Global ETF News Older than One Year
IMF Working Paper-Fiscal Transparency, Fiscal Performance and Credit Ratings
June 13, 2012--Summary: This paper investigates the effect of fiscal transparency on market assessments of sovereign risk, as measured by credit ratings. It measures this effect through a direct channel (uncertainty reduction) and an indirect channel (better fiscal policies and outcomes), and it differentiates between advanced and developing economies.
Fiscal transparency is measured by an index based on the IMF’s Reports on the Observance of Standards and Codes (ROSCs). We find that fiscal transparency has a positive and significant effect on ratings, but it works through different channels in advanced and developing economies. In advanced economies the indirect effect of transparency through better fiscal outcomes is more significant whereas for developing economies the direct uncertainty-reducing effect is more relevant. Our results suggest that a one standard deviation improvement in fiscal transparency index is associated with a significant increase in credit ratings: by 0.7 and 1 notches in advanced and developing economies respectively
view the IMF Working Paper-Fiscal Transparency, Fiscal Performance and Credit Ratings
Source: IMF
DCGX Academy-OPEC SPEAK: Production Quota ,Oil price worrisome
June 13, 2012--COMMODITIES
Oil Declines Amid Speculation OPEC Quota Will Remain Unchanged
Gold Poised to Snap Three-Day Advance Ahead of Greek Elections
Copper in London Little Changed, Erasing Earlier Gains
OPEC Split Signals Unchanged Quota as Compromise
Worst of China Slowdown Seen in Wenzhou as Stimulus Limited
FOREIGN EXCHANGE
INR OIS Swaps fall 31 BPS signalling cut
Euro Snaps Advance Before Italy Sells Bonds, Factory Output Data
Hong Kong Vows to Keep Currency Peg After Yam Urges Review
Pound Gains Versus Euro on Europe Concern; Gilts Drop After Sale
Euro May Fall to Record Versus Yen in Months: Technical Analysis
Down-Under Greeks Send Money as Crisis Awakens Ties to Homeland
INR
Fastest BRIC Swap Drop Signals Rate Cut After S&P: India Credit
RBI will cut borrowing costs next week after Standard & Poor's said it may lower the nation's credit rating to junk as economic growth slows, interest-rate swaps signal. The fixed leg fell 31 basis points this month to 7.47 %, a sign that investors anticipate policy makers will reduce the repurchase rate by at least a quarter-%age point from the current 8 % .
INR Rises Marginally
INR rose marginally by 5 paise to 55.75 against the US USD in early trade today, snapping a three-day fall as the euro showed some strength against the USD in overseas markets. Besides, USD selling by exporters also supported . The INR had lost 6 paise to close at 55.80 yesterday on persistent USD demand amid stronger trend overseas .Sensex fell by 32.88 points, or 0.19 per cent, to 16,829.92 in early trade today.
Source: DGCX Academy
London Metal Exchange to be bought by HKEx for 1.4bn pounds
June 15, 2012--The London Metal Exchange is set to be sold to the Hong Kong stock exchange (HKEx) in a deal worth £1.4bn.
The offer must now be approved by the LME board. If accepted it will give Asia's largest bourse a much needed entry into a the booming commodity trading business, and brings LME members closer to China, the world's biggest metals buyer.
Source: City Wire
Africa and Middle East well placed to succeed China as key manufacturing hubs for low cost goods, according to Ernst and Young
June 12, 2012--According to Ernst and Young''s 2012 Rapid Growth Markets (RGM) Forecast, Africa and the Middle East are well placed to succeed China as key manufacturing hubs for low cost goods. The report also predicts that exports from Africa and the Middle East are poised to grow by more than 12% over the next decade.
Bassam Hage, MENA Markets Leader, Ernst & Young, says, "While China is still very competitive, rising wages are opening up opportunities for Africa and the Middle East. With a fast-growing labor force, they have the potential to become the next world assembler, possibly replacing China, as China specializes in higher-value added goods.
view the Ernst & Young Rapid-Growth Markets Forecast Spring Edition Report
Source: AME Info
Mr Price Group Added To Dow Jones Emerging Markets Consumer Services Titans 30 Index
June 12, 2012--Mr Price Group Limited of South Africa will be added to the Dow Jones Emerging Markets Consumer Services Titans 30 Index, Dow Jones Indexes announced today.
The addition of Mr Price Group Limited follows the removal of Brazil’s TAM S/A ADS due to its acquisition by LAN Airlines S.A. (Brazil).
Mr Price Group Limited is engaged in the business of retail distribution through specialty stores.
The changes in the Dow Jones Emerging Markets Consumer Services Titans 30 Index will be effective as of the opening of trade on Monday, June 18, 2012.
The Dow Jones Emerging Markets Consumer Services Titans 30 Index measures the performance of 30 leading emerging-market companies in the Consumer Services Industry as defined by the proprietary classification system used by Dow Jones Indexes. Stocks are selected to the index based on float-adjusted market capitalization, size, revenue and net profit
Source: Dow Jones
BlackRock-New Report: ETP Landscape Industry Highlights, May 2012
June 12, 2012--Economic uncertainty in Europe and China sparked a flight to safety that yielded a record setting month for fixed income ETPs, with the products attracting $11.0 billion in net flows, compared with $9.1 billion for the previous record month, January 2012.
Government bond ETPs attracted record breaking inflows of $5.6 billion driven by flows of $4.4 billion into US Treasury bond products. The previous monthly high for government ETPs of $3.6 billion was set in June 2010. High yield bond ETPs saw monthly outflows of ($1.3) billion, the first month of redemptions since November 2011.
Emerging markets equity ETPs drew $3.3 billion, with flows of $8.3 billion into two new Chinese equity funds outweighing outflows of $5 billion from a broad range of other emerging markets products. In developed markets equities, DAX German equity funds swung back with strong flows of $4.3 billion in May on the heels of ($5.1) billion outflows last month. Japanese equity ETPs also had a strong showing in May, garnering $3.6 billion.
Source: BlackRock
WB Urges Developing Countries to Strengthen Domestic Fundamentals, to Weather Global Economic Turmoil
June 12, 2012--Developing countries should prepare for a long period of volatility in the global economy by re-emphasizing medium-term development strategies, while preparing for tougher times, says the World Bank in the newly-released Global Economic Prospects (GEP), June 2012.
A resurgence of tensions in high-income Europe has eroded the gains made during the first four months of this year, which saw a rebound in economic activity in both developing and advanced countries and an easing of risk aversion among investors. Since May 1st, increased market jitters have spread. Developing and high-income country stock markets have lost some 7 percent, giving up two-thirds of the gains generated over the preceding four months. Most industrial commodity prices are down, with crude and copper prices down by 19 and 14 percent, respectively, while developing country currencies have lost value against the US dollar, as international capital fled to safe-haven assets, such as German and U.S. government bonds.
view the World Bank Global Economic Prospects Report-Managing growth in a volatile world
Source: World Bank
Basel Committee reports to G20 Leaders on global implementation of its standards
June 11, 2012--The Basel Committee on Banking Supervision has today published its report to the G20 Leaders on the implementation of its banking standards across member countries. The report will be considered at the G20 Leaders Summit in Los Cabos, Mexico, on 18-19 June.
"With this report, the Basel Committee is following up on the commitments made by the G20 Leaders in Cannes to have Basel III implemented fully and consistently, and within the agreed timetable" said Stefan Ingves, Chairman of the Committee and Governor of the Sveriges Riksbank. "To date, significant progress has been made, but there are a number of countries that have missed the globally-agreed implementation dates for Basel II and 2.5, and where their ability to meet the Basel III implementation deadline of 1 January 2013 could prove a significant challenge".
The Basel Committee's implementation review process includes three levels of review:
Level 1: ensuring the timely adoption of Basel III
Level 2: ensuring regulatory consistency with Basel III
Level 3: ensuring the consistency of outcomes initially focusing on risk-weighted assets (RWA)
view the Report to G20 Leaders on Basel III implementation
Source: BIS
Worldwide ETF assets keep increasing, but at slower rate
But flows switched to fixed-income offerings and out of equities
June 11, 2012--Worldwide assets managed in ETFs by managers in Pensions & Investments annual survey rose 9.2% in 2011, to $1.278 trillion, far off the pace of the 36% growth in 2010.
Of that total, more than 95% is in sponsored, or proprietary, exchange-traded funds. (P&I did not ask for a breakout between assets in sponsored ETFs vs. non-proprietary ones for the year-earlier survey, but estimates those assets alone rose 9.5%, to $1.218 trillion.).
Source: Pensions & Investments
Shin Corporation to enter the FTSE SET Large Cap after the June semi-annual review
June 11, 2012--FTSE Group ("FTSE"), the award-winning global index provider and the Stock Exchange of Thailand ("SET") announce today that Shin Corporation will replace Thai Airways in the FTSE SET Large Cap Index following the semi-annual review of the FTSE SET Index Series.
The FTSE SET Index Series is reviewed semi-annually by the independent FTSE SET Advisory Committee. The committee is made up of leading local and international market professionals who approve all index changes and ensure that the index review fully complies with a set of highly transparent and publicly available index rules.
All constituent changes will take effect before the start of trading on 18 June 2012. The next review will take place on 14 December 2012.
Source: FTSE
