any size but also all financial intermediaries.”
European banking regulation has worked during the recent turbulence, but it’s unrealistic to expect banks to be able to eliminate all risks — doing so would negate the role they’re meant to play in the economy, Orcel said.
IATA Chief Expects Firm Demand for Air Travel (11 a.m.)
Strong demand for air travel is expected to continue through the summer as the industry rebounds from Covid lows, according to IATA Director General Willie Walsh.
Ticket prices are likely to remain high, driven by higher costs — especially for jet fuel, which remains expensive, Walsh, the former CEO of British Airways parent IAG, said in an interview with Bloomberg Radio. Capacity remains below where it was in 2019, partly due to aircraft delivery delays and a shortage of spare parts, he added.
“We get a lot of airlines who have aircraft available but these aircraft are out of service because they can’t get the spare parts to keep them fully operating,” Walsh said.
UK Lagging on Innovation: AstraZeneca (10 a.m.)
AstraZeneca’s decision to site a $360 million manufacturing facility in Ireland instead of the UK was motivated by a more attractive Irish operating environment that enables the drugmaker to drive innovation and pursue its climate agenda, according to the company’s head of operations.
The UK government should “act faster around innovation” and “really give incentive for companies to be driving that innovation,” AstraZeneca’s Pam Cheng said in an interview with Bloomberg Radio. The choice of Ireland did not only depend on tax and other financial implications, Cheng said, adding that “the more important thing is that overall operating environment.”
IDA’s Lohan Sees Investment Headwinds (9 a.m.)
Ireland still has a “very strong, robust pipeline” of foreign investment but is facing headwinds and the volume of incoming business is set to decline compared with the past two years, according to the new head of the country’s investment promotion agency.
While some sectors, including financial services, biopharmaceuticals and medical devices, are “continuing to forge ahead,” technology companies are suffering in part due to a deterioration in consumer sentiment, the agency’s CEO, Michael Lohan, said in his first interview since taking over on Monday.
ECB’s Lane Sees Rate Hike in May (9 a.m.)
Another increase in interest rates is appropriate next month, with data due in the coming weeks to determine the size of the move, according to ECB Chief Economist Philip Lane.
“As of now, two weeks away, I think the baseline is that we should indeed increase interest rates in May,” Lane said in a TV interview before Bloomberg’s New Economy Gateway Europe conference near Dublin. “Exactly what we do — I’m going to wait until we have that data before deciding.”
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–With assistance from Peter O’Dwyer, Morwenna Coniam, Stephen Carroll and Francine Lacqua.
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