Global ETF News Older than One Year
IMF Working paper-The Economic Performance Index (EPI): an Intuitive Indicator for Assessing a Country's Economic Performance Dynamics in an Historical Perspective
October 23, 2013-- Summary: Existing economic indicators and indexes assess economic activity but no single indicator measures the general macro-economic performance of a nation, state, or region in a methodologically simple and intuitive way.
This paper proposes a simple, yet informative metric called the Economic Performance Index (EPI). The EPI represents a step toward clarity, by combining data on inflation, unemployment, government deficit, and GDP growth into a single indicator. In contrast to other indexes, the EPI does not use complicated mathematical procedures but was designed for simplicity, making it easier for professionals and laypeople alike to understand and apply to the economy. To maximize ease of understanding, we adopt a descriptive grading system. In addition to a Raw EPI that gives equal weights to its components, we construct a Weighted EPI and show that both indexes perform similarly for U.S. data. To demonstrate the validity of the EPI, we conduct a review of U.S. history from 1790 to 2012. We show that the EPI reflects the major events in U.S. history, including wars, periods of economic prosperity and booms, along with economic depressions, recessions, and even panics. Furthermore, the EPI not only captures official recessions over the past century but also allows for measuring and comparing their relative severity. Even though the EPI is simple by its construction, we show that its dynamics are similar to those of the Chicago Fed National Activity Index (CFNAI) and The Conference Board Coincident Economic Index(R)(CEI).
Source: IMF
NASDAQ OMX Reports Third Quarter 2013 Results
Third quarter 2013 net revenues1 were a record $506 million, up 23% from the prior year quarter. On an organic basis, assuming constant currency and excluding acquisitions, net revenues increased 4% year-over-year.
Third quarter 2013 GAAP and non-GAAP diluted EPS of $0.66.
Achieved organic revenue growth year-over-year in all three non-trading business segments, Information Services, Technology Solutions, and Listing Services.
Non-transaction based revenues were 73% of our total third quarter 2013 net revenues, and increased 27% from the prior year quarter.
Third quarter 2013 is the first full quarter to reflect the acquired eSpeed and Thomson Reuters IR, PR, and Multimedia businesses, establishing new revenue and operating profit base-lines.
De-leveraging plan is on schedule, NASDAQ OMX paid down $98 million of debt in the third quarter of 2013.
The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today reported results for the third quarter of 2013. Third quarter net revenues were $506 million, up from $412 million in the prior year period, driven by both acquisitions and organic growth in Technology Solutions, Information Services, and Listing Services. On an organic basis third quarter net revenues increased 4% year-over-year.
Source: NASDAQ OMX
Mirae- The Delay in QE Tapering Triggered Market Rally
October 22, 2013--Global market responded positively to robust macroeconomic data.
China continued its rebound.
Performance in September was backed by improving macro numbers and technical rebounds from cheap valuations. Though HSBC PMI for September of 50.2 came in lower than the flash reading of 51.2, it was still a slight improvement over August's figure of 50.1.
Industrial production has also been on the upswing, rising 10.4% year-over-year in August, the fastest pace in 17 months, and surpassing the consensus forecast for 9.9% growth. Additionally, electricity generation expanded for a fifth consecutive month, rising 13.4% year-over-year.
India
Slight relief gained but still far to go
Similar to other countries with wide current account deficits, the Indian market benefited from the delay in QE tapering.
Additionally, actions taken by the new governor of the RBI to attract dollar deposits were positively received by the market. Together, these events also helped to stabilize the currency, with the rupee appreciating nearly 15% from recent lows.
Asean
Some ASEAN markets remain hampered by economic condition.
In Indonesia, to help stabilize the currency, the central bank resumed its tightening stance, raising interest rates by 25 basis points in September. However, inflation eased slightly for the month, rising 8.4% year-over-year, lower compared to 8.8% in August.
Malaysia underperformed the region for the month given its status as a defensive/low-beta market. That said, there was a positive market response to the Malaysian government’s announcement of a diesel fuel price hike as part of its subsidy reductions to meet the 4% target for the 2013 fiscal deficit.
Latin America
Markets overall experienced a strong September.
Brazilian equities reflected improved performance in September, with the local Bovespa Index gaining 4.7% in local currency terms and the MSCI Brazil Index rising 12.1% in US dollars.
Globally, the market responded positively to robust macroeconomic data out of developed markets and improving Chinese output figures, as well as the US Federal Reserve’s surprise decision not to reduce its asset purchase program, which helped to alleviate near-term concerns over capital flight from emerging markets.
EMEA
Russian market outperformed emerging markets overall.
The MSCI Russia Index gained more than 10% in September, outperforming emerging markets. In addition to the US Federal Reserve’s decision to postpone tapering and positive global macroeconomic data, the market also benefited from the Russian government’s discussions to require state-owned companies to pay 35% of net income as dividends.
The Eastern European region as a whole also outperformed, gaining 9.5% in September. In addition to Russia, Turkey outperformed due to the US Federal Reserve's decision to postpone tapering. The announcement helped calm the Turkish Lira and bring down bond yields.
Source: Mirae Asset Financial Group
ETF Securities Research-Global Commodity ETP Quarterly-Q3 2013
October 22, 2013--The Q3 2013 edition of the Global Commodity ETP Quarterly is now available.
The report includes:
A comprehensive and fully up-to-date reference guide to investing in global commodity ETPs and indexes-no ETP type or geographic area is excluded.
The report details the large and growing choice of commodity ETP exposures and strategies around the world.
Summary analysis of global commodity ETP flows, trading volumes and AUM trends. Includes a detailed analysis of the main trends in 2013 and the outlook for the remainder of the year and 2014.
Source: ETF Securities Research
New FTSE-BOCHK Offshore RMB Bond Index Series
Launched in partnership with Bank of China (Hong Kong) and FTSE Group
Combines Bank of China (Hong Kong's unique positioning in offshore RMB business and FTSE's global innovative expertise in index benchmarks
Allows investors to easily benchmark and provides access to markets in offshore RMB-linked fixed income products
October 22, 2013--Bank of China (Hong Kong) Limited ("BOCHK") and FTSE Group ("FTSE") today announced the official launch of the new FTSE-BOCHK Offshore RMB Bond Index Series.
The Index Series will measure the performance of RMB-denominated bonds issued and settled outside the Mainland of China. The Index Series is designed, calculated and managed by FTSE, with BOCHK Asset Management Limited acting as an advisor, to offer global investors transparent benchmarks.
The FTSE-BOCHK Offshore RMB Bond Index Series includes a benchmark index, with a number of sub categories, which will allow market participants to group the market by type of issuer, outstanding maturity and credit rating.
The FTSE-BOCHK Offshore RMB Bond Index Series offers a unique benchmark to meet the increasing global demand for RMB-linked fixed income products, such as exchange-traded funds (ETFs).
Source: FTSE
Eric Sprott's Open Letter To The World Gold Council
October 22, 2013--Dear World Gold Council Executives;
As you very well know,the business environment for gold producers has been extremely challenging over the past few years. While demand for physical gold remains extremely strong,prices on the COMEX have fallen precipitously. This contradictory situation is the single most important obstacle to a healthy gold mining industry.
In my opinion, the massive imbalance between supply and demand is not reflected in prices because available statistics are misleading. It is not the first time that GFMS (and World Gold Council) statistics come under pressure from the investment community. In his now celebrated "The 1998 Gold Book Annual",Frank Veneroso demonstrated the inconsistencies in GFMS gold demand data and proceeded to show how they grossly underestimated demand. The tremendous increase in the price of gold over the following years vindicated his conclusions.
For very different reasons,we are now at a similar pivotal point for gold. Over the past few years,we have seen incredible incremental demand from emerging markets. Indeed,so much so that the People’s Bank of China has announced that it is planning to increase the number of firms allowed to import and export gold and ease restrictions on individual buyers.1 In India,the government has been fighting a losing battle against gold imports by imposing import taxes and restrictions.2 Moreover,Non-Western Central Banks from around the world are replacing their U.S. dollar reserves by increasing their holdings of gold.3
Source: zerohedge.com
IOSCO Publishes a Report on the Second IOSCO Hedge Fund Survey
October 21, 2013--The International Organization of Securities Commissions published today the Report on the Second IOSCO Hedge Fund Survey, which describes the comprehensive and global effort by relevant regulators to better understand the hedge fund industry and its salient features.
The aim of the IOSCO survey is to gather data from hedge fund managers and advisers about the markets in which they operate, their trading activities, leverage, funding and counterparty information. It forms part of IOSCO’s efforts to support the G 20 initiative to mitigate risk associated with hedge fund trading and traditional opacity.
view Report on the Second IOSCO Hedge Fund Survey
Source: IOSCO
ETFS Precious Metals Weekly-Gold and silver prices ncounterintuitively-surge as US suspends debt ceiling
October 21, 2013--Gold and silver prices rally as US suspends debt ceiling to 2014. Gold and
silver prices rallied strongly last week after the US passed a bill to reopen the government and suspend the federal debt limit until 7 February 2014.
The rally in gold and silver prices may seem counter-intuitive at first given their safe haven reputations. However, it has to be remembered that both gold and silver prices often have strong negative correlations to movements in the US dollar. Therefore in the run up to the debt ceiling deadline, as US short term rates increased on fears of possible default and the US dollar strengthened, gold and silver prices declined. In a similar manner, when an agreement to raise the debt ceiling was finally signed, US short-term rates and the US dollar fell, and gold and silver prices rallied. Given the rise in COMEX gold futures open interest last week and known large outstanding COMEX gold short positions, the rallies were likely further supported by short covering in the futures market following the agreement. Barring any extreme macro events, we expect the US dollar and rate expectations to continue to drive short term moves in gold and silver prices. With tapering off the table for now, prices may find further short term support.
Source: ETF Securities
ESMA publishes updated data on performance of credit ratings
October 21, 2013--The European Securities and Markets Authority (ESMA) has published its latest set of semi-annual statistical data on the performance of credit ratings, including transition matrices and default rates.
This latest dataset covers the period from 1 January to 30 June 2013 and is available in the Central Rating Repository (CEREP). In an effort to increase the transparency and comprehensiveness of CEREP statistics, ESMA has included ratings assigned to covered bonds as a new separate category.
Source: ESMA
OPEC Monthly Oil Market Report-October 2013
October 21, 2013--Oil Market Highlights
The OPEC Reference Basket rose for the fourth consecutive month in September, increasing by
$1.21/b to average $108.73/b. Crude oil futures prices began the month with some upward momentum fuelled by supply outages and a spike in geopolitical tensions. However, with the easing
of geopolitical concerns, oil prices on both sides of the Atlantic began to drop steadily, shedding some $8/b.
An improvement in supply prospects from the MENA region and Sudan, along with assurances by major suppliers and international oil agencies that the market was well-supplied, also dampened the upward pressure on crude oil prices. As the rally in the crude futures market came to end, money managers sharply reduced their record-high net length positions at the end of September. On the Nymex, the front-month WTI contract fell 30¢ to $106.24 in September, while ICE Brent improved slightly to average $111.25/b.
World economic growth for 2013 and 2014 remains unchanged at 2.9% and 3.5% respectively, although ongoing developments regarding the budget stand-off in the US requires close monitoring. US growth for 2013 has been revised down to 1.6% from 1.7%, while the 2014 forecast remains at 2.5%. The Euro-zone growth forecast for the current year has been revised up to -0.3% from -0.5% and to 0.7% from 0.6% for 2014. Japan's forecast for 2013 has been revised up to 1.9% from 1.7% and growth for 2014 has been revised to 1.5% from 1.4%. India has been impacted by capital outflows and its 2013 forecast has been lowered to 5.0% and its 2014 forecast reduced to 5.8%. China's growth expectations remain unchanged at 7.6% and 7.7% for 2013 and 2014, respectively.
Source: OPEC
