Global ETF News Older than One Year
Wheat price rises as weather fears return
June 2, 2011--Wheat prices rose on Thursday for the first time since Russia announced it would lift its export ban, as traders concluded the move was unlikely to resolve any shortfall created by growing problems elsewhere.
Prices had dropped up to 7 per cent since Saturday’s announcement that the ban would be lifted from the start of July. But traders and analysts said that poor weather across some of the most important tracts of wheat-growing land had returned to the fore, overshadowing the impact of the Russian decision.
Source: FT.com
London Stock Exchange Group plc publication of circular and prospectus
June 1, 2011--On 9 February 2011 London Stock Exchange Group plc (“LSEG”, “LSEG Group” or the “Company”) and TMX Group Inc. (“TMX” or “TMX Group”) announced a proposed recommended merger (the “Merger”) to create a new international exchange leader (the “Merged Group”).
Today, the Board of LSEG announces that LSEG’s shareholder circular (the "LSEG Circular") and prospectus (the “Prospectus”) relating to the Merger have been approved by the UK Listing Authority ("UKLA"), published and will be posted to LSEG shareholders as appropriate. In addition, TMX has received approval from the Ontario Court for its shareholder circular, copies of which will also be publicly filed in Canada today and are in the process of being posted to its shareholders.
The LSEG Circular contains a notice convening a general meeting of LSEG’s shareholders to be held at London Stock Exchange, 10 Paternoster Square, London EC4M 7LS at 3:00pm on 30 June 2011 (the "General Meeting") at which approval will be sought for the Merger. A timetable is set out below.
Transaction Rationale
The Boards of LSEG and TMX Group believe that the Merger offers compelling financial, strategic and operational benefits for shareholders, the full breadth of market participants, listed companies of all sizes, investors and other stakeholders.
Source: London Stock Exchange
A New Action-based Dataset of Fiscal Consolidation -IMF Working paper
June 1, 2011--This paper presents a new dataset of fiscal consolidation for 17 OECD economies during 1978-2009. We focus on discretionary changes in taxes and government spending primarily motivated by a desire to reduce the budget deficit and not by a response to prospective economic conditions.
To identify the motivation and budgetary impact of the fiscal policy changes, we examine contemporaneous policy documents, including Budgets, Budget Speeches, central bank reports, Convergence and Stability Programs submitted by the authorities to the European Commission, and IMF and OECD reports. The resulting series can be used to estimate the macroeconomic effects of fiscal consolidation.
view IMF Working paper-A New Action-based Dataset of Fiscal Consolidation
Source: IMF
Deutsche Börse and NYSE Euronext highlight benefits of strategic combination at Investor Day in Germany
June 1, 2011--Deutsche Börse and NYSE Euronext today reiterated the benefits of the planned business combination for all capital market participants. In a joint presentation at the German “Investor Day” both companies highlighted the compelling value of the strategic combination.
“The business combination between Deutsche Börse and NYSE Euronext will bring immediate and concrete financial benefits and attractive growth prospects for shareholders of both companies”, said Reto Francioni, CEO of Deutsche Börse AG to institutional investors and financial analysts in Eschborn. “The merger fits perfectly into our strategy as it utilizes our derivatives, risk management and post trade expertise and creates additional growth opportunities.”
Duncan Niederauer, CEO of NYSE Euronext, added: “The new exchange organization will be able to offer its customers global reach, innovative products, operational efficiency, improved capital efficiency, and an expanded range of technology and market information solutions. The superior cash flow generation and a strong balance sheet allow us to maintain our shareholder-friendly distribution policy, while also having the necessary resources to invest in future growth.”
Source: Deutsche Börse
Information Rigidity in Growth Forecasts: Some Cross-Country Evidence -IMF Working paper
June 1, 2011--We document information rigidity in forecasts for real GDP growth in 46 countries over the past two decades. We investigate: (i) if rigidities are lower around turning points in the economy, such as in times of recessions and crises;
(ii) if rigidities differ across countries, particularly between advanced countries and emerging markets; and (iii) how quickly forecasters incorporate news about growth in other countries into their growth forecasts, with a focus on how advanced countries‘ growth forecasts incorporate news about emerging market growth and vice versa.
view the IMF Working paper-Information Rigidity in Growth Forecasts: Some Cross-Country Evidence
Source: IMF
GDP growth – First quarter of 2011 OECD growth steady at 0.5 per cent in the first quarter of 2011 but diverging trends across major economies
June 1, 2011--Gross domestic product (GDP) in the OECD area continued to grow at a rate of 0.5% in the first quarter of 2011 despite a continued contraction in Japan and slower growth in the United States as growth in most major European economies and Canada accelerated strongly.
Real GDP grew by 0.8% in the European Union compared to 0.2% in the previous quarter. This acceleration was driven by Germany (where GDP grew by 1.5%), France (1.0%) and the United Kingdom, where the economy expanded by 0.5% after a 0.5% contraction in the previous quarter. In Italy growth remained at 0.1%. Euro area GDP grew by 0.8% compared to 0.3% in the previous quarter.
Among non-European countries, GDP in Canada grew by 1.0%, up from 0.8% in the previous quarter. In the United States GDP slowed to 0.4% compared with 0.8% in the previous quarter. In Japan, GDP contracted by 0.9% following a 0.8% contraction in the previous quarter, partly reflecting the impact of the natural disaster of 11 March 2011.
Source: OECD
Emerging markets to see investment rise
June 1, 2011-Capital inflows to emerging market countries will surge yet higher this year as money flowing into China and Brazil more than offsets investors pulling money out of Egypt, according to a group of leading financial institutions.
The Institute of International Finance, a global association of banks and finance houses, on Wednesday said it had revised up its regular estimate of net private capital flows by $81bn for both last year and this, to a total of $990bn in 2010 and $1,041bn in 2011. Inflows to middle income countries had recovered sharply along with the global economy, though the IIF said the rise was likely to slow in coming years.
Source: FT.com
Swiss franc outshines rival haven currencies
June 1, 2011--From the dollar to the yen, there used to be an array of currencies vying for haven status. Now there is just one; the Swiss franc.
Amid heightened fears over eurozone sovereign debt and increasing concerns about the health of the US economy, investors have flocked to the safety of the Swiss currency with some commentators forecasting that it could surge to parity against the beleaguered euro.
Source: FT.com
Deutsche Börse and Eurex to cooperate with Shanghai Advanced Institute of Finance (SAIF) – Shanghai Jiao Tong University
May 31, 2011--Deutsche Börse AG, Eurex and the Shanghai Advanced Institute of Finance have signed a Memorandum of Understanding (MoU) last Friday, 27 May, in Shanghai. The partners want to establish an extended relationship and cooperate in the areas of research and financial education. The common objective is to improve the understanding and knowledge of financial markets in China, Germany as well as other Asian and European countries.
One important element of the cooperation will be the implementation of educational programs. Deutsche Börse and SAIF aim to jointly design and offer lectures, courses and other educational programs at SAIF with focus on Chinese and European financial markets and products in order to foster the understanding of the respective markets. Other important elements will be a cooperation in the area of financial market research and the publication of joint studies.
“We are pleased about our partnership with the Shanghai Advanced Institute of Finance. Our agreement is another proof of our collaborative approach to cooperate with major academic institutions to support the development of the Chinese financial market”, said Michael Peters, member of the Eurex Executive Board, the derivatives arm of Deutsche Börse AG.
Source: Deutsche Börse
ETFS Precious Metals Weekly: Sovereign Debt Risk an Increasingly Important Driver of the Gold Price
May 30, 2011--Gold price rallies through the $1500/oz mark on rising sovereign risk in Europe. A weaker US dollar on disappointing growth data added to the upward momentum.
Sovereign debt risk an increasingly persistent issue and gold price driver. The gold price appears to be increasingly viewed as a hedge against sovereign risk, with the correlation between the gold price and sovereign risk measures rising sharply since Greek crisis.
This has reduced the normal inverse correlation of the gold price and the US dollar.
Platinum, palladium and silver prices rally on USD weakness. South Africa platinum and palladium mine supply issues continue to highlight long term supply difficulties in the worl’s largest platinum producing country. Gold prices rally above $1530/oz last week, nearing previous USD highs. Speculation that Greece may be forced to restructure its government debt continues even as the Greek government announced that it will ramp up asset sales to help bridge its budget shortfalls as growth disappoints. European sovereign risk and its impact on the Euro has emerged as an important driver of the gold price, with periods of rising European sovereign risk often corresponding to a higher gold price – even as the US dollar has appreciated. As was seen in 2H 2008 and early 2010, during periods of extreme stress, both the gold price and the US dollar often rally together.
visit www.etfsecurities.com for more info.
Source: ETFS Securities
