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Turkey-Consumer confidence drops in November
November 30, 2009--Consumer confidence in Turkey continued its decline in November, decreasing by 4 points over the previous month, according to the GfK Turkey Consumer Confidence Index, which reported last month’s index at 74, suggesting a pessimistic view for the coming 12 months.
The index ranges from zero to 200. An index value greater than 100 implies consumers are overall optimistic. Similarly, an index value of less than 100 indicates pessimism. The index had dropped by one point in October from the previous month.
Turkish consumers cited the government’s democratic initiative, swine flu and terrorism as the country’s most pressing issues in November.
Source: Todays Zaman
Hedge fund to depart from model
November 30, 2009--Start-up hedge fund Northlight aims to draw attention to its launch this week with a shake-up of the traditional operating model and about $100m (£61m) in commitments from clients.
The fund, which is being set up by a team of traders including Cyril Armleder, former head of GLG’s credit fund, will market itself to investors as departing from the orthodox model.
Half of the Northlight’s annual performance fees – the most lucrative source of income for most hedge fund managers – will be reinvested into the fund alongside client money and will remain locked in until clients themselves withdraw their capital.
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Source: FT.com
Pension schemes warned to prepare inflation-proof strategies
November 30, 2009--Pension funds and other institutional investors, particularly those with inflation-linked liabilities, have been advised by Watson Wyatt to plan ahead for a return to high inflation, even though suitable investments could in some cases prove expensive.
In a report on world inflation, the consultancy firm's Global Investment Committee admitted that accurately timing protection strategies against rising inflation would be difficult because the impact of varying factors could make it volatile.
Watson Wyatt suggested inflation is likely to stay low for several years – because of the weak global economic recovery – before increasing significantly in the medium to long-term. But it warned potential downside risks include a further economic or political crisis that reduces economic activity and maintain deflationary pressure. And this could lead to inflation rates in some areas of close to zero.
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Source: IPE.com
Deutsche Börse becomes majority shareholder in Tradegate Exchange to be formed in Berlin
Expansion of stock exchange offering for private investors/
Deutsche Börse reinforces its position in European retail business
November 30, 2009-Deutsche Börse is to acquire a 75-percent holding plus one share in Tradegate Exchange GmbH, Berlin, with effect from 8 January 2010. Tradegate Exchange GmbH operates the off-exchange trading platform (MTF) TRADEGATE, which has been running successfully since 2001. At the beginning of 2010 it will commence operation as a stock exchange; the former MTF TRADEGATE will receive the status of “Regulated market within the meaning of MiFID”, becoming Tradegate Exchange.
Deutsche Börse AG will also acquire a 5-percent share in Tradegate AG Wertpapierhandelsbank, one of the market makers in TRADEGATE/the future Tradegate Exchange. Deutsche Börse will also have the option of gradually increasing its share in Tradegate AG to a maximum of 20 percent.
Deutsche Börse is investing an amount in the single-figure million euro range for its share in Tradegate Exchange GmbH and the initial 5-percent holding in Tradegate AG.
“The transition of the successful MTF TRADEGATE into a regulated trading venue as Tradegate Exchange is an opportunity for Deutsche Börse to employ its core competency and to operate an additional stock exchange in Germany. Our common objective is to expand retail business across Europe,” said Frank Gerstenschläger, member of the Executive Board of Deutsche Börse AG and responsible for the Xetra business area.
“The market share of the MTF TRADEGATE has grown continuously and significantly in recent years. This shows that our strategy to develop a trading platform in tune with the needs of private investors has borne fruit. We are pursuing further growth of the platform into the rest of Europe with Deutsche Börse’s renown and strength in terms of distribution,” said Holger Timm, CEO of Tradegate AG.
Deutsche Börse’s majority interest in Tradegate Exchange GmbH will serve to expand its trading offering for private investors and strengthen its position in the European retail market; with the Tradegate Exchange, it will be operating a platform which offers particularly online brokers new trading functions, longer trading hours and innovative order types at attractive prices.
Source: Deutsche Börse
The share of China in EU27 trade in goods continued to rise in the first six months of 2009
EU27 deficit fell in the first half of 2009
November 27, 2009--In the first half of 2009 the value of EU27 exports to China fell to 37 bn euro, compared with 39 bn in the first half of 2008, and imports decreased to 103 bn from 112 bn. As a result, the EU27 trade deficit with China dropped from 73 bn in the first half of 2008 to 65 bn in the same period of 2009 .
The fall in EU27 trade with China recorded between the first halves of 2008 and 2009 was less steep than the general downward trend in the EU27 's total external trade, leading to an increase in the share of China in the EU27 's total external trade in goods to more than 7% of exports and 17% of imports in the first half of 2009, compared with 6% and 14% respectively in the first half of 2008. China is the EU27 's second most important trading partner, after the USA .
It should be noted that between 2000 and 2008, EU27 trade in goods with China had more than tripled in value, and the share of China in the EU27 's total external trade in goods doubled.
On the occasion of the 12 th European Union - China summit, which will take place on 30 November in Nanjing , Eurostat, the Statistical Office of the European Communities , issues data on trade in goods between China and the EU . Data on trade in services and investments can be found in the recent News Release published for the previous EU - China summit.
Germany, the Netherlands and the United Kingdom: largest trading partners of China
Among the EU27 Member States, Germany (16.2 bn euro or 43% of EU exports) was by far the largest exporter to China in the first half of 2009, followed by France (3.7 bn or 10%), Italy (3.4 bn or 9%), the United Kingdom (2.5 bn or 7%) and the Netherlands 2 (2.1 bn or 6%). Germany (21.9 bn or 21%) was also the largest importer, followed by the Netherlands 2 (16.0 bn or 16%), the United Kingdom (13.9 bn or 14%), Italy (9.9 bn or 10%) and France (8.7 bn or 9%). .
view EU-China Trade figures
Source: Eurostat
Britain, France lead push for climate fund
November 27, 2009-- Britain and France on Friday committed to paying developing nations to combat global warming by leading calls for a multi-billion-dollar climate fund financed by rich countries.
Prime Minister Gordon Brown and President Nicolas Sarkozy, attending a closed-door Commonwealth summit in Trinidad, separately called for the fund to be adopted at climate talks to be held in Copenhagen December 7-18.
Brown, on his official website, spoke of an initial commitment of 10 billion dollars to which Britain would contribute 1.3 billion dollars over three years.
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Source: EU Business
Currency ETCs supported by seven liquidity providers on LSE
November 26, 2009--ETF Securities says its newly launched exchange-traded currencies are now supported by seven liquidity providers on the London Stock Exchange.
In addition, two multilateral trading facilities have started quoting the Currency ETCs with another two MTFs planning to quote the new ETCs within the next few weeks.
The first 18 currency ETCs were listed on the LSE on 12 November and track MSFX Currency Indices.
Source: ETF Express
Natural gas ETC inflows continue to surge
November 26, 2009--Natural gas exchange-traded commodity inflows continued to surge last week, receiving the strongest investor interest across ETF Securities’ commodity ETC platform.
Combined inflows into ETFS Natural Gas, ETFS Forward Natural Gas and ETFS Leveraged Natural Gas increased by USD56m, bringing total inflows this year to nearly USD1.5bn, more than any single commodity play other than gold.
Source: ETF Express
Deutsche Börse connects 100th participant to Proximity Services
Algotraders benefit from low latency / Total of more than 1,000 logical network connections
November 27, 2009--100 Eurex and Xetra participants, vendors and service providers already use the two Proximity data centers in Frankfurt, benefiting from the low latency and the high bandwidth of the Enhanced Broadcast Solution and Enhanced Transaction Solution interfaces. Another five customers are soon to be connected.
"This confirms Deutsche Börse Group's irrefutable role as leading European exchange in this field and highlights its attractiveness for trading houses that pursue latency-sensitive algorithmic trading strategies," said Matthias Kluber, Executive Vice President and Head of Networks and Infrastructure at Deutsche Börse Systems. "Since the launch of the first Proximity data center in 2006, we have experienced continuous growth in demand for low-latency locations from our trading participants, despite the deepening economic crisis. For us, this is the result of constantly optimizing not only our own infrastructure but also the range of additional proximity and low latency trading services we offer."
For example, Deutsche Börse Group has made it possible to transmit private newsfeeds unencrypted via the Enhanced Transaction Solution interface, thereby saving more time. This communication channel is safeguarded by way of additional technical features such as infrared surveillance systems and armored conduit for cable ducts. Since August 2009, a new 10GBit/s backbone data line has also been in place between London and Frankfurt, setting new standards with its network latency of under five milliseconds.
New Proximity participants can initially test the new services with their algorithms and trading engines under the Proximity Tryout scheme – which features 100 percent realistic conditions in terms of latency and data throughput. Teams and services from Customer Technical Support and ExServes will be available to help. In order to manage its permanent proximity installations securely and cost-effectively in the long term, Deutsche Börse Systems offers fast and reliable management links via its worldwide network.
"We will continue to meet the high demands many customers place on our trading infrastructure in terms of latency, performance and implementing technological progress in the future," commented Matthias Kluber. "And our IT security and availability standards will remain high."
The Eurex and Xetra members that use Deutsche Börse Group's Proximity Services come from all over the world. Eleven different countries are represented, including Germany, the UK, the US, the Czech Republic, Hong Kong and Singapore. The participants include international universal banks, renowned hedge funds and highly specialized algotraders. 21 percent of all Eurex and 18 percent of all Xetra members already use a Proximity data center.
Source: Deutsche Börse
DB Index Research -- Weekly ETF Reports -- Europe
November 26, 2009--Highlights
ETF Volume
Exchange based Equity ETF turnover declined by 3.2% on the previous week. Daily turnover for the previous week was E1.4bn. European fixed income ETF turnover declined by 2.5% to E178.4m, with money market ETFs continuing to be the main focus.
In exchange based bond ETFs, db x-trackers II EONIA TR Index ETF has the highest daily turnover of E15.95m. Among the Equity ETFs, iShares DAX (DE) has the highest daily turnover of E72.26m.
There were 10 listings in the last week. Lyxor listed 2 new ETFs on NYSE Euronext Paris. ETF Securities Ltd listed 1 new ETC on the London Stock Exchange and UBS cross-listed 7 ETFs on Deutsche Borse.
European Style ETFs, led by short and leveraged products, kept its position as the leading product area with total turnover of E454m accounting for 32.05% of total ETF turnover, followed by European Regional ETFs with total turnover of E371m with 26.23% of total turnover. The DAX ETFs remain the dominant country products with total average daily volume of E192m across the nine listed products and accounting for 13.5% of all equity ETF volume.
DJ Euro STOXX 50 ETFs accounted for 13.1% of turnover trading E185m per day with liquidity split across 26 ETFs and 46 different listings on 9 exchanges.
Market Share
The Deutsche Borse XTF platform has the largest market share with 37.5% of total turnover. The Euronext NextTrack platform has 21.5% market share. The LSE’s combined Italian Exchange and London market share is now 25.4%.
Assets under Management (AUM)
Total European Equity related AUM remained at about the same level at E104.3bn during last week. AUM for DJ Euro STOXX 50 ETFs was E20.1bn accounting for 19.3% of total European AUM. Fixed Income ETF AUM rose by 2.3% to E34.6bn.
Overall, the largest ETF by AUM was the Equity based ETF, Lyxor ETF DJ Euro STOXX 50 with AUM of E5.1bn. The largest Fixed Income ETF by AUM was the iShares € Corporate Bond with AUM of E3.2bn.
To request a copy of the report
Source: Source: Aram Flores and Shan Lan -DB Index Research