At the third annual BNP Paribas Global Markets APAC Conference 2025 held on 3 September in Hong Kong, global policymakers, market strategists and institutional investors convened to explore the macro themes driving financial markets now and into the future.
Under the theme “Make Europe Great Again (MEGA)”, speakers shared insights on Europe’s fiscal future and the US deficit, China’s domestic evolution and the impact of trade tensions, election cycles and currency moves.
Path to a stronger Europe
With the European Union facing economic and security challenges, several speakers suggested that deeper trade and strategic partnerships with other regions or nations could help address these.
Speakers highlighted the 27-nation bloc’s strong existing trading ties with China, the world’s second-largest economy, and differences on political and economic issues. They also noted that finding common ground with China could help achieve its goals, and avoid a decoupling of their economies.
Trade agreements with countries in South Asia, the Middle East, and Latin America were noted as relationships that would be most beneficial for Europe. While the EU already has a strong relationship with the US, there was also a need to keep the bloc’s doors open for wider cooperation and reinforce ties with other parts of the world, they said.
Clients in APAC continue to look for opportunities to diversity their counterparty exposures and look for investment opportunities beyond the USD.
Brian McCappin, Deputy Head of Global Markets APAC & Head of Institutional Client Group APAC, BNP Paribas.
AI and technology cooperation
China’s leading position in the field of Artificial Intelligence (AI), alongside the US, was highlighted. The internet revolution during the early 2000s produced technological giants such as Google and Amazon in the US. According to speakers, Europe is now keen to play its part in the AI-led industrial transformation, and to produce European champions in AI.
While there are concerns about the potential disruption caused by AI-led innovations, speakers noted that other countries such as the UK, which officially exited the EU in 2020, are also keen to utilise the potential of AI to boost their economies.
Technological independence
European countries’ plans to benefit from an AI-led transformation are also rooted in the desire to maintain their technological autonomy. Technological advancements are also driven by countries’ needs to safeguard supply chains in critical technology, such as semiconductors and chips.
“This is going to be the technology century, the AI century,” said one speaker at the event. “Like China, we are also recognising the benefits of technological independence, but we also welcome trade when it is of mutual benefit.”
He continued that it was important to continue dialogue, and that technology is expected to be a key sector to drive growth in the coming years, with the EU also seeing technology as a key sector that requires large investments to enhance the bloc’s resilience.
Savings and Investments Union
The creation of a Savings and Investments Union – developing integrated capital markets in the European Union alongside an integrated banking system to effectively connect savings and investment needs – was highlighted as critical to facilitate investments in essential sectors, including technology .
The Savings and Investment Union was adopted earlier this year with the aim of creating financial opportunities for EU citizens, while enhancing the financial system’s capability to connect savings with productive investments, with a mid-term review from the Commission on overall progress due in Q2 2027.
Speakers noted that a successful development of AI technologies – which are capital intensive and require an ecosystem that is supportive of innovation and innovators – would be easier to achieve if Europe can pull greater financial resources together and act with greater unity.
In summary, speakers agreed on the importance for Europe to continue to build robust trade and strategic relationships with other countries, while utilising its own strengths and capabilities, to navigate and succeed in an evolving world.
Markets in APAC feel constructive with risk
Stephane Ritz, Head of Global Markets APAC, BNP
supported by a strong global backdrop, ample liquidity, lower for longer rate
regimes and generally underweight investor positions.
Paribas.
