Global ETF News Older than One Year
S&P Dow Jones Indices And MSCI Announce The Creation Of A Real Estate Sector In The Global Industry Classification Standard (GICS(R)) Structure
November 10, 2014--S&P Dow Jones Indices, a leading provider of financial market indices, and MSCI Inc., a leading provider of investment decision support tools worldwide, announced today that as a result of their annual review of the Global Industry Classification Standard (GICS(R)) structure, a new Real Estate Sector is being created, elevating its position from under the Financials Sector and bringing the number of GICS Sectors to 11.
Additionally, a new Sub-Industry for Copper is being created. The changes are being considered for implementation after the market close (ET) on August 31, 2016.
Source: S&P Dow Jones Indices
ETFS Research Note-Precious Metals, Gold and Emerging Markets
November 7, 2014--Emerging markets (EMs) are increasingly the biggest drivers of precious metals (PMs) demand.
In 2013, nearly 60% of the global demand for gold, silver, platinum and palladium came from emerging markets-up from about a 1/3rd in 2003 and 1/4 in 1993.
Rapidly increasing per capita incomes and wealth are driving the demand for precious metals for jewelry, investment, electronics and emission controls.
Average per capita GDP in the BRIC countries has increased about 4-fold since the year 2000.
PMs are increasingly becoming an integral part of EMs portfolio exposure
PM demand is shifting to emerging markets, led by China and India
Since 2006, when India and China absorbed about a third of total gold global mining supplies, the average of India and China per capita GDP has approximately tripled to US$4,100 (in 2013) with a total population of 2.7 billion.1 This rapid per capita GDP growth trend is likely to continue and has the potential to accelerate. China surpassed India in 2013 as the world's largest consumer of gold.
Source: ETF Securities
DECPG Weekly Economic Brief--Nov. 7, 2014
November 7, 2014--Euro Area economic indicators have deteriorated in recent months. and the possibility of secular stagnation may be increasing. Weak
growth prospects are particularly unwelcome in an environment of very low inflation and unfavorable demographics. Given strong trade and financial linkages, low growth in the Euro Area could have negative effects on both high-income and developing economies.
Euro Area economic indicators have steadily weakened in recent months, increasing concerns that the bloc may be on a path of secular stagnation. Secular stagnation-the manifestation of low or no real economic growth following a period of declining investment and saving rates-represents a significant risk in the medium term. The European Union now expects GDP growth of 0.8 percent in the Euro Area in 2014 and 1.1 percent in 2015, sharply down from 1.2 and 1.7 percent, respectively, in the May forecast. Confidence indicators have dropped. Inflation is undesirably low in both core and periphery Euro Area countries and is likely to remain so in the near term, raising the risk of outright deflation.
Unemployment has been stubbornly high in recent years and is forecast to drop only marginally, from 11.6 percent in 2014 to 11.3 percent in 2015. The Euro Area is also increasingly challenged by its demographic profile-in particular, its high and rising old-age dependency ratio. Demographics are critical in most assessments of the presence of secular stagnation, as they are a major driver of long-term trends in saving and investment.
Source: World Bank
OTC Derivatives Regulators Issue Report to the G20 Leaders
November 7, 2014--The Over-the-Counter (OTC) Derivatives Regulators Group (ODRG) issued a report today that provides an update to the G20 Leaders regarding the ODRG's continuing effort to identify and resolve cross-border issues associated with the implementation of the G20 OTC derivatives reform agenda.
The ODRG is made up of authorities with responsibility for the regulation of OTC derivatives markets in Australia, Brazil, the European Union, Hong Kong, Japan, Ontario, Quebec, Singapore, Switzerland, and the United States.
Source: CFTC.gov
Unscheduled free float adjustment in MDAX
Novemebr 7, 2014--Deutsche Börse AG has announced an unscheduled adjustment to the free float of Sky Deutschland AG in MDAX(R). Due to the takeover of Sky Deutschland AG by British Sky Broadcasting Group PLC, the free float of Sky Deutschland AG changed by more than 10 percentage points.
According to the rules in the Guide to the Equity Indices of Deutsche Börse, the company's free float will be decreased from the current 33.12 percent to 12.55 percent. The adjustment will become effective on Wednesday, Nov. 12,, 2014.
Source: Deutsche Börse
OPEC World Oil Outlook 2014
November 6, 2014--The OPEC World Oil Outlook (WOO) has been published annually since 2007. It presents
projections for the medium-term (to 2019) and long-term (this year extended
to 2040) for oil demand and supply. The main conclusions of the WOO 2014 are
that oil will continue to play a major part in satisfying world energy needs, as the
global economy more than doubles in size, population grows, prosperity expands
everywhere, and despite a strong reduction in energy intensity.
It also illustrates the growing significance of developing countries in the energy landscape and the progressive shift towards Asia as its gravity centre. Resources are amply sufficient to meet future oil needs. The WOO also emphasizes the many uncertainties associated with the global economy and non-OPEC supply.
Similar oil price assumptions to the WOO 2013: stable, around $100/b in real terms in the long-run.
The estimated cost of supplying the marginal barrel continues to be a major factor in developing expectations for oil prices in the medium-and long-term. Costs more than doubled over the years 2004-2008; downward pressures stemming from the lower demand that resulted from the recession were only temporary, and since the beginning of 2010, upstream capital costs have been rising again.
view the OPEC World Oil Outlook 2014
Source: OPEC
BlueStar Israel Equity Update-October 2014
November 5, 2014--With few exceptions, the Israeli Global companies that reported earnings in the last week of October, and as of this writing, so far this month, have exceeded market forecasts.
While not immune to global macroeconomic trends and equity market volatility and uncertainty, fundamentals of many Israeli Global companies remain strong and we expect fundamentals to drive shares prices higher...
Source: BlueStar Indexes
Bank of China targets US investors with Basel III bond
November 5, 2014--Bank of China is set to become the first mainland Chinese lender to sell US dollar bonds directly to US investors, as it begins marketing Basel III-compliant debt to global fund managers.
BoC's bond sale, from which it is planning to raise around $3bn, will meet regulatory requirements for US investors, known as "144a".
Source: FT.com
New Global Financial Disruptors Equity Index launches in advance of Lending Club's imminent IPO
November 3, 2014--Liberum and AltFi Data have launched the first equity index tracking the world's leading financial services' disruptors-the Index is called the Liberum AltFi Financial Disruptors Index (LAFDI).
"With the imminent blockbuster IPO of Lending Club,the leading Peer-to-peer lender ",says Rupert Taylor,CEO of AltFi Data,“we believe it is important that equity investors have access to an index that comprehensively tracks the world's leading financial services disruptors listed on the main exchanges of the developed world.
Source: AltFi.com
ETFS Precious Metals Weekly-US Dollar Strength Pressures Precious Metals
November 3, 2014-Gold hits sell stops below US$1,200/oz. The strengthening US dollar on the back of stronger than expected US Q3 GDP, the announcement by the FOMC of the culmination of QE in the US and surprise announcement of additional stimulus from the Bank of Japan
pressured precious metals last week.
Year-to-date, gold ended the week with a loss of 3.3%. Accentuating the increase in currency volatility, gold in Euro terms ended the week up 6.2% YTD while the US dollar index has gained 8.6% in 2014 (+9.4% since early May). Defensive assets suffer as cyclical equities regain vigour. Defensive assets like gold and closely correlated silver, suffered as US stock prices extended new highs. However, with the most precious metals trading below their all-in costs, further decline in price has to be limited without triggering a cut-back in production.
Source: ETF Securities
