What do geopolitics and financial strategies have in common? More than you might think, says our new Senior Partner Prof. Dr. Kai Andrejewski in an interview with Dr. Timo Blenk.
What motivated you to change industries (from SIXT SE to Agora Strategy)?
In my role as CFO of SIXT SE, one of my main responsibilities was to develop the company's equity and debt story - in other words, the capital market story. In the process, interfaces repeatedly arose that made it clear to me that a well-founded geopolitical analysis is the basic prerequisite for this. Therefore, the move to Agora Strategy was a further development in terms of content. Furthermore, I am personally convinced that it is a lot of fun to develop new perspectives professionally. SIXT is a very innovative company, so not much has changed.
In your experience, what geopolitical factors influence the financial strategies of international companies?
A company's capital market strategy must take geopolitical conditions into account. This starts with differences in regulation in the USA and Europe. More importantly, however, every financial policy decision has geopolitical implications. For example, can an IPO in the USA go hand in hand with a Chinese-dominated supply chain?
What role does geopolitics play in investment decisions today?
On the one hand, there are extensive regulatory interdependencies here. But for European companies, the focus is broader. Profit maximization must be reconciled with the restrictive European rules. In addition, geopolitical risks and opportunities must also be taken into account. For example, a differentiated tax and customs regime in the USA can also offer arbitrage opportunities.
How do you develop resilient financial strategies in uncertain times?
The “little basics” in terms of liquidity and performance remain fundamentally unaffected. However, globally active European companies must bear in mind that the capital market is not unconditionally global. They should therefore focus on internationalization on both the debt and equity side. This starts with a differentiated banking landscape and extends to location and tax optimization.
Which geopolitical trend currently has the greatest influence on global markets?
The change from a global rule-based order to a multipolar environment is not stopping at the global markets, but especially not at the financial markets. The feedback loops that are not yet so much in focus will be interesting here. To what extent can American investors continue to invest in European companies that put sustainability targets before profitability targets? And how will European companies be able to hold their own compared to American companies if deregulation in the USA progresses much faster?