Global ETF News Older than One Year
Mirae-Strong Inflows into EM Equities
January 30, 2013--EM equities outperformed DM peers in December on optimism about the Chinese economic growth. Globally, inflows to EM funds have remained strong, mostly in the ETF space.
China's economy bottoming out.
In Dec 2012, the World Bank raised China’s economic growth forecast to 8.4% in 2013, up from 8.1%, citing stimulus measures and the approval of infrastructure projects as positive catalysts for growth potential.
On the policy front, China is expected to maintain a pro-growth fiscal and monetary stance, which may be supplemented by tax cuts to boost consumption. The critical challenge will be for the new leadership to pursue much-needed reforms to encourage private enterprise and rebalance investment bias of the economy.
India-India's high deficit calls for the government's action.
The key risk in India remains the country’s high fiscal and current account deficits, which if not adequately tackled in coming quarters could derail an otherwise solid structural story.
To help reduce the deficit, the Indian government has indicated that it could take steps like increasing duties to curb discretionary imports. The country has set a target to reduce its fiscal deficit to 5.3% of GDP in the current fiscal year (ending March 31, 2013) and to 3% of GDP by fiscal year 2016-2017.
Asean-The positive momentum likely maintains this year.
Across the region, positive economic momentum continues to impact the market. On a country basis, outperforming markets for Dec 2012 included Thailand (5.7%) and Malaysia (4.5%). In fact, the Malaysian market rose to an all-time high during the month.
The current revival in the ASEAN markets may continue for the next couple of quarters. Meanwhile, it may occasionally be dampened by ongoing structural deleveraging in large economies.
Latin America-Equities remain highly reactive to the US debt issue.
Markets will remain focused on possible resolutions to the U.S. deficit. Equity markets will remain highly reactive to developments related to the U.S. debt discussions.
At the local level, recent optimism regarding the Chinese economy helped improve risk appetite in Brazil, with investors starting to show greater conviction in an improved outlook for cyclical laggards.
Most EMEA countries outperformed.
Russia outperformed the broader emerging markets in December due to positive company-specific news, despite data that point to an economic slowdown. In particular, the announcement by a primary energy provider that it plans to reduce capital expenditures led to a rally in its shares and benefited the market overall.
Source: Mirae Asset Financial Group
BNY Mellon Launches New Global Brand Campaign
January 30, 2013--BNY Mellon today launched a new global brand campaign that highlights the company's unrivaled ability to manage and service investments globally to help its clients succeed.
Highlighting the company's capabilities as "The Investments Company for the World," the campaign emphasizes how BNY Mellon helps clients at every stage of the investment lifecycle by creating, trading, holding, managing, servicing and distributing their financial assets.
"Our new brand is centered on powering global investments and being invested in our clients' success through the commitment of more than 48,000 dedicated professionals in 36 countries," said Gerald L. Hassell, BNY Mellon chairman and chief executive officer. "By understanding our clients' needs, building relationships and providing insights, we will continue to build on our global leadership in managing and servicing investments."
Source: BNY Mellon
Security Detail Protects NYSE Deal
January 30, 2013--A type of poison pill or just prudent protection?
That is the question some are asking about a side agreement in the deal for a rival to buy the parent of the New York Stock Exchange NYX +0.64%.
When IntercontinentalExchange Inc. ICE +1.54%announced an $8.2 billion deal for NYSE Euronext, observers speculated other suitors could follow due
Source: Wall Streeet Journal
NYSE Euronext Celebrates 20 Years of Exchange Traded Product (ETP) Listing and Trading
Celebrating the inaugural listing of SPDR S&P 500 ETF Trust (SPY)
Paving the Way for ETP Innovation
January 29,2013--NYSE Euronext (NYX) celebrates the 20-year anniversary of the inaugural listing of SPDR S&P 500 ETF Trust (NYSE Arca: SPY) on January 29, 1993 and the significant growth and innovation of the Exchange Traded Product (ETP) industry since the landmark listing.
In New York and Paris, NYSE Euronext executives and distinguished guests rang the Opening Bell while State Street Global Advisors (SSgA), executives rang the NYSE Closing Bell yesterday to celebrate the inaugural launch of SPDR S&P 500 ETF Trust (NYSE Arca: SPY) in honor of the occasion.
“NYSE Arca is proud to celebrate the 20th Anniversary of the SPY listing and extraordinary growth of the ETP industry,” said Laura Morrison, SVP, of Exchange Traded Products and Global Index Group. “We are proud of our leadership position in the ETP space and are committed to paving the way for issuers to bring innovative new products to the market in 2013 and beyond.”
SPY is the most traded equity security in the world by dollar volume and the largest Exchange Traded Fund (ETF) with nearly $125 billion in assets under management. Since the listing of SPY, over 1,450 ETPs have been listed in the U.S. representing over $1.38 trillion in assets and accounting for nearly 30% of all U.S. equity trading. NYSE Arca continues to have the highest market share of any U.S. exchange in both exchange traded product listings and trading.
Source: NYSE Euronext
NASDAQ OMX Announces Strategic Alignment of Global Data and Index Businesses
New Combined Unit Will Strengthen Sales, Technology and Customer Offering
January 29, 2013--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced the company will combine its Global Data Products and Global Index businesses.
The combination will enable greater customer focus and leverage of NASDAQ OMX's scalable technology, product innovation and robust distribution channels. The new business will be led by John L. Jacobs, Executive Vice President of NASDAQ OMX, and operate under the name Global Information Services.
"Combining these business areas allows us to better take advantage of the sweet spot they inherently both share: distribution of data and the delivery of innovative products that provide market insight and transparency," said Bob Greifeld, President and CEO, NASDAQ OMX.
Source: NASDAQ OMX
IMF Working paper-The Changing Collateral Space
January 28, 2013--Summary: This paper highlights the changing collateral landscape and how it may shape the global demand/supply for collateral. We first identify the key collateral pools (relative to the "old" collateral space) and associated collateral velocities.
Post-Lehman and continuing into the European crisis, some aspects of unconventional monetary policies pursued by central banks are significantly altering the collateral space. Moreover, regulatory demands stemming from Basel III, Dodd Frank, EMIR etc., new net debt issuance, and collateral connectivity via custodians (e.g., Euroclear/ Clearstream/ BoNY etc) will affect collateral movements.
view the IMF Working paper-The Changing Collateral Space
Source: IMF
Boost Weekly Performance Update-Boost 3x Short Natural Gas Up 8.5% Last Week
Leveraged Equity ETPs & Short ETCs Gain as Equities Rise & Commodities Fall
January 28, 2013--
Equities rebound last week after being relatively flat the previous week
UK equities posted the largest weekly move, with Boost FTSE 100 3x Leveraged Daily ETP (3UKL) up 6.4% for the week. German equities followed closely with Boost LevDAX(R) 3x Daily ETP (3DEL) up 6%
UK equities also performed best over the previous two months, up 8.2%. Boost FTSE 100 3x Leveraged Daily ETP (3UKL) was up 25.3% over that period
US equities were more mixed last week as Boost Russell 1000 3x Leveraged Daily ETP (3USL) was up 3.8% while the NASDAQ 100 ended the week relatively flat
Commodities lose ground last week, reversing gains from the previous week
Boost Natural Gas 3x Short Daily ETP (3NGS) posted the highest return last week, up 8.5%, followed by Boost Silver 3x Short Daily ETP (3SIS), up 6.5%
Over the past two months, commodity performance was more mixed. On the long side, Boost WTI Oil 3x Leveraged Daily ETP (3OIL) was up 22% while on the short side Boost Natural Gas 3x Short Daily ETP (3NGS) was up 43%
Commodities have been more volatile than equities over the past two months. Natural Gas was the most volatile, with Boost Natural Gas 3x Short Daily ETP (3NGS) up 99% between 23 November and 9 January, with Boost Natural Gas 3x Leverage Daily ETP (3NGL) rebounding 33% since then
Source: Boost ETP
China's Currency Unlikely to Topple US Dollar as World's Reserve Currency
China's currency, the RMB, is unlikely to internationalize in the short term
The world needs to better understand how Beijing views its global responsibilities
January 26, 2013--China's currency, the renminbi (RMB), will probably not supplant the US dollar as the world,s reserve currency, except possibly "in the very long term", said Lawrence H. Summers, Charles W. Eliot University Professor, Harvard University, and a former US Treasury Secretary, in a televised session at the World Economic Forum Annual Meeting today.
While the RMB will continue to internationalize, “the centrality of the dollar is unlikely to change in a major way,” Summers said, adding, “just as there is a basic inertia in languages of communication, there’s a basic inertia in mediums of exchange.”
Source: WEF (World Economic Forum)
The Global Economy in 2013: "Fragile and Timid Recovery"
The International Monetary Fund forecasts 3.5% GDP growth for the global economy in 2013
The economic climate is much better this year than last year, but the recovery is "fragile and timid"
A new economic policy in Japan and strength in China and Africa provide glimmers of hope
January 26, 2013--The global economy faces fewer headwinds in 2013 compared with last year and will likely grow a modest 3.5%, participants at the 43rd World Economic Annual Meeting were told in Davos, Switzerland.
But Christine Lagarde, Managing Director, International Monetary Fund (IMF), described the recovery as “fragile and timid” because the Eurozone is prone to political crisis and slow decision-making processes.
“Some good policy decisions have been made in the various corners of the world, including by central banks,” said Lagarde. “In 2013, they have to keep the momentum.” She called on Europe to operationalize the new tools policy-makers have recently devised, including Europe’s banking union. Lagarde also credited the United States with making significant progress on fiscal consolidation, an achievement that she said tended to be overlooked.
Mark J. Carney, Governor of the Bank of Canada, echoed Lagarde’s caution. “There are still tail risks out there,” he warned, refuting some claims made in Davos that these risks have been reduced or totally eliminated. While central bank action is crucial, said Carney, this needs to be reinforced at the national level on the fiscal and structural sides, “and neither of those agendas are anywhere being finished.”
Source: WEF (World Economic Forum)
Liquidity Bubble a Risk as Economy Improves
Central banks will need to remove liquidity from the system as economic conditions improve
2013 will be a transition year in which spending will increase
Productivity will replace liquidity as the primary focus for growth
January 25, 2013--Speaking today at the 43rd World Economic Forum Annual Meeting, Ray Dalio, Founder and Chief Investment Officer of Bridgewater Associates, warned against a growing liquidity bubble. "When spending picks up, it will be incumbent on the central banks to mop excessive liquidity up," he said, warning against inflation risk.
Dalio described the new norm as being a depressed economy, saying the discussion will shift from liquidity to productivity. “Productivity will be the driver,” he said. “The debt cycle will no longer be the driver; 2013 will be a transition year and the shift of cash will be a game changer.”
Dalio was speaking on a panel which included Anshu Jain, Co-Chairman of the Management Board and the Group Executive Committee, Deutsche Bank; Jin Liqun, Chairman of the Board of Supervisors, China Investment Corporation (CIC); Pierre Moscovici, Minister of Economy and Finance of France; Brian T. Moynihan, Chief Executive Officer, Bank of America; and Ignazio Visco, Governor of the Bank of Italy.
Source: WEF (World Economic Forum)
