Global ETF News Older than One Year
ETFS Precious Metals Weekly: Spain's reluctance to take bailout is holding back precious metals price gains
October 10, 2012--The ECB reiterated it is ready to buy sovereign bonds but Spain still refusing to ask for necessary bailout.
Gold price gains tempered by surprise fall in the US unemployment rate.
Platinum price hits 8 month high as South African mining strikes continue.
Key events to watch this week: meeting of Euro finance ministers.
Research note
What Will Drive the Next Leg of the Gold Bull Market?
Since mid-July the gold price has rallied strongly, but remains 11% below the peak of USD$1900/oz. achieved in September 2011. European financial and economic turmoil continues to plague financial markets, yet officials have so far failed to find a comprehensive plan to solve the root causes of the crisis. Europe remains mired in deep recession, the US economy appears to have stalled, while Asian emerging market growth has slowed. In this environment most "safe haven" assets have performed well, with G-3 bond yields falling to all-time lows earlier this year. Prior to August, the stand-out exception was gold, which had performed relatively poorly in 2012. Gold's modest performance in an environment of high sovereign risk caused some investors to question its historic "store of value" credentials. In this note we look at some of the key factors that traditionally drive gold price performance, explain what has been behind the performance of the gold price so far this year, and assess the outlook and likely key catalysts for gold price performance for the rest of 2012 and into 2013.
visit www.etfsecurities.com for more info
Source: ETF Securities
OECD-Better Life Index
October 10, 2012--EXECUTIVE SUMMARY
HISTORY
For over fifty years, the Organisation for Economic Cooperation and Development (OECD) has helped governments design better policies for better lives for their citizens.
It provides a forum in which leaders and policy makers can work together to share experiences and seek solutions to common problems, and produces high-quality internationally comparable statistics used to understand what drives economic, social and environmental change.
Ever since the OECD started out in 1961, GDP has been the main factor by which it has measured and understood economic and social progress. But it has failed to capture many of the factors that influence people's lives, such as security, leisure, income distribution and a clean environment.
Is life really getting better? How can we tell? What are the key ingredients to improving life – is it better education, environment, healthcare, housing, or working hours? Does progress mean the same thing to all people or in all countries and societies? A pioneer in this emerging field of research, the OECD has been working for almost ten years to identify the best way to measure the progress of societies – moving beyond GDP and examining the areas that impact everyday people's lives. Today, the fruit of this work is manifested in the OECD Better Life Initiative.
Source: OECD
HSBC's Islamic closures highlight dilemma
October 10, 2012--Last week HSBC decided to close down its Islamic retail banking operations in six markets so that it will be present only in Malaysia, Saudi Arabia and, in shrunken form, Indonesia.
This event underlined the contradictions of the broader sector. On one hand, Islamic banking is continuously reported to be growing at e very high rate - more than 20% a year. On the other hand, there is a huge difference between asset growth and revenues and profit. Poor performance in retail banking markets is the reason for HSBC's withdrawal as well as for the decrease of Barclays' and Deutsche Bank's Islamic banking teams in Dubai.
Source: IslamicFinance.de
IMF Sees Heightened Risks Sapping Slower Global Recovery
IMF revises forecast down, global growth projected at 3.3 percent this year
World trade slumps, hurting emerging markets, developing countries
Prospects could improve if clouds over euro area, U.S. "fiscal cliff" are lifted
October 9, 2012--
The International Monetary Fund (IMF) presented a gloomier picture of the global economy than a few months ago, saying prospects have deteriorated further and risks increased. Overall, the IMF's forecast for global growth was marked down to 3.3 percent this year and a still sluggish 3.6 percent in 2013.
In its latest World Economic Outlook, unveiled in Tokyo ahead of the IMF-World Bank 2012 Annual Meetings, the IMF said advanced economies are projected to grow by 1.3 percent this year, compared with 1.6 percent last year and 3.0 percent in 2010, with public spending cutbacks and the still-weak financial system weighing on prospects.
Source: IMF
IOSCO Publishes Policy Recommendations for Money Market Funds
October 9, 2012--The International Organization of Securities Commission (IOSCO) has published today a final report on Policy Recommendations for Money Market Funds, which proposes recommendations to be the basis for common standards for the regulation and management of money market funds across jurisdictions.
These are articulated around key principles for valuation, liquidity management, use of ratings, disclosure to investors, and repos.
IOSCO’s work on MMFs is an important part of the efforts by the G20 and Financial Stability Board to strengthen the oversight and regulation of the shadow banking system. It follows the endorsement by the G20 Leaders of the FSB’s initial recommendations and work plan regarding shadow banking submitted at the November 2011 Cannes Summit. The FSB requested that IOSCO undertake a review of potential regulatory reforms of MMFs, following the September 2008 run on some money market funds that alerted regulators to the systemic relevance of MMFs.
view the report-Policy Recommendations for Money Market Funds
Source: IOSCO
Mirae BRICs weekly-Investors Focus on Government's Measures to Boost Economy
October 9, 2012--China
HK market rose, offsetting recent losses.
China's domestic markets were closed all week ending Oct 5.
Hong Kong market, opened from Wed to Fri, rose to end the holiday-shortened week higher.
India
Continued economic reforms boost markets.
Indian markets edged higher on continued government reforms. However, gains were limited on Friday due to erroneous trades that caused a sharp decline in the index.
India's Cabinet pushed ahead with a second wave of economic reform proposals, endorsing higher levels of foreign investment in insurance and pension funds as well as amendments to laws governing competition. The Cabinet agreed to support raising the limit on foreign investment in insurance and pension funds from 26 to 49%.
Brazil
Investors focus on government intervention in the economy.
With no major newsflow either on the corporate or macro level, investors continued to focus on government and regulatory intervention in specific sectors such as generation, transmission, ports and banks.
Banks continue were under pressure to lower lending spreads and cut fees, resulting in a structural downwards shift in returns, expected to be reflected in Q3 results.
Rising commodity prices lifted the market.
The optimism, which was aroused by QE3 and actions of the ECB, faded as weaker economic data and resurgent concerns over the Euro zone debt crisis cooled equity markets.
Nonetheless, equity markets ended the month of September higher. Emerging markets outperformed developed markets, rising 5.8% assisted by China’s pledge to stimulate its economy.
Source: Mirae Asset Financial Group
Basel III implementation progress report published by the Basel Committee
October 8, 2012--The Basel Committee on Banking Supervision has today published its third Progress report on Basel III implementation.
It is the Committee's last report ahead of the globally agreed start date of 1 January 2013 for implementing Basel III although the Committee will continue to provide updates through next year and beyond.
Commenting on the report, Stefan Ingves, Chairman of the Basel Committee and Governor of Sveriges Riksbank, Sweden's central bank, said "it is clear that not all jurisdictions will be ready in time. Still, we see continuing signs of progress." He added "The Committee recently published three Level 2 assessment reports, which showed that further work is needed by some jurisdictions to close the gaps identified in their draft regulations.
It is essential that all jurisdictions continue to press ahead and finalise regulations by the deadline or as soon as possible thereafter."
view the Progress report on Basel III implementation
Source: BIS
The FTSE Curex FX Index Series Expands to a Total of Eight Executable Offshore Renminbi FIX Benchmarks
October 8, 2012--FTSE, the award winning global index provider, and Cürex Group, a leading developer of intellectual property and technologies that link institutional foreign exchange liquidity with global exchange traded products, today announced the expansion of the FTSE Cürex FX Index Series with the addition of seven new streaming benchmark currency pairs, enabling investors to trade Offshore Renminbi (CNH) against seven major currencies at an independently calculated benchmark rate.
The new indices increase the number of executable currency pair benchmarks included in the index series from 192 pairs to 199 pairs. In addition to the FTSE Cürex FX Benchmark USD/CNH FIX published June 12, 2012, the new Offshore Renminbi FIX rates are:
FTSE Cürex FX Benchmark EUR/CNH FIX
FTSE Cürex FX Benchmark GBP/CNH FIX
FTSE Cürex FX Benchmark SGD/CNH FIX
Source: FTSE
FTSE Launches Website for Vanguard Customers
October 6, 2012--To support Vanguard's customers, FTSE has set up a website featuring the FTSE indices that will be benchmarks for Vanguard's funds,
at www.ftse.com/vanguard.
This site contains a wealth of useful information including index descriptions, factsheets and ground rules, together with more general background information on FTSE and our approach to index design and management.
Source: FTSE
Analysis: Investors fret over MSCI outlook as ETF price war bites
October 5, 2012--Just four weeks ago, an MSCI executive was crowing about his company's near-monopoly on providing critical benchmark stock market indexes which are licensed by fund companies around the world.
"It's the only part of our business in which we have a committed strategy of trying to utilize a little bit of pricing power and raise prices a little bit every year," Edings Thibault, MSCI's head of investor relations, told investors at UBS's Best of Americas conference in London on September 7.
Source: Reuters
