European Commission-Autumn 2018 Economic Forecast: sustained but less dynamic growth amid high uncertainty
November 8, 2018--Growth in the euro area is forecast to ease from a 10-year high of 2.4% in 2017 to 2.1% in 2018 before moderating further to 1.9% in 2019 and 1.7% in 2020. The same pattern is expected for the EU27, with growth forecast at 2.2% in 2018, 2.0% in 2019 and 1.9% in 2020.
Last year's exceptionally benign global situation helped to underpin strong economic activity and investment in the EU and euro area. Despite a more uncertain environment, all Member States are forecast to continue growing, though at a slower pace, thanks to the strength of domestic consumption and investment. Barring major shocks, Europe should be able to sustain above-potential economic growth, robust job creation and falling unemployment. However, this baseline scenario is subject to a growing number of interconnected downside risks.
view the European Commission Autumn 2018 Economic Forecast: sustained but less dynamic growth amid high uncertainty
Source: European Commission
ESMA proposes a regulatory change to support the Brexit preparations of counterparties to uncleared OTC derivatives
November 8, 2018--The European Securities and Markets Authority (ESMA) has today published a final report with draft regulatory technical standards (RTS) proposing to amend the three Commission Delegated Regulations on the clearing obligation under the European Market Infrastructure Regulation (EMIR).
The draft RTS propose, in the context of the United Kingdom's (UK) withdrawal from the European Union (EU), to introduce a limited exemption in order to facilitate the novation of certain non-centrally cleared OTC derivative contracts to EU counterparties during a specific time-window.
Source: ESMA
iSTOXX MUTB Global ex-Australia Quality Leaders 150 Index licensed to Betashares
November 8, 2018--STOXX Ltd., the operator of Deutsche Börse Group's index business and a global provider of innovative and tradable index concepts, has licensed the iSTOXX(R) MUTB Global ex-Australia Quality Leaders 150 Index to leading Australian ETF company, Betashares as an underlying for an ETF.
The index selects quality companies from the components of the broad STOXX Global 1800 ex Australia Index, based on fundamental indicators. "Our Global Quality Leaders ETF gives investors access to a cost-effective investment that they can use as a core portfolio allocation for international equities. We're excited to be partnering with STOXX to bring this fund to the ASX, and have been impressed with the rigour and thoughtfulness displayed by STOXX in developing this index," said Alex Vynokur, CEO of Betashares. "The iSTOXX MUTB Quality Indices aim to capture the performance of quality companies with high profitability, low leverage and sustainable cash flows. Investors tend to be drawn to these companies during periods of economic contraction. The indices are available for different STOXX universes. The iSTOXX MUTB Global ex-Australia Quality Leaders 150 has a global approach, excluding companies based in Australia," said Inderpal Gujral, STOXX Head of Product.
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Source: Deutsche Börse Group
IMF-Europe Regional Economic Outlook: Domestic Expansion Running into External Turbulence
November 8, 2018--Full Executive Summary
Economic activity continued to expand in the first half of 2018, albeit at a slower-than-expected pace, mainly in advanced Europe. Domestic demand, supported by stronger employment and wages, remains the main engine of growth.
However, the external environment has become less supportive and is expected to soften further in 2019 owing to slowing global demand, trade tensions, and higher energy prices. Tighter financial conditions in vulnerable emerging market economies and maturing business cycles are also weighing on activity. Accordingly, growth is projected to moderate from 2.8 percent in 2017 to 2.3 percent in 2018 and 1.9 percent in 2019. That said, it is expected to remain above potential in most countries in the region.
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Source: IMF
New iShares ETF on Xetra: Companies with Focus on Network Security
November 7, 2018--Since Wednesday a new Exchange Traded Fund of iShares is tradable via Xetra and the Börse Frankfurt venue.
With the equity ETF, investors can participate in the performance of companies that focus on digital security.
The reference index includes shares of companies that generate at least 50 percent of their revenues in the area of network security, i.e. are involved in the transmission, protection or processing of sensitive data or access control to secure locations such as data centers. At least 80 companies are included in the index.
Name: iShares Digital Security UCITS ETF USD (Dist) Equity ETF
Asset class: Equity ETF
ISIN: IE00BG0J4841
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Source: Deutsche Börse Group
ESMA updates its Q&As regarding the Benchmark Regulation
November 7, 2018--The European Securities and Markets Authority (ESMA) has today updated its Questions and Answers (Q&As) on the Benchmarks Regulation (BMR).
The updated BMR Q&As provide new clarifications regarding the following topic:
Use of benchmarks in bilateral agreement on exchanged collateral.
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Source: ESMA
New Amundi ETFs on Xetra with focus on sustainability
November 6, 2018--Three new Amundi Exchange Traded Funds were listed on Xetra and the Börse Frankfurt venue on Tuesday.
The three new equity ETFs give investors the opportunity to participate in the performance of large and medium-sized companies with a comparatively high ESG rating.
This excludes companies related to the nuclear, weapons, tobacco, alcohol and gambling industries. The ETFs focus on the regions Europe, USA and globally.
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Source: Deutsche Börse Group
UK official holdings of international reserves: October 2018
November 5, 2018--This monthly release shows details of movements in the UK's official holdings of international reserves, or assets.
These consist of gold, foreign currency assets and International Monetary Fund assets.
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Source: HM Treasury
New Invesco-Smart Beta-ETF on Xetra with focus on emerging markets
November 5, 2018--Since Monday, a new Exchange Traded Fund of the issuer Invesco has been tradable on Xetra and the Börse Frankfurt venue.
With the new Smart Beta-ETF, investors can participate in the performance of companies from emerging markets that are selected according to five factors: quality, value potential, low volatility, creditworthiness and size. The reference index contains 850 equities worldwide.
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Source: Deutsche Börse Group
Monday Morning Memo: Are European investors in crisis mode?
November 5, 2018--A brief look at the headline figures of the European fund flows over the course of the first nine months of 2018 may lead to the conclusion that European investors are in crisis mode.
ETFs have enjoyed net inflows for the year so far, while their actively managed peers have faced net outflows. Such a flow pattern has been seen before only during the global financial crisis (2008) and the euro crisis (2011).
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Source: Detlef Glow, Head of EMEA Research, Lipper
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