Global ETF News Older than One Year
Morgan Stanley to Buy Stake in Eris Rate-Swap Exchange
December 20, 2012--Morgan Stanley, the sixth-largest U.S. bank by assets, plans to purchase a stake in Eris Exchange LLC and become a liquidity provider for the interest-rate swaps futures market.
Morgan Stanley will participate in electronic and block trading on Eris early next year, the New York-based company said today in a statement. The bank will also join the board of directors of Chicago-based Eris as part of the deal, the terms of which weren’t disclosed.
Source: Bloomberg
IMF Working paper-Global Bonding: Do U.S. Bond and Equity Spillovers Dominate Global Financial Markets?
The results suggest that U.S. financial shocks reverberate around the world much more strongly than shocks from other regions, including the Euro area, while inward spillovers to the U.S. from elsewhere are minimal. There is also evidence of two-way spillovers between the UK and Euro area financial markets and spillovers from Europe to Japan. The results also suggest that the uncertainty about the direction of causality of contemporaneous correlations—an issue that other techniques cannot tackle—is the dominant source of uncertainty in the estimated impulse response functions.
Source: IMF
IMF Working paper-The Rising Resilience of Emerging Market and Developing Economies
The past decade was particularly good—for the first time EMDEs spent more time in expansion and had smaller downturns thanadvanced economies. In this paper we document the history of EMDEs’ resilience over the past sixty years, and investigate what factors have been associated with it. We find that their improved performance in recent years is accounted for by both good policies and a lowerincidence of external and domestic shocks—better policies account for about three-fifths of their improved resilience, while less frequent shocks account for the remainder. view the IMF Working paper-The Rising Resilience of Emerging Market and Developing Economies
Source: IMF
World Bank Releases International Debt Statistics 2013
The downturn was partially offset by inflows from commercial banks, sustained access to international bond markets and a rise in foreign direct investment.
“These international debt statistics are a vital input for experts working to improve the management of capital flows around the world and having the data open to all is a welcome development,” says Ibrahim Levent, Senior Information Officer in the Bank’s Data Group and part of the team that produced the report. view the International
Debt Statistics 2013
Source: World Bank
ICE to Buy NYSE for $8.2 Billion, Ending Era of Independence
The ICE said it intends to offer $33.12 per share, representing a premium of about 37 percent over NYSE Euronext's Wednesday closing price. CNBC first reported on merger talks between the two companies after the closing bell on Wednesday. In early trading, the NYSE's stock soared by 31 percent in heavy volume that was more than 12 times its normal average.
Source: CNBC
New European Regulations Will Put Compliance Pressures on U.S. Alternative Fund Managers to Plan Ahead
Today, the European Commission adopted the implementing rules for the Directive, which will now be subject to a three- or six-month scrutiny period by the European Parliament and the Council, and will enter into force, provided that neither co-legislator objects, at the end of this period.
The Directive may have long-term implications for investment managers in the U.S. and globally, who are looking to raise capital in Europe.
Source: KPMG International
FTSE Publishes new Research Paper- Emerging Markets: Crossing the Rubicon
A powerful combination of macro trends is driving the long term rise of EMs. These include the emergence of a vast new middle class, mainly in Asia, of around 4 billion people by 2030; rapid urbanization; the gradual move by many EMs from export-led to consumption-led growth; and an emphasis on the production of higher value-added products. view the FTSE Research Paper-Emerging Markets: Crossing the Rubicon
Source: FTSE
Russell Eurozone Index Reflected a 20.1%YTD 2012 Gain as of 12/17 as Russell Investments Predicts Continued "Downward Spiral" in 2013 in Southern Europe
In Southern Europe, Greece (19.9%) led the way year-to-date as of 12/17, while Spain (1.5%) had the lowest year-to-date return within the Index.
In Russell Investments' recently released 2013 Annual Global Outlook, its team of global investment strategists highlight core expectations for capital markets along with their outlook for the central investment issues in 2013. The outlook asserts that solving the eurocrisis will require a different policy mix than the one currently in place.
view the 2012
Russell Annual Global Outlook
Source: Russell Investments
BNY Mellon Reshuffles Senior Management
The recently announced reorganization, with several executive changes, is clearly aimed at ensuring the bank maximizes cross-marketing opportunities, say securities analysts. It comes at a time when custodian banks are struggling with lower margins and are trying to win as much business as possible from their existing client base.
Source: Globalcustody.net
Macro Matters-Emerging Market Pushes for Local Drivers
Last week the market remained volatile. Early last week, shares dropped amid: 1) uncertainty ahead of a crucial economic meeting to be held at weekend; and 2) slower-than-expected lending growth in November.
India-Investors remained cautious ahead of inflation report
Investors were cautious as they awaited the inflation data. Trading volume remained relatively low while investors took profit from the previous week gains. Also weak cues from Europe weighed down on the market.
Economic data was mixed. Industrial output in October grew at its fastest pace in 16 months at 8.2%. Wholesale Price Index also marginally declined in November to 7.24% backed by lower fuel inflation. Brazil-Data point towards an economic rebound.
Key central banks continue to add liquidity and ease monetary policy in order to support the growth recovery, with Brazilian and Chinese economic data pointing towards a rebound in activity sustained through Q4’12 into Q1’13.
Brazil’s Economic Activity Index (IBC-Br) posted another positive print in October (+0.4% month-on-month) on a seasonally adjusted basis, following September’s -0.5% contraction. Russia-Russia underperformed emerging markets.
The US Fed last week took the unprecedented step of explicitly linking interest rates to specific unemployment and inflation targets, stating that it is to keep rates at exceptionally low levels as long as the jobless rate remains above 6.5% and inflation below 2.5%.
The FOMC also extended its purchases of $40bn/month in mortgage bonds and raised its monthly purchases of long-term treasuries to $45bn, though highlighting the potential growth risks of the Fiscal Cliff.
Source: Mirae Asset Financial Group
December 20, 2012--Summary: This paper uses a novel variant of identification through hetroscedacity to estimate spillovers across U.S., Euro area, Japanese, and UK government bond and equity markets in a vector autoregression.
December 20, 2012--Summary: Economic performance in many emerging market and developing economies (EMDEs) improved substantially over the past twenty years.
New Publication Has Data on Capital Flows through 2011
December 20, 2012--Net external debt inflows and aggregate net capital inflows (debt and equity) to developing countries fell in 2011, driven by a sharp contraction in net inflows from official creditors and a collapse of portfolio equity flows, according to International Debt Statistics 2013, released today.
December 20, 2012--The Intercontinental Exchange announced on Thursday plans to buy the NYSE Euronext in a transaction valued at approximately $8.2 billion, bringing to an end the Big Board's storied era of more than two centuries as an independent institution.
Alternative Investment Fund Managers Directive Will Have Significant Impact on Fundraising Activities, Operations and Business Models: KPMG International Survey
December 19, 2012--With the compliance deadline for one of the most complex regulatory reform agendas ever introduced into the asset management industry only seven months away, a KPMG International survey of more than 70 alternative investment fund managers reveals that nearly half have not taken any concrete steps to analyze the impact the Alternative Investment Fund Managers Directive (AIFMD) will have on their businesses, or to make changes to their operations.
December 19, 2012--The surging growth of many emerging markets is changing the structure of the global economy. The trend is accelerating such that the term 'emerging' will increasingly cease to apply to many countries and a shift in categorization will be required.
December 19, 2012--The Russell Eurozone Index reflected a return of 20.1% year-to-date as of December 17th, 2012. Northern European countries enjoyed the strongest gains within the Eurozone Index, with Belgium (37.2%)*, Austria (35.4%) and Germany (31.0%) leading the way year-to-date as of 12/17.
December 18, 2012--The Bank of New York Mellon, the world's largest custodian bank, is consolidating its asset servicing, corporate trust, depositary receipts, global markets, global collateral services, broker-dealer services and clearing subsidiary Pershing under a single umbrella to be overseen by the bank's vice chairman Timothy Keaney.
December 18, 2012--China-Regulatory moves encourage investors
Both Hong Kong and China markets gained after speculation of a new state-backed buying in mainland markets and business survey results which raised hopes for a stronger recovery in China.
Last week, Indian market marginally retreated despite better-than-expected inflation data and additional reforms announced by the government.
In Brazil, equities are out of favor with both local and global investors as a result of disappointing economic growth and unpredictable government policy.
Global focus remains on Capitol Hill and the ability of US politicians to arrive at a bipartisan deal to avert the so-called Fiscal Cliff as tax reductions and spending programs expire in January. Until clarity is achieved, investors remain wary of allocating new capital ahead of what is likely a binary outcome – a positive scenario whereby a deal is reached and the US economy sustains its gradual recovery, or a major negative impact on growth is delivered, pushing the US into a brief but sharp recession.
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