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ETF Landscape: European DJ STOXX 600 Sector ETF Net Flows, week ending 23-Oct-09
October 28, 2009-Last week saw US$247.2 Mn net inflows to DJ STOXX 600 sector ETFs. The largest sector ETF inflows last week were in Basic Resources with US$137.6 Mn and Automobiles & Parts with US$31.9 Mn while Media experienced net outflows of US$10.5 Mn.
Year-to-date, Basic Resources has been the most popular sector with US$416.3 Mn net new assets, followed by Banks with US$388.8 Mn net inflows. Retail sector ETFs have been the least popular with US$36.3 Mn net outflows YTD.
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EEX and Eurex Expand Cooperation to Power Derivatives
Phelix contracts also tradable for Eurex clients as of 25 November 2009
October 28, 2009-The European Energy Exchange (EEX) and the international derivatives exchange Eurex are expanding their cooperation. As of 25 November 2009, Eurex customers will also be able to trade and clear EEX power derivatives via their existing Eurex access. The new products in the cooperation comprise Phelix Baseload Futures and Options and Phelix Peakload Futures.
“We are offering our core product – Phelix Futures – to a global network of new participants for trading and clearing in one big step”, said Dr. Hans-Bernd Menzel, CEO of EEX AG.
Peter Reitz, Eurex Executive Board member responsible both for product and market development and for cooperations, said: “The expansion of our cooperation with the EEX will enable our participants to engage in exchange trading of power derivatives for the first time. This step underlines our strategy of expanding into new asset classes and offering our participants access to existing liquidity pools. Thanks to their high level of existing liquidity, the Phelix power derivatives are a very attractive European benchmark product for our financial participants and perfectly complement perfectly our existing offering of emission rights contracts.”
Eurex participants will be able to trade power futures and options via a simplified admission process, as with the existing cooperation in trading emission rights. The clearing link between European Commodity Clearing AG (ECC) and Eurex Clearing AG means that Eurex participants can continue to use their existing clearing relationships.
EEX and Eurex already cooperate in emissions trading. Eurex participants have been able to trade EEX emissions products since December 2007. The cooperation currently comprises EUA futures, options on EUA futures and CER futures.
Restructuring keeps boutique firms in the frame
October 28, 2009--With global merger and acquisition activity still running well below historical averages, several smaller banks and boutique advisory firms continue to count on their restructuring and asset management businesses to keep their heads above water.
Ralph Schlosstein, chief executive of Evercore, said on Wednesday that the bank’s results reflected the “early stages of the recovery of the M&A markets”, although Lazard, one of Evercore’s competitors, said it would take four years for dealmaking activity to reach the highs of the prior period.
October 2009 edition of the EU10 Regular Economic Report
October 28, 2009 —The EU’s newest member states in Eastern and Central Europe have begun the recovery one year after the breakout of the global financial crisis as the credit crunch has eased, but most countries undergo large contractions this year, and the recovery is likely to be feeble and uncertain, the World Bank said today as it launched its new EU10 Regular Economic Report.
Although the rebound of the global economy has started, the report cautions that the recovery in EU10* countries could be weak and growth is likely to be lower than in pre-crisis years. EU10 countries are projected to contract by around 4.2 percent in 2009, and to grow by around 1 percent in 2010 and 3.6 percent in 2011, down from 3.9 percent in 2008 and around 6 percent in 2007. Medium-term growth prospects look weak as the recovery is not yet private-demand driven and potential growth is lower than before the crisis.
According to the report, the EU10 countries fall into three groups with regards to their recent growth performance:
• Poland is in the first group as the only EU country whose economy has expanded throughout the last three quarters.
• Bulgaria, Romania and other Central Europe countries make the second group with year-on-year contraction of 5 to 10 percent of GDP.
• Third group comprises The Baltic countries, where the output contraction started in 2008, with declines of 15 to 20 percent of GDP.
“The scale of the contraction is linked to a number of factors, including the degree of trade openness, the export composition, the exchange rate regime and the magnitude of macroeconomic imbalances.” said Kaspar Richter, Senior Economist in the World Bank’s Europe and Central Asia Region and lead author of the report at the launch in Warsaw and Thomas Laursen, World Bank Country Manager for Poland and the Baltic Countries added “Poland’s performance during the crisis has been remarkable due to different factors. Poland entered the crisis with stronger macroeconomic balances than other countries in the region, it has a floating exchange rate regime and its economy is more diverse and not as open as others’ in the region. Also, the response of Polish authorities to the crisis was fast and adequate.”
Given these prospects, financially weaker governments in the region will need to protect poor people while strengthening institutions and infrastructure to attract investors. At the same time, they need to adjust their policy agenda to support exit strategies and prevent future crisis.
Unemployment rose in the EU10 countries from 6.1 percent in August 2008 to 8.1 percent in July 2009, or from about 2.9 million to 3.8 million people. At the same time, one million workers who had emigrated from the region to crisis-hit countries such as the UK, Ireland, and Spain after 2004 have returned home, adding to the pressure on job markets in Eastern and Central Europe. The economic crisis is affecting foremost workers with basic education level and limited work experience, most of whom are young. Unemployment rates for workers aged 15 to 24 increased more than twice as compared to the overall increase. As a result, almost one third of the economically active population below 24 years of age is unemployed in the Baltic countries, and around
“Employment has remained remarkably high in many EU10 countries, similar to key countries of the euro area, and opposite to the trends seen in the US. However, while employment tends to hold up better during downturns, it could take much longer to increase up during upturns.” said Richter “Governments’ active efforts to alleviate the impact of economic slowdown on the labor markets have to be combined with measures supporting employability and guiding people towards new jobs, empowering workers to take advantage of new opportunities when the economy recovers.”
According to the EU10 Regular Economic Report the main challenge for the EU10 countries now is to adjust the policy agenda; the economic policy should balance the support of recovery with exit strategies to contain risks of negative public debt dynamics and inflation. Structural policies, along the lines of the Lisbon agenda, are crucial to mitigate the loss in potential output growth due to weaker capital flows. Social policies are crucial to mitigate the loss in living standards for the poor.
“The recovery from the economic crisis depends foremost on restoring financial market confidence. To help close some external financing gaps created by the crisis and ease the burden of adjustment, the IMF, EC and World Bank have provided substantial support. As international investors take a closer look at the vulnerabilities of emerging economies, there is a large premium on strong domestic policies.” – said Richter, “Governments face the difficult challenge of reconciling three objectives: to protect priority programs for economic and social development so that growth prospects are enhanced and social cost of the economic crisis mitigated; to exit from anti-crisis policies and ensure fiscal consolidation once the recovery is under way to make room for a private sector led recovery; and to improve policies, regulations and coordination to prevent such crises in future.”
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* The EU10 countries include: Bulgaria,
the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia.
EU urged to raise bar on climate financing
October 28, 2009--European Union leaders were on Wednesday told they have to find 15 billion euros a year to help developing countries fight global warming if this week's summit is to be deemed successful.
Leaders from the EU's 27 member countries are split into three camps going into a summit starting Thursday at which they will try to agree a common line to take into United Nations negotiations in Copenhagen starting on December 7.
Britain is among those who are willing to commit to funding, while a wait and see bloc is headed by Germany -- and eastern European nations with Poland at their head only want to help "based on their means," according to diplomats.
Deutsche Bank strikes billion-euro takeover deal
October 28, 2009--Germany's biggest lender Deutsche Bank has struck a deal to buy Sal. Oppenheim, a Luxembourg-based private banking group, for 1.0 billion euros (1.5 billion dollars), Deutsche Bank said on Wednesday.
"With this transaction, Deutsche Bank strengthens its position among high-net-worth private clients, especially in Germany," a statement said.
"Sal. Oppenheim's Asset and Wealth Management activities will be maintained and expanded in the future under the private bank's established brand and preserve Sal. Oppenheim's identity, values, culture and service quality."
Cedrus launches two global nanotechnology indices
October 28, 2009--Cedrus Investments, a boutique investment firm, has launched two global nanotechnology indices: Cedrus Nanotechnology Index – Diversified and Cedrus Nanotechnology Index – Pure.
The indices are designed to serve as benchmarks for professional investors to capitalise on the fastest growing technology companies spanning the five markets most impacted by nanotechnology - manufacturing, electronics, energy, life sciences and environment.
Cedrus’ diversified index includes 220 equally-weighted companies spanning all five nano-markets and is inclusive of both diversified companies that have nanotechnology as only one of many growth drivers, and pure-play companies that have nanotechnology as their primary driver of growth.
Eurozone lending sees first fall
October 27, 2009--Bank lending to companies operating in the eurozone fell in September for the first time on record, according to the European Central Bank.
Lending fell at an annual rate of 0.3%, compared with a modest annual growth of 0.1% in August.
The fall comes at a time when European governments are pumping money into their economies to try to lift lending. read more
comdirect Bank And Boerse Stuttgart Set Up Stiftung Rechnen Foundation
Stock exchange promotes numerical skills in Germany/ The Stiftung Rechnen foundation is a further central module in the expansion of the stock exchange's educational activities / Christoph Lammersdorf: “Only the numerate can really understand financial products.”
October 27, 2009--In October 2009, Boerse Stuttgart, Germany’s leading stock exchange for private investors, in conjunction with comdirect bank founded the Stiftung Rechnen foundation, based in Hamburg.
It has been recognised as a legally independent civil law foundation by the responsible authorities. Its aims are to promote education, science and research in the field of numerical skills and mathematics. The foundation also supports non-profit institutions and educational establishments by procuring and passing on subsidies. With the Stiftung Rechnen foundation Boerse Stuttgart, as one of its founders, has consistently expanded its activities within the framework of its educational initiative. In order to increase pupils’ knowledge of financial products, Boerse Stuttgart entered into a cooperation with the Baden-Wuerttemberg Ministry for Nutrition and Rural Areas and for Culture, Youth and Sport at the beginning of the year. Boerse Stuttgart provides pupils with teaching materials about everything to do with investment and on topics concerning the stock exchange.
“As a scientist, I am particularly interested in promoting mathematics. So the Stiftung Rechnen foundation is something that I find very important. Good, sound numerical skills should be as self-evident as reading skills. They are the basis for successful financial planning. Only the numerate can really understand financial products and the capital markets. With the Stiftung Rechnen foundation we have created a central port of call for all who make efforts to support the development of numerical skills,” said Christoph Lammersdorf, CEO of Boerse Stuttgart AG.
With the legally independent civil law foundation, its founders, comdirect bank and Boerse Stuttgart, have established a central port of call for further partners from the fields of science, industry, politics and society. Under its umbrella companies and organisations can become involved in the same way as individuals. The first partners and sponsors are the PwC Foundation, the society for social research and statistical analysis forsa, the Ernst Klett publishing house, Münster University’s Mathe-Meister project, the Scout24 Group and the bettermarks online learning system.
The Board of Trustees of the Stiftung Rechnen foundation comprises leading figures from science and industry: Prof. Günter M. Ziegler, who until 2008 was the President of the German Mathematicians’ Association (DMV) and the driving force behind the Year of Mathematics 2008, Prof. Dr. Martin Stein from the Institute for Didactics, Mathematics and Computer Science at Münster University, Christoph Lammersdorf, CEO of Boerse Stuttgart AG, Dr. Martin Enderle, CEO of the Scout24 Group and Dr. Christian Diekmann, CFO of comdirect bank AG.
The PLUS primary market continues to attract support
October 27, 2009--September saw a flurry of activity on the PLUS stock exchange. Although market conditions remain very challenging, the primary market enjoyed its busiest month since January.
New applications and admissions - two new companies joined the exchange (Technis International
and Choice XS) and a further 3 made application to admit to the market. There are now six new
companies in the pipeline from a range of sectors including entertainment, media, software, finance
and telecommunications
Mergers and acquisitions - the flurry of activity on the exchange was not just limited to new entrants.
Cantina Augusto announced the acquisition of Fast Consultants Limited to expand their business further in the restaurant sector. Contract catering business Bright Futures Group acquired Jill Bartlett & Company Limited and Fairholt Resource Investment announced the proposed acquisition of Magnolia Petroleum.
New corporate advisers - joining PLUS as corporate advisers in Q3 were Strand Hanson Limited (formerly Strand Partners) and Zimmerman Adams International.
Regional marketing - following successful international marketing campaigns in South East Asia, PLUS continues to invest in pre-IPO events in support of the home market.
Most recently the exchange spoke at events in the Yorkshire/North East (Leeds) and the Midlands (Oxford), where the forums were well-received and attended by a host of prospective UK growth companies and advisers.
PLUS' pre-IPO seminars have been attracting strong interest from growth companies domestically and internationally. The next event is for London/South East and will take place on 18 November in London. For further details, please see http://www.plusmarketsgroup.com/PLUS_events.shtml.
New standard segment for officially listed companies - in October, PLUS announced increased flexibility in its product offering for fully listed companies and funds. The exchange opened its standard segment for UK and international companies seeking access to the Official List via the FSA’s new streamlined “Standard” listing regime.*
“Primary market activity on PLUS-quoted picked up in Q3. During September we saw an upturn in admissions, applications and M&A activity on our stock exchange. Interest in the PLUS stock exchange remains high at all levels amongst both our home market and the international audience.” said Head of Capital Markets, Paul Haddock. *
http://www.plusmarketsgroup.com/pressreleases/PressreleasePMG20091001ListingRulesConsultation.pdf
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Notes to editors:
PLUS Markets is a stock exchange in London with Recognised Investment Exchange status. Its offering includes the full range of stock
exchange activities, namely: listing/quotation destinations, trading, and the provision of proprietary market data. As a listing and
quotation destination, the PLUS primary market offers companies, funds, market professionals/issuers straightforward and cost-effective
access to London’s capital markets. Growth companies can float on the PLUS-quoted market, an exchange-regulated market with
clear, flexible and transparent entry criteria, while the PLUS-listed market offers a choice of admission options for companies or funds
and provides access to the Official List of the FSA’s UK Listing Authority (Standard or Premium segments).
Contact details
John Parry, Rostron Parry + 44 (0) 207 490 8062
Rachel Maguire, PLUS Markets Group + 44 (0) 207 553 2000
