DECPG Global Weekly
May 22, 2015--Taking Stock
U.S. Fed minutes downplayed possibility of June rate hike. According to the minutes of the U.S. Federal Reserve's
April 29-30 policy meeting, the Federal Open Market Committee members that thought June could still be the right time for the first rate hike since the financial crisis were outnumbered by members who thought conditions were unlikely to be right by then, following a string of weak economic data released thus far this year.
Meanwhile, new data showed that core inflation rose a larger-than-expected 0.3 percent in April, sending the dollar higher and pushing U.S. government bonds yields up.
Eurozone inflation confirmed at zero in April. Eurozone inflation was zero (y/y) in April, as initially estimated, after falling for four consecutive months. Core inflation, which excludes energy, food, alcohol and tobacco, held steady at 0.6 percent, in line with the earlier flash estimate.
Source: World Bank
WEF-Bringing Space Down to Earth,
May 22, 2015--On April 22, 2015 the World Economic Forum released the report Bringing Space Down to Earth. Space today serves as a critical infrastructure for the world we all live in.
The report Bringing Space Down to Earth, demonstrates how important space is in our daily lives as well as in times of crisis. It also shows why space – and society’s ability to use it – must be protected from natural and man-made hazards.
Source: World Economic Forum (WEF)
State Street Global Advisors-Weekly Market Report
May 22, 2015--This Week's Highlights-Economies
Housing starts rebound in the US. Retail sales rise in Canada. Inflation continues to slow in the UK. ECB signals it will fully implement QE bond purchases. GDP growth accelerates in
Japan. Consumer confidence improves in Australia.
Markets
Risk appetites improve on upbeat activity data and dovish central bank signals. Equities are mostly higher. Yields onG7 government bonds stabilize. USD rises. Oil is range-bound around $65 a barrel.
Next Week Previewed
Spotlight
The Bank of Canada should leave administered rates unchanged. Q1 GDP growth should be revised down in the
US and up in the UK.
Source: spdru.com
Green Growth Bonds Give Individual Investors a Way to Help Address Climate Challenges
May 21, 2015--
STORY HIGHLIGHTS
The World Bank pioneered the green bond market, issuing its first green bond in 2008.
The bulk of the Bank's green bonds have been purchased by large asset managers, pension funds, and other institutional investors looking for sustainable and responsible investment opportunities that are specifically targeted to address climate change.
An innovative product called Green Growth Bonds is designed to appeal not only to large institutional investors, but also to individual retail investors.
Source: World Bank
China to boost investment in Russia by 150% in 5yrs-official
May 20, 2015--China may more than double its investment in the Russian economy to $10 billion within 5 years if conditions are favorable, said the Deputy Secretary-General of the China Overseas Development Association He Zhenwei.
Chinese investments abroad currently amount to $140 billion, with about $4 billion investment into Russia.
Source: RT.com
World Bond Market Breaks Apart After Years of Trading in Sync
May 20, 2015--The relationship between the U.S. and Europe is breaking down in the bond market.
After three years of moving more or less in tandem with one another, a measure of the link between U.S. Treasuries and German bunds has fallen to the weakest since 2009.
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Source: Bloomberg
Why Liquidity-Starved Markets Fear the Worst?
Bankers, investors and hedge-fund managers are rattled by the lack of liquidity in the markets
May 20, 2015--Talk to almost any banker, investor or hedge--fund manager today,and one topic is likely to dominate the conversation. It isn't Greece, or the U.S. economy, or China, let alone the U.K.'s referendum on European Union membership.
It is the lack of liquidity in the markets and what this might mean for the world economy—and their businesses.
Source: Wall Street Journal
STOXX: Europe's Economy Is "At The Crossroads Of Integration Or Fragmentation," Economist Tells Investment Forum In New York City
May 20, 2015--Europe's economy is strengthening and the region stands at the crossroads of integration or fragmentation," Bart van Ark, executive vice president, chief economist and chief strategy officer of The Conference Board told the Europe Investment Forum, hosted by STOXX Limited in New York City, today.
"Equity and bond markets in Europe are benefitting from the European Central Bank’s quantitative easing policy. The weaker euro is also a positive, but there is a limit to how much Europe can thrive on accelerated exports," Van Ark said.
Source: STOXX
Asset owner adoption of smart beta growing and broadening according to new FTSE Russell global survey
May 20, 2015--Over 70% of asset owners with smart beta allocation now combining
strategies
ETFs most preferred vehicle for tactical smart beta strategies
European asset owners continue to lead North America on adoption of smart
beta
FTSE Russell today confirmed that smart beta index adoption among institutional investors is growing and becoming more broad-based, according to its new global institutional market survey.
The FTSE Russell Smart Beta: 2015 Global Survey Findings from Asset Owners survey confirms a significantly increased interest in, and adoption of, multiple smart beta indexes among institutional asset owners around the world.
Source: FTSE
STOXX Ltd. Licenses EURO STOXX 50 To Japan's Nikko Asset Management For Passive Product
May 19, 2015--STOXX Limited, a leading provider of innovative, tradable and global index concepts, announced today that it has licensed its flagship EURO STOXX 50 Index to Nikko Asset Management, a Tokyo-based asset manager.
"This is our fourth license for a STOXX index in Japan in less than a year," said Hartmut Graf, chief executive officer, STOXX Limited. "We remain confident that global investors' increasing interest in European investment products means that demand for our European indices will continue to grow abroad, both in Asia and in North America. Europe as an exposure is interesting for investors right now, given the attractive valuations, the monetary policy scenario and the forex climate that benefits exports for Europe."
Source: STOXX