Europe ETP News Older Than 1 year-If your looking for specific news, using the search function will narrow down the results
Macro prudential tools vital to future financial stability
November 23, 2009--Lord Turner, chairman of the Financial Services Authority (FSA), today said that reforms to the regulation and supervision of individual financial firms need to be combined with new macro prudential tools to guard against the risks of future financial instability.
Speaking at the CBI annual conference, Lord Turner recalled that when he was Director General, the CBI had argued successfully for low and stable inflation and liberalised markets but that the combination had not ensured financial stability. This was because of two mistaken assumptions: first, that low and stable inflation was sufficient to deliver financial stability; and second, that efficient and rational markets will allow only useful financial innovation to flourish.
He said that:
"Low and stable inflation is essential but does not by itself guard against the dangers of volatile credit supply which cannot be analysed well or addressed effectively either by a central bank focused solely on an inflation target, nor by a regulator seeking to ensure individual firm stability through a firm-by-firm approach."
Lord Turner, therefore, stressed the need to develop new macro prudential tools such as through-the-cycle changes in capital or liquidity requirements and welcomed the Bank of England’s recent discussion paper which had set out a range of possible approaches. He said that implementing these tools will require close working relationships between functions currently located in both the Bank of England and the FSA.
In his closing remarks Lord Turner also welcomed the CBI’s engagement in the issue of how well the banking system is equipped to serve all the needs of a vibrant economy.
He said:
"A debate about the economic value and the effectiveness of the financial system should not focus solely or even primarily on a new found willingness to challenge potentially negative aspects of the pre-crisis financial system. Instead, it should focus on the positive functions that banks and other financial institutions must perform in a successful economy – the not only socially useful but vital functions of linking savers to productive investment, allocating capital to efficient use, and providing savings, credit and payment products to individuals, companies and institutions."
Source: FSA.gov.uk
Seven New UBS ETFs Launched on Xetra
ETFs on MSCI country/regional indices listed in XTF segment
November 23, 2009--Seven new exchange-traded index funds from the issuer UBS ETF SICAV are tradable in Deutsche Börse’s XTF segment. All seven are based on the MSCI index family. These share indices are globally accessible for investing and are segmented by size, type and sector. They are weighted by free-float market capitalization and track the performance of international equity markets based on total return with net dividends reinvested.
ETF name: UBS-ETF MSCI USA I
Asset class: Equity index ETF
ISIN: LU0446735259
Management fee: 0.18 percent
Distribution policy: distributing
Benchmark: MSCI USA
The MSCI USA Index currently includes more than 600 large and medium-sized US companies selected on the basis of free-float market capitalization.
ETF name: UBS-ETF MSCI Canada
Asset class: Equity index ETF
ISIN: LU0446734872
Management fee: 0.45 percent
Distribution policy: distributing
Benchmark: MSCI Canada
The MSCI Canada Index tracks the performance of Canadian companies which, combined, represent 85 percent of market capitalization in Canada.
ETF name: UBS-ETF MSCI Europe
Asset class: Equity index ETF
ISIN: LU0446734104
Management fee: 0.30 percent
Distribution policy: distributing
Benchmark: MSCI Europe
ETF name: UBS-ETF MSCI Europe I
Asset class: Equity index ETF
ISIN: LU0446734286
Management fee: 0.18 percent
Distribution policy: distributing
Benchmark: MSCI Europe
The MSCI Europe Index currently includes companies from 16 industrialized nations: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. The companies are selected on the basis of free-float market capitalization. The UBS-ETF MSCI Europe I is aimed primarily at institutional investors.
ETF name: UBS-ETF MSCI World I
Asset class: Equity index ETF
ISIN: LU0446735416
Management fee: 0.25 percent
Distribution policy: distributing
Benchmark: MSCI World
The MSCI World Index currently includes more than 1,900 international stocks from 23 industrialized nations. The stocks are selected on the basis of market capitalization. US stocks account for approximately 50 percent of the MSCI World Index, European stocks (including UK) for 34 percent, and Japanese stocks account for 10 percent of the index. The remaining stocks are mainly from Canada and Australia. The UBS-ETF MSCI World I is aimed primarily at institutional investors wanting to track the performance of global equity markets.
ETF name: UBS-ETF MSCI Pacific ex Japan
Asset class: Equity index ETF
ISIN: LU0446734526
Management fee: 0.40 percent
Distribution policy: distributing
Benchmark: MSCI Pacific ex Japan
The MSCI Pacific ex Japan tracks the performance of the four developed equity markets in the Asia-Pacific region: Australia, Hong Kong, New Zealand and Singapore.
ETF name: UBS-ETF MSCI EMU Values
Asset class: Equity index ETF
ISIN: LU0446734369
Management fee: 0.35 percent
Distribution policy: distributing
Benchmark: MSCI EMU Values
The MSCI EMU Values Style Index tracks the performance of companies with high earnings from the following industrialized nations: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal and Spain.
The product offering in Deutsche Börse’s XTF segment currently contains a total of 525 exchange-listed index funds, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of around 10 billion euros, makes Xetra Europe’s leading trading venue for ETFs.
Source: Deutsche Börse
Commission approves proposed Euro TLX SIM joint venture between UniCredit and Banca IMI
November 23, 2009--The European Commission has cleared under the EU Merger Regulation the proposed joint venture between the Italian financial institutions Unicredit S.p.A. and Banca IMI S.p.A, a company of the Intesa San Paolo Group. The planned transaction would transform the existing joint venture TLX S.p.A. into a new full function joint venture Euro TLX Societa Intermediazione Mobiliare S.p.A (Euro TLX SIM).
After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
UniCredit is an international financial institution offering a wide range of banking and financial services in several European countries. Banca IMI is an investment company belonging to the banking group Intesa San Paolo. TLX is currently jointly controlled by UniCredit and Banca IMI and manages two electronic platforms for trading in financial instruments, principally for the account of its parent companies.
Upon completion of the planned transaction, TLX would change its name to Euro TLX SIM and would start operating a single electronic platform for trading in financial instruments named Euro TLX offering services to third parties on a commercial basis.
The Commission’s examination of the proposed transaction found that there were no horizontal overlaps between the parties' activities. The Commission's investigation found that the operation would not raise any vertical concerns either, in particular due to the "best execution" requirements to which UniCredit and Banca IMI would be subject under the European Directive on markets in financial instruments (so-called "MiFID" Directive, 2004/39/EC). It also showed that the entity resulting from the transaction would compete with other established players , thereby enhancing competition and enlarging the choice of providers.
More information on the case will be available at:
http://ec.europa.eu/competition/mergers/cases/index/m109.html#m_5495
Source: European Commission
Chi-X leaves upstart label behind
November 23, 2009--In the cut-throat world of share trading, being nice to your competitors does not come naturally.
So it is a surprise when Hirander Misra, chief operating officer of Chi-X Europe, compliments Xavier Rolet, chief executive of the London Stock Exchange, on how he has done since replacing Dame Clara Furse in May.
read more
Source: FT.com
Moody's cautions India on problem loans
November 23, 2009--Deteriorating credit conditions in India’s banking system over the coming months have raised concerns about a hefty increase in problem loans and weakening bank profitability, ratings agency Moody’s warned on Monday.
India’s largely state-owned banking system has emerged mostly unscathed from the global financial crisis and has won wide applause from regulators and policymakers for its conservative approach. The broader economy has also proved resilient, buoyed by domestic demand. India is one of the fastest-growing large economies in the world and is forecast to grow 6.5 per cent this year.
read more
Source: FT.com
Employment in Europe Report 2009
November 23, 2009--The current crisis is taking its toll on EU labour markets, reversing most of the employment growth achieved since 2000, according to the 2009 Employment in Europe Report published on 23 November 2009
Men, young people, the low-skilled and workers on temporary contracts have borne the brunt of the employment contraction. Employment in the EU has shrunk by over 4 million jobs since the start of the crisis, although the effect has been somewhat mitigated thanks to the use of shorter working hours and other schemes. But these short term measures, however important, are not in themselves sufficient to ensure a successful exit from the crisis. Employment policies must focus on preparing for the transition to a low-carbon economy.
With this challenge in mind, the 21st annual edition of the Employment in Europe report takes a deeper look at two key issues for future EU labour market policy: movements to, from and between jobs and the implications of climate change for the job market.
EU labour markets are more dynamic than often believed, but long-term unemployment remains a serious threat
European labour markets have shown considerable dynamism in recent years, as every year, around 22% of European workers change jobs. Such dynamism is not just limited to countries usually seen as 'flexible', such as the UK or Denmark, but concerns all EU countries, although the figures range from 14% of workers in Greece and 16% in Sweden to over 25% in the UK, Finland, Spain and Denmark. This appears to be part of a more sustained rise, since the late 1990s, in transitions from inactivity and unemployment towards employment in the EU, suggesting a fundamental structural improvement in our labour markets.
However, not all workers have benefited equally from this positive trend. Although the number of long-term unemployed has declined since the 1990s, this problem remains a serious challenge. In recent years, close to 45% of all unemployment spells lasted longer than a year in the EU, compared with only about 10% in the US. Tackling this issue has become even more urgent since the start of the crisis. Policies aimed at supporting workers' transitions toward employment in line with the principles of flexicurity are key to lowering long-term unemployment and preserving employability.
Low-carbon policies will significantly change EU employment structures
The EU's moves towards a competitive low-carbon economy will become important driving forces from a labour market perspective. Although the total net job creation effects may not be very large – as creation of new 'green' jobs and greening of existing jobs will partly be offset by loss of some existing jobs – the underlying structural changes will involve re-allocation of workers across economic sectors and skill types.
Climate change and related policy measures will therefore have an important impact on the future demand for skills. The new competencies required by the low-carbon economy will, at least initially, favour high-skilled workers. However, with market deployment of new technologies, lower-skilled workers should also be able to fill the new jobs – provided they receive adequate training. Hence, policy focus on skills - to ease transitions towards new jobs and to limit emergence of skills gaps and shortages – together with adequate social dialogue are the main ingredients needed to facilitate the shift to low-carbon economy.
The Employment in Europe report forms the analytical basis for the Joint Employment Report (JER), for which the Commission will present its proposal on 9 December. The JER is the employment analysis and reporting part of the EU's Jobs & Growth Strategy. .
View Employment in Europe 2009
view Communication - Key messages from the Employment in Europe 2009 Report"
MEMO - Employment in Europe report 2009
Source: European Commission
EU recession over, but sharp contrasts in east
November 23, 2009--The European Union may have inched out of its sharpest recession since the global slump of the 1930s, but green shoots are not emerging uniformly across the 27-nation bloc's eastern member states.
Contrasts are sharp among the 10 ex-communist countries that have joined the EU since 2004.
The situation in Poland, the only EU nation to have enjoyed sustained growth this year, compares with the stark lot of countries such as Latvia or Hungary, where the economies have been in freefall. "In terms of growth, eastern Europe will trail behind the rest of the world," said Erik Bergloef, chief economist at the European Bank for Reconstruction and Development, which focuses on the ex-communist bloc.
read more
Source: EU Business
Poland to sell Ireland EUR 15 million carbon credits
November 23, 2009--Poland is to sell 15 million euros' (22 million dollars) worth of carbon credits to Ireland, the Polish environment minister said Saturday.
Maciej Nowicki said he expected an agreement for selling unused carbon dioxide emission rights to Ireland to be signed in the next week or two.
On November 9 Poland signed a deal to sell carbon credits worth 25 million euros to Spain.
Polish Prime Minister Donald Tusk said the Spanish deal would help fund his country's drive to reduce greenhouse gas emissions and improve environmental protection.
The coal-rich east European country currently depends on fossil fuels for 94 percent of its electricity, based on infrastructure dating largely from the communist era.
read more
Source: EU Business
ETF Securities platinum, palladium ETCs hit record
November 22, 2009--ETF Securities said on Monday the amount of metal it holds to back its platinum and palladium exchange-traded commodities rose to record highs in the week to November 20, though its gold holdings declined.
ETFS Physical Palladium (PHPD.L) held 598,293 ounces of bullion on Friday, against 590,759 ounces on the day before, while ETFS Physical Platinum (PHPT.L) held 422,762 ounces of metal on the same day against 421,949 ounces.
read more
Source: Reuters
Government introduces Financial Services Bill
November 20, 2009--The Government has today introduced the Financial Services Bill to Parliament. The Bill delivers significant reforms that will provide greater rights and information for consumers, in addition to stronger financial regulation to make banks safer and more robust in the future.
Chancellor of the Exchequer Alistair Darling said:
“From the outset of the global financial crisis two years ago, the Government has taken decisive, innovative steps to protect the savings of British families and stabilise the economy.
“Along with governments around the world, we have learned important lessons about the weaknesses of global banking. In the past too many banks failed to fully understand the risks they took. When the crisis hit, far too many firms found themselves short of capital and without any plan for managing through turbulent times.
“The Bill we are introducing today is central to the Government’s reform agenda that seeks to empower consumers and make sure that, in the future, taxpayers will not be called on to protect banks from the consequences of their actions.”
The Bill includes:
New powers for consumers to collectively challenge banks in court in addition to a new consumer financial education body and a free nationwide money guidance service
A requirement for firms to develop ‘living wills’ to help them better understand the risks involved in their businesses and deal with periods of stress, and to ensure they can be wound down in future crises without excessive taxpayer support
Tougher rules on pay and bonuses that will ensure remuneration policies do not contribute to excessive risk taking
Strengthening of the regulatory framework, including the creation of the Council for Financial Stability and enhanced powers for the Financial Services Authority
Source: HM Treasury
If you are looking for a particuliar article and can not find it, please feel free to contact us for assistace.
