Global ETF News Older than One Year
Annual Energy Outlook 2013 Early Release Report
December 5, 2012--This release is an abridged version of the Annual Energy Outlook that highlights changes in the AEO Reference case projections for key energy topics.
The Early Release includes data tables for the Reference case only. The full AEO2013 will be released Spring of 2013.
Key updates made for the AEO2013 Reference case include the following:
Extension of the projection period through 2040, an additional five years beyond AEO2012.
Adoption of a new Liquid Fuels Market Module (LFMM) in place of the Petroleum Market Module used in earlier AEOs provides for more granular and integrated modeling of petroleum refineries and all other types of current and potential future liquid fuels production technologies. This allows more direct analysis and modeling of the regional supply and demand effects involving crude oil and other feedstocks, current and future processes, and marketing to consumers.
A shift to the use of Brent spot price as the reference oil price. AEO2013 also presents the average West Texas Intermediate (WTI) spot price of light, low-sulfur crude oil delivered in Cushing, Oklahoma, and includes the U.S. annual average refiners' acquisition cost of imported crude oil, which is more representative of the average cost of all crude oils used by domestic refiners.
view the Annual Energy Outlook 2013 Early Release Report
Source: EIA
Macro Matters-Euro Zone Agrees on Greece Debt Deal
December 5, 2012--China-Worries on markets lingers.
Both Hong Kong and China markets dropped on concern of: 1) stricter capital rules for banks that may hurt lending; 2) lingering concerns of weak corporate earnings and supply glut;
and 3) anticipated year-end liquidity crunch.
Last week, Shanghai composite dropped below the supporting level of 2,000points, renewing a 4-year record low.
India-Markets rally on hopes of further reforms.
Indian markets rallied last week on hopes of further reforms by the government. Also investor sentiment was boosted by Goldman Sachs’ upgrade.
Amid positive global cues, as EU finalized talks with Greece and the U.S. talked of optimism over the fiscal cliff, Indian markets hit a 19-month high.
Brazil-No rate cut in November.
Brazilian equities rallied in the week ending November 29th. Progress within the Eurozone and improving Chinese macro data offset lingering concerns over the US fiscal cliff and downward revisions to Brazilian domestic growth at least temporarily.
The Brazilian Central Bank maintained the Selic Rate flat at 7.25% during its November Copom Meeting in line with expectations. There were no surprises in the post meeting communiqué.
Russia-Agreement on Greece debt deal relieves uncertainties.
Euro zone finance ministers and the IMF agreed a deal to release the next tranche of aid for Greece, dependent upon the implementation of further reforms, repayment terms eased with lower rates charged.
A definitive resolution to the Euro zone crisis is beyond the reach of policymakers, though recent announcements represent gradual progress as the region continues its structural deleveraging process.
Source: Mirae Asset Financial Group
IMF-Shadow Banking: Economics and Policy
December 4, 2012--Summary: This note outlines the basic economics of the shadow banking system, highlights (systemic) risks related to it, and suggests implications for measurement and regulatory approaches.
view the IMF paper-Shadow Banking: Economics and Policy
Source: IMF
Bank of England Urged to Support Renminbi Trading
December 4, 2012--The Bank of England is facing calls to support renminbi trading in London, as bankers meet this week to discuss how to boost the nascent market in China's tightly controlled currency.
Top investment banks in London have asked the BoE to provide a swap line with the People's Bank of China that they say would shore up confidence among companies and investors who are nervous of trading the renminbi due to liquidity concerns.
Source: CNBC
Operationalising the selection and application of macroprudential instruments
December 3, 2012--The recent financial crisis has accelerated efforts to develop macroprudential policy frameworks. As a result, new or strengthened mandates for macroprudential policies have been established in a growing range of jurisdictions.
A report released today by the Committee on the Global Financial System (CGFS) provides practical guidance for policymakers on how macroprudential instruments should be chosen, combined and applied.
This report - prepared by a Working Group chaired by José-Manuel González-Páramo, formerly of the European Central Bank - aims to help policymakers in operationalising macroprudential policies.
Specifically, it identifies three high-level criteria that are key in determining the selection and application of macroprudential instruments:
i.the ability to determine the appropriate timing for the instrument's activation or deactivation;
ii.the instrument's effectiveness in achieving the stated policy objective; and
iii.the instrument's efficiency in terms of a cost-benefit assessment.
view the Operationalising the selection and application of macroprudential instruments report
Source: BIS
IMF Working paper-Tracking Global Demand for Advanced Economy Sovereign Debt
December 3, 2012--Summary: Recent events have shown that sovereigns, just like banks, can be subject to runs, highlighting the importance of the investor base for their liabilities. This paper proposes a methodology for compiling internationally comparable estimates of investor holdings of sovereign debt.
Based on this methodology, it introduces a dataset for 24 major advanced economies that can be used to track US$42 trillion of sovereign debt holdings on a quarterly basis over 2004-11. While recent outflows from euro periphery countries have received wide attention, most sovereign borrowers have continued to increase reliance on foreign investors. This may have helped reduce borrowing costs, but it can imply higher refinancing risks going forward. Meanwhile, advanced economy banks’ exposure to their own government debt has begun to increase across the board after the global financial crisis, strengthening sovereign-bank linkages. In light of these risks, the paper proposes a framework—sovereign funding shock scenarios (FSS)—to conduct forward-looking analysis to assess sovereigns’ vulnerability to sudden investor outflows, which can be used along with standard debt sustainability analyses (DSA). It also introduces two risk indices—investor base risk index (IRI) and foreign investor position index (FIPI)—to assess sovereigns’ vulnerability to shifts in investor behavior.
view the IMF Working paper-Tracking Global Demand for Advanced Economy Sovereign Debt
Source: IMF
IMF Policy paper-The Liberalization and Management of Capital Flows-An Institutional View
December 3, 2012--Summary:Capital flows have increased significantly in recent years and are a key aspect of the global monetary system. They offer potential benefits to countries, but their size and volatility can also pose policy challenges. The Fund needs to be in a position to provide clear and consistent advice with respect to capital flows and policies related to them.
In 2011, the International Monetary and Financial Committee (IMFC) called for ―further work on a comprehensive, flexible, and balanced approach for the management of capital flows.‖ This paper proposes an institutional view to underpin this approach, drawing on earlier Fund policy papers, analytical work, and Board discussions on capital flows.
Source: IMF
STOXX Monthly Index Report -November 2012 In Review
December 3, 2012--As of November 30, 2012 stock market indices in Europe, Asia, the U.S. and globally were up in November, according to global index provider STOXX Limited.
For the month of November, the European, Asian and global markets were up 2.03%%, 2.01% and 0.72%%, respectively, while U.S. the markets were down -0.16%. The full performance report is below.
Source: Mondovisione
BATS Global Markets Reports November Volume; Record Fifth Consecutive Month Above 12% Market Share in U.S. Equities
BATS Chi-X Europe Reports 25.3%; U.S. Options Reports 3.6%
December 3, 2012--BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, reported November data, including the third best U.S. equities market share in its history (12.7%), a record fifth consecutive month above 12%.
BATS Chi-X Europe reported market share of 25.3%, maintaining its position as the largest equity market in Europe during 2012. BATS Options reported 3.6% market share, up from 3.1% one year ago.
Greece inches closer to receiving its much-needed tranche of aid. As the uncertainty around Greece's near-term solvency starts to lift, the euro rose against the US dollar, helping to boost precious metals prices. After a third attempt, the Troika finally came to an agreement on Greece's bailout terms. The new compromise involves a commitment to cut Greece's debt to 124% of GDP by 2012 (rather than 120%) and to 110% of GDP only two years later. Greece's borrowing rate was cut by 1%, maturities doubled to 30 years and interest payments were deferred by ten years. Under the terms laid out by the IMF, Greece must buy back some of its debt at distressed prices to reduce its overall debt burden. The deal was approved by German Bundestag on Friday, but it still needs the approval of other Euro-nation parliaments. While the agreement falls short of the debt write-offs (or "hair-cuts") the IMF favoured, the fact that some countries are lending to Greece more cheaply than they can borrow, has imposed losses on Greece's creditors.
Platinum supported by a US shift into clean diesel cars. Sales of clean diesel vehicles in the US have increased by 25.6% this year. Clean diesel cars only account for 3% of US sales (compared to over 50% in Europe). A shift toward clean diesel cars in the US will likely boost the demand for platinum that is used in diesel auto-catalysts. Palladium prices are also benefiting from the belief that US and China recovery will boost palladium sales destined for the gasoline auto-catalysts that dominate the Chinese and US auto markets.
Key events to watch this week: US fiscal cliff negotiations. US politicians continue to bicker, with Republican House leader Boehner dismissing a Democrat proposal outright, saying 'the White House has to get serious'. Time is running out and markets are becoming increasingly anxious. US jobs numbers late this week will also be watched carefully, though Hurricane Sandy is expected to disrupt the relevance of the month's numbers. Visit www.etfsecurities.com for more info.
Source: ETF Securities
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