Global ETF News Older than One Year
NASDAQ OMX and ICE Issue Joint Statement on Superior Proposal
April 25, 2011--NASDAQ OMX (NDAQ) and IntercontinentalExchange (ICE) today issued a joint statement with regard to their superior proposal for NYSE Euronext:
NYSE Euronext investors should be highly skeptical that after two years of exploratory merger discussions, including more than six months dedicated to finalizing the transaction, NYSE Euronext has suddenly found a reported €100 million in additional synergies.
This increase appears not to be a matter of sharpening a pencil, but an unexplained shift in strategy. The discovery that initial synergies having been understated by one-third comes after receiving a superior proposal from NASDAQ OMX and ICE that achieves greater synergies.
Importantly, if there are additional synergies to be found after the merger economics have been agreed, then it has to come at the expense of NYSE Euronext stockholders because there has been no increase in the price they are being offered. NYSE Euronext should describe these newly-found synergies in detail in order to support the credibility of these revised estimates, particularly in light of commitments to retain two technology platforms and two headquarters. Increasingly it appears that NYSE Euronext is more focused on protecting the transaction than its stockholders.
NASDAQ OMX and ICE have described in detail our proven and focused long-term strategy from which stockholders would benefit and our companies demonstrated outperformance relative to their proposed strategy of creating a financial supermarket. We look forward to having the same opportunity when the NYSE Euronext Board agrees to due diligence.
Additional Details
All details and other supporting information related to this proposal are available on http://www.nasdaq.com/deal and http://ir.theice.com
Source: NASDAQ OMX
Gold and silver set new highs after S&P move
April 21, 2011--Gold and silver bounded to new highs every day this week as investors shunned the dollar after Standard & Poors issued a warning on the health of the US government’s finances.
The precious metals – often havens in times of risk aversion – outperformed in spite of resurgent risk appetite in global markets that lifted equities and industrial commodities.
Source: FT.com
Dollar dives, gold rises on US aversion
April 21, 2011--The dollar tumbled to a three-year low on Thursday against major currencies and gold surged to a new high as investors piled into investments that are less reliant on the US economy.
Upbeat US and European corporate earnings propelled world stocks to a 33-month high. Several US bellwether stocks jumped after strong earnings but many of those companies have significant sales around the world.
Source: FIN24
NASDAQ OMX Group and IntercontinentalExchange Respond to NYSE Euronext's Board's Continued Rejection of NASDAQ OMX/ICE Superior Proposal
April 21, 2011--NASDAQ OMX (Nasdaq:NDAQ) and IntercontinentalExchange (NYSE:ICE) today issued the following statement in response to the NYSE Euronext Board's continued refusal to discuss NASDAQ OMX/ICE's superior offer with NASDAQ OMX and ICE, despite a premium of 15%, or $1.4 billion, over the value offered under the existing agreement with Deutsche Boerse, as of April 20, 2011. Not only does this represent a significantly higher valuation for NYSE Euronext's shareholders, but a significant portion of the offer is in shares of two best-in-class exchanges with proven records of creating long term value for their shareholders. NASDAQ OMX and ICE have directly met each of the specific concerns initially raised by NYSE Euronext's Board and their response is now vague generalities unsupported by the actual facts.
The NASDAQ OMX/ICE proposed transaction is financially and strategically superior to the proposed transaction with Deutsche Boerse. Furthermore, NYSE Euronext's agreement with Deutsche Boerse expressly permits NYSE Euronext to consider superior proposals and allow third-parties to conduct due diligence in these circumstances. NASDAQ OMX and ICE call on the NYSE Euronext Board of Directors to meet with them to better understand the proposal and provide them with limited due diligence under appropriate safeguards so that no competitive risks are posed to NYSE Euronext. NASDAQ OMX and ICE are also willing to provide mutual diligence to NYSE Euronext. Taking this small step would create no commitment and can only benefit stockholders.
Robert Greifeld, Chief Executive Officer of NASDAQ OMX, said, "Discussing this with us would provide only upside for the NYSE shareholders. We have worked diligently to put a strong proposal before their Board. Continually refusing to engage is starting to appear as if they are protecting their deal rather than acting in the best interest of their shareholders. We will not be deterred by the Board's attempts to protect an inferior transaction."
Source: NASDAQ OMX
NYSE Euronext Board Of Directors Unanimously Reaffirms Rejection Of Proposal From Nasdaq And Intercontinental Exchange - Reaffirms Strong Commitment To Deutsche Boerse Combination - Creates Substantially More Value For Shareholders With Clearer Path To Co
April 21, 2011--NYSE Euronext announced today that its Board of Directors, consistent with its fiduciary duties and advised by its financial and legal advisors, has unanimously reaffirmed its combination agreement with Deutsche Boerse AG and reaffirmed its rejection of the proposal from Nasdaq OMX Group, Inc.
Speaking on behalf of the Board, NYSE Euronext Chairman Jan-Michiel Hessels said: "Our Board has reviewed the information recently provided by Nasdaq/ICE in connection with their proposal and concluded that this proposal is substantially the same as what was previously rejected. Consequently, our view has not changed. This proposal does not provide compelling value, has unacceptable execution risk and is therefore not in the best interests of NYSE Euronext shareholders."
Mr. Hessels continued: "The Board is intensely focused on shareholder value, and we remain confident that the combination with Deutsche Boerse creates substantially more value for our shareholders. The combined company will be a global leader across all major asset classes, with the financial strength, balance sheet flexibility and synergy potential to drive revenue and earnings growth and new product innovation. The scale and strength of the business, along with its world-class management team, positions the company to shape and capitalize on the industry's evolution and global development."
NYSE Euronext's financial advisers are Perella Weinberg Partners, BNP Paribas, Goldman, Sachs and Co., and Morgan Stanley & Co., Inc. Its legal advisers are Wachtell, Lipton, Rosen & Katz, Stibbe N.V. and Milbank, Tweed, Hadley & McCloy LLP.
Source: NYSE Euronext
How Do Business and Financial Cycles Interact?-IMF Working paper
April 20, 2011--Summary: This paper analyzes the interactions between business and financial cycles using an extensive database of over 200 business and 700 financial cycles in 44 countries for the period 1960:1-2007:4.
Our results suggest that there are strong linkages between different phases of business and financial cycles. In particular, recessions associated with financial disruption episodes, notably house price busts, tend to be longer and deeper than other recessions. Conversely, recoveries associated with rapid growth in credit and house prices tend to be stronger. These findings emphasize the importance of developments in credit and housing markets for the real economy.
Source: IMF
Gold pierces $1,500 to set fresh high
April 20, 2011--The price of gold leapt to a record above $1,500 a troy ounce and silver soared past $45 as the huge debt burden of western countries burnished the appeal of the precious metals.
Investors are focusing on fears of the debasement of paper currencies amid rising inflation from China to Europe and a warning by Standard & Poor’s that the US could lose its triple A credit rating.
Source: FT.com
NASDAQ OMX Group and IntercontinentalExchange Deliver Proposed Merger Agreement to NYSE Euronext Board of Directors; Demonstrate Commitment to Proposal That is Superior by 21% or $2 Billion
April 19, 2011--NASDAQ OMX (NDAQ) and IntercontinentalExchange (ICE) today announced they have taken a series of steps demonstrating their commitment to pursuing their superior proposal with NYSE Euronext and providing greater certainty to the NYSE Euronext Board.
A proposed merger agreement has been submitted to the NYSE Euronext Board that is consistent with the terms of the current business combination agreement with Deutsche Boerse;
NASDAQ OMX and ICE are prepared to pay a reverse termination fee of $350 million (USD), in the event that they are unable to obtain necessary antitrust and competition approvals;
NASDAQ OMX and ICE have received fully committed financing of $3.8 billion from a group of leading institutions; and
Actions necessary to start the U.S. antitrust review processes have been taken and those reviews are expected to commence shortly.
Source: NASDAQ OMX
NYSE Euronext Acknowledges Receipt of Proposed Merger Agreement from Nasdaq OMX Group and IntercontinentalExchange Inc.
April 19, 2011---- NYSE Euronext (NYSE: NYX) today confirmed receipt of a proposed merger agreement from the Nasdaq OMX Group, Inc. (Nasdaq: NDAQ) and IntercontinentalExchange, Inc. (NYSE: ICE). The Board of Directors of NYSE Euronext will review it in due course,
consistent with its fiduciary duties and its obligations under its previously announced business combination agreement with Deutsche Boerse AG (XETRA:DB1).
Source: NYSE Euronext
BlackRock New Report ETF Landscape: Industry Highlights - Q1 2011
April 19, 2011--This report highlights the Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) industry at the end of Q1 2011.
Global ETF and ETP industry:
The global ETF industry had 2,605 ETFs with 5,905 listings and assets of US$1,399.4 Bn, from 142 providers on 48 exchanges around the world at the end of Q1 2011. This compares to 2,131 ETFs with 4,133 listings and assets of US$1,081.9 Bn from 123 providers on 42 exchanges, at the end of Q1 2010.
The global ETF and ETP industry combined, had 3,724 products with 7,740 listings, assets of US$1,583.2 Bn from 178 providers on 52 exchanges around the world. This compares to 2,849 products with 5,158 listings, assets of US$1,235.4 Bn from 147 providers on 44 exchanges, at the end of Q1 2010.
United States ETF industry:
The ETF industry in the United States had 949 ETFs and assets of US$950.0 Bn, from 29 providers on two exchanges at the end of Q1 2011. This compares to 814 ETFs and assets of US$736.3 Bn, from 29 providers on two exchanges at the end of Q1 2010.
US$11.2 Bn of net new assets went into United States listed ETFs/ETPs in March 2011. US$5.2 Bn net inflows went into equity ETFs/ETPs, of which US$2.5 Bn went into ETFs/ETPs tracking emerging market equity indices, while ETFs/ETPs tracking US equity indices saw net outflows of US$4.8 Bn. Fixed income ETFs/ETPs saw net inflows of US$3.2 Bn, of which US$0.7 Bn went into inflation linked bond ETFs/ETPs and US$0.7 Bn went into corporate bond ETFs/ETPs. Commodity ETFs/ETPs saw net inflows of US$2.4 Bn, of which ETFs/ETPs providing exposure to precious metals saw net inflows of US$0.7 Bn and US$0.7 Bn net inflows went into ETFs/ETPs providing agricultural commodity exposure in March 2011.
Of the US$8.8 Bn of net new assets in United States listed ETFs in March 2011, iShares gathered the largest net inflows with US$5.1 Bn, followed by Vanguard with US$3.7 Bn net inflows, while State Street Global Advisors saw US$3.3 Bn net outflows.
European ETF industry:
The European ETF industry had 1,122 ETFs with 3,896 listings and assets of US$307.5 Bn, from 41 providers on 23 exchanges at the end of Q1 2011. This compares to 910 ETFs with 2,579 listings and assets of US$233.7 Bn from 36 providers on 18 exchanges, at the end of Q1 2010.
US$10.3 Bn of net new assets went into European listed ETFs/ETPs in Q1 2011. US$7.7 Bn net inflows went into equity ETFs/ETPs, of which US$4.0 Bn went into ETFs/ETPs providing European single country exposure while ETFs/ETPs providing broad European exposure experienced net outflows of US$1.6 Bn. Fixed income ETFs/ETPs saw net inflows of US$0.3 Bn, of which US$1.3 Bn went
into money market ETFs/ETPs while government bond ETFs/ETPs saw net outflows of US$1.5 Bn. US$2.2 Bn net inflows went into commodity ETFs/ETPs, of which US$1.2 Bn went into ETFs/ETPs providing broad commodity exposure and US$0.4 Bn went into ETFs/ETPs providing exposure to energy.
Of the US$4.0 Bn of net new assets in European listed ETFs in March 2011, UBS Global Asset Management gathered the largest net inflows with US$2.0 Bn, followed by iShares with US$1.3 Bn net inflows, while Lyxor Asset Management had the largest net outflows with US$0.3 Bn.
Asia Pacific (ex-Japan) ETF industry:
The Asia Pacific (ex-Japan) ETF industry had 224 ETFs with 336 listings and assets of US$56.9 Bn, from 63 providers on 13 exchanges at the end of Q1 2011. This compares to 159 ETFs with 255 listings and assets of US$40.6 Bn, from 53 providers on 13 exchanges, at the end of Q1 2010.
Japan ETF industry:
The Japanese ETF industry had 84 ETFs with 88 listings and assets of US$29.6 Bn, from eight providers on three exchanges at the end of Q1 2011. This compares to 70 ETFs with 73 listings and assets of US$27.3 Bn from six providers on two exchanges, at the end of Q1 2010. There are 178 ETFs which have filed notifications in Japan.
Latin America ETF industry:
The Latin American ETF industry had 26 ETFs, with 405 listings and assets of US$10.2 Bn, from four providers on three exchanges at the end of Q1 2011. This compares to 21 ETFs, with 231 listings and assets of US$9.3 Bn from three providers on three exchanges, at the end of Q1 2010.
Canada ETF industry:
The Canadian ETF industry had 171 ETFs and assets of US$42.8 Bn, from four providers on one exchange at the end of Q1 2011. This compares to 132 ETFs and assets of US$32.8 Bn from four providers on one exchange, at the end of
Q1 2010.
Source: Global ETF Research & Implementation Strategy Team, BlackRock
