Global ETF News Older than One Year
ETFS Precious Metals Weekly-Gold rises even as US dollar strengthens on safe haven demand
November 12, 2012--Fiscal cliff and Greece fears drive gold price to 3-week high The re-election of President Obama removed investor doubts about the continuation of aggressive quantitative easing by the Federal Reserve (Mitt Romney had vowed to replace the current Fed Chairman at the end of his term).
Investor focus quickly turned to the looming 'fiscal cliff' issue. Investors fear a drawn-out negotiation process on taxes and are concerned about US leaders' ability to find a compromise that will prevent disastrous automatic across-the-board expenditure cuts. Anxiety over this issue and continued uncertainty about whether the Troika will agree to release Greece's next loan tranche helped drive precious metal prices higher last week and has kept demand for gold ETFs strong. As highlighted in the Precious Metals Weekly last week, gold is likely to be one of the better hedges against a worst case fiscal cliff/downgrade scenario. Last summer, during the Congress's budget ceiling standoff and downgrade, the gold price rallied 30%.
Improving economic data indicating that the US recovery is gaining traction has caused the dollar to appreciate over the past month. Of particular note, the University of Michigan's preliminary index of consumer sentiment for November increased to 84.9 from 82.6 the prior month. Normally an appreciating dollar tends to push the gold price down. However, last week we saw dollar appreciation coupled with a rising gold price, highlighting investors are currently viewing gold as a safe haven as they await the outcome of fiscal negotiations.
Visit www.etfsecurities.com for more info.
Source: ETF Securities
New study on private equity and venture capital investments in China
Analysis of PE/VC investor valuation criteria with a view to changed market conditions
November 12, 2012--
A new study by Deutsche Börse and CMS Hasche Sigle analyses the valuation approaches applied to private sector investments in Chinese companies. This is already the second joint study on private equity in China.
It is to be presented at the German Equity Forum in Frankfurt on Monday.
“Our study confirms that the valuation standards developed in western markets cannot automatically be applied to companies in China, as factors such as due diligence play a major role in addition to key financial figures,” explained Volker Potthoff of CMS Hasche Sigle. “PE/VC investors have also adapted the sectoral focus to the changed macroeconomic conditions in recent years. They now focus less on export-dependent sectors and much more on those geared to China's domestic market, for example in the consumer goods industry or the healthcare market.”
view the study-Valuation of Chinese companies-The perspective of the private equity industry
Source: Deutsche Börse
Global Experts Poll: Economic Confidence Firms in Fourth Quarter, but Gloom Prevails
56% of respondents lacked confidence in global economy in fourth quarter, down from 72%
Respondents in North America more worried about an economic shock than those in Asia
Sixth quarterly Global Confidence Index polled 460 experts from business, government, international organizations and academia who are members of the Forum's Network of Global Agenda Councils
November 12, 2012--Confidence in the state of the world economy firmed up in the fourth quarter, although a majority of respondents to the World Economic Forum's Global Confident Index poll were still pessimistic.
Amid some signs that the slowdown in China has bottomed out, 56% of global experts polled said they lacked confidence in the global economy, sharply down from 72% last quarter.
“The results are indeed an improvement from last quarter's confidence levels, but sentiment overall remains pessimistic,” said Martina Gmur, Senior Director of the Forum’s Network of Global Agenda Councils. "We still need strategic vision coupled with bold leadership to snap out of this global malaise.”
In a poll of 460 experts, respondents in the Middle East and North Africa were significantly more confident about the global economy than those in North America, Europe, Asia and sub-Saharan Africa.
view the results of Global Confidence Index survey
Source: WEF(World Economic Forum)
North America leads shift in global energy balance, IEA says in latest World Energy Outlook
November 12, 2012--The global energy map is changing in dramatic fashion, the International Energy Agency said as it launched the 2012 edition of the World Energy Outlook (WEO). The Agency's flagship publicationm released today in London, said these changes will recast expectations about the role of different countries, regions and fuels in the global energy system over the coming decades.
"North America is at the forefront of a sweeping transformation in oil and gas production that will affect all regions of the world,
yet the potential also exists for a similarly transformative shift in global energy efficiency,” said IEA Executive Director Maria van der Hoeven. “This year’s World Energy Outlook shows that by 2035, we can achieve energy savings equivalent to nearly a fifth of global demand in 2010. In other words, energy efficiency is just as important as unconstrained energy supply, and increased action on efficiency can serve as a unifying energy policy that brings multiple benefits.”
Source: IEA
IMF-Caucasus, Central Asia Countries Fare Well Despite Some Downside Risks
November 12, 2012--Region's hydrocarbon exporters buoyed by high prices, importers benefit from remittance inflows
High international food prices could rekindle inflation while anemic world growth poses risks to outlook
Policymakers should strive to bolster buffers, reduce inequality, and enhance wealth management
Countries in the Caucasus and Central Asia continue to post a solid recovery from the global financial crisis, and the region’s economic outlook remains favorable, the IMF says in its latest assessment.
The IMF’s Regional Economic Outlook for the Middle East and Central Asia, released November 11, projects growth in the region at an average of about 5½ percent for 2012 and 2013 (see table).
This resilient growth reflects high oil prices that are benefiting the region’s oil and gas exporters, supportive commodity prices and remittance inflows for the oil and gas importers, and, for both groups, moderate direct exposure to Europe, the IMF report says.
view the The IMF Regional Economic Outlook for the Middle East and Central Asia
Source: IMF
Index switch hits Vanguard
November 11, 2012--Inflows into Vanguard's largest exchange traded fund have evaporated in the wake of its decision at the beginning of October to switch from tracking an MSCI index to a cheaper FTSE benchmark.
The Vanguard MSCI Emerging Markets ETF attracted $1m in net inflows in October, compared with average monthly inflows of $1.3bn between January and September, says the ETF Industry Association.
Source: FT.com
EPFR Global Fund Data Release-Bond Funds move deeper into record setting territory as fiscal cliff looms
November 9, 2012--While US President Barack Obama was promising that "the best is yet to come" in the wake of his re-election victory on November 6 investors were acting as if the worst is far from over.
Flows into EPFR Global-tracked Bond and Money Market Funds hit a record high during the week ending Nov. 7 while Volatility Funds recorded their biggest inflow since the third week of August as investors focused on so-called fiscal cliff facing US policymakers and the Eurozone’s continuing struggle to resolve its four-year-old debt crisis.
Overall, investors steered over $50 billion into Money Market Funds and nearly $10 billion into Bond Funds, pushing the latter’s year-to-date total over the $400 billion mark. Equity Funds took in a net $1.12 billion with Dividend Equity Funds taking in over $900 million despite the implications that Obama’s victory has for their taxation in the US.
Visit http://www.epfr.com/overview.aspx for more info
Source: EPFR
Ex BlackRock chief joins Barclays for sweeping asset management review
November 9, 2012--Rory Tobin, former head of iShares International, has joined Barclays' wealth and investment division to review its asset management capabilities across the business.
In his new role, Wealth Manager understands that Tobin will work with David Semaya to identify pockets of asset management expertise in Barclays and determine whether to combine them or sell them off.
The project comes as part of a wider review of the Barclays business model, spearheaded by the bank’s new chief executive Antony Jenkins (pictured), to help restore the firm’s reputation following the Libor scandal.
Source: CityWire
BATS 1000 Index Tumbles 2.4% This Week
November 9, 2012--BATS Global Markets, a leading operator of securities markets in the U.S. and Europe, reports the BATS 1000® Index (Ticker:Ticker::BATSK) fell 380.66 points, or 2.4%, this week to close at 15,505.16 as of 4 p.m. ET today.
Ten of ten sectors that comprise the index fell for the week, with Utilities and Financials suffering the steepest declines. Industrials and Manufacturing fell the least.
Source: BATS Global Markets, Inc.
Improving the BIS international banking statistics
November 9, 2012--Abstract
This report documents a series of enhancements of the BIS international banking statistics (IBS) that have recently been endorsed by the Committee on the Global Financial System (CGFS) and are designed to make significant and long-lasting improvements to the IBS.
The report provides a short introduction to the IBS and their main uses and discusses the nature and rationale of the forthcoming changes, which have been developed by a group of statistical experts and economists chaired by Werner Hermann (Swiss National Bank). The enhancements will provide a more comprehensive picture of national banking systems' global consolidated balance sheets, allow for a more detailed analysis of vis-à-vis country information, and help to better track banks' funding patterns and associated risks. They will also make national contributions to the IBS more complete and accessible
Source: BIS
