Global ETF News Older than One Year
Deutsche Bank's fixed income outperforms rivals
July 29, 2014--Deutsche Bank outperformed its Wall Street rivals in fixed income trading, defying predictions of a slump in the market, though net income fell more than expected in the second quarter.
The Frankfurt-based lender said revenues in its debt and foreign exchange trading arm were flat compared with the same time last year, at €1.8bn. The figures were the latest in a round of second-quarter debt trading results that have beaten analysts’ expectations in a market that is still struggling with low volatility.
Source: FT.com
IMF Survey: Changing Growth Trends Carry New Global Spillovers
With changing world environment, global spillovers enter a new phase
Advanced countries recovering, emerging markets see broad-based slowdown
Need for stronger policy actions at national and global levels
July 29, 2014---As the global economy shifts from crisis to recovery mode, the changing growth patterns-with advanced economies generally recovering and emerging markets slowing on a broad basis-carry new spillover risks, says the IMF staff.
he 2014 Spillover Report, which assesses the impact of policy actions in one country on others (spillovers) and the possible consequences for the original spillover source economies themselves (spillbacks), analyzes the implications of two key trends.
view the IMF 2014 Spillover Report
Source: IMF
ETF Securities-Precious Metals Weekly-Precious Metals Pare some 2014 Gains as the Foundation Strengthens
July 28, 2014--Gold gives back some more 2014 gains but the foundation remains solid. Stronger economic data and a strengthening US dollar weighed on precious metals prices last week
offsetting some of the geopolitical premium. Gold declined 1.0% returning below US$1,300/oz. and silver kept true to its 'leveraged gold' tendency declining 2.3%, but
remaining above the much watched US $20/oz. level.
Also weighing on gold prices was the release of H1 data on gold demand in China indicating a 19% decline from the record 2013 pace. In 2013, gold prices declined sharply which spurred record physical demand, notably in China, overtaking India as the world’s largest gold user. China and India alone absorbed about 70% of total global mining supply in 2013, up from about 32% in 2006. Gold prices have recovered in 2014, curtailing some physical demand, but the underlying foundation for increasing demand from emerging markets is growing, alongside rapidly growing per capita incomes. A key factor supporting precious metals prices this year has been the widely unanticipated decline in global interest rates and real yields. Gold ETP inflows have been strong this month as investors seek its diversification benefits. Escalating geopolitical events are likely to keep a bid under gold but sustained low real yields are more significant for the improving foundation few expected in 2014.
Source: ETF Securities
IMF Working paper-Real and Financial Vulnerabilities from Crossborder Banking Linkages
July 25, 2014--Summary: This paper looks at the vulnerabilities stemming from banking sector linkages between countries and their macroeconomic effects. It finds that credit risks (from a banking system's claims on other countries) and funding risks (from a banking system's liabilities to another) have declined over the past five years.
It also finds that funding vulnerabilities have real effects. During normal times, funding vulnerabilities are associated with significant positive GDP growth surprises. During crisis times, funding vulnerabilities are associated with significant negative GDP growth surprises. The results tell us that policymakers should pay more attention to understanding crossborder funding risks.
view the IMF Working paper-Real and Financial Vulnerabilities from Crossborder Banking Linkages
Source: IMF
Deutsche Boerse holds onto options market ISE for now
Deutsche Boerse focused on organic growth
Would look at M&A opportunities
No share buyback planned (Adds CFO comment on ISE unit)
July 25, 2014--Deutsche Boerse is open to possible acquisitions and has not hired banks to sell its International Securities Exchange (ISE) unit, the Frankfurt-based exchange operator's finance chief said on Friday.
Sources familiar with Deutsche Boerse told Reuters last month that the group was considering selling ISE, but that valuation levels were currently not attractive enough to pursue a sale in the short run.
Source: Reuters
Legg Mason to Buy International Manager Martin Currie
July 24, 2014--Legg Mason Inc. (LM), the money manager that's struggled with more than five years of net redemptions. agreed to buy Martin Currie to expand into active international stock funds. Terms weren't disclosed.
Martin Currie, founded in 1881 as an accountancy partnership, will add $9.8 billion in assets, Baltimore-based Legg Mason said today in a statement. The acquisition of Edinburgh-based Martin Currie, which will operate as a separate affiliate, is set to close in the fourth quarter.
Source: Bloomberg
Value of broker research comes under increased scrutiny
July 24, 2014--As the value of broker research comes under more scrutiny, so will the individual analysts who write it.
Analysts are rated by Extel's yearly rankings, which determine their sector rankings and in turn carry huge implications for their pay and bonuses.
Source: FT.com
$2.4B-Massive Cash Outflow From High Yield Bond Funds, Largest In 13 Months
Retail-cash outflows from high-yield funds totaled $2.4 billion in the week ended July 23, with an outflow of $1.3 billion from mutual funds expanded upon by an outflow of $1.1 billion from exchange-traded funds, according to Lipper.
The ETF influence was roughly 45% of the total withdrawal.
The outflow follows last week’s outflow of $1.7 billion and is the single largest one-week redemption in 13 months, or since late June, 2013. Last week's outflow was 63% tied to ETF withdrawals.
Source: Forbes
IOSCO Surveys Use of Social Media and Automated Advice by Intermediaries
July 24, 2014--The International Organization of Securities Commissions (IOSCO) today published its Report on the IOSCO Social Media and Automation of Advice Tools Surveys. The paper presents the results of four surveys on the use of social media and automated advice tools in capital markets, and how regulators oversee the use of these tools.
IOSCO undertook the project on social media and automated advice tools because technology, particularly the use of the Internet, is changing the ways in which market intermediaries interact with both potential and existing customers.
view the Report on the IOSCO Social Media and Automation of Advice Tools Surveys
Source: IOSCO
Saudi to Open $531 Billion Stock Market to Foreigners
July 22, 2014--Saudi Arabia, the oil-producing kingdom whose stock market has been off-limits to outsiders, will allow foreign investors to buy and sell shares next year as it seeks to lure capital to the $745 billion economy.
The country's benchmark Tadawul All Share Index climbed to a six-year high after the Riyadh-based Capital Market Authority said today it will open the stock market to foreigners in 2015, and publish the rules for participation next month.
Source: Bloomberg
