Video transcription: Economic research

Meeting with Patrick Artus Chief Economist


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What is the role of economic research at Natixis?


Patrick Artus Chief Economist

[Patrick Artus]

« Natixis economic research mainly seeks to support teams, whether they are external, such as sales teams trying to get in contact with or win new clients, or internal, such as trading teams or teams that develop the products we sell to clients.

So, we provide economic, modeling and quantitative support to all teams that need it.

Increasingly, we need to be able to respond to client questions, especially in this complicated financial environment. A lot of clients ask us, “What do you think about this or that?” So, more and more often, we are writing to answer a certain number of these questions.

We have to realize that mechanisms are becoming more and more complicated. In monetary policy, for example, some clients now need information in order to decipher the mechanisms at work, when they did not need this in the past. »


What makes Natixis unique in this area?

[Patrick Artus Chief Economist]

« Compared to most banks, two things make us different. The first is our total integration: in research, we do traditional macroeconomic analysis, daily market monitoring, short-term strategies for clients, and quantitative market analysis. In the department, we have completely integrated market, economic and monetary policy research, which are separated into different sections in most other banks.

The second thing that sets us apart is that we strive to be transparent with our clients. Bank research is a business based on contact, not an academic business. We try to understand the issues facing our clients in order to answer their questions. We try to understand their business, institutional constraints and insurance restrictions, because we cannot provide them with general answers. We have to understand their accounting and regulatory situations. It is not simply about finding an academic vision of financial markets. »


How is the economic research business evolving?

[Patrick Artus Chief Economist]
« To understand what is happening, it is necessary to integrate what was previously segmented. Traditionally, there were economists specialized in financial markets, economists specialized in monetary policy, economists specialized in budget policy, economists specialized in banking, etc. However, the current crisis is at the crossroads of all this. Budget crises produce banking crises, which in turn lead to economic crises. Up until the bankruptcy of Lehman Brothers, economists did not understand systemic risk very well. This means that we could more or less understand what was happening in each part of the economy, but we had trouble seeing how these parts could interact and cause catastrophic effects that could upset the economic balance. So now we have to work in a much more interdisciplinary way, keeping in mind that sudden changes may occur: change is not always gradual. »


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