Global ETF News Older than One Year
ETFS Research Note-Research: Platinum and Palladium-Fundamentally Undervalued
March 31, 2015--Summary
Despite falling 2.5% since the beginning of the year, precious metals are the best performing commodity sub-sector year-to-date.1
Contrary to our expectations, PGMs ("Platinum Group Metals") lagged behind, with platinum falling by almost 8% and palladium decreasing by 2.5% over the period.
The strong appreciation of the US Dollar against major currencies, particularly against the Euro, did not bode well with commodity prices that tend to be negatively correlated with the US currency.
Going forward we expect PGM prices to recover, as sentiment improves and investors return to focus on tighter fundamentals.
Source: ETF Securities Research
Deciphering Developing Markets-Lithuania's Opposition to Russia | Brazilian Turmoil|Nigeria: What to Watch For
March 31, 2015--Hats off to Lithuania and in particular their foreign minister, Linas Linkevicius. According to a WSJ.com article, at a recent gathering of EU foreign ministers in Brussels, the ministers spoke with "caution" about Russian aggression in the Ukraine.
"Then Linas Linkevicius, Lithuania's husky, rumpled foreign minister, stepped to the microphone. 'We can't trust a single word of the Russian leadership,' he barked. 'It's worthless.' As for Moscow's pledges to help end the violence in Ukraine-'Statements are worthless.' The European Union, he suggested, was removed from 'reality'.
Source: DMS Funds
Compliance table on ESMA Guidelines on the enforcement of financial information
March 31, 2015--ESMA has published Guidelines on the enforcement of financial information.
view the Guidelines on the enforcement of financial information (ESMA/2014/1293)
Source: ESMA
ETF Securities Precious Metals Weekly-Fed Tightening-Another Consensus to Fade?
March 30, 2015--Who might be wrong? Most of the world is trying to fight deflation on an unprecedented scale, yet
the Federal Reserve's (Fed) rhetoric continues to focus on hiking rates soon to fight inflation. Declining
bond yields indicate the bond market appears more focused on disinflation. Can they both be right?
There may be an ulterior Fed motive? Last week, St. Louis Fed President James Bullard hinted at the true reason for Fed official tightening rhetoric, "raise rates or face devastating bubbles". Beware of consensus views. At the beginning of 2014, increasing bond yields and commodity prices were consensus views.
What did that consensus miss that they might be missing now? The market may not conform to the latest Fed tightening consensus.
Source: ETF Securities
Cantor Fitzgerald Adds Veterans to Emerging Markets Debt Capital Markets Team
March 30, 2015--Cantor Fitzgerald, a leading global financial services firm, today announced the expansion of its Emerging Markets Debt Capital Markets sales and trading team with the appointments of Dray Simpson, Alex Yulman and Michael Barfoot as Managing Directors.
Mr. Simpson will be based in London and Mr. Yulman and Mr. Barfoot will be based in New York.
Source: Cantor Fitzgerald
Regulators compete to predict worst fund havoc
March 29, 2015--Watchdogs compete to sound the scariest warnings about the fund industry, says Steve Johnson
Global financial regulators appear to be engaged in their own private game.
The winners will be those who can sound the scariest warnings about the damage the ever-expanding asset management industry could be set to inflict on humanity.
Source: FT.com
Stock indices search for a formula for bigger fees
March 29, 2015--Stock indices used to be simple barometers of market returns. Now they are the basis for investment strategies, used either as benchmarks or as the actual strategy in the case of passive investment, and they are big business.
In recent years passive investment, replicating market returns instead of trying to outperform, has gained popularity for its reliability and low costs.
Source: FT.com
Dwindling debuts threaten to slow European junk's growth
March 27, 2015-Private equity firms shun high-yield
Debut deals slow but stalwarts take advantage
Bond to bond deals push in pricing
European high-yield issuance may be up a whopping 89% on the year, but the steady stream of companies replacing loans with bonds has dried up in recent months.
Source: Reuters
STOXX licenses new ASEAN Select Dividend 30 Index to Thailand's One AM
March 27, 2015--STOXX Limited, a leading provider of innovative, tradable and global index concepts, today announced that it has released the STOXX ASEAN Select Dividend 30 Index and licensed it to One AM, a Thai asset manager.
The index allows market participants to take advantage of investing in ASEAN companies with high dividend payouts. ASEAN countries form one of the fastest growing region in the world.
"ASEAN offers a positive mix of high growth rates, a young population and growing trade and investment," said Hartmut Graf, chief executive officer, STOXX Limited. "Our index offers a unique tool to those looking to benefit from a dividend strategy based on companies in this region. Having One AM license this new index also marks an important step for STOXX in our Asian expansion path."
Source: STOXX
DECPG Global Weekly-March 27, 2015
March 27, 2015--Taking Stock
U.S. inflation edged up in February. U.S. consumer prices edged up 0.2 percent (m/m) in February after falling 0.7 percent in January. A rebound in energy prices, along with an increase in food prices, contributed to the increase of the headline consumer price index.
The core consumer price index also rose by 0.2 percent. On a yearly basis, headline inflation remained negative (Figure 1). Meanwhile, U.S. GDP growth in Q4 was confirmed at 2.2 percent (q/q, saar).
ECB increased the ceiling for emergency liquidity assistance to Greek banks. The European Central Bank (ECB) approved an increase of the ceiling for Emergency Liquidity Assistance to Greek banks by more than €1 billion to just over €71 billion (40 percent of Greek GDP), which will help alleviate short-term cash needs in the banking system. Greece has until Monday to offer details on reform commitments if it is to receive further Eurozone aid payments.
Japanese economic outlook upgraded. The Japanese government upgraded its assessment of the economy for the first time in eight months. In the monthly report released by the Cabinet Office, the government said the Japanese economy is on a moderate recovery, citing improvements in corporate profits, a pick-up in industrial production, and steady strengthening of private consumption.
Ukraine sought debt restructuring. The Ukrainian government urged its international creditors, including Russia, to negotiate a debt-restructuring deal now or risk facing bigger losses. As part of an International Monetary Fund financial support package that was approved last week, Ukraine is looking to restructure $15 billion of external debt (11 percent of GDP) over the next 4 years. With $7.7 billion of debt-service payments due this year, Ukraine has limited recourse to meet its external obligations as the country’s international reserves shrank to a record low of $5.6 billion (less than 15 percent of short term debt)in February.
Source: World Bank
