Americas ETP News
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JPMorgan Mulls Physical Commodities Exit Amid U.S. Review
July 27, 2013--JPMorgan Chase & Co. (JPM) said it plans to get out of the business of owning and trading physical commodities ranging from metals to oil, three days after a U.S. Senate panel questioned whether banks are abusing their ownership of raw materials to manipulate markets.
The announcement also comes as JPMorgan negotiates a settlement with the Federal Energy Regulatory Commission that may include a $400 million fine and other penalties, according to a person familiar with the negotiations.
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Source: Bloomberg
Fidelity's early ETF strategy leans heavily on BlackRock
July 26, 2013-Fidelity Investments disclosed on Friday its plans to use U.S. money manager BlackRock Inc as subadviser on a slate of 10 new sector-oriented exchange-traded funds.
The disclosure follows up a previously stated plan to have BlackRock help Fidelity develop its own line of equity sector ETFs.
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Source: Reuters
Schwab pushing fee-based programs
Problem is, the move is pushing up compensation expenses
July 26, 2013--The Charles Schwab Corp, is running full steam ahead with its long-term plan to build fee-based revenue.
In a meeting with analysts today, chief executive Walt Bettinger said that his goal is to move Schwab away from transactional business to the point where “the vast majority of revenue” is from fee-based managed assets and interest revenue.
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Source: Investment News
Bond fund fears over poor liquidity
July 26, 2013--Real-money investors are becomingly increasingly concerned about their ability to enter and exit bond positions, following the violent sell-off in risk markets in June that led to an evaporation of liquidity across a wider-than-expected range of asset classes.
Regulation has led banks to shrink their bond inventories to a fraction of their former sizes, making them less vulnerable to sell-offs, but also reducing their ability to buffer flows between buyers and sellers.
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Source: Reuters
WisdomTree Announces Second Quarter 2013 Results
$5.0 Billion Net Inflows in Quarter
Net Inflow Market Share 29% in Second Quarter, 15% First Half
Record Revenues, Up 83% From Year Ago Quarter
Record Net Income $12.2 Million, Up 56% From Prior Quarter
July 26, 2013--WisdomTree Investments, Inc. (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, today reported net income of $12.2 million for the second quarter of 2013, or $0.09 per share on a fully diluted basis.
This compares to $0.1 million in the second quarter of 2012 and $7.9 million in the first quarter of 2013.
WisdomTree CEO and President Jonathan Steinberg commented, "With $5.0 billion in net inflows for the quarter and nearly $11 billion in the first half of 2013, we continued our positive momentum from the first quarter to achieve a strong second quarter with record market share gains. WisdomTree was the third best asset gatherer across all U.S. mutual fund and ETF complexes in the second quarter according to Morningstar."
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Source: WisdomTree
CFTC.gov Commitments of Traders Reports Update
June 26, 2013--The updated current reports for the week of July 23, 2013 are now available.
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Source: CFTC.gov
IMF-United States: 2013 Article IV Consultation-Staff Report
July 26, 2013--KEY ISSUES
Context: The U.S. economic recovery remains modest but is gaining ground, supported by a rebound in the housing market, still easy financial conditions, and a boost to
household net worth from higher house and stock prices. These factors are helping to offset the impact of strong fiscal adjustment on consumer spending.
But the economy is still far from normal conditions, with high unemployment and a large negative output
gap.
Fiscal Policy: The fiscal consolidation should be more balanced and gradual. The automatic spending cuts (sequester) not only reduce growth in the short term but could also undermine potential in the medium term through indiscriminate cuts to education and infrastructure. They should be replaced with back-loaded entitlement savings and new revenues. Even though the fiscal deficit is declining rapidly, approving a plan to restore long-run fiscal sustainability remains a priority. Early action is needed for measures that slow entitlement spending, as their effects build gradually over time.
Monetary Policy: Given the still-large output gap and well-anchored inflation expectations, the highly accommodative monetary policy stance is appropriate. While unwinding monetary policy accommodation is likely to present challenges, including for financial stability, the Fed has a range of tools to help manage the exit. Effective communication and careful timing will be critical to avoid disruptions, for both the United States and other countries.
view the IMF-United States: 2013 Article IV Consultation-Staff Report
Source: IMF
IMF United States: Selected Issues
July 26, 2013--THE U.S. MANUFACTURING RECOVERY: UPTICK OR RENAISSANCE?1
A. Introduction
1. A notable rebound of manufacturing production following the Great Recession has generated renewed interest in this sector among analysts and policy makers alike. Amid
increasing anecdotes of a "renaissance" in U.S. manufacturing, many commentators have argued that the sector may contribute more significantly to domestic GDP and global industrial output
going forward.2
They note that a number of favorable conditions—including a more depreciated
exchange rate, lower domestic energy prices, volatile shipping costs, and significant increases in labor costs in emerging markets—could support steady increases in U.S. manufacturing output and employment, beyond those that could be attributed to just a cyclical rebound. The potential for
growing demand from booming shale oil and gas activity have also been noted.
At the same time, promoting manufacturing as an engine of high-wage jobs and growth is a key part of the U.S. administration’s economic policies.3 Others analysts are more skeptical, and argue that manufacturing output is merely rebounding to its pre-crisis level.4
2. This chapter investigates whether a renaissance is evident in U.S. macroeconomic data, and whether manufacturing could make a first-order contribution to long-term growth. First, it examines current and pre-crisis production levels for sub-sectors, as well as the share of manufacturing in U.S. and global GDP. Second, it documents a number of key structural factors contributing to the profitability of the U.S. manufacturing sector (in particular declining labor and energy costs). Third, it explores whether manufacturing could make a first order contribution to U.S. economic growth in the coming decade—on the back of relative cost advantages and the pull from growing shale oil and gas activity in the U.S.
view the IMF United States: Selected Issues paper
Source: IMF
PowerShares DWA SmallCap Technical Leaders Portfolio Passes One-Year Mark
July 26, 2013--LocalShares, Inc. today announced that the Nashville Area ETF (NYSE: NASH), the nation''s first city-based exchange-traded fund (ETF), is anticipated to be listed on the New York Stock Exchange (NYSE-ARCA) beginning at opening bell on Thursday, August 1st.
The Nashville Area ETF will enable investment in a basket of qualifying Nashville area publicly-traded companies. Opening day shares for NASH will initially be priced at $25 per share and available through any securities broker. The Nashville Area ETF will provide an investment security comprised of publicly traded companies, which are part of middle Tennessee's diverse economy.
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Source: LocalShares, Inc.
Epic Fail: An 'F' For Failure to Understand Failed ETF Trades
July 26, 2013--Exchange traded funds, in what has been a relatively short life span compared to other financial products, have erroneously been blamed for everything from increased market volatility to flash crashes.
Give it some time and some folks will probably find a way to blame ETFs for famine, war and Detroit's bankruptcy.
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Source: Fox Business
