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Germany, France line up IMF-eurozone rescue for Greece
March 25, 2010--Germany and France on Thursday thrashed out a deal to involve the IMF in a rescue package for Greece's ailing economy, as European leaders sought a strategy to halt the euro's slide.
After bloated Athens debts dragged the currency's value to a 10-month low, French President Nicolas Sarkozy and German Chancellor Angela Merkel agreed, just before a European Union summit opened, to bring in the International Monetary Fund alongside bilateral loans.
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Source: EUbusiness
ETF Landscape: European STOXX 600 Sector ETF Net Flows, week ending 19-Mar-10
March 25, 2010--European Stoxx 600 sector exchange-traded funds had 119.9US$M net inflows during the week ending 19 March.
The largest sector ETF inflows were in basic resources with USD159.5m and oil and gas with USD25.1m.
Healthcare experienced net outflows of USD38.8m.
Year-to-date, media has had the largest net inflows with USD291.6m net new assets, followed by utilities with USD118.0m YTD.
Telecommunications sector ETFs have had the largest net outflows with USD295.4m YTD.
In total, Stoxx 600 sector ETFs have seen USD272.6m net inflows YTD.
Source: ETF Research and Implementation Strategy, Blackrock
Six New Lyxor ETFs Launched on Xetra
March 24, 2010--Four more equity index funds and two more bond index funds from Société Générale subsidiary Lyxor International Asset Management’s ETF offering have been tradable on Xetra® since Wednesday.
With the four new equity index ETFs, Lyxor is offering investors the opportunity to participate in the performance of the MSCI real estate indices for the first time. The indices track the performance of companies whose core business is in Asian (ex-Japan), European, US and global real estate markets.
This also includes shares in companies in real estate investment, and real estate management and development.
One of the two new bond index ETFs enables investors to participate in the development of the EuroMTS AAA Government Index for the first time. The underlying index tracks the value of euro-denominated government bonds issued in the euro zone and with AAA ratings.
Moreover, investors have the opportunity to participate in the performance of the Markit iBoxx Euro Liquid Corporate Non Financials Index for the first time. This index contains up to 20 euro-denominated government bonds from companies outside the financial sector. In order for a bond to be included in the index it must have a nominal issue volume of at least €750 million, have been issued at least three years ago and have a residual maturity of at least 18 months. The companies are required to have a rating of BBB– or better.
The product offering in Deutsche Börse’s XTF® segment currently contains a total of 617 exchange-listed index funds, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of €11 billion, makes Xetra Europe’s leading trading venue for ETFs.
view product list
Source: Deutsche Börse
iShares has lists an additional ETF on the NYSE Euronext European markets today
March 24, 2010--NYSE Euronext is pleased to announce that iShares has listed an additional ETF on the NYSE Euronext European markets today:
ETF name:iShares DJ Euro STOXX 50 (Acc)
ETF ISIN:IE00B4L5YV07
ETF Symbol:IEUA
ETF Bloomberg Ticker:IEUA NA
NYSE Euronext now has 518 listings of 470 ETFs based on more than 300 indices. So far this year, 21 ETFs have been listed on NYSE Euronext’s European markets.
Visit http://www.euronext.com/etf for more info
Source: NYSE Euronext
European Commission launches first step towards review of working time rules
March 24, 2010--The European Commission has today requested the views of workers' and employers' representatives on the options for reviewing EU rules on working time. The first stage consultation asks the European social partners at whether action is needed at EU level on the Working Time Directive (2003/88/EC) and what scope it should take. This represents the first step towards a comprehensive review of the Directive and comes after previous the attempts to revisit the existing legislation reached an impasse in April 2009.
László Andor, EU Commissioner for Employment, Social Affairs and Inclusion said: "The failure to reach an agreement on revising the working time legislation last year does not mean the problems around the existing rules have gone away. We still need to find a balanced solution that addresses the real needs of workers, businesses and consumers in the 21st century." He underlined: "We need a comprehensive review of the rules based on a thorough impact assessment with a strong social dimension. Today we invite the social partners to reflect broadly on this crucial issue and to come forward with innovative proposals that move beyond unsuccessful debates of the past."
In 2004, the Commission put forward a proposal to amend Directive 2003/88/EC, following wide consultations. The proposal aimed to tackle a series of problems left unsolved by the existing legislation and case law of the Court of Justice, namely to clarify the Directive's application to on-call time in certain sectors of work; to give more flexibility in calculating weekly working time; and to review the individual opt-out from the 48-hour limit. However, in April 2009, government representatives and the European Parliament concluded they could not reach agreement on the proposal, despite lengthy negotiations.
view the Working Time Directive Commission assesses stability and convergence programmes of ten EU Member States
"The economic and financial crisis has taken its toll on public finances. Fiscal stimulus was necessary to support the recovery but the past two years have wiped out 20 years of fiscal consolidation. This means that we have to come back gradually to budgetary rigour next year at the latest ", said Economic and Monetary Affairs Commissioner Olli Rehn.
Czech Republic
The programme foresees a reduction of the headline deficit from 6.6% of GDP in 2009 to 3% of GDP in 2013, in line with the Council recommendation of 2 December 2009. The authorities have started implementing a sizeable consolidation package already in 2010, with a planned budgetary adjustment of around 2% of GDP in structural terms. Despite the expected economic recovery, the improvement in the structural balance is however projected to slow down markedly in 2011 and 2012. The fiscal adjustment in these years relies on expenditure cuts which however are not supported by concrete measures. Moreover, the programme does not provide information on how to achieve the reduction of the deficit projected for 2013. read more Eurozone business activity shoots up in March
Any score above the boom-and-bust 50-point line indicates economic growth.
read more Portugal hit by credit downgrade, euro plunges
The move, coupled with persistent concerns about the debt crisis in fellow eurozone member Greece, sent the euro plunging under 1.34 dollars for the first time in more than 10 months while European share dived into the red.
read more HSBC unveils new Japanese ETF read more EuroCCP Introduces Comparability Of All-In Trading Costs - First European Equities CCP To Provide Clearing Cost Data In Same Format As Trading Fees
Clearing fees are typically based on a fixed fee per trade cleared, irrespective of value, while trading fees are based on the value of the trade. The difference in fee structure has made it difficult for firms to estimate and compare all-in costs on trading venues, particularly if they use different CCPs.
EuroCCP is the first equities central counterparty in Europe to present post-trade and trading costs in equivalent terms to enable an estimation and comparison of all-in costs. Clearing and settlement costs billed to customers are shown in basis points on the value cleared, consistent with fees charged by trading venues on the value of trade executions. A basis point is 100th of one percent.
EuroCCP’s presentation of clearing costs in basis-point terms also facilitates the inclusion of clearing and settlement costs in smart order routers, enhancing trading firms’ ability to manage clearing costs effectively. Cost predictability is essential for trading firms.
Robert Barnes, Managing Director, Equities, at UBS Investment Bank commented, “EuroCCP should be commended for enhancing tariff transparency. Cost-per-ticket trends are subject to bias, for example as electronic trade sizes shrink. By adding value processed on its invoices, EuroCCP enables basis-point comparability, a more meaningful metric for competitive landscape cost analysis.” If you are looking for a particuliar article and can not find it, please feel free to contact us
Source: European Commission
March 24, 2010--Today the European Commission examined the updated stability and convergence programmes (SCPs)1 of the Czech Republic, Denmark, Hungary, Lithuania, Luxembourg, Latvia, Malta, Poland, Romania and Slovenia. In line with the Commission's assessments of a first group of fourteen Member States last week (see IP/10/288), the evaluation must be seen against the background of the economic and financial crisis which has led to a sharp deterioration of public finances since 2009 and triggered the Council decisions to open Excess Deficit Procedures (EDP) for a large majority of Member States. Within the batch of countries assessed today, only Denmark and Luxemburg have kept their general government deficits below 3% in 2009, although their fiscal situation is set to deteriorate markedly in 2010.
For most countries this year will mark a fiscal consolidation process consistent with the recommendation set out in the EDPs and, in the case of Latvia, Hungary and Romania, with the conditions set out in the international financial assistance programmes. As to the budgetary targets set out in the programmes, the growth assumptions underlying these projections are in several cases optimistic especially in outer years, while the budgetary consolidation strategy is often not sufficiently backed up by concrete measures from 2011 onwards.
Source: European Commission
March 24, 2010--Private sector business activity across the eurozone shot up in March, with the largest increase since August 2007 suggesting that an improvement in dire unemployment figures is in the offing.
The purchasing managers' index (PMI) for the 16 countries that share the currency, compiled by data and research group Markit, jumped to 55.5 points from 53.7 points in February, the researchers said.
Source: EUbusiness
March 24, 2010--Portugal's government vowed Wednesday to clean up its public finances after a top ratings agency downgraded the country's creditworthiness, sending a new shockwave through the eurozone.
Fitch Ratings lowered Portugal's long-term debt rating by one notch and gave it a negative outlook, warning that a severe strain on public finances had reduced the eurozone country's creditworthiness.
Source: EUbusiness
March 24, 2010--HSBC has announced the launch of a new exchange-traded fund (ETF) focusing on large and mid cap Japanese equities.
The HSBC MSCI Japan ETF, available from today (March 24th), is being listed on the London Stock Exchange initially and will see further listings in Europe in the next few months.
Source: finances.co.uk
-First European Equities CCP to provide clearing cost data in same format as trading fees
March 23, 2010--EuroCCP announced today it has introduced an enhanced billing feature that provides a new level of cost transparency to its customers. The new feature enables customers to easily aggregate trading and clearing costs into a single unit to arrive at an all-inclusive cost of trading, clearing and settlement.
EuroCCP now provides a monthly billing supplement to customers that shows clearing costs on the value of trades cleared. Settlement costs are likewise shown on the value of trades cleared.
Source: About EuroCCP
