Lira on the skids as PM's comments fuel volatility
January 30, 2014--Turkey's central bank's massive interest rate hike has done nothing to contain the lira's slide and statements from top government figures are fueling market uncertainty, damaging investor confidence.
The lira was trading at 2.27 against the US dollar on Thursday, well above Wednesday morning's rate of 2.16 after the central bank hiked interest rates to defend the embattled currency.It is feared that the big emergency interest rate hike, prompted by a continuous dive in the lira, will dent Turkey's economic growth.Given current market conditions, politicians should take extreme care not to make comments that could exacerbate ongoing volatility, observers are saying.
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Source: Todays Zaman
Spain welcomes SPDR ETF
January 29, 2014--Access to exchange-traded funds (ETFs) in Spain has increased with the registration of 41 SPDR products.
SPDR is the ETF range from State Street Global Advisors (SSGA) and the well-known SPDR S&P US Dividend Aristocrats Ucits ETF is among the flagship funds now registered there.
Olivier Paquier,head of SPDR ETFs for France and Spain at SSGA, says:"We are seeing increasing demand from Spanish investors for ETFs and we believe the ETF industry in Spain offers exciting growth potential."
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Source: Funds Europe
'Time for supervision, not regulation', implores EFAMA head
January 29, 2014--The head of influential asset management trade body EFAMA last night called on politicians to create a "level playing field" for the regulation of financial products in Europe.
The call was made by Christian Dargnat, president of the European Fund and Asset Management Association, who was speaking at an evening reception at the UK's House of Commons, jointly hosted by EFAMA and the UK’s Investment Management Association.
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Source: International Advisor
DB-Synthetic Equity & Index Strategy-Europe-ETF Research-European Weekly ETF Market Review
January 29, 2014--The most recent issue of the European Weekly ETF Market Review is now available.
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Source: Deutsche Bank-Synthetic Equity & Index Strategy- Europe
Dividend distributing share class for EMLB
January 28, 2014--PIMCO and Source are launching a version of the PIMCO EM Advantage Local Bond Index Source ETF distributing dividends monthly and available in USD on the LSE (ticker EMLI LN)
The ETF currently has assets of US$ 213 million.
The PIMCO EM Advantage Local Bond Index Source ETF offers exposure to local emerging market sovereign debt via the PIMCO EM Advantage Local Currency Bond Index, an innovative, GDP-weighted index, offering exposure to 15 emerging market countries.
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Source: Source
Lyxor launches Ucits ETF with exposure to eurozone banks
January 28, 2014--Lyxor Asset Management has launched Ucits ETF EUROSTOXX BANKS on NYSE Euronext, an ETF providing exposure to the main eurozone banks selected among the EURO STOXX index according to ICB classification.
The product will replicate the EURO STOXX Banks index, which benefits from Lyxor's strong experience in European sectors.
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Source: Investment Europe
Euro nations 'worried' by emerging markets
January 28, 2014-- Eurozone countries are "worried" by the problems hitting emerging economies but do not believe there is a risk of contagion, senior officials said Monday.
Jeroen Dijsselbloem, the head of the Eurogroup which gathers the finance ministers of countries that use the single currency, insisted that the euro's fragile recovery was not threatened.
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Source: EUbusiness
IMF Working paper-Sovereign CDS Spreads in Europe: The Role of Global Risk Aversion, Economic Fundamentals, Liquidity, and Spillovers
January 28, 2014-- Summary: By analysing data from January 2007 to December 2012 in a panel GLS error correction framework we find that European countries' sovereign CDS spreads are largely driven by global investor sentiment, macroeconomic fundamentals and liquidity conditions in the CDS market.
But the relative importance of these factors changes over time. While during the 2008/09 crisis weak economic fundamentals (such as high current account decifit, worsening underlying fiscal balances, credit boom), a drop in liquidity and a spike in risk aversion contributed to high spreads in Central and Eastern and South-Eastern European (CESEE) countries, a marked improvement in fundamentals (e.g. reduction in fiscal deficit, narrowing of current balances, gradual economic recovery) explains the region’s resilience to financial market spillovers during the euro area crisis. Our generalised variance decomposition analyisis does not suggest strong direct spillovers from the euro area periphery. The significant drop in the CDS spreads between July 2012 and December 2012 was mainly driven by a decline in risk aversion as suggested by the model’s out of sample forecasts.
Itau Asset Management appoints UK boss
January 28, 2014--Itaú Unibanco's asset management business has appointed a new head to its London-based unit, after securing UK regulatory approval around 18 months ago.
The firm has appointed Ken Casey as head of Itaú UK Asset Management, according to a person familiar with the matter.
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Source: Financial News
Love affair with pound to be tested
January 27, 2014--UK fourth-quarter GDP data are published on Tuesday.
The report may add further fuel to the debate about whether the Bank of England will be the first of the large developed economies to raise rates in the current cycle.
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Source: FT.com
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