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Kingdom of the Netherlands-The Netherlands: Staff Concluding Statement of the 2021 Article IV Mission
September 30, 2021--The Dutch economy has weathered the pandemic comparatively well, with a smaller recession than the Euro Area in 2020 and a strong recovery so far in 2021. This reflects both the intrinsic resilience of the economy, supported by a high degree of digitalization, and a comprehensive policy package that took advantage of abundant policy space.
The policy interventions included a focused response of the health sector and programs to help affected businesses and individuals. This cushioned the economic impact of the pandemic by protecting jobs, supporting household incomes and helping firms preserve liquidity and solvency, also preventing adverse financial sector spillovers. Moreover, monetary accommodation and regulatory and supervisory easing supported financial intermediation during the pandemic while a successful vaccination effort has helped move the economy towards normalization.
As a result, unemployment has nearly returned to pre-pandemic lows, and bankruptcies have remained lower than usual, also helping the financial sector to maintain its resilience. Banks remain well capitalized, while intensifying pressures on pension funds and insurers from lower interest rates have been largely compensated by rising asset values. The formation of a new government offers the opportunity to set ambitious medium-term objectives and policies to support a greener and more sustainable economy, boost growth potential, and address key medium-term challenges.view more
New Lyxor ETF on Xetra: leading ESG companies worldwide
September 30, 2021--A new exchange-traded fund issued by Lyxor International Asset Management has been tradable on Xetra and Börse Frankfurt since Thursday.
With the Lyxor MSCI World ESG Leaders Extra (DR) UCITS ETF-Dist, investors participate in a portfolio of large and medium-sized companies from 23 developed nations worldwide.
Based on the MSCI World, only companies that rank among the best within their sector in terms of ESG criteria and show a positive trend in the improvement of their sustainability profile are selected. At the same time, the original sector weightings are tried to be maintained. Companies with significant business activities in the areas of alcohol, tobacco, gambling, adult entertainment, nuclear energy, weapons, and genetically modified organisms are excluded and therefore not represented in the index.
Name: Lyxor MSCI World ESG Leaders Extra (DR) UCITS ETF - Dist
Asset class: Equity ETF
ISIN: LU1799934499
New VanEck ETFs on Xetra: Chinese new economy stocks with ESG filter and Rare Earths and Strategic Metals companies
September 29, 2021--Two new exchange-traded funds issued by VanEck Vectors have been tradable via Xetra and Börse Frankfurt since Wednesday.
The VanEck Vectors New China ESG UCITS ETF offers investors access to 100 Chinese growth companies of the new economy, which are selected because of their growth prospects and taking ESG criteria into account.
The index is composed of companies that are domiciled in China and whose shares are listed on the Shanghai, Shenzhen, Hong Kong, New York, or NASDAQ stock exchanges. In addition, only companies from the consumer discretionary, consumer cyclical, healthcare and technology sectors are considered in the index composition. All stocks in the index are equally weighted. This ETF is also included in the CEINEX product range.
The VanEck Vectors Rare Earth and Strategic Metals UCITS ETF offers investors an investment in the largest and most liquid Rare earth and Strategic metals companies worldwide. To be included in the index, companies must generate at least 50 per cent of their revenue from Rare Earths or Strategic Metals or be working on mining projects that have comparable future potential. Each index company must also have a market capitalisation of at least €150 million, whereby the weighting of a stock is limited to a maximum of 8 per cent.
New Xtrackers ETF on Xetra: access to 500 largest US companies with currency hedging
September 28, 2021--September 28, 2021--A new exchange-traded fund issued by Xtrackers has been tradable on Xetra and Börse Frankfurt since Tuesday.
With the Xtrackers S&P 500 Swap UCITS ETF 5C-EUR Hedged, investors have access to the 500 largest listed US companies. The S&P 500 Index represents the most important industries and is considered an indicator for the development of the entire U.S. stock market.
In this accumulating, swap-based share class with annual ongoing charges of 0.20 per cent, currency risks against the euro are minimised.
Name: Xtrackers S&P 500 Swap UCITS ETF 5C- EUR Hedged
Asset class: Equity ETF
ISIN: LU2196472984
Resilient finance: Closing the protection gap against disaster risk
September 28, 2021--In July 2021, catastrophic flooding inundated parts of Germany and Belgium with damage spreading further into neighboring countries. The flooding took the lives of over 200 people and caused devastating damage to homes and businesses; the insurance industry is expecting losses on the scale of billions of EUR.
Governments will bear much of the cost of this flooding. Germany has announced an immediate aid package of EUR 472 million to support affected people.
The European Union Solidarity Fund will likely be instrumental for the recovery. Once again, the floods reminded that we need better systems in place to finance recovery from natural disaster.
Natural disasters are not infrequent in Europe. In the past 40 years, disasters affected almost 7% of the European population costing on average EUR 12 billion losses each year. Given the number of compounding shocks, such as the ongoing pandemic and climate change, financial preparedness is paramount to recovery.
New Amundi ETFs on Xetra: climate-friendly companies worldwide and emerging market equities
September 28, 2021--Two new exchange traded funds issued by Amundi have been tradable on Xetra and Börse Frankfurt since Tuesday.
The Amundi MSCI World Climate Paris Aligned PAB UCITS ETF (DR) offers investors access to large and mid-cap companies from 23 developed countries worldwide that are in line with the goals of the Paris Climate Agreement to limit global warming to a maximum of 1.5℃ and benefit from measures to combat climate change.
Excluded from the index are companies that have excessive carbon emissions and are exposed to climate change risks such as extreme weather conditions. The same applies to companies that are not in line with the principles of the United Nations Global Compact, are involved in serious ESG-related controversies or are active in the areas of thermal coal, nuclear energy, weapons, gambling, tobacco and genetically modified organisms.
The Amundi Prime Emerging Markets UCITS ETF (DR) (C) offers investors a portfolio covering approximately 85 per cent of large and mid-cap companies from 26 emerging markets by market capitalisation. Companies from Taiwan, India, South Korea, and China are most strongly represented.
Monetary developments in the euro area: August 2021
September 27,2021--Annual growth rate of broad monetary aggregate M3 increased to 7.9% in August 2021 from 7.6% in July
Annual growth rate of narrower monetary aggregate M1,comprising currency in circulation and overnight deposits,stood at 11.1% in August,compared with 11.0% in July
Annual growth rate of adjusted loans to households stood at 4.2% in August,unchanged from previous month
Annual growth rate of adjusted loans to non-financial corporations decreased to 1.5% in August from 1.7% in July
Components of the broad monetary aggregate M3
The annual growth rate of the broad monetary aggregate M3 increased to 7.9% in August 2021 from 7.6% in July,averaging 7.9% in the three months up to August.
New FlexShares ETFs on Xetra: emerging markets companies with focus on dividend yield or low volatility as well as climate and sustainability targets
September 27, 2021--Two new exchange traded funds issued by FlexShares have been tradable on Xetra and Börse Frankfurt since Monday.
The FlexShares Emerging Markets High Dividend Climate ESG UCITS ETF-Dist and the FlexShares Emerging Markets Low Volatility Climate ESG UCITS ETF-Acc are strategy ETFs with a focus on emerging markets.
The two ETFs give investors access to 85 per cent of the market capitalisation of emerging markets, with the option of investing in either large and mid-cap companies with high dividend yield or low volatility. All companies have been pre-selected for their quality in terms of profitability, cash flow and management experience.
Furthermore, the companies are selected based on their climate and sustainability targets. Companies with activities in the areas of tobacco and weapons as well as a high carbon intensity are excluded from the index. In addition, common standards regarding ESG criteria (environmental, social, and good corporate governance) must be met.
Asset Purchase Programs in European Emerging Markets
September 27, 2021--Summary:
Several emerging market central banks in Europe deployed asset purchase programs (APPs) amid the 2020 pandemic. The common main goals were to address market dysfunction and impaired monetary transmission, distinct from the quantitative easing conducted by major advanced economy central banks. Likely reflecting the global nature of the crisis, these APPs defied the traditional emerging market concern of destabilizing the exchange rate or inflation expectations and instead alleviated markets successfully.
We uncover some evidence that APPs in European emerging markets stabilized government bond markets and boosted equity prices, with no indication of exchange rate pressure. Examining global and domestic factors that could limit the usability of APPs, in the event of renewed market dysfunction we see a potential scope for scaling up APPs in most European emerging markets that used APPs during the pandemic, provided that they remain consistent with the primary objective of monetary policy and keep a safe distance from the risk of fiscal dominance. As central banks in the region move towards monetary policy tightening, the tapering, ending, and unwinding of APPs must also be carefully considered. Clear and transparent communication is critical at each step of the process, from the inception to the closure of APPs, particularly when a large shock hits and triggers a major policy shift.
'Liquidity in the Time of Covid' Report
September 27, 2021--Covid-19 continues to redefine the trading landscape in Europe. Changes in liquidity formation already in play due to the increased use of automated trading and rise of passive investing were accelerated as traders rushed to make changes to investment strategies due to the pandemic.
Remote working, greater reliance on cloud technology and the high volatility early in the pandemic created new additional challenges which is resulting in the industry rethinking trading partners and access points to liquidity.
The study is written by independent financial services research group Redlap Consulting. It was commissioned by FIA EPTA, which represents Europe's leading market making firms, to drive greater understanding of what independent market making firms do, and their contribution to both financial markets and the wider economy.
