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EU sizes up 'temporary, emergency' naked short selling ban
June 14, 2010-- European regulators could ban naked short selling and CDS swaps but only short-term and in crisis situations, an EU consultation document circulated on Monday shows.
According to the consultation, which is open until July 10, market authorities could be given "powers to impose temporary restrictions on short selling and Credit Default Swap transactions in an emergency."
CDS trade and naked short selling -- when a dealer does not actually have the securities being traded -- are often highly speculative activities which the authorities have blamed in the past for market volatility and the taking on of too much risk.
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Source: EUbusiness
European Equity Market Report -May 2010-FESE
June 14, 2010--The May 2010 FESE European Equity Market Report is now available
view report
Source: FESE
First estimate for the first quarter of 2010-EU27 current account deficit 23.4 bn euro
13.2 bn euro surplus on trade in services
June 11, 2010--The EU271 external current account2 recorded a deficit of 23.4 billion euro in the first quarter of 2010, compared with a deficit of 50.6 bn in the first quarter of 2009 and a deficit of 9.2 bn in the fourth quarter of 2009.
In the first quarter of 2010, the EU27 external balance of trade in services recorded a surplus of 13.2 bn euro, compared with a surplus of 13.3 bn in the first quarter of 2009 and a surplus of 19.1 bn in the fourth quarter of 2009.
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Source: Eurostat
Asset managers to focus on building trust, increasing transparency
June 11, 2010--A large majority of asset managers worldwide believe building clients' trust and increasing transparency will be the biggest challenges in the coming years, according to consultant KPMG.
KPMG canvassed senior executives at 17 large asset managers in Europe, the US and Asia Pacific and said most respondents thought focusing on trust and transparency would strengthen the sector, improve investment conditions and increase investors' faith.
The consultant said asset managers were also looking increasingly for ways to comply with regulation while lowering costs and increasing transparency. Heleen Rietdijk of KPMG Financial Services: "It will become more difficult to generate earnings because legislation aimed at increasing capital requirements will lead to a liquidity shift in the market.
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Source: IP&E
Gold generates highest real monthly returns in May
June 11, 2010--Gold made its investors happy last month, yielding the highest monthly real returns among other financial instruments, with the rates of 9.81 percent when adjusted for inflation using the producer price index (PPI) and 8.94 percent when adjusted for the consumer price index (CPI).
The Turkish Statistics Institute (TurkStat) released its latest report on Friday on the rates of real return yielded by investment instruments in May. According to the report, the monthly real return rate of the US dollar and deposit interest were 4.81 percent and 1.83 percent, respectively, last month while the euro and the benchmark index of the Istanbul Stock Exchange (?MKB) suffered monthly real losses at rates of 1.77 percent and 3.77 percent, respectively, when adjusted for the PPI. When adjusted for the CPI, the US dollar and deposit interest brought monthly real profits of 3.97 percent and 1.02 percent, respectively, while real losses were 2.55 percent in the euro and 4.54 percent in the stock exchange.
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Source: Todays Zaman
Netherlands : Economic Survey
June 11, 2010--The OECD’s latest economic survey of the Netherlands, to be published on Wednesday 16 June 2010, looks at the challenge of withdrawing the emergency stimulus measures brought in to tackle the financial crisis.
It also looks at two challenges facing the new government; boosting growth and ensuring sustainable public finances at the same time as measures to secure occupational pensions. The issues of widespread congestion and a rigid housing market also need to be addressed urgently.
A news conference on the survey will be presented by the OECD’s Chief Economist, Pier Carlo Padoan and the Dutch Minister of Economic Affairs, Maria Van der Hoeven, at 11.15 the same day at the Nieuwspoort Press center, Lange Voorhout 10, The Hague. Further information about the event is available from Job Frieszo, tel: +31- (0)70 379 6120; j.frieszo@minez.nl.
A Policy Brief with the main conclusions will be freely accessible in pdf format (in English, German and French) on the OECD’s web site at www.oecd.org/eco/surveys/netherlands.
Source: OECD
Eurosystem staff macroeconomic projections for the euro area
June 10, 2010--On the basis of the information available up to 27 May 2010, Eurosystem staff have prepared projections
for macroeconomic developments in the euro area. Benefiting from the prospect of an economic recovery
worldwide, average annual real GDP growth is projected to be between 0.7% and 1.3% in 2010 and
between 0.2% and 2.2% in 2011. Inflation is projected to remain moderate over the projection horizon,
being dampened by the slack prevailing in the euro area. The average rate of overall HICP inflation is
expected to be between 1.4% and 1.6% in 2010 and between 1.0% and 2.2% in 2011.
TECHNICAL ASSUMPTIONS ABOUT INTEREST RATES, EXCHANGE RATES, COMMODITY PRICES AND FISCAL POLICIES
The technical assumptions about interest rates and both energy and non-energy commodity prices are based on market expectations, with a cut-off date of 20 May 2009.1 The assumption about short-term interest rates is of a purely technical nature. Short-term rates are measured by the three-month EURIBOR, with market expectations derived from futures rates. The methodology gives an overall average level of short-term interest rates of 0.8% for 2010 and 1.1% for 2011. The market expectations for euro area tenyear nominal government bond yields imply an average level of 3.9% in 2010, increasing to 4.2% in 2011. The baseline projection takes into account the recent improvements in financing conditions and assumes that, over the projection horizon, bank lending rate spreads vis-à-vis the above-mentioned interest rates will narrow somewhat. Similarly, credit supply conditions are assumed to ease gradually over the horizon. As regards commodities, on the basis of the path implied by futures markets in the twoweek period ending on the cut-off date, oil prices per barrel are assumed to average USD 79.5 in 2010 and USD 83.7 in 2011. The prices of non-energy commodities in US dollars are assumed to rise by 17.9% in 2010, followed by a more modest increase of 1.2% in 2011.
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Source: ECB
Change in the CAC 40 index components
June 11, 2010--Following ACCOR’s announcement to spin-off its Hotels and Prepaid Services activities into two entities, ACCOR and EDENRED(*), and in compliance with CAC 40 index management rules:
- Effective at markets opening on Friday 2 July 2010, both ACCOR and EDENRED will be included in the CAC 40 index. The number of shares and free float factor of EDENRED will be equal to those of ACCOR in the CAC40 at markets closing on 1 July 2010. The divisor will not change.
- Effective at markets opening on Monday 5 July 2010, EDENRED will be removed from the CAC 40 index. This removal will be based on the last known price used to calculate the CAC 40 index at market closing on 2 July 2010. The new divisor will be announced on 2 July after the close of markets and will be effective on 5 July 2010.
(*) The spin-off is subject to the approval at the ACCOR Extraordinary Shareholders Meeting of 29 June 2010.
Source: NYSE Euronext
New iShares equity index ETF launched on Xetra
June 10, 2010--Since Thursday, a new exchange-traded equity index fund from the issuer iShares
(BlackRock Inc.) has been tradable in Deutsche Börse’s XTF segment.
ETF name: iShares EURO STOXX 50 (Acc)
Asset class: equity index ETF
ISIN: DE000A0RD800
Total expense ratio: 0.35 percent p.a.
Distribution policy: non-distributing
Benchmark: EURO STOXX 50
Trading currency: euro
The iShares EURO STOXX 50 (Acc) allows investors to track the performance of the EURO STOXX 50 performance index. In the case of a performance index, income is reinvested in the index and not distributed to investors. The EURO STOXX 50 index tracks the performance of the 50 largest companies from 12 euro area countries.
The product offering in Deutsche Börse’s XTF segment currently contains a
total of 671 exchange-listed ETFs, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of around 13 billion euros, makes Xetra Europe’s leading trading venue for ETFs.
Source: Deutsche Börse
European ETF activity highlights for May 2010: NYSE Euronext
June 10, 2010-* At the end of May, NYSE Euronext had 529 listings of 481 ETFs from 17 issuers.
These ETFs cover more than 300 indices exposed to an extended range of assets and strategies (Equity, Fixed Income, Commodities, Short, Leverage, etc…).
In May 2010, the number of ETFs increased by 21.5% compared to end of May 2009.
YTD, the number of ETFs increased by 26.9%, with 32 new ETF listings so far this
year.
Both the daily average number of trades and daily average turnover figures were tremendous in May 2010, beating several records. On average, there were 14 090 trades on a daily basis, representing an increase of more than 87% versus May 2009, the highest level ever. Daily average turnover increased from €328 million in May 2009 to €671 million in May 2010, or 105%, the second highest value ever and very close to the record set in August 2008.
At the end of May, the combined Assets Under Management of all ETFs listed on the NYSE Euronext European markets totaled €116.4 billion, an increase of 38.7% from the €83.9 billion at the end of May 2009.
The combination of the flow of 19 first-class Liquidity Providers, competitive market makers, client orders and our high capacity, low latency technology contributed to a median spread of 37.14 bps of all listed ETFs despite the exceptional volatility in May 2010, down from 50.96 bps in May 2009.
At the end of May 2010, NYSE Euronext’s Liquidity Providers program featured 19 Liquidity Providers that have a total of 937 liquidity provision agreements, providing firm bid/ask quotes with minimum size and maximum spread requirements for the entire trading session on all ETFs.
Visit www.euronext.com/etf for more info
Source: NYSE Euronext European ETF team
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