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Deutsche Börse Monthly Carbon Report reveals lower carbon emissions in 2011
January and February emissions in Europe lower than in 2010 / impact of “Fukushima” and ensuing energy discussion on carbon emissions to be seen in following reports
May 30, 2011--The newest Monthly Carbon Report (MCR) from Deutsche Börse – Market Data & Analytics shows that effective carbon emissions for the EU27 countries decreased versus 2010. Carbon emissions in January and February 2011 totalled 323,3 million tonnes versus 337,7 million tonnes in the same time period 2010.
The impact of the energy discussion in Europe that followed the Fukushima incident will be seen in reports throughout the year.
Deutsche Börse’s Monthly Carbon Report (MCR) provides transparency for effective carbon emissions in Europe. Deutsche Börse uses a proprietary calculation model to compute the monthly emission data for all EU27 countries. The report uses data provided by large emissions contributors as well as from additional data sources. The monthly data is validated and calibrated annually with the official emission data from the European Commission. For 2010 data, the divergence between MCR data and the official numbers (published in April 2011) was only 1.8%, reflecting the high quality of the model.
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Source: Deutsche Börse
Boerse Stuttgart extends early trading to all equities
From June onwards, retail investors will be able to start trading in all German equities from 8.00 hours
May 30, 2011-As of 1 June 2011, Boerse Stuttgart will extend early trading to include all German equities. On 1 April, Boerse Stuttgart initially brought forward the starting time from 9.00 hours CET to 8.00 hours CET for German DAX, MDAX, SDAX and TecDAX shares and for international equities, participation certificates and debt instruments.
“So far, our turnover figures indicate that the extension of trading hours has been met with interest by retail investors. Our trading experts have demonstrated that we can guarantee excellent price quality as early as from 8.00 hours CET and thus maintain the high quality standards of our stock exchange. As a result of this positive experience, we decided to include all German equities in early trading,” observed Christoph Lammersdorf, CEO of Boerse Stuttgart Holding GmbH.
The extension comes in response to the wishes of many retail investors who want to be in a position to react even more quickly to international trends and events through the stock market, perhaps before going to work in the morning.
More information on the services offered by Boerse Stuttgart can be found at www.boerse-stuttgart.de.
Source: Boerse Stuttgart
Statement By European Commissioner Michel Barnier On Basel III And Its Implementation Into EU Law (Capital Requirements Directive - CRDIV)
May 27, 2011--A few weeks ago, some people were accusing us of damaging the economic recovery by implementing rules which would be too tough for banks because they would impede their lending to the real economy. Today, others seem to accuse us of the opposite with suggestions Europe would not be implementing Basel properly, thus not learning all the lessons from the crisis.
Both criticisms are unjustified and simply factually wrong. And they will not affect my determination. I will not be swayed by various pressures. Europe will implement Basel III: we have said it before and I confirm it to you today, the Commission's proposals to implement Basel III will respect the balance and level of ambition included in Basel 3."
Source: European Commission
EU Watchdog Eyes Hedge Funds, Debt Shorting
May 27, 2011-Investors need more information on hedge fund risks, while planned European Union curbs on shorting sovereign debt could undermine regulatory credibility, the EU's new securities watchdog said on Thursday.
Steven Maijoor, chairman of the European Securities and Markets Authority (ESMA), said investors need information to better assess the risk profile of a hedge fund.
"It will be important to achieve a balance between increasing investor protection while avoiding imposing undue costs on fund managers," Maijoor told the annual International Capital Market Association conference.
Source: Reuters
IMF Switzerland: Selected Issues Paper
MAy 27, 2011--IMPACT OF EXCHANGE RATE MOVEMENTS ON EXPORT PERFORMANCE AND
CONSUMER PRICES1
A. Introduction
1. The effect of the nominal exchange rate on the trade balance depends on the
degree of exchange rate pass-through and on trade elasticities. In the presence of price rigidities, the short-run expenditure switching effect of a nominal exchange rate appreciation
on the trade balance will depend on the exchange rate elasticity of imports and of exports.
The domestic value of the trade balance will worsen as a result of a real exchange rate
appreciation if the sum of the absolute values of the two elasticities exceeds one.2 The exchange rate pass-through is an important parameter determining the response of domestic import demand to exchange rate fluctuations by allowing expenditure switching effects to
operate. For example, with a high pass-through, the expenditure switching effect of a nominal appreciation is likely to be sizeable as an appreciation results in a decline in the
domestic price of imports and therefore tends to increase the demand for imports.3 In contrast, with a low pass-through, the domestic price of imports, and therefore the demand for import, are not significantly affected by the nominal exchange rate.
view the Switzerland: Selected Issues Paper
Source: Europe
Debt worries swept aside in Europe
May 27, 2011--European equities endured a choppy week, but thanks to a revival in commodity markets and rising risk appetite, concerns over the eurozone debt crisis were ultimately swept aside.
Gains on Thursday and Friday almost made up the losses earlier in the week when Standard & Poor’s said it was lowering its long-term assessment of Italian sovereign debt. Italy’s FTSE MIB index never fully recovered and was down 1.9 per cent over the week
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Source: FT.com
EU vows to respect Basel banking capital rules
May 27, 2011-EU financial services commissioner Michel Barnier said Friday he will respect ambitious new international guidelines on banking capital buffers in new legislation being drafted by the bloc.
Barnier said he felt obliged to respond to press reports suggesting the rules drawn up by the Basel Committee on Banking supervision, which groups states' central bankers and financial regulators, would be weakened when transposed into European Union law.
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Source: EUbusiness
Basel III break for banks in EU
May 26, 2011--Banks in the European Union could evade part of the tighter Basel III capital requirements under draft legislation implementing the new globally agreed standards across the 27-member bloc.
The 500-plus page draft, which has not been officially released, could allow EU banks to count more of the capital in their insurance subsidiaries than the global rules call for. It will also allow some banks to continue issuing hybrid capital – preference shares and other debt-like instruments – for longer than expected. The biggest French financial companies, including Société Générale and BNP Paribas, and the UK’s Lloyds Banking Group have insurance arms. They would benefit disproportionately from the exception
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Source: FT.com
ECB Monetary Developments In The Euro Area
May 26, 2011-The annual growth rate of M3 decreased to 2.0% in April 2011, from 2.3% in March 2011.1
The threemonth
average of the annual growth rates of M3 over the period February 2011 - April 2011 stood at 2.1%, compared with 2.0% in the period January 2011 - March 2011.
Regarding the main components of M3, the annual growth rate of M1 decreased to 1.7% in April 2011, from 3.0% in March. The annual growth rate of short-term deposits other than overnight deposits increased to 3.3% in April, from 2.3% in the previous month. The annual growth rate of marketable instruments stood at -0.7% in April, compared with -0.6% in March.
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Source: ECB
DB Global Equity Index & ETF Research : European ETF Market Weekly Review : May turns out to be a 'sit and wait'’ game as ETF investors largely stay out of the market
May 26, 2011--Investment Outlook: Cash Outflows in Equity & Fixed Income ETFs
Declining equity markets and cash outflows from equity & fixed income ETFs marked the week that ended on 20/05/11. Most of the European equity benchmarks ended lower than the previous week’s close: DAX, Stoxx 50, and the CAC lost 1.84%, 1.40% and 0.70% respectively.
The only exception was the FTSE 100 which showed resilience and gained 0.38% than the previous weekly close. Overall equity ETFs registered outflows of €933 million for the last week which places its YTD cash flow figures at €10.4 billion.
European developed country ETFs witnessed outflows of close to €1.1 billion in the last week. ETFs tracking major European country benchmarks [such as the DAX, FTSE 100, SMI & CAC] registered outflows thereby bringing down the YTD cash flows to €5.1 billion in this ETF market segment. Non-European developed market ETFs and European sector ETFs received €145 million and €132 million cash inflows respectively over the last week.
Fixed Income ETF cash flows were marked by money market ETFs which registered outflows of €488 million over the last week. Sovereign ETFs collected €166 million in cash inflows for the last week. Overall, fixed income ETFs have registered outflows of €605 million year till date.
Outflows in commodities continued, albeit at a much muted level with net cash outflows of €71 million in the last week. Broad commodity benchmarked ETFs registered outflows of €55 million in the last week. Overall Commodity ETPs have collected over €2 billion in cash flows in 2011 , €1.2 billion of which were received by broad commodity benchmarked ETFs alone.
Assets Under Management (AUM): Assets decrease by €1.8 billion
Total European ETP assets decreased by 0.7% and ended the previous week at €242 billion. Equities alone registered a decline in assets of close to €1.6 billion to end the last week at €156.6 billion. Within equities, ETFs tracking developed country ETFs witnessed the largest asset decline (€ 1.4 billion) from the previous week’s closing numbers. This decline was primarily driven by DAX outflows. ETFs tracking regional Eurozone benchmarks also declined by €297 million week over week.
Fixed Income ETFs also lost €413 million in assets over the last week to close at €41.8 billion. Money market ETF assets declined by over € 500 million to end the week at €5.2 billion which is lower than 2010 year end assets. Commodity assets registered moderate increase by adding €190 million taking its total assets to €40.7 billion as of 20/05/11.
On-Exchange Total Weekly Turnover: Decrease in turnover levels as Commodity trading activity slows
Weekly on exchange European ETP total turnover decreased by 9.4% to end the past week at € 10.7 billion. Commodities played a significant role in this; registering week on week declines of €0.8 billion in total weekly turnover. Equity turnover remained flat with weekly total figures of €8.3 billion. Fixed Income ETF turnover declined by 13.8% to end the week at €832 million.
New ETP Product Launch Calendar: 12 product launches, 3 Cross-Listings Emerging Markets find flavor with Issuers
State Street launched 8 new products in the last week on the European ETP markets. There were 5 ETFs focused on MSCI indices tracking Emerging markets equities and 2 ETFs on broader investable equity securities. A Fixed Income ETF was also introduced which tracks the Barclays Capital EM Bond Index. All these products were listed on the Deutsche Borse.
Comstage introduced 4 Equity ETFs tracking a range of German and Swiss benchmark country indices. These ETFs were listed on the Deutsche Borse.
To request a copy of the report
Source: Christos Costandinides, European Head of ETF Research & Strategy, Deutsche Bank
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