International talents, key assets of Luxembourg's competitiveness (World Economic Forum -
“Global Competitiveness Report (GCR)” 2019-2020)
Economy particularly open to the world and located at the heart of the European free markets
(people, goods, services and capital), Luxembourg is positioned, in this year 2019, at the 18th
position in the World Economic Forum (WEF) global competitiveness ranking. He thus gains a place by
compared to the previous edition, globally retaining the weak points and above all the strong points which make it
one of the most productive economies in the world.
Among its assets is the strong presence of a foreign workforce, often qualified, even very
qualified, which represents 73% of the labor market and places Luxembourg, according to business leaders,
as one of the countries with the most skilled workforce. International talents are thus among
the drivers of a competitive international financial center, of a strong entrepreneurial culture
and a growing innovation ecosystem.
The report "The Global Competitiveness Report 2019-2020" (GCR) focuses this year on the difficult
union, but no less possible and necessary, between growth, inclusiveness and sustainability. If the ranking of
GCR is dominated by Singapore (1st), the United States (2nd) and Hong Kong (3rd), it is more towards the
northern European countries, Sweden, Denmark and Finland in particular, which you have to turn to find the
examples of visionary policies capable of reconciling these three objectives. These countries are now more
innovative than Luxembourg and have been able to adopt new technologies more quickly. Denmark has
also defined a much more flexible labor market framework.
The WEF ranking measures the competitiveness of 141 countries based on public statistical indicators of
participating States and international institutions, and based on the results of the "Executive Opinion Survey",
a survey conducted in Luxembourg, under the aegis of the Chamber of Commerce, between February and April 2019
with economic decision-makers and business leaders.
According to these results, Luxembourg is ranked 18th in the world among the most competitive economies in
2019. The ranking shows some progress, while Luxembourg oscillated between 19th and
25th place in the last ten years. This improvement will need to be confirmed over time,
determinants of competitiveness bearing fruit in the long term, while the ranking may change
positively simply because of favorable economic conditions. Luxembourg is 10th at the European level.
The WEF ranking indicates that the institutions are moving in the direction of an environment conducive to
competitiveness. Business leaders thus consider that the public sector is efficient, transparent
and, overall, forward-looking. The performance of the administration is further questioned
with regard to entrepreneurship, with for example an inefficient bankruptcy law.
Luxembourg is also one of the solid countries at the macroeconomic level. It has
of modern infrastructure, particularly in terms of energy and the environment, but is poorly ranked on
certain transport-related indicators. The efficiency of these infrastructures is a major challenge due to the
strong demographic growth in Luxembourg, in the ambitious context of the “Third
Industrial Revolution".
Luxembourg's results tend to improve in the area of skills and, by
consequently, on the human capital aspect. This aspect is increasingly important at a time when
changes in production and consumption patterns are accelerating under the impetus of digitalization.
Business leaders value the skills of the workforce and the training system. Yes
international talents are today a great strength of the Luxembourg economy, the difficulties in
meet growing labor needs for businesses, by training or attracting
new talents, tend to get worse year after year.

At the same time, Luxembourg shows overall good performance on the various markets (goods
and services, labour, financial sector). The adaptability of talents to changes in the economic world
requires a well-functioning labor market. The Luxembourg labor market is paradoxical,
between efficiency in certain areas, in particular the administrative framework for recruiting abroad, and
rigidity on the issue of wages. Open to the world and favoring on the whole the exchange of
goods, services and finance, the Luxembourg regulatory framework still suffers from excessive
complexity of its customs tariffs.
The diversity of the workforce, both in public research and in the private sector, and the
international partnerships are also assets of Luxembourg's innovative ecosystem. essential vector
of the evolution of productivity, national innovation still relies heavily on patent filings. The
research indicators are progressing slowly, while research and development expenditure in
percentage of GDP do not position Luxembourg among the most oriented economies
innovation.
International indicators and business leaders tend to praise the level of
development of certain determinants of competitiveness in Luxembourg: stability and transparency of
public policies, future orientation, quality of infrastructure, current workforce
present. While the dual challenge of economies for the years to come is to make the transition
technology of the economy and society in general, and to achieve the union of economic growth,
of social inclusiveness and environmental sustainability, Luxembourg must overcome a third challenge,
that of managing its growth. The difficulties associated with this challenge are already clearly visible, whether for
transport infrastructure or the recruitment of new talent. Managing growth is, however, a
essential, because without growth, there can be no successful technological transition in Luxembourg
let alone improving the standard of living of the population.
Source: World Economic Forum and Chamber of Commerce
The Nigerian Stock Exchange and the Luxembourg Stock Exchange Sign MoU to Expand the Green Bond
Markets
The Nigerian Stock Exchange (NSE) and the Luxembourg Stock Exchange (LuxSE) announce the signing of
a Memorandum of Understanding (MoU) to cooperate in promoting cross listing and trading of green bonds in
Nigeria and Luxemburg. The announcement was made at the signing ceremony led by NSE CEO, Oscar N.
Onyema OON and LuxSE CEO, Robert Scharfe, which took place during the annual meeting of the World
Federation of Exchanges in Singapore on Wednesday 9 October.
The MoU further establishes an agreement for the two exchanges to collaborate with a view to sharing best
practices and organizing joint initiatives in their respective markets.
According to Oscar N. Onyema OON, Chief Executive Officer of The Nigerian Stock Exchange: “This
collaboration reinforces NSE's drive to foster the growth of sustainable finance in Nigeria, a journey that
commenced with the launch of the first Sovereign Green Bond by NSE, in partnership with the Federal
Ministry of Environment, Federal Ministry of Finance and the Debt Management Office. With the MoU, issuers
will enjoy the benefit of increased visibility through the cross listing of their securities in Nigeria and
Luxemburg. The partnership will further facilitate the growth of the Green Finance industry in Nigeria and
ultimately deepen the Nigerian capital market through the mobilization of the foreign green capital needed to
fund sustainable projects in Nigeria.”
Robert Scharfe, CEO of LuxSE added: “Sustainable finance is becoming a truly global movement. By joining
forces with other exchanges to promote and facilitate green finance, we strive to accelerate the sustainable
finance agenda and increase awareness of and interest in investment projects that support the sustainable
development that our world needs. We are pleased to cooperate with the Nigerian Stock Exchange to further
strengthen sustainable finance in and between our markets.”
The Nigerian Green bond market received international recognition following the issuance and listing on the
NSE of the ₦10.69bn Federal Government sovereign green bond in December 2017. This issuance sparked
significant interest from the international and local capital market communities as it opened new investment
opportunities, especially for domestic investors, to increase their exposure to financial instruments that
generate social and environmental impact. The Luxembourg Stock Exchange operates the Luxembourg
Green Exchange (LGX), a platform exclusively dedicated to sustainable finance instruments. LGX now holds
a 50% global market share of listed green, social and sustainability bonds. LuxSE works closely with selected
stock exchanges around the world to support the growth of sustainable finance.
Olga Miler appointed Group Head of Marketing at KBL epb
KBL European Private Bankers (KBL epb), which operates in 50 cities across Europe, today announced the
appointment of Olga Miler as Group Head of Marketing. Marketing and innovation expert – with significant experience in financial services, with a particular focus on sustainability,
gender equality in investment, as well as women and finance – Olga Miler co-founded
SmartPurse, a start-up that gives a financial toolkit for women.
Previously, she worked for more than ten years at UBS where she held various positions, including that of
Global Program Architect of UBS's sector strategy for women; Managing Director, Head of
UBS Wealth Management Marketing Europe; and Executive Director of the bank's UHNWI division.
Before, she worked at Nestlé and PwC.
TEDx speaker who speaks internationally on topics such as innovation and development
sustainable, Olga Miler has dual Czech-Swiss nationality. She holds a degree in economics
from the University of St. Gallen in Switzerland. “Marketing is a key part of the success of any business
winner," said Colin Price, Group Chief Operating Officer of KBL epb. “Based on its experience
significant contribution to the financial industry, its entrepreneurial spirit and its continuous quest for innovation,
Olga will lead an integrated marketing strategy that will help our Group stand out. I am delighted
to join KBL epb”.
“I am extremely excited about the idea of being able to put all my skills and experience
working for KBL epb," said Olga Miler. “I am convinced that our Group will become a
challenge by reducing complexity, broadening perspectives and focusing on what
really matters: introducing an approach to investing that puts people at the center of
concerns and which gives them the means to make the most of their fortune as they
hear it”.
A looming recession is unlikely
By Michael BLÜMKE, Senior Portfolio Manager, Ethenea
We do not expect a recession in the United States over the next few months. We had bets
warning about the impending recession and the fact that the US yield curve is
currently reversed, is often the proof. However, it is important to note that although the curve
yield is undoubtedly a key indicator of recession, not all reversals result in
necessarily recessions. It is therefore important to use the curve in conjunction with other
indicators.
Current economic data and leading indicators paint a mixed picture, but we
think that, in this case, the inverted yield curve does not indicate a recession:
- Although there is clearly a slowdown in economic growth, the service sector,
much larger, remains relatively strong compared to the much weaker manufacturing sector.
- Consumption must be taken into account. About 70% of US GDP depends on consumption
private, i.e. of consumers' willingness to buy. Prior to previous recessions, the number
unemployment benefit claims had increased - which has not yet happened. As long as the
consumers retain their livelihood and are not restricted in their consumption, in our view, a
recession is unlikely.
If profits decline for a long time and companies find themselves forced to lay off
employees, the situation could change. However, we currently expect earnings from
companies will remain relatively constant in 2019 and increase again in 2020. The policy
current dovishness of central banks, the presidential election scheduled for next year and the fact
that we do not anticipate a further escalation of the trade dispute only reinforces our view
that an imminent recession is unlikely.
In terms of managing our portfolios, this means that we will continue to be overweight
in American companies both in terms of bonds (Ethna-AKTIV and Ethna-DEFENSIV) and
shares (Ethna-AKTIV). Given the relative strength of the US economy, we expect
also to the US dollar appreciating, which is why we currently hold a
large position in dollars in the Ethna-AKTIV fund.
The method for the elimination of double taxation modified by an addendum to the tax treaty
Franco-Luxembourgish
On October 10, 2019, the Minister of Finance, Pierre Gramegna, and the French Minister of Economy and
Finances, Bruno Le Maire, signed in Luxembourg, on the sidelines of Ecofin, an amendment amending the new
agreement concluded on 20 March 2018 between Luxembourg and France for the avoidance of double taxation
and to prevent tax evasion and evasion with respect to income and wealth taxes. With this amendment, France returns to the previous situation by reintroducing the exemption method to eliminate
the double taxation of income from salaried employment in particular.
This change will therefore have the effect that the double taxation of cross-border workers resident in France, and
earning income from salaried employment in Luxembourg, will not be eliminated by the method of
imputation, as was provided for by the initial text of the new convention, but by the method of
exemption subject to progressiveness. It follows that the cross-border worker will not be liable for taxes
in France on his salary from a Luxembourg source.
The provisions of the new agreement and the addendum will apply to the tax periods
starting January 1, 2020.
Pierre Gramegna comments: “This amendment takes into account the observations made by Luxembourg and puts
end to the debate concerning the methods of taxation of French cross-border workers working in Luxembourg under the
new tax treaty. Thanks to the endorsement, cross-border commuters residing in France receiving an income
salaried occupation in Luxembourg remain in a situation of continuity with respect to their situation
current. It illustrates not only the good relations that exist between France and the Grand Duchy, but
also provides a higher level of legal certainty to the employees concerned.”
Source: Ministry of Finance
Sébastien Veynand is appointed director of development and deputy general manager of La Mondiale
Europartner
Sébastien Veynand is appointed director of development and deputy general manager of La Mondiale
Europartner from October 15, 2019. He will perform his duties under the responsibility of Loïc Le Foll,
Managing Director, and he will be in charge of the sales teams, marketing, asset engineering
and the development of insurance products.
Sébastien Veynand, 46, holds a master's degree from Montpellier Business School. He started his career
in 1996 at Societe Generale Bank & Trust Luxembourg. He then successively joined the
Banque Populaire du Luxembourg in 1998 then Euresa-life in 2000 before taking responsibility for
partnerships of the investment solutions division of Lombard International Assurances in 2005.
Since 2012, Sébastien Veynand has been Managing Director of Generali Luxembourg.
“We are delighted to have Sébastien Veynand join our management team. With more experience
20 years in the financial sector, he will devote his expertise to pursuing the development of La
World Europartner with all of our employees and, I am sure, with talent," emphasizes
Loïc Le Foll, CEO of La Mondiale Europartner.
Brexit: Banks prepare for financial storm (Reuters)
If the key date for Brexit remains fixed at October 31, strong turbulence could agitate the markets
from the 21st, the date on which an exit of the United Kingdom from the European Union without a negotiated agreement
risks becoming definitively inevitable, explain several bankers. According to five industry sources,
contingency plans are already in place to deal with a panic movement affecting stocks,
bonds and currencies from Monday, October 21. And traders are preparing to eat and sleep at their place
to ensure a 24-hour service from that date.
Top executives from at least two major banks are expected to meet in 'control rooms'
dedicated to Brexit to oversee financial operations and liaise with the authorities of
monitoring. The so-called “Benn Act” passed by the UK parliament last month provides that if London
did not reach an agreement with the other EU countries at the European Council on October 17, the Prime
Minister Boris Johnson will have to apply for a Brexit delay no later than October 19.
MPs will meet in extraordinary session that day - on a Saturday, when the House of
communes does not usually sit on weekends - to discuss what happens next. If Boris
Johnson refuses to ask for a postponement, the “no deal” scenario will then be the most likely outcome, explain
banking sources. Monday, October 21, the first working day following this observation, could therefore be marked
by major market movements.
Don't panic for now
“Everyone realizes that the opening of the markets on Monday morning will be a moment
important part of the process,” a banking executive at an international lending institution told Reuters. From
banks, insurers, fund managers and trading platforms based in
Great Britain have already set up "hubs" outside Great Britain in order to ensure the continuity of their
activities with the Union.

Even if no agreement is reached and no postponement requested, the markets could fear a resignation
of the Johnson cabinet, a deadlock between the government and Parliament or even legal remedies on
the “Benn Act” likely to shake the markets, explains a banker. For now, the markets
show no particular sign of panic, estimating the probability of a “no deal” at less than 50%. The pound
sterling is moving within its fluctuation limits of the past few weeks and implied volatility, a measure
price fluctuation expectations, remains contained.
A second source from an international bank explained that measures were ready to
in the face of possible “bumpy” market conditions from October 21st. As that day marks
also the start of the autumn school holidays in Britain, some banks have asked
their employees to be “reasonable” in terms of leave and travel during this period.
“We continue to prepare for a hard Brexit scenario, which could mean headcount
reinforced in the trading rooms”, explains the source. The official scheduled Brexit date, October 31,
being a Thursday, many European markets will be open the following day. But some of the banks
could have changed supervisory authority overnight, a changeover that would officially require a
weekend to allow for testing.
Another potential difficulty: November 1 being a public holiday in several EU countries, some regulators
may not be operational that day, warned AFME, the Association of Financial Markets in
Europe.
The Bank of England said on Wednesday October 9 that credit institutions, insurers,
brokers and the UK financial system as a whole had been preparing for a no-deal Brexit.
This outcome could cause a sharp drop in British financial assets and the pound sterling, but
the banks have more than 1,000 billion pounds of liquid assets allowing them to face
their obligations for several months without having to seek new financing, specified the
central bank.
Source: Reuters
The OECD Secretariat has published a proposal to advance international negotiations
aimed at ensuring that large, highly profitable multinational companies, including companies in the
digital, pay their taxes where they carry out important activities in direct relation with the
consumers and where they make their profits. The new OECD proposal brings together the elements
of three competing proposals from Member countries. It is based on the work
led by the OECD/G20 Inclusive Framework on BEPS, which brings together 134 countries and jurisdictions on one foot
of equality to negotiate at the multilateral level new international tax rules adapted to
the global economy of the 21st century.
This proposal, now subject to a public consultation process, would reallocate a fraction of the
profits and corresponding taxing rights to the countries and jurisdictions in which the companies
multinationals have their markets. It would ensure that multinational companies that exercise
significant activities in jurisdictions where they have no physical presence would be taxed in
these jurisdictions, through the creation of new rules establishing (1) the place where tax must be paid (the so-called
“of the link”) and (2) on what fraction of the profits they should be taxed (rule of “distribution of
profits”).
“We are making tangible progress in solving the tax challenges brought about by digitalization
of the economy, and we continue to move towards a consensus-based solution to
overhaul the rules-based international tax system by 2020," said the Secretary-General of
the OECD Angel Gurría. “This proposal brings together the common elements of the competing proposals
existing ones, the result of the work of more than 130 countries, and has benefited from the contributions of public authorities,
businesses, civil society, academia and the general public. It brings us closer to the goal
ultimate goal: to ensure that all multinational companies pay their fair share of tax”.
“Failure to get a deal by 2020 would dramatically increase the risk countries take
unilateral measures, which would have negative consequences for an already fragile global economy.
We must not allow this to happen,” Mr Gurría added. The tax work of the Executive
dedicated to the digitalisation of the economy are part of a broader initiative
aimed at restoring the stability and predictability of the international tax system, resolving possible
overlaps with existing rules and to reduce the risk of double taxation. Beyond the
specific question of the reattribution of taxing rights, a second pillar of the work aims to deal with the
unresolved BEPS issues, by having multinational companies pay a
minimum tax on their profits. This aspect will be addressed during the public consultation scheduled for
December 2019.

Ongoing work will be featured in a new OECD Secretary-General's Tax Report
discussed at the next meeting of finance ministers and central bank governors of the
G20 countries to be held in Washington DC on October 17 and 18.
For more information on the OECD/G20 BEPS project, see: oecd.org/tax/beps/
Source: OECD
The Benelux countries strengthen their cooperation in the fight against tax fraud
Under the Luxembourg Benelux presidency, the Luxembourg Minister of Finance, Pierre Gramegna,
Dutch Finance Minister Wopke Hoekstra and Belgian Finance Minister Alexander De
Croo, signed, on the sidelines of the Ecofin European Council, a Benelux agreement to strengthen their cooperation
in the common fight against tax evasion. More attention will be paid to digitization in order to
fight new forms of fraud and anticipate new phenomena in this field. rock
Gramegna comments: "Over the decades, the Benelux Union which brings together three of the founding members
of the European Union, has proven itself as an innovative and pioneering laboratory in Europe. This
new agreement, signed under the Luxembourg presidency, once again demonstrates the continued commitment of the three
countries in cross-border cooperation, and is a strong signal of the will to move forward in the common fight
against tax evasion.
Since 2001, the three Benelux countries have been working closely together in the field of taxation and the fight
against cross-border tax evasion. This cooperation has resulted in financial results
important and has served as an example for the fight against fraud at European level on several occasions. Thereby,
a system (Transaction Network Analysis) which allows automated detection of VAT fraud
cross-border was developed by the Benelux and then taken over by Europe.
With this agreement, the three ministers go even further by participating together in digital projects
that will allow the automatic exchange of information between countries. In the field, joint studies
will be carried out in order to detect new fraud phenomena. The three countries will share more
their experiences in tax matters and closely follow together European developments in this area.
matter. At least once a year, the tax administrations of the three countries will hold consultations
high-level strategies to discuss progress and provide impetus.
Through this agreement, the three ministers also confirm their desire to continue to play a role of
pioneer vis-à-vis the European Union thanks to their enhanced tax cooperation.
Source: Ministry of Finance
Global economic slowdown continues (BLI)
In the United States, signs of deceleration come mainly from business investment
while household consumption continues to grow. In the euro area, the situation in the
manufacturing sector deteriorated further, with industrial production in Germany having been
particularly low. This is the observation of Guy Wagner, administrator-director of BLI - Banque de
Luxembourg Investments, and its team, in their monthly analysis, the “Highlights”.
Although activity remains much more robust in services, its pace of growth has clearly
slowed down in September. In Japan, the weakness of foreign trade weighs on the level of
investments, with companies reluctant to increase their production capacities. In China, measures
stimulus from public authorities remains relatively contained, the government in Beijing does not
not ready to generate a strong acceleration of growth at the cost of an increase
additional debt.
Inflation rates are changing little for now, remaining at contained levels in virtually all
the regions. In the United States, the headline inflation rate fell from 1.8% to 1.7% in August; excluding energy and
food, the rise in prices fell from 2.2% to 2.4%. The consumer spending deflator
excluding energy and food, which is the Federal Reserve's preferred price indicator, fell slightly
increased from 1.7% to 1.8%. In the euro zone, the headline inflation rate in September fell by
1% to 0.9%, a level well below the European Central Bank's target of 2.0%. Except
energy and food, inflation increased from 0.9% to 1%.
As expected, the US Federal Reserve cut its key interest rate by 25 points
for the second time within 2 months, bringing the federal funds rate down to between 1.75% and 2.00%.
During the press conference, its president Jerome Powell was relatively vague concerning the
future intentions of the Monetary Committee, stating that further rate cuts would be
necessary if the economy showed major signs of weakness, but he did not see any in
the immediate.

In Europe, Central Bank President Mario Draghi announced at the penultimate meeting before
the end of his mandate numerous monetary easing measures. Thus, it reduced the rate of
remuneration of deposits with the ECB from -0.4% to -0.5% and reactivated public debt buybacks and
up to 20 billion euros per month from November 1, with no scheduled end date. The
measures announced by Mario Draghi were not unanimously accepted by the Board of Governors, the
German, French and Dutch representatives, in particular, considering them excessive with regard to the
current economic conditions. After the significant decline in yields to maturity on the markets
bonds over the first eight months of the year, the latter tightened slightly in
September. In the United States, the yield on the 10-year treasury rose by 17 basis points,
rising from 1.50% to 1.67% during the month. In the euro zone, the yield on the 10-year government bond
fell from -0.70% to -0.57% in Germany, from -0.41% to -0.28% in France, from 0.10% to 0.14% in Spain
and from 1.00% to 0.82% in Italy.
After the weakness during the first half of August, the stock markets have regained their
bullish trend at the beginning of the year. Thus, the MSCI All Country World Index Net Total Return expressed
in euros increased by 3.1% in September, bringing the performance since the beginning of the year to
+21.8%. Over the past month, the S&P 500 rose by 1.7% (in USD), the Stoxx Europe 600 by 3.6% (in
EUR), the Topix in Japan by 5.0% (in JPY) and the MSCI Emerging Markets by 2.9% (in USD). Despite the
slowdown in the global economy, the rebound in September was led by stocks
financials and cyclicals while defensive sectors (such as consumer staples and healthcare)
are found at the bottom of the ranking.
The weakness of the euro against the dollar continued in September, the euro exchange rate
dollar going from 1.10 to 1.09 during the month. The more robust economic situation in the United States, the many
geopolitical uncertainties and additional measures of monetary expansion in the euro zone support
the greenback.
First estimate of GDP in volume for the 2nd quarter of 2019: +3.7% over one year (STATEC)
STATEC publishes the first estimate of the Gross Domestic Product (GDP) for the second quarter of 2019,
as well as revised figures for previous quarters. The quarterly series of GDP and
main aggregates are seasonally adjusted.
In the second quarter of 2019, the evolution of GDP in volume was +3.7% compared to the second quarter
of 2018 and 2.2% compared to the previous quarter. The annual changes in real GDP for
2018 have been revised as follows: +2.7% instead of +2.6% for the third quarter and +1.2% instead
+1.8% for the fourth quarter. Over 2018 as a whole, the change in real GDP was
revised from +2.6% to +3.1%. Concerning the annual evolution of the first quarter of 2019, it is +1.0% in
instead of +1.6%.
GDP according to the “production” approach
The added value of financial and insurance activities increases by 3.2% compared to the quarter
previous. The evolution of the other branches, in order of importance in the GDP, is as follows:
"Trade; transport; accommodation and catering” +0.7%, “Business services and rental” +3.8%,
"Real estate activities" +0.7%, "Industry, including energy and water supply" +0.9%, "Construction"
-0.2%, and “Public administration, education and health” +1.9%.
GDP according to the "expenditure" approach
Compared to the first quarter of 2019, final consumption expenditure by households and institutions
non-profit sector serving households increased by 0.9%, that of general government by 0.5%.
The drop in gross fixed capital formation is -0.6%. Exports increased by 1.4% and
imports of 0.2%.
The detailed results can be consulted on the Statistics Portal www.statistiques.lu under the
heading "Economy and finance" - "National accounts". For a comparison with other countries in
European Union, please consult Eurostat's "Eurobase" database
(http://ec.europa.eu/eurostat/data/database).
Source: STATEC
Four out of ten customers would like to receive proactive help from their bank (Banking market study
2019 from Accenture in Luxembourg)
The Accenture Banking Market Survey 2019, conducted in partnership with The Banking Scene, is the
first and largest of its kind in Luxembourg. More than 1000 customers and 25 questions reveal how
banks can give wings to already high confidence.

As host to numerous banks, investment funds, financial institutions and start-ups, the
Luxembourg is known for its expertise in international finance. So it shouldn't be a surprise
that people living in Luxembourg are good at managing their finances. But this should not
not discourage banks from offering a little something extra to their customers.
Most Customers Fly Solo...but Still Appreciate Support
During the study in Luxembourg, two out of three bank customers interviewed said that they manage their
finances without assistance from their bank. For the third third, they consider the assistance of the
part of the bank as being essential. It might therefore appear that the majority of people have no
need no help as they are on their own. However, looking at data from more
However, this assumption is misleading. Four out of ten customers would appreciate receiving proactive help from
from their bank because they think it might strengthen their decisions and help them move
higher level.
Provide a safety net
The study reveals that Luxembourg banks need to focus on data transparency
and to clarify communication around the use of data. The major concerns about the
sharing of personal data concerns the lack of transparency on how banks
use their data (20.6%) and the fear that banks could resell their data (26.8%). They
also fear that banks use personal data intrusively (24%). By
Therefore, banks must be careful of the boundary between proactively advising their customers and
too much intrusion.
However, 63.8% of Luxembourg bank customers say they would be willing to share their
personal data in exchange for protection against fraudulent transactions.
Security is a key factor in developing an even stronger relationship of trust between
Luxembourg banks and their customers. 79.8% of respondents admitted that they would have even more
trust their bank if it was interested in cybersecurity. Banks have nothing to lose by becoming
a 'safety net' for their customers.
These trends are also consistent with trends observed globally. According to Fjord Trends
2019, “trust and transparency will provide a competitive advantage to those who maintain them, opening up
new opportunities to display 'reliability scores' to all their data sources or
of information”.
Value them
Is the security sufficient? According to the study, banks should make an effort to provide offers
more relevant to their customers, because the majority would be willing to share their personal data in
exchange for more advanced security. Luxembourg customers would like to have services adapted to
their needs (52.8%) such as targeted offers or personalized messages.
Services must also be personalized (47.8%) by anticipating individual needs, for example,
help clients analyze their spending habits in order to save money. How do banks
should they take advantage of these trends? The key is to create extremely relevant experiences.
To achieve this, banks need to instantly recognize and understand their customers, their
history and their preferences. One way is to take advantage of all the information provided in the past, little
it doesn't matter if the client speaks to an advisor in an agency or receives recommendations online.
Fly to new horizons
In the current era of Open Banking, characterized by an expanding ecosystem, personalization can
be further developed, going beyond traditional financial advice and towards new services. Of them
Respondents to the Luxembourg survey out of three indicate that they are open to having banks analyze
their personal data in detail in order to proactively offer assistance for the choices of
transport, buying a car and a house or starting a business. To seize this opportunity,
banks need to ally with an ecosystem of partners and provide an end-to-end integrated experience
end. This would create new streams of revenue, generated by a broader spectrum of services that
meet those of Fintechs and other competitors.
Be careful not to fall
The trend around trust and transparency observed in Luxembourg is not isolated.

Although banks have a large amount of data that could give wings to their
customers, they must use them carefully. By seeking to become reliable partners, using the
data securely and only to provide relevant and personalized advice and services, the
Luxembourg banks and their customers can fly together to new skies.
The infographic summary of results created by Accenture in collaboration with The Banking Scene
(s://thebankingscene.com) is available at ://view.ceros.com/accenture/mps-lu-banking2019/p/1
More than half of Luxembourg employees would be willing to go abroad for a better career or a
better work/life balance (Randstad Workmonitor)
According to the latest Randstad Workmonitor study, career development and work-life balance
private sector seem to be important factors for most Luxembourg employees: 53% of them
would consider emigrating if they could improve on these two points. On the other hand, only 42% would do this
approach for a significantly higher salary and 35% for having a motivating job. Furthermore,
59% say they would rather change careers than move to another country. On the other hand, it does
do not mind traveling occasionally for work (63%).
If we compare these results with those of the other countries studied, we note that workers
Luxembourgers are rather at the bottom of the ranking. They are less willing to emigrate.
However, more than the Dutch who seem very attached to their country (only 39% of them
go abroad for a better career or a better work/life balance). On the contrary this
are Indian and South American workers who would more easily leave to settle in other
country.
Where would Luxembourg employees like to work?
When the question is asked "If I had to work abroad, I would prefer to work...", the employees
Luxembourg places Germany in first position, Switzerland in second position and then the
Canada. From these results, it can be concluded that most respondents would prefer to stay close
from their region of origin. Unlike in Luxembourg, Greek employees seem to clearly prefer
English-speaking countries (United Kingdom and United States).
A diversity valued a little less than in other countries.
In Luxembourg, 65% of respondents think it is a good thing that their employer
hires foreign workers if the national workforce cannot provide the required skills.
58% of respondents believe that it is a good thing to attract foreign candidates to fill the
talent shortage. These results are below the average observed for all the countries studied.
(respectively 72% and 64%). However, diversity has a positive impact since 82% of workers
Luxembourgers say they enjoy working with people from other cultures.
Recurring quarterly observations
Although up 3 points over the last quarter, Luxembourg's mobility index (number
of employees who expect to work for another employer in the next six months) is still
the lowest of all the countries studied. Only 7% of employees surveyed have changed employers
course of the last semester and 11% have changed jobs, which again places Luxembourg at the bottom of
ranking in terms of mobility. 4% of Luxembourg workers are actively looking for a job
against 4.6% on average. Job satisfaction is slightly down but remains good at 69%
of Luxembourg employees are (very) satisfied with their job.
Central bankers/ECB: Rates could fall further but remain cautious, says De Guindos
(Reuters)
The ECB could lower its rates further but must act with caution because the side effects of its
monetary policy are starting to make themselves felt, says the issuing institute's vice-president, Luis de
Guindos, in an interview published Wednesday.
"We have to wait and see how the forecast develops," he told Market News in response to a
question on the possibility of further monetary measures at the October meeting. “And we have to
wait to see how the downside risks develop.”
In the interview, published on the ECB website, Luis de Guindos also answers a question
asking whether the recently announced measures to mitigate the effect on commercial banks of
Negative rates (“tiering”) could pave the way for further rate cuts. "We didn't talk about it,
but I think -0.5% is the right level right now, and regarding possible future declines,
we will have a good in-depth discussion in the Board of Governors,” he said.

Source: Reuters
The Institute for Financial Integrity and Sustainability (IFIS) has officially been launched
With Claude Marx as speaker of the inaugural lunchtime session, the Institute for Financial Integrity and
Sustainability (IFIS) showed its dedication to become a reliable forum and platform for financial institutions to
discuss and implement growing financial integrity, ethics and sustainability.
IFIS is a non-profit and non-political association. The aim of the Institute is to reflect on and enhance
awareness for financial integrity, ethics and sustainability. The Board of Directors is composed of former
members of public institutions (Central Bank of Luxembourg, European Investment Bank), the Luxembourg
Stock Exchange, lawyers, auditors and entrepreneurs. Our members are both individuals and private
companies.
Under the impulse of its new President Hugo Woestmann and its CEO Biba Homsy, the Association
its vision and mission statements and its statutes which were unanimously approved at the last
GeneralMeeting. IFIS believes in promoting integrity and sustainability practices with financial institutions and
markets, bringing together practitioners from financial institutions and other stakeholders from within and
outside Luxemburg. To this end, IFIS organizes once a month a lunch-time conference with high-level
speakers to foster a constructive debate and help developing a mindset commensurate with changing
opinions in the market.
Launch & Lunch with Claude Marx
For its first lunch from more to come, IFIS was honored to receive Claude Marx, Director of the CSSF. Mr.
Marx highlighted the challenges for being a leader in Financial Sustainability. Financial institutions should be
able to assess their risks at all levels of a company, whether through strategic thinking and education at
Board level, management and operational levels, but also in distribution and front office level. This could be
achieved when people involved are sufficiently familiar with the topic and the products available to them.
Where guidelines exist at European level that allow for initial reflection, Luxembourg must be inspired by
them and aspire implement them and develop a real practice, based on concrete measures and solutions
rather soon.
Next events
We look forward to welcoming you to our next events. For our upcoming lunch-time session in November, do
not miss Julie Ansidei, Head of Strategy and Sustainable Finance Unit at the French regulator Autorité des
financial markets (AMF). s://ifis.lu/copy-of-events
Source: IFIS
The European Commission welcomes the positive assessment of its management of the EU budget
In its latest report on the management of the EU budget, the European Court of Auditors, the body
independent in charge of monitoring EU spending, confirmed that the Juncker Commission had
significantly improved the way the EU budget is managed. The auditors awarded their satisfaction to the
annual accounts of the EU for the 12th consecutive year and formulated, for the third consecutive year,
a qualified opinion on the 2018 payments. This highly positive assessment demonstrates the targeted efforts
deployed by the Juncker Commission to ensure that every euro from the EU budget is spent
in accordance with the rules and creates added value for citizens.
Günther H. Oettinger, European Commissioner for Budget and Human Resources, told this
statement: "The European Commission is working hard to ensure that every euro from
of the EU budget is spent for the benefit of our citizens and creates EU added value. We
ensure that the rules are fully adhered to and errors are kept to a minimum.
We are pleased to see that our efforts are bearing fruit and that the Court's independent audit
confirmed once again that we have done a good job.”
EU Member States – important partners in managing the EU budget
The Commission is responsible for implementing the EU budget with a large number of partners; she
manages around 75% of EU expenditure jointly with the Member States. These play a role
essential in areas such as cohesion and agriculture, where the bulk of the budget is
transferred to national and regional managing authorities. The Commission applies strict rules in
to manage the funds properly and efficiently. We work closely with states
members to ensure that the budget is spent in accordance with these rules and that every euro from the
EU budget goes where it is most needed.

Günther H. Oettinger, European Commissioner for Budget and Human Resources, told this
remarks: "Both the EU's cohesion policy and our common agricultural policy have demonstrated their
ability to deliver good results. At the same time, cohesion and rural development remain the
more difficult to manage due to the number of stakeholders involved. The Commission helps Member States
and the various managing authorities to do better when necessary. The efforts we have
made so far show that we are on the right track; we will therefore continue in this
senses."
Make the most of every euro
One of the Commission's key priorities is to ensure that every euro from the EU budget produces
the best possible results in all areas of action. This is the reason why we have
made considerable efforts to ensure that the EU budget is not only spent
in accordance with the rules, but also finances