Europe ETP News Older Than 1 year-If your looking for specific news, using the search function will narrow down the results
ETF securities lending comes under scrutiny for collateral risk
November 29, 2011--Wealth managers using exchange traded funds (ETFs) should be aware of securities lending and the level of counterparty risk involved, with some funds lending out as much as 90% of their securities while holding Italian and Japanese equities as collateral.
According to iShares, its FTSE 250 ETF has lent out 92% of its securities, on average, over the last year. This average figure is very close to the maximum it has had out on loan, at 95%.
Returns from this practice, which went back into the fund amounted to a net figure of 14.7 basis points.
read more
Source: Citywire.uk
European Commission-Economic Sentiment resumes decline
November 29, 2011--In November, the Economic Sentiment Indicator (ESI) declined by 1.0 point in the EU and by 1.1 points in the euro area, dipping to 92.8 and 93.7, respectively. The decline resulted from a broad-based deterioration in sentiment across the sectors. Confidence remained broadly unchanged only in the construction sector.
Among the largest Member States, France (-3.7) reported the biggest decrease in sentiment, followed by the Netherlands
(-1.8) and - to a lesser extent - the UK (-0.6). Sentiment was broadly unchanged in Germany (-0.1) and Spain (+0.2), while it improved in Italy (+0.8) and Poland (+0.9). The ESI remains above its long-term average only in Germany.
Confidence in industry weakened by 1.0 point in the EU and by 0.8 points in the euro area, moving below its long-term average in both regions. The deterioration was broad-based: managers were more pessimistic about their companies' past production and their export order books. They also expressed growing concerns about production expectations, particularly in the euro area where an increasing number of managers also assessed their stocks as being too large.
Employment expectations deteriorated in industry in both the EU and the euro area, while managers' selling price expectations increased in both regions.
read more
Source: Europa
Embattled Europe hit by credit rating warning
November 29, 2011--- Moody's warned Monday that every member of the European Union could have its credit rating downgraded without firm action to stem the eurozone crisis as the IMF denied it was in talks to bail out Italy.
Ahead of a new OECD growth forecast likely to deepen the gloom within the eurozone, Moody's said there was a real danger of "multiple defaults" by debt-ridden countries and raised the spectre of the single currency's break-up.
read more
Source: EUbusiness
Embattled Europe hit by credit rating warning
November 29, 2011--Moody's warned Monday that every member of the European Union could have its credit rating downgraded without firm action to stem the eurozone crisis as the IMF denied it was in talks to bail out Italy.
Ahead of a new OECD growth forecast likely to deepen the gloom within the eurozone, Moody's said there was a real danger of "multiple defaults" by debt-ridden countries and raised the spectre of the single currency's break-up.
read more
Source: EUbusiness
Euro Zone Leaders Weigh New Budget Rules
November 27, 2011--Euro zone leaders are discussing a deal among themselves to institute strict new budget rules for their countries, rather than go through the long, complicated process of amending European Union treaties. By acting more quickly, they hope to reassure skeptical financial markets and encourage the European Central Bank to do more to fight the deepening sovereign debt crisis on the Continent.
Investors clearly are not persuaded by the intermittent efforts that Europe has made to protect major countries like Italy and Spain from the crisis, which started in smaller, more fragile economies like those of Greece and Ireland. The leaders of Germany, the mainstay of the euro zone, want a new treaty that would stop euro nations from posing a threat by running large deficits or amassing crushing debts, but France, the zone’s second-largest economy, believes that amending treaties would take too long to help now.
read more
Source: New York Times
ECB Monetary developments in the euro area-October 2011
November 27, 2011--The annual growth rate of the broad monetary aggregate M3 decreased to 2.6% in October 2011, from
3.0% in September 2011.1
The three-month average of the annual growth rates of M3 in the period from
August 2011 to October 2011 increased to 2.8%, from 2.6% in the period from July 2011 to September
2011.
M3 components
Regarding the main components of M3, the annual growth rate of M1 decreased to 1.7% in October 2011,
from 2.0% in September. The annual growth rate of short-term deposits other than overnight deposits
(M2-M1) decreased to 2.2% in October, from 3.1% in the previous month.
read more
Source: ECB
Bunds get caught in stampede for the exit
November 25, 2011--The dominance of an overarching ‘risk trade’ has been perhaps the most prominent feature of capital markets ever since the debt crisis moved from being a banking problem to one of sovereign debt.
On one side there are things like equity and the euro. They’re highly correlated and charge higher on the increasingly rare days when investors have some hope for the future. German government bonds have been part of a select group of assets on the other side of the trade: in demand when investors want low-risk parking slots for their money.
The group includes U.S. Treasurys, U.K. gilts, the yen, Swiss franc and gold. Risk aversion took both yen and franc to such heights that their central banks are busily attempting to keep financial refugees away with the threat of vast selling. Now Wednesday’s shocking bund auction has raised the odd doubt about German debt’s membership of the club.
read more
Source: Wall Street Journal
Europeans more fearful of debt crisis than terrorism
November 25, 2011--Europeans see the economic crisis as a bigger threat to their security than terrorism or organised crime, an EU-wide poll showed on Friday.
When asked "what are the most important challenges to the security of EU citizens at the moment?", 34 percent cited the economic and financial crises, 33 percent named terrorism and 21 percent said organised crime.
The economy is an even bigger worry in eurozone nations that have been bailed out or are under pressure from the markets: 61 percent in Ireland see the crisis as the biggest security challenge to their country, 57 percent in Spain, 56 percent in Greece, 44 percent in Italy and 41 percent in Portugal.
view the Special Eurobarometer 371 INTERNAL SECURITY report
Source: EUbusiness
Euro warning as Italy borrowing costs soar to record highs
November 24, 2011--Italy had to pay record rates to raise 10-billion euros ($13.2-billion) on Friday after France and Germany warned that a blow-out in its giant debt mountain would signal "the end of the euro."
The EU's Economic and Monetary Affairs Commissioner Olli Rehn meanwhile ratcheted up the pressure further on Prime Minister Mario Monti's new government, calling for "an ambitious timeline" on economic reforms.
read more
Source: EUbusiness
UK banks must plan for disorderly euro zone break-up
Bailey says UK banks must plan for the worst
Says banks resilience has improved since 2007-2009 crisis
Banks don't have large exposures to vulnerable euro zone
Welcomes moves by banks to ditch non-core assets
November 24, 2011--Britain's banks are drawing up contingency plans in case there is a disorderly break-up of the euro zone or exit of some countries from the single currency as the sovereign debt crisis rages on, a top UK regulator said on Thursday.
Andrew Bailey, deputy head of the Prudential Business Unit at the UK's Financial Services Authority (FSA), said UK banks do not have large exposures to the euro zone, but must plan for the worst.
read more
Source: Reuters
If you are looking for a particuliar article and can not find it, please feel free to contact us for assistace.
