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Industrial production stable in both euro area and EU27
September 14, 2010--In July 2010 compared with June 2010, seasonally adjusted industrial production1 remained stable in both the euro area2 (EA16) and the EU272. In June3 production fell by 0.2% in the euro area, but rose by 0.1% in the EU27.
In July 2010 compared with July 2009, industrial production increased by 7.1% in the euro area and by 6.8% in the EU27.
These estimates are released by Eurostat, the statistical office of the European Union.
Monthly comparison
In July 2010 compared with June 2010, production of non-durable consumer goods rose by 0.1% in both zones. Capital goods grew by 0.1% in the euro area, but decreased by 0.2% in the EU27. Production of energy fell by 0.1% and 0.4% respectively. Intermediate goods declined by 0.3% in the euro area and by 0.1% in the EU27. Durable consumer goods dropped by 0.6% and 0.8% respectively.
Deutsche Börse: Five new Amundi ETFs launched on Xetra
August 14, 2010--Four new listed equity index funds and an additional bond index fund issued by Amundi have been tradable in Deutsche Börse’s XTF segment since Tuesday.
ETF name: Amundi ETF ex AAA Govt Bond EuroMTS
Asset class: bond index ETF
ISIN: FR0010892190
Total expense ratio: 0.14 percent
Distribution policy: non-distributing
Benchmark: EuroMTS ex-AAA Government Index
ETF name: Amundi ETF CAC 40
Asset class: equity index ETF
ISIN: FR0007080973
Total expense ratio: 0.25 percent
Distribution policy: non-distributing
Benchmark: CAC 40 Index
ETF name: Amundi ETF S&P 500
Asset class: equity index ETF
ISIN: FR0010892224
Total expense ratio: 0.15 percent
Distribution policy: non-distributing
Benchmark: S&P 500 Index
ETF Name: Amundi ETF Nasdaq-100
Asset class: equity index ETF
ISIN: FR0010892216
Total expense ratio: 0.23 percent
Distribution policy: non-distributing
Benchmark: Nasdaq-100 Index
ETF name: Amundi ETF EURO STOXX Small Cap
Asset class: equity index ETF
ISIN: FR0010900076
Total expense ratio: 0.30 percent
Distribution policy: non-distributing
Benchmark: EURO STOXX Small Index
The new bond index ETF, Amundi ETF ex AAA Govt Bond EuroMTS, allows investors to participate for the first time in the performance of the EuroMTS ex AAA Government Index. The underlying index tracks the value of euro-denominated government bonds issued in the euro zone and with a rating below AAA.
The Amundi ETF S&P 500 enables investors to track the performance of the S&P 500 Index, which is weighted according to free float market capitalization and in turn tracks the performance of the 500 largest US stock corporations. The Amundi ETF Nasdaq-100 tracks the performance of the top 100 tech companies (based on market capitalization) that specialize in sectors such as telecommunications, computer hardware and software and biotechnology.
The Amundi ETF CAC 40 enables investors to participate in the performance of the top 40 French companies. The fourth equity index ETF, Amundi ETF EURO STOXX Small Cap, tracks the performance of the 200 smallest euro-zone companies based on free-float capitalization.
The product offering in Deutsche Börse’s XTF segment currently contains a total of 702 exchange-listed index funds, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of around €14 billion, makes Xetra Europe’s leading trading venue for ETFs.
EU nearly doubles eurozone growth forecast
September 13, 2010-- Europe nearly doubled its growth forecast Monday to at least 1.7 percent for 2010, highlighting recovery in Germany but warning about rising strains in Ireland's banking system.
The European Union raised its core eurozone growth prediction on data from its seven biggest members, having forecast just 0.9 percent in the spring, but was at pains to remain prudent.
EU interim forecast: Recovery progressing in an uncertain global environment
September 13, 2010--The economic recovery in the EU has gained ground of late. GDP growth in the second quarter of 2010 was particularly strong, and more balanced towards domestic demand than previously anticipated. While activity is still expected to moderate in the second half of the year, the outlook is for a slightly improved quarterly profile compared to the spring forecast, due to the spill-over of some momentum from the second quarter. For 2010 as a whole, real GDP growth is now projected at 1.8% in the EU and 1.7% in the euro area, a sizeable upward revision. The recovery remains fragile however, with uncertainty high and developments across Member States uneven. The Commission's inflation forecast for 2010 is broadly unchanged since the spring, at 1.8% in the EU and 1.4% in the euro area.
EU Economic and Monetary Affairs Commissioner, Olli Rehn said: The European economy is clearly on a path of recovery, more strongly than forecast in the spring, and the rebound of domestic demand bodes well for the job market. However, uncertainties remain and safeguarding financial stability and continuing fiscal consolidation remain key priorities. At the same time, we need to frontload structural reforms to lift our growth potential. The sooner and stronger we act on this front, the more certain we can be of sustained growth and job creation.
Growth forecast for the EU and euro area revised up
Reflecting a better than expected first half of the year, and the spill-over of some of this momentum into the second, real GDP is forecast to grow by 1.8% in the EU and 1.7% in the euro area in 2010 (an upward revision of around ¾ percentage point compared to the spring forecast). This aggregate picture is based on updated projections for France, Germany, Italy, the Netherlands, Poland, Spain and the United Kingdom, which together account for about 80% of EU GDP. At the disaggregate level, developments remain uneven across Member States, with the German and Polish economies performing strongest. This unevenness reflects differences in production structures, the scale of adjustment challenges and ongoing rebalancing within the EU and euro area.
Global recovery loosing momentum
With support from inventory building and stimulus measures waning, the global recovery is set to go through a soft patch in the second half of the year, though a 'double-dip' seems unlikely. Despite this softening, global GDP (excl. EU) is projected to grow by some 5% in 2010, a ¼ pp. higher than in the spring forecast. This follows from the fact that economic activity was stronger than anticipated in the first part of the year. As in the spring, the outlook is for an uneven recovery, with robust growth in emerging economies but a still fragile situation in several advanced economies.
view the Interim forecast full document
CESR publishes two feedback statements in the field of Credit Rating Agencies
September 13, 2010--Feedback statement on CESR consultation on enforcement practices.
view Feedback statement on CESR consultation on common standards for assessment of compliance of credit rating methodologies
Markit Announces Roll Of Markit iTraxx Asia Pacific Indices
September 13, 2010--Markit, a leading, global financial information services company that owns the Markit iTraxx indices, today announced that the Markit iTraxx Asia ex-Japan and Markit iTraxx Australia will roll into their 14th series on September 20 2010. The Markit iTraxx Japan will roll into its 14th series on September 21 2010.
The following changes have been made to the Markit iTraxx Asia Pacific family of indices:
The composition of the Markit iTraxx ex-Japan remains unchanged.
The composition of the Markit iTraxx Australia remains unchanged.
Three constituents have been replaced in the Markit iTraxx Japan index.
FESE European Equity Market Report
September 13, 2010--FESE publishes for the ‘European Equity Market Report’ which gathers data from all the market segments operated by FESE members (including Regulated Markets and Multilateral Trading Facilities) as well as from the major MTFs operated by investment firms in the European market. The FESE Statistics Methodology used in the Report has been agreed by all the trading venues involved, both RM and MTFs.
view the European Equity Market Report - Year 2010 (updated with August figures)
EDHEC-Risk Institute Finds No New Evidence that SRI Funds Create Financial Value
September 13, 2010--In 2008, EDHEC-Risk Institute analysed the performance of a sample of SRI funds distributed in
France, covering a six year-period from January 2002 to December 2007. This study concluded that
none of the funds in the sample produced both positive and statistically significant alpha.
In a new position paper entitled “The Performance of Socially Responsible Investment and Sustainable Development in France: an Update after the Financial Crisis,” EDHEC-Risk Institute
again finds that a majority of the funds studied over long or short periods produce negative but nonsignificant alpha.
To highlight the period of the financial crisis, the new study examines SRI funds over both a fairly long period, with eight years of data, ending in December 2009, and a shorter period of three years, including data from January 2007 to December 2009.
Including the period of the financial crisis increases the extreme risks borne by SRI funds considerably; it is clear that, on average, these funds provide no protection from market downturns.
Regarding SRI investments more globally, the three main comments are the following: 1. The study confirms EDHEC-Risk Institute’s previous results on SRI as presented in the 2008 position paper. At this stage it has not been shown that the SRI approach on its own creates value in the financial sense of the term.
Business world hails referendum victory
September 13, 2010--After Turks overwhelmingly approved the proposed constitutional amendments in Sunday’s referendum, Turkey’s leading business associations have stressed that the result would be followed by positive market and real economy reactions, attracting more foreign investment and cash inflows to the country.
Turkish Exporters’ Assembly (T?M) President Mehmet Büyükek?i, who endorsed the much-awaited constitutional amendment package, elaborated on how foreign investors would react to Turks’ aspirations for a consolidated democracy. “The result which came out of the ballot box has indicated once again how important trust and stability in Turkey are. Along with this, the cash inflow to Turkey will be accelerated, and this money will later be turned into investment.
Financial reform: Where do we stand?
September 12, 2010--Financial reform programme faces a major test in the months ahead
During the autumn, the EU will continue its work on the overhaul of the European financial regulatory system. While many important measures have already been adopted, for example on improved supervision of credit rating agencies and limits on bonuses paid by banks and investment firms, more work remains to be done in 2010.
Several key pieces of legislation are awaiting final approval, while other elements of the reform are still being fleshed out. The Commission aims to present most of the remaining proposals by the end of the year and invites the EU countries and the European Parliament to adopt the texts by the end of 2011.
Another legislative proposal coming out shortly will aim to ensure increased transparency and safety in trading in derivatives, financial products that derive their value from an underlying asset.
Also in the pipeline is a proposal to regulate the short-selling of financial instruments, including credit default swaps relating to sovereign debt. As a trading practice, short-selling can be useful and legitimate, but it has been suggested that it may have aggravated the debt crisis.
As for measures already on the table, the EU governments and the European Parliament are very close to final agreement on the new European system of financial supervision. This involves the creation of a board to monitor system-wide risks in the financial system of the EU as a whole and the creation of three new European supervisory authorities to oversee and co-ordinate national supervision of the banking, insurance and financial markets.
Another important bill currently under negotiation aims at regulating hedge funds and other alternative investment funds used by professional and institutional investors.
