Global ETF News Older than One Year
DECPG Weekly Brief-Weekly Global Economic Brief
October 31, 2013--Developing-country sovereign default risks recently declined with expectations that the US Fed would maintain its Quantitative Easing (QE) program in the months ahead, but remain highly sensitive to changes in capital flow conditions and exchange rate developments.
Inflationary pressures persist in some regions despite declining food prices, reflecting the lagged effect of past depreciations and supply side constraints in some cases.
Developing countries' exports are recovering, but are so far trailing behind the upturn in industrial activity and confidence.
According to credit default swap contracts (CDS), the implicit probability of sovereign default in developing countries declined from 4 percent early September (220bp spreads), to 3 percent end October (171bp). Spreads are currently 40bp above their 2013Q2 values and 15bp above median levels since 2008. The evolution of default risks is closely tracking expectations regarding the timing of QE tapering. In particular, the close correlation with the USdollar exchange rate since May illustrates the significant impact of US monetary policy on capital flow and external financing conditions for developing countries. Expectations of further delays since the US debt ceiling standoff in October contributed to ebbing default risks across all developing regions, with countries in East Asia among those benefiting most.
In Latin America, concerns regarding more forbearing fiscal rules in Brazil and the bankruptcy of its second largest oil company have somewhat reversed the downward trend. The impact of QE tapering expectations on perceived default risks stresses the need for confidence-building reforms in the months ahead.
Source: World Bank
UNCTAD-Developing and transition economies attain a new record share of global FDI inflows
October 31, 2013--Global inflows of foreign direct investment (FDI) rose by 4 per cent in the first half of 2013 compared to the same period in 2012, with a diverging trend appearing between developing and transition economies on the one hand, and developed countries on the other.
During the first half of 2013, global FDI inflows reached an estimated $745 billion, however flows to developed countries declined.
Nevertheless, this decline was more than offset by a rise in flows to developing and transition economies, which accounted for more than 60 per cent of global FDI flows-a record share.
view the Global Investment Trends Monitor, No. 13, October 2013
Source: UNCTAD
Fundamental review of the trading book- second consultative document issued by the Basel Committee
October 31, 2013--The Basel Committee on Banking Supervision has today issued a second consultative paper on the fundamental review of capital requirements for the trading book.
The paper comprises a detailed set of proposals for a comprehensive revision of the market risk framework. This initiative forms part of the Committee's broader agenda to reform regulatory standards for banks in response to the financial crisis.
The May 2012 consultative paper set out a number of specific measures to improve trading book capital requirements. These initial proposals reflected the Committee's overall objective of designing a new regulatory framework that addresses weaknesses in risk measurement under the current internal models-based and standardised approaches, with a view to promoting consistent implementation across jurisdictions.
Source: BIS
2014 Weights For The Dow Jones-UBS Commodity Index Announced By S&P Dow Jones Indices And UBS Investment Bank
October 31, 2013--S&P Dow Jones Indices and UBS Investment Bank announced today new target weightings for the Dow Jones-UBS Commodity Index. There are no additions or deletions to the index as a result of the annual reconstitution. The 2014 target weights are scheduled to be effective in January 2014.
Target weightings of all Dow Jones-UBS Commodity Index components for 2014, as well as their comparative weights in 2013..
Source: Mondovisione
ETFS Research Note-Palladium Price to Benefit From Continuing Supply Deficits
October 31, 2013--Summary
We believe the palladium price has the potential to perform strongly over the next few months on a combination of price supportive supply and demand fundamentals. Supply side issues in the two main producer countries, Russia and South Africa, coupled with better than expected Chinese growth and early signs of a European recovery are likely to support the palladium price going forward.
Currently the palladium price is 13% below the high reached on February 2011. We think the decline has been overdone and expect price gains over the next six to twelve months to be underpinned by strong fundamentals.
Source: ETF Securities Research
Pimco poaches Schroders global equities boss
October 31, 2013--Schroders head of global and international equities Virginie Maisonneuve is leaving the group to head up Pimco's active equity portfolio management efforts.
Maisonneuve, a former Citywire-rated manager, is to take up the role of Pimco head of global equities from January. Her funds, which include Schroder Global Alpha Plus, will be handed to co-manager Simon Webber.
Source: New Model Adviser
Responsible gold mining and value distribution-A global assessment of the economic value created and distributed by members of the World Gold Council
October 31, 2013--Foreword
Responsibly undertaken, gold mining and related activities can
play an important role in achieving sustainable socio-economic development in all the countries where gold is found. Gold, produced in conformance with high safety, environmental and
social standards, provides opportunities in the form of jobs,
skills, improved infrastructure and tax revenues. Through such direct and indirect economic contributions, professional gold mining benefits nations, communities and individuals.
Transparency
At their meeting in June 2013, the G8 agreed to increase transparency on resource revenues. Greater transparency can increase the ability of citizens to hold governments to account in how they use the proceeds of resource revenues, help interested parties better understand the sometimes complex
economics of mining, and ultimately contribute to better
development impacts and outcomes.
view the Responsible gold mining and value distribution report
Source: World Gold Council
ICE postpones date of purchase of NYSE
October 30, 2013--IntercontinentalExchange, a futures market operator, has postponed the closing date for acquiring NYSE Euronext, operator of the New York Stock Exchange, to give more time for European regulators to approve the transaction, NYSE said.
NYSE said that neither it nor ICE "anticipates any substantive issues being raised" by European regulators at this point.
Source: Reuters
Global Waste on Pace to Triple by 2100
October 30, 2013--Solid waste generation rates are rising fast, on pace to exceed 11 million tonnes per day by 2100, urban specialist Dan Hoornweg and his colleagues write in a new article in Nature magazine.
That growth will eventually peak and begin to decline in different regions at different times, depending in part on population growth, waste reduction efforts, and changes in consumption. Until that happens, the rising amount of waste means rising costs for governments and environmental pressures
By 2100, they estimate, the growing global urban population will be producing three times as much waste as it does today. That level of waste carries serious consequences – physical and fiscal – for cities around the world.
view moreview What a Waste- A Global Review of Solid Waste Management
Source: World Bank
ETF Securities Research Note-China - Dominating Platinum Jewelry Demand
Chinese platinum jewelry demand has doubled since 2008, on pace to account for nearly 80% of global platinum jewelry demand in 2013.
As China per capita and disposable incomes rise, so too will its demand for platinum jewelry, pushing up demand in an already constrained market.
With the platinum price now around 25% below its estimated all-in cost of production, and China demand expected to rise further in 2014, we expect the platinum price to remain well supported.
Source: ETF Securitites Research
October 30, 2013--Key points
Jewelry demand accounts for about 35% of total platinum demand, up from 26% in 2008, with China the main engine of this growth.
China demand for platinum jewelry now accounts for about 25% of all platinum demand, compared to the 16% from Europe's auto catalyst sector.
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