Global ETF News Older than One Year
Chinese FDI in the US: 2013 Recap and 2014 Outlook
January 7, 2014--Chinese investment in the United States doubled in 2013, driven by large-scale acquisitions in food, energy and real estate. Private firms are now dominating capital inflows, accounting for more than 80% of transactions and more than 70% of total transaction value.
We expect Chinese interest in US assets to remain strong in 2014 because of aggressive economic reforms in China, a more liberal policy environment for Chinese outbound investors, and a positive outlook for the US economy.
This note recaps the key trends of Chinese investment in the US in 2013 and outlines our view for 2014.
Key Trends in 2013
1. More transactions, bigger deals: After a 36% drop in transactions in 2012, the number of Chinese US deals trended up again in 2013. We count a total of 82 investments, split between 44 acquisitions and 38 greenfield projects (though the number of greenfield investments will likely be upward-revised in coming months). At the same time, the average size of projects increased, lifting the total deal value to a new record high of $14 billion, double the amount of the previous year. The top six transactions (Smithfield, Nexen US, Mississippi Lime JV, Chase Manhattan Plaza, General Motors Building, Wolfcamp Shale) account for more than 80% of total combined value.
Source: Rhodium Group, LLC
Strong Asian demand gives gold a boost
January 6, 2014--Gold continued its strong start to 2014, rising to its highest level in three weeks on the back of strong physical demand for the precious metal in Asia and hedge funds unwinding short positions.
Bullion rose as much as 1 per cent to $1,248 a troy ounce, taking gains since the start of the year, when gold touched a six-month low, to 3.6 per cent.
Source: FT.com
Euronext Said to Plan Sale of Up to 30% Stake Before IPO
January 6, 2014-IntercontinentalExchange Group Inc. plans to sell as much as 30 percent of Euronext NV before the operator of the Paris and Amsterdam exchanges goes public this year, three people with knowledge of the matter said.
Euronext's advisers are preparing to start talks as soon as this month with potential buyers willing to hold their stakes after the initial public offering, said the people, who asked not to be identified because the talks are private. No single investor will be allowed to own more than 10 percent of Euronext without regulatory approval, a process that could take as long as a year, according to the people.
Source: Bloomberg
Dow Jones-UBS Commodity Index Market Attributes Report: Commodities Market Performance In December 2013 And Year-End
January 6, 2014--Key Highlights
The DJ-UBS Commodity Index returned 1.2% in December, with YTD returns down 9.5%.
Energy and industrial metals were the best-performing sectors in the index MTD, up 5% and 4.9%.
Grains and precious metals were the worst-performing sectors in the index MTD, down 3.9% and 3.7%.
Market Snapshot
The DJ-UBS Commodity Index was up 1.2% MTD but closed the year down 9.5%, marking its third annual decline. Soybeans, soybean meal, cotton, and crude (Brent and WTI) were positive YTD but only eight commodities closed the year on a positive note out of the 22 commodities that compose the index.
In 2013, commodities in general and gold specifically were pressured by a government shutdown, a strengthening economy, lower-than-expected inflation and concerns over the growth in the Chinese economy.
Source: Dow Jones S&P Indices
EPFR Global Fund 2013 Review
January 3, 2014--China Fund flows surge as record setting year for Developed Markets Equity Funds winds down
A year that saw most EPFR Global-tracked Emerging Markets Equity and Bond Funds struggle despite rising risk appetite ended with China Equity Funds absorbing over $1.5 billion during the 10 days ending Dec. 30 while Developed Markets Equity Funds added to their already record setting inflow totals and Bond Funds overall recorded modest outflows.
"Bar the possibility of another fight over the US debt ceiling and the impact of the hike in Japan's sales tax in 2Q14, there isn’t too much on the immediate horizon that is likely to shake fund flows out of their current pattern," observed EPFR Global Research Director Cameron Brandt. "Investors have had plenty of time to prepare for the tapering of QE3, there's a two-year budget deal in place in the US, monetary policy in Japan and the Eurozone is expected to remain largely unchanged, tensions in the Middle East have eased and China is expected to maintain a growth rate around 7.5%.
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Source: EPFR
Eurex acquires stake in Taiwanese futures exchange TAIFEX
Existing strategic partnership strengthened by acquisition
January 3, 2013--Eurex Zürich AG, a subsidiary of Deutsche Börse AG, is becoming a minority shareholder of the Taiwanese futures exchange TAIFEX.
Subject to regulatory approval by the Taiwanese authorities (Investment Commission, Ministry of Economic Affairs), Eurex will acquire a 5-percent stake in TAIFEX from Yuanta Financial Holdings. The agreed purchase price is 47 million US dollars. The Yuanta Group will remain a shareholder in TAIFEX after the planned sale of the 5-percent stake.
"With this acquisition we are strengthening our strategic partnership with TAIFEX. Jointly, we want to contribute to the internationalization of the Taiwanese financial market. For us, this step is a further milestone in implementing Deutsche Börse Group's Asia strategy. TAIFEX is excellently positioned, especially in Greater China, for the future internationalization of the derivatives markets," explained Andreas Preuss, Eurex CEO and Deputy CEO of Deutsche Börse AG.
Source: Eurex
Total trading volume at Eurex Group at 2.2 billion contracts in 2013
Total trading volume at Eurex Group at 2.2 billion contracts in 2013
Average daily volume approximately 8.6 million contracts
January 2, 2014--
The international derivatives markets of Eurex Group ended 2013 with a turnover of approximately 2.2 billion contracts (2012: 2.3 billion contracts).
The total volume for 2013 splits into 1.6 billion contracts traded at Eurex Exchange (2012: 1.7 billion) and 639 million contracts traded at the International Securities Exchange (ISE) (2012: 63,2 million). This corresponds to a daily average trading volume of 8.6 million contracts, thereof 6.1 million contracts at Eurex Exchange and 2.5 million contracts at ISE.
At Eurex Exchange, the equity index derivatives segment was the largest in 2013 with a total yearly volume of 644.8 million contracts (2012: 765.6 million). Derivatives on the EURO STOXX 50® index were the largest single product with 268.5 million futures and 225.1 million options. The equity derivatives segment (options and single stock futures) saw 382.2 million contracts (2012: 411.0 million). In 2013, the interest rate derivatives segment reached a total of 509.6 million contracts (2012: 470.4 million).
Source: Eurex
ETF assets could overtake hedge funds this year
January 2, 2014--Exchange traded funds are poised to overtake hedge funds in 2014, according to S&P Dow Jones Indices.
S&P Dow Jones Indices director of index investment strategy Tim Edwards argues that assets held in ETFs could come to outweigh hedge funds later this year if current trends continue.
Source: FundWeb
NASDAQ OMX and Borsa Istanbul Sign Landmark Deal
NASDAQ OMX to deliver its most advanced suite of technologies and advisory services
Borsa Istanbul, in partnership with NASDAQ OMX, to build world-class capital markets hub for Eurasia region, to have regional reselling rights and to develop multiple new platforms
NASDAQ OMX to take equity stake in Borsa Istanbul
December 31, 2013--NASDAQ OMX Group (Nasdaq:NDAQ) and Borsa Istanbul A.S. have today concluded a wide-ranging agreement, which includes the delivery of market-leading technologies and advisory services to Borsa Istanbul, and NASDAQ OMX taking an equity stake in Borsa Istanbul.
Key aspects of the agreement include the provision of NASDAQ OMX's most advanced and complete selection of market technology solutions and advisory services, based on the globally market-leading Genium INET suite and all associated platforms and applications, with regional resell rights and also eventual self-sufficiency for Borsa Istanbul.
Source: NASDAQ OMX
Gold miners braced for cuts in reserves after plunge in prices
December 29, 2013--The gold mining sector is braced for asset writedowns and a fall in the amount of reserves in the ground after the precipitous drop in the price of the metal this year.
Some of the world's largest gold miners face having to tell investors that their growth has gone into reverse because the falling price has made it uneconomic to mine some of the areas previously classed as reserves.
Source: FT.com
