Europe ETP News Older Than 1 year-If your looking for specific news, using the search function will narrow down the results
Two new Source ETFs launched on Xetra
November 16, 2011- Two additional equity index funds issued by Source have been tradable on Xetra since Wednesday.
ETF name: MSCI Emerging Markets Source ETF
Asset class: equity index ETF
ISIN: DE000A1JM6G3
Total expense ratio: 0.45 percent
Distribution policy: non-distributing
Benchmark: MSCI Emerging Markets USD Net Total Return Index
ETF name: S&P 500 Source ETF
Asset class: equity index ETF
ISIN: DE000A1JM6F5
Total expense ratio: 0.20 percent
Distribution policy: non-distributing
Benchmark: S&P 500 Net Total Return Index
The MSCI Emerging Markets Source ETF enables investors to participate in the performance of the MSCI Emerging Markets USD Net Total Return Index. The index represents 85% of emerging market countries’ market capitalisation from various sectors, including energy, healthcare, industry and utilities. It currently tracks around 770 shares from the following countries: Brazil, Chile, China, Columbia, the Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Korea, Malaysia, Morocco, Mexico, Peru, the Philippines, Poland, Russia, South Africa, Taiwan, Thailand and Turkey.
The S&P 500 Source ETF enables investors to participate in the performance of the S&P 500 Net Total Return Index. The index is weighted according to free float market capitalisation and tracks the performance of the 500 largest US stock corporations. The index is calculated on the basis of the reinvestment of dividends after the deduction of any tax.
The product offering in Deutsche Börse’s XTF segment currently comprises a total of 891 exchange-listed index funds, while average monthly trading volume stands at €16 billion.
Source: Deutsche Börse
Mario Monti to announce new Italian government
Prime minister designate has 'defined picture' of administration amid concern over possible role for Berlusconi ally
November 16, 2011--Mario Monti is grappling with the problem of whether to include Silvio Berlusconi's right-hand man, Gianni Letta, in his government as the price of securing the outgoing prime minister's support.
Italy's president, Giorgio Napolitano, asked the former European commissioner on Sunday to form a new government. Monti is due on Wednesday to tell the president whether it would enjoy credible support in parliament.
read more
Source: Guardian
ESMA details future rules for alternative investment fund managers
November 16, 2011--ESMA publishes today its final advice (ESMA/2011/379) on the detailed rules underlying the Alternative Investment Fund Managers Directive (AIFMD). The rules proposed by ESMA will establish a comprehen-sive framework for alternative investment funds, their managers and depositaries.
They are also designed to help achieve the AIFMD’s objective of increased transparency and tackling systemic risk, ultimately contributing to a more sound protection of investors. ESMA’s advice follows a 2010 request by the Com-mission, originally sent to ESMA’s predecessor, CESR, asking ESMA to deliver its final advice by 16 No-vember 2011.
Moody's blasts plan to curb ratings agencies - report
November 16, 2011--A European Union plan to impose tougher rules on credit rating agencies is "dangerous" as it is bound to limit the "quality and independence" of the rating process, the president and chief operating officer of Moody's Investor Services told Le Figaro newspaper.
"I see it as reflecting an obsession to challenge the rating process itself, and to hold rating agencies responsible for the European debt crisis," Michel Madelain said in an interview.
"These proposals cannot make investors confident again nor facilitate the access of companies and European states to credit markets," he added.
read more
Source: Reuters
Active ETFs to lose competitive advantage post-RDR
November 15, 2011--Swiss & Global is planning to launch a new range of "Smart" ETFs in the New Year which will be actively managed despite an industry-wide lack of conviction for such products.
The house view at Swiss & Global, a member of the GAM group, is that most passive ETFs which simply track indices give too much weighting to components that are unattractive and so do not offer investors good returns.
Stefan Angele, head of investment management at the company said, for example, that the eurobond index gives a large weighting to Italy because of its high levels of debt and, as investors have seen in recent weeks, this does not necessarily present an attractive investment proposition.
read more
Source: Portfolio Advisor
Risks in the financial system 2011-Swedish Financial Supervisory Authority- Finansinspektionen
November 15, 2011--Sweden has remained relatively stable in a turbulent period but during this time the risk level in the Swedish financial system has also risen. The uncertainty in surrounding markets has meant that banks’ liquidity risks and the impact of low interest rates on life insurance undertakings remain in focus. Finansinspektionen also believes there is a risk that the sale of complex products to consumers will increase.
Uncertainty in the global economy increased during 2011 and the situation in several European companies deteriorated. This development has meant that banks’ liquidity risks are still in focus. During this time, however, the Swedish banks have handled the turbulence better than many European banks thanks to their strong capitalisation and Sweden’s strong government finances. The current financial turbulence demonstrates that banks and authorities still have a need for tools that will help them handle this kind of uncertainty.
read more
Source: Finansinspektionen:
Antitrust: European Commission Makes Standard & Poor's Commitments To Abolish Fees For Use Of US International Securities Identification Numbers Binding
November 15, 2011-- - The European Commission has made legally binding commitments offered by Standard & Poor's (S&P) to abolish the licensing fees that banks pay for the use of US International Securities Identification Numbers (ISINs) within the European Economic Area (EEA)1.
Moreover, for direct users, information services providers (ISPs) and service bureaus (i.e. outsourced data management service providers), S&P committed to distribute the US ISIN record separately from other added value information, on a daily basis for USD15.000 per year, to be adjusted each year in line with inflation.
ISINs are key identifiers for securities, allocated and distributed by national numbering agencies (NNAs). They are essential for managing securities and reporting. The Commission had concerns that S&P, which is the only NNA for US ISINs, may have charged unfairly high prices for their use and distribution in Europe, in breach of EU antitrust rules on the abuse of a dominant market position (see MEMO/09/508). The Commission is satisfied that the commitments, revised in light of observations received in the course of a market test (see IP/11/571), are suitable to solve the competition concerns.
read more
Source: EUROPA
Frequently asked questions: legislative proposal on credit rating agencies (CRAs)
November 15, 2011--I. GENERAL CONTEXT AND APPLICABLE LAW
1. What is a credit rating?
A credit rating is an opinion issued by a specialised firm on the creditworthiness of an entity (e.g. an issuer of bonds) or a debt instrument (e.g. bonds or asset-backed securities). This opinion is based on research activity and presented according to a ranking system (e.g. AAA, BBB. For full list, please refer to the annex attached to this memo.)
2. What is a credit rating agency?
A credit rating agency (CRA) is a service provider specialised in the provision of credit ratings on a professional basis. The three biggest rating agencies are Standard & Poor's, Moody’s and Fitch. They cover approximately 95% of the world market. Smaller rating agencies make up the remaining part. For a list of all European CRAs already registered under the CRA Regulation, see:
http://www.esma.europa.eu/popup2.php?id=7692
3. Why do we need to regulate credit rating agencies?
CRAs have a major impact on today's financial markets, with rating actions being closely followed and impacting on investors, borrowers, issuers and governments: e.g. sovereign ratings play a crucial role for the rated country, since a downgrading has the immediate effect of making a country's borrowing more expensive. A downgrading also has a direct impact for example on the capital levels of a financial institution.
The financial crisis and recent developments in the context of the euro debt crisis have revealed serious weaknesses in the existing EU rules on credit ratings. In the run up to the financial crisis, CRAs failed to appreciate properly the risks inherent in more complicated financial instruments (especially structured financial products backed by risky subprime mortgages), issuing incorrect ratings that were far too high.
The market for structured finance products grew rapidly, and CRAs were happy to both advise the issuer on the design of these innovative structures and afterwards rate them. These conflicts of interest were poorly managed, contributing further to rating inflation.
The 2008 crisis highlighted how far many of these instruments had been overrated. The large majority of the ratings that large CRAs made on instruments linked to subprime in 2006 had to be downgraded between mid-2007 and mid-2008 causing substantial losses for investors.
In this context a number of legal proceedings have been launched in particular in the US by investors accusing CRAs of issuing misleading ratings.
read more
Source: Europa
World Bank Projects Sluggish Growth for the South East European Economies in 2011 and 2012
While the region has made significant progress over recent years, it is at risk from the effects of a further global slowdown and needs to adopt policies that support stability and longer term growth
November 15, 2011 – While a global slowdown and recent turbulence in the Eurozone have shaken economies of the six countries in South East Europe (SEE6)[1], their deeper integration with the European Union (EU) remains the best long term prospect for their growth, according to the new World Bank “South East Europe Regular Economic Report” (SEE RER), released today. This is the first of a series of regular reports which will come out semi-annually.
Our projections are for the growth in this region of 2.5 percent in 2011 and 2.1 percent in 2012,” says Ron Hood, Lead Economist in the World Bank’s Poverty Reduction and Economic Management Sector Unit in the Europe and Central Asia region and lead author of the report. “However, even these modest growth projections assume that the Eurozone crisis is solved in an orderly manner. Should the crisis worsen, economic growth in these countries could be much worse.”
The effects of a further global slowdown and the prolonged uncertainties around the Eurozone crisis will influence SEE6 economies through trade, foreign direct investment (FDI), foreign banks, and remittances, according to the report. All these transmission channels would be affected by deeper economic and financial tensions in the EU and the Eurozone.
Trade with the EU is a key driver of exports and overall economic growth for SEE6 countries, amounting to between 30 percent and almost half of their GDP. In 2010, 58.2 percent of total SEE6 exports were to the EU, with the lion’s share going to Italy and Germany. After a drop by 14.7 percent in 2009, exports marked a robust growth by 20 percent in 2010, peaked at 29.7 percent in the first quarter of 2011 year on year, and have subsequently slowed. Imports have a similar dynamics but with a deeper decline in 2009 and a more muted recovery.
view World Bank report-South East Europe Regular Economic Report
Source: World Bank
September 2011 compared with August 2011-Industrial production down by 2.0% in euro area
Down by 1.3% in EU27
November 14, 2011--In September 2011 compared with August 2011, seasonally adjusted industrial production1 fell by 2.0% in the euro area2 (EA17) and by 1.3% in the EU272.
In August3 production rose by 1.4% and 1.0% respectively.
In September 2011 compared with September 2010, industrial production increased by 2.2% in both zones.
These estimates are released by Eurostat, the statistical office of the European Union.
read more
Source: Eurostat
If you are looking for a particuliar article and can not find it, please feel free to contact us for assistace.
