Russia's Potential to Double its Potential Growth
December 19, 2018-In our latest semi-annual Russia Economic Report, we project growth prospects for 2018-2020 to remain modest, forecast at 1.5% to 1.8%. But annual growth rates can be misleading, as they do not reveal whether the economy is growing due to a temporary increase in demand, for example, from an increase in oil prices, or due to the productive use of fundamental factors such as labor and capital.
To differentiate between these two types of growth, economists measure "potential growth". Potential growth is the rate at which an economy can grow when all factors of production are fully utilized. Thus, in any given year, actual growth rates may be above or below the potential growth rate, depending on cyclical factors (such as changes in oil prices or short-term fiscal or monetary stimuli).
view the World Bank Russia Economic Report
Source: World Bank
Forecasts for the UK economy: December 2018
December 19, 2018--A comparison of independent forecasts for the UK economy in December 2018.
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Source: HM Treasury
ESMA updates its Q&As regarding the Benchmark Regulation
December 19, 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:
Methodology and input data: parameters to be considered as input data
The purpose of these Q&As is to promote common supervisory approaches and practices in the application of BMR. It aims at providing investors and other market participants with clarifications on the applicable requirements. ESMA will periodically review these Q&As and update them where required.
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Source: ESMA
ESAs publish joint EMIR STS standards
December 19, 2018--The European Supervisory Authorities (ESAs) published today two joint draft Regulatory Technical Standards (RTS) to amend the RTS on the clearing obligation and risk mitigation techniques for non-cleared OTC derivatives.
These standards provide a specific treatment for simple, transparent and standardised (STS) securitisation to ensure a level playing field with covered bonds. They are required for the proper implementation of the European Market Infrastructure Regulation (EMIR) and will amend the current...
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Source: ESMA
Monday Morning Memo: Review of the European ETF Market, November 2018
December 17, 2018--The promoters of ETFs in Europe enjoyed net inflows for November. These inflows led, in combination with a positive performance of the underlying markets, to increased assets under management in the European ETF industry.
In more detail, the assets under management in the European ETF industry increased from €657.1 bn as of October 30, 2018, to €666.6 bn at the end of November. The decrease of €9.5 bn for November was driven by the performance of the underlying markets (+€5.5 bn), while net sales contributed inflows of €3.9 bn to assets under management in the European ETF segment.
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Source: Detlef Glow, Head of EMEA Research, Lipper
New iShares ETFs on Xetra: High dividend yielding real estate companies from Asia or Europe
December 14, 2018--Since Friday, two new Exchange Traded Funds issued by iShares are tradable on Xetra and the Börse Frankfurt venue.
The iShares European Property Yield UCITS ETF EUR (Acc) gives investors the opportunity to invest in the performance of real estate companies and real estate investment trusts (REITs) domiciled in Europe, excluding the United Kingdom.
The second new ETF, the iShares Asia Property Yield UCITS ETF USD (Acc). allows exposure to real estate equities from developed countries in Asia.
The benchmark indices of the two equity ETFs include stocks with a predicted dividend yield of at least two percent.
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Source: Deutsche Börse Group
ESMA publishes final report on the tick size regime
December 14, 2018--The European Securities and Markets Authority (ESMA) has today published its Final Report amending the tick size regime (Commission Delegated Regulation (EU) 2017/588 (RTS 11)).
The proposed draft amendments to RTS 11 will allow National Competent Authorities (NCAs) of European Union (EU) trading venues, where third-country shares are traded, to decide on an adjusted average daily number of transactions (ADNT) on a case-by-case basis in order to take into account the liquidity available on third country venues in the calibration of tick sizes.
The minimum tick size, under RTS 11, applicable to shares and depositary receipts is calibrated to the ADNT on the most liquid market in the EU. While this metric appears to be an adequate liquidity indicator for the vast majority of equity instruments, experience since MiFID II's implementation...
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Source: ESMA
New JPMorgan ETFs on Xetra: Sustainable equity and bond strategies
December 13, 2018--Since Thursday, four new sustainable Exchange Traded Funds issued by J. P. Morgan have been tradable on Xetra and the Börse Frankfurt venue, including one equity and three bond ETFs.
The three bond ETFs represent active investment strategies with short and long-term bonds issued by companies with comparatively high ESG ratings in their economic sector and investment grade status.
Companies whose products have negative social or environmental impacts are not included. The bonds in the index are denominated in euros or US dollars.
The sustainable equity ETF represents an active investment strategy using equities of companies domiciled in emerging markets or doing the majority of their business in an emerging market.
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Source: Deutsche Börse Group
Derivatives traders to get one-year market access in no-deal Brexit
December 12, 2018--Brussels seeks to avoid financial turmoil should Britain crash out of the EU.
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Source: FT.com
UK business leaders urged to upgrade cyber security
December 10, 2018--International cyber criminals pose as great a threat as Russia, says British spymaster
British business leaders need to extend their cyber security defences beyond the threat posed by Russia to other states and criminal syndicates, one of the UK's leading spymasters has warned.
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Source: FT.com
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