Global ETF News Older than One Year
FSB publishes the Principles for an effective risk appetite framework and consults on Guidance on Supervisory Interaction with Financial Institutions on Risk Culture
November 18, 2013--The Financial Stability Board (FSB) has today published two papers to assist supervisors in strengthening risk management practices at financial institutions:
1) Principles for an Effective Risk Appetite Framework- finalised document; and
2)Guidance on Supervisory Interaction with Financial Institutions on Risk Culture-for public consultation.
These papers form part of the FSB''s initiative to increase the intensity and effectiveness of supervision, which is a key component of the policy measures to address systemically important financial institutions (SIFIs) that were endorsed by the G20 in November 2010 to address the problem of firms that are "too big to fail".
Supervisory expectations for firms' risk management functions and overall risk governance frameworks are increasing, as these were areas that exhibited significant weaknesses in many financial institutions during the global financial crisis.
view the Principles for an Effective Risk Appetite Framework- finalised document
Source: FSB
ETFS Precious Metals Weekly-China Bullishness and Central Bank Dovishness Support Precious Metal Rally
November 18, 2013--China balanced growth focus,Fed and ECB dovishness supportive of precious metals prices. Risk assets continued to outperform last week as the S&P 500 rallied to new highs. The gold price also rose despite an increase in outflows from gold ETP's as dovish comments from likely future Fed Chairman Janet Yellen, together with poor euro-area GDP growth numbers and weak inflation supported gold and bond prices towards the end of the week.
News from China's Third Plenum meeting was viewed positively by markets,with an increasing emphasis on private sector-led growth,a loosening of the one-child policy,encouragement of rural land right reform and other legal changes to boost urbanisation supportive of balanced long-term growth. Two prominent industry reports (from the World Gold Council and Johnson Matthey) added clarification to the strong physical demand for gold and persistent supply deficits in platinum and palladium. However,silver fell sharply on the back of increasing supply concerns, notably from better than expected production data from Pan American Silver,the world's sixth largest silver producer. We expect the weakness to be short-lived as global growth data and central bank easing policies remain supportive of the cyclical asset rally.
Source: ETF Securities
Connecting the Right Data is Key to Managing Sustainability
The world has the data it needs to manage sustainability, but finding and connecting it remains a challenge, new report argues
Open approach to data and greater collaboration on standardization would boost sustainability efforts
World Economic Forum Global Agenda Council on Measuring Sustainability collaborates with Commonwealth Scientific and Industrial Research Organisation (CSIRO) of Australia on report.
November 18, 2013--The fight against climate change is being hampered by a lack of awareness among decision-makers on how best to measure the sustainability of resources, according to a report, Designing for Action: Principles of Effective Sustainability Measurement, published today by the World Economic Forum Global Agenda Council on Measuring Sustainability.
The report, which was produced in collaboration with the Commonwealth Scientific and Industrial Research Organization (CSIRO) of Australia, aims to provide an authoritative guide to decision-makers on what to measure to build resilience and sustainability in development planning.
view the report-Designing for Action: Principles of Effective Sustainability Measurement
Source: WEF (World Economic Forum)
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
