Global ETF News Older than One Year
RBS in talks to sell equity derivatives business
November 18, 2013--Royal Bank of Scotland (RBS.L) said it was in talks to sell its retail investor products and equity derivatives (IP & ED) business, as it slims down its investment bank.
Several industry sources have identified BNP Paribas (BNPP.PA), France's biggest bank, as front-runner to buy the business.
Source: Reuters
Liquidity fears put regulators on the offensive
November 17, 2013--Regulators in the US and Europe have raised concerns that asset management groups are promising investors liquidity terms they cannot meet.
The UK's Financial Conduct Authority has voiced doubts over fund managers' ability to fulfil liquidity provisions due to structural changes in the investment banking industry after the financial crisis.
Source: FT.com
Income Gap and Unemployment to Dominate International Agenda in 2014
The Outlook on the Global Agenda 2014 finds structural unemployment, widening income gaps and falling confidence in economic policies among the top ten trends for world leaders in 2014
Tension in the Middle East and North Africa and inaction on climate change also rated as top concerns
The Outlook report, which is based on a survey of more than 1,500 global experts, represents a unique attempt to map the consequences of the world's challenges in 2014
November 15, 2013--An urgent need to address long-simmering economic problems such as widening income gaps and structural unemployment, coupled with growing concerns over the quality of economic policies and tension in the Middle East and North Africa, rank among the Top 10 trends for world leaders in 2014
, according to the World Economic Forum’s Outlook on the Global Agenda, which is published today.
hese economic trends are accompanied by a broad swathe of concerns, including inaction on climate change and a lack of values in leadership, that demonstrate the complexity and interrelatedness of the challenges for leaders in the year ahead.
view the WEF Outlook on the Global Agenda 2014
Source: WEF (world Economic Forum)
EPFR Global News Release-Europe and Emerging Markets Fund flows keep heading in opposite direction
November 15, 2013--The second week of November saw EPFR Global-tracked Emerging Markets Equity Funds post their biggest outflow since late June and investors pull money out of Emerging Markets Bond Funds for the 24th time in the past 25 weeks as stronger than expected 3Q13 GDP numbers from the US rekindled fears that 'tapering' of the Federal Reserve's current quantitative easing program could begin early next year.
Although testimony by Janet Yellen, the nominee to succeed Ben Bernanke as head of the Federal Reserve, bolstered earlier assumptions that QE3 will continue unchanged for some time, bolstered markets heading into the weekend it was another lackluster week in both flows and performance terms-for most fund groups. Overall, EPFR Global-tracked Equity Funds recorded a collective net inflow of $196 million during the week ending Nov. 13 versus net outflows of $1.18 billion from all Bond Funds and $2.9 billion from Money Market Funds.
Visit www.epfr.com for more info
Source: EPFR
Investing in Platinum: Demand to Hit Record High in 2013-Money Morning
November 15, 2013--Industrial firms, Wall Street hedge funds, and any big money investing in platinum anxiously await Johnson Matthey's semi-annual review of the platinum industry-and they got incredibly interesting reading in the group's most recent report, released Tuesday.
In its Platinum 2013 Interim Review, Johnson Matthey said the platinum market this year is moving toward a supply and demand deficit of 605,000 ounces-the largest deficit since 1999. That’s up from a 340,000-ounce shortfall in 2012.
Source: The Wall Street Examiner
SPDR Market Commentary-Weekly Market Report
November 15, 2013--ECONOMIES: Industrial production slips in the US. Exports rise in Canada. Unemployment and inflation fall in the UK. GDP rises weakly throughout the eurozone. Growth slows in Japan. Wage inflation slows in Australia.
MARKETS: Expectations for easy money support equities and bonds. JPY weakens while EUR strengthens. Oil (Brent) jumps on Iran disappointment and Libya concerns.
NEXT WEEK PREVIEWED
SPOTLIGHT: The Bank of Japan should leave policy unchanged. Retail sales were likely weak in the US. Inflation should slow in the US and Canada. The all industry activity index likely rose in Japan.
THE WEEK IN REVIEW
US
INDUSTRIAL PRODUCTION continues to trend higherTHE WEEK IN REVIEW
US
INDUSTRIAL PRODUCTION continues to trend higher, finally
approaching its pre-recession level. Admittedly, total industrial
production slipped 0.1% in October, but it remains in a clear
uptrend. Moreover, the weakness reflected a 1.6% drop in the
volatile mining sector and a 1.1% weather-related drop in utilities.
Manufacturing output actually rose 0.3%. Within manufacturing,
durables rose 0.3%, including gains of 1.1% in primary metals and
1.5% in furniture. And non-durables also rose 0.3%, including a
gain of 1.8% in printing. Weakness was limited to motor vehicles,
which slipped 1.3%. Overall and manufacturing output rose 3.2%
and 3.3% y/y, respectively. Meanwhile, overall capacity utilization
fell two ticks to 78.1%, while manufacturing utilization rose a tick
to 76.2%. Both now appear to be trending sideways at levels
consistent with no bottleneck inflation pressures.
There was mixed news on the twin deficits. The FEDERAL BUDGET DEFICIT is narrowing sharply. The shortfall in October was just $91.6 billion compared to $120.0 billion last October. Receipts rose 7.9% year-over-year (y/y), while spending fell 4.5%. The Congressional Budget Office currently projects a shortfall of only $560 billion (3.3% of GDP) for fiscal 2014, compared with $680 billion (4.1%) in fiscal 2013. finally approaching its pre-recession level. Admittedly, total industrial production slipped 0.1% in October, but it remains in a clear uptrend. Moreover, the weakness reflected a 1.6% drop in the volatile mining sector and a 1.1% weather-related drop in utilities. Manufacturing output actually rose 0.3%. Within manufacturing, durables rose 0.3%, including gains of 1.1% in primary metals and 1.5% in furniture. And non-durables also rose 0.3%, including a gain of 1.8% in printing. Weakness was limited to motor vehicles, which slipped 1.3%. Overall and manufacturing output rose 3.2% and 3.3% y/y, respectively. Meanwhile, overall capacity utilization fell two ticks to 78.1%, while manufacturing utilization rose a tick to 76.2%. Both now appear to be trending sideways at levels consistent with no bottleneck inflation pressures. There was mixed news on the twin deficits. The FEDERAL BUDGET DEFICIT is narrowing sharply. The shortfall in October was just $91.6 billion compared to $120.0 billion last October. Receipts rose 7.9% year-over-year (y/y), while spending fell 4.5%. The Congressional Budget Office currently projects a shortfall of only $560 billion (3.3% of GDP) for fiscal 2014, compared with $680 billion (4.1%) in fiscal 2013.
visit www.spdru.com/ to view more
Source: SSgA
ETFS Research Note-The Increasing Attraction of the Other Precious Metals
November 15, 2013--Gold has corrected for the first time in 13 years as the US equity market has achieved new highs
The gold correction is providing an opportunity for investors to reweight and/or diversify into the more industrial precious metals, or a broader basket of precious metals
Silver, platinum and palladium,the more industrially orientated precious metals, are more likely to benefit from improving global growth
Favorable tax implications may provide additional impetus for some reallocation of assets
Moving beyond the financial crisis, the more industrial precious metals are gaining attention
Gold certainly still has its place in diversified portfolios but the other precious metals (PMs) are becoming increasing attractive. The more industrially-oriented precious metals including silver, platinum and palladium are more likely to benefit from improving global growth sentiment. Only about 10% of gold demand is used for industrial purposes compared to the opposite spectrum, palladium, where nearly 90% of total demand is for industrial purposes. About 55% of silver and about 65% of platinum are used for industrial purposes.
Source: ETF Securities Research
IEA releases Oil Market Report for November
Record production elsewhere more than offsets plunge in OPEC output; European refinery runs hit two-decade low
November 14, 2013--Record-high non-OPEC output lifted global oil supplies by 600 000 barrels per day (600 kb/d) in October to 91.8 million barrels per day (mb/d), the IEA Oil Market Report for November informs subscribers.
Year-on-year, October supplies rose 640 kb/d, as a 1.84 mb/d surge in non-OPEC liquids and OPEC NGLs offset a 1.20 mb/d plunge in OPEC crude. Total non-OPEC supply growth is forecast at 1.3 mb/d for 2013 and 1.8 mb/d for 2014.
Source: IEA (International Energy Agency )
New record high: Global ETF and ETP assets hit US$2.3 trillion in October
November 14, 2013--October marked another month of strong inflows with global ETFs/ETPs. Combining the US$32.6 billion of net inflows with positive market performance during the month, global ETF/ETP assets reached a new record high of US$2.3 trillion, according to ETFGI's October 2013 Global ETF and ETP industry insights report.
"The expectation that the Federal Reserve will maintain its QE scheme at its current size into 2014 and positive market performance encouraged investors to put net inflows of US$32.6 billion back into the market through ETFs/ETPs" according to Deborah Fuhr, Managing Partner at ETFGI.
Source: Thomson Reuters
MSCI futures to boost derivatives sector-Dt.Bank
Listing of MSCI futures boosting derivatives flow-Dt Bank
Derivatives sector faces tougher rules after 2008 crisis
November 14, 2013--The increasing use of MSCI futures products is increasing trading flows in the $630 trillion global derivatives industry, Deutsche Bank said on Thursday, in a trend which may boost revenues for exchanges and buoy a sector facing regulatory pressure.
Simon Carter, head of Deutsche Bank's European equity derivatives strategy, told an investor webcast that increasing numbers of clients were using futures from the MSCI index compiler after MSCI listed them on exchanges earlier this year.
Source: Reuters
