Create Your Better Life Index
August 6, 2012--The Better Life Index allows citizens to compare well-being across 36 countries based on 11 dimensions in the areas of material living conditions and quality of life. The updated version integrates data on gender and inequality and strengthens existing topics.
EXECUTIVE SUMMARY-HISTORY
For over fifty years, the Organisation for Economic Cooperation and Development (OECD) has helped governments design better policies for better lives for their citizens. It provides a forum in which leaders and policy makers can work together to share experiences and seek solutions to common problems, and produces high-quality internationally comparable statistics used to understand what drives economic, social and environmental change.
Ever since the OECD started out in 1961, GDP has been the main factor by which it has measured and understood economic and social progress. But it has failed to capture many of the factors that influence people's lives, such as security, leisure, income distribution and a clean environment. Is life really getting better? How can we tell? What are the key ingredients to improving life – is it better education, environment, healthcare, housing, or working hours? Does progress mean the same thing to all people or in all countries and societies?
Source: OECD
ETFS Precious Metals Weekly: Precious Metals Slump Following ECB's 'Whatever it Takes' Disappointment
August 6, 2012--The ECB's 'whatever it takes' turned out to be 'not much' for
precious metals. While the risk of the FOMC doing nothing ahead of the US
jobs data last Friday had already largely been incorporated into
expectations, the market was certainly more disappointed by ECB President
Draghi's press conference, after suggesting that the ECB will do whatever it takes to preserve the Euro.
ECB President Draghi seemed to suggest that the ECB would intervene in debt markets, if governments were prepared to seek funding from the EFSF and adhere to their austerity commitments. The problem remains that details of the ECB’s potential intervention remain a mystery, similar to the lack of clarity that has clouded the bailout mechanism for Spain and its banking sector. With so much uncertainty, it is no wonder financial markets responded negatively, with gold losing 2% following the ECB press conference and silver dropping as much as 3.5% from the week’s high point. While there appeared to be a lack of decisiveness in central bank policy last week, the clear message from all three of the guardians of the world’s major reserve currencies is that if fundamentals do not improve quickly, more monetary easing and unconventional policies are coming. In recent weeks, it has become increasingly clear that further quantitative easing and other forms of easing from the US Fed and the ECB are the main catalysts gold investors are waiting for. The Fed last week has made it clear that with inflation now under control, its focus is increasingly skewed towards the second objective of its double mandate - job creation. So while nonfarm payrolls beat expectations, the sustainability of job creation will be critical for expectations of future stimulus and the gold price.
South African platinum supply concerns overshadow strong Russian production.
visit www.etfsecurities.com for more info
Source: ETF Securities
Economic & Capital Market Summary-Second Quarter, 2012
August 6, 2012-The single biggest driver for the economy and investment returns is the deleveraging process which we are currently struggling through.
Arguably, we have successfully transferred debt from the financial sector to the U.S. government through the Federal Reserve’s quantitative easing programs. And, bank loan portfolios are smaller given the decline in loan demand which is consistent with the deleveraging process. As we move through the long process of reducing debt, economic growth inevitably moderates as resources are applied to debt reduction rather than fixed investment and consumption within the economy. As a result, expected returns on financial assets are lower. Therein lies the challenge facing investors – how to invest in today’s financial markets where the price of risk is distorted and the rewards are substantially less than investment returns of prior years.
Source: Winthrop Capital Management
ISDA-AFME-BBA-Assosim Response to ESMA Consultation Paper and Draft Technical Standards for the Regulation on OTC Derivatives, CCPs and Trade Repositories
August 5, 2012--Executive Summary
The 'Signatory Associations' would like to underline that they support the key aims underpinning EMIR, in particular reduction of counterparty credit risk through clearing and compression, increasing regulatory transparency through trade
repositories, and enhanced credit risk mitigation.
This commitment is clear from industry achievements in enhancing the safety and efficiency of OTC derivatives in recent years. These include: 54% of interest rate swaps are now cleared (interest rate swaps make up of 80% of overall gross notional OTC derivatives activity); trade repositories, operating on a global basis, now exist for credit, interest rate, commodity and equity derivatives (while another is being built for FX contracts); clearing and compression have reduced the size of the CDS market by 75%.
Source: ISDA
Dow Jones-UBS Commodity Indexes July 2012 Performance Report
August 3, 2012--The Dow Jones-UBS Commodity Index was up 6.46% for the month of July.
The Dow Jones-UBS Single Commodity Indexes for corn, soybean meal and wheat had the strongest gains with month-end returns of 28.32%, 19.80% and 17.30%, respectively. The three most significant downside performing single commodity indexes were feeder cattle, orange juice and nickel, which ended the month down 9.82%,9.73%, and 5.33% respectively.
Source: Mondovisione
EPFR Global Fund Data-Expectations of more cheap money shape fund flows going into August
August 3, 2012--Fund groups that have struggled since the second quarter attracted fresh interest-and money-in late July ahead of meetings by the European Central Bank and US Federal Reserve that investors hoped would authorize additional quantitative easing.
During the week ending August 1 EPFR Global-tracked Emerging Markets Equity Funds posted their biggest inflow since mid-February, Commodity Sector Funds snapped a five week outflow streak and Russia Equity Funds enjoyed their second best week year-to-date.
Visit http://www.epfr.com for more info
Source: EPFR Global
ETFGI Global ETF and ETP industry insights, July 2012
August 3, 2012--Summary for ETFs listed globally
At the end of July 2012, the global ETF industry had 3,327 ETFs, with 7,477 listings, assets of US$1,541 Bn, from 172 providers on 50 exchanges.
Assets
ETF assets have increased by 2.4% from US$1,505 Bn in June 2012 to US$1,541 Bn in July 2012.
YTD through end of July 2012, ETF assets have increased by 13.9% from US$1,353 Bn to US$1,541 Bn.
Flows
In July 2012, ETFs saw net inflows of US$24 Bn. YTD through end of July 2012, ETFs saw net inflows of US$123 Bn.
SPDR ETFs gathered the largest net ETF inflows in July with US$5,941 Mn, followed by iShares with US$5,875 Mn and Vanguard with US$4,317 Mn net inflows.
Vanguard gathered the largest net ETF inflows YTD with US$34,254 Mn, followed by iShares with US$30,791 Mn and SPDR ETFs with US$16,048 Mn net inflows.
db x-trackers experienced the largest net ETF outflows in July with US$293 Mn, followed by Commerzbank with US$211 Mn and Daiwa Asset Management with US$154 Mn net outflows.
db x-trackers experienced the largest net ETF outflows YTD with US$1,742 Mn, followed by Commerzbank with US$1,086 Mn and EasyETF with US$775 Mn net outflows.
Summary for ETFs and ETPs listed globally
Including other Exchange Traded Products (ETPs), at the end of July 2012, the global ETF/ETP industry had 4,722 ETFs/ETPs, with 9,597 listings, assets of US$1,722 Bn, from 203 providers on 54 exchanges.
Assets
ETF/ETP assets have increased by 2.3% from US$1,683 Bn in June 2012 to US$1,722 Bn in July 2012.
YTD through end of July 2012, ETF/ETP assets have increased by 12.9% from US$1,526 Bn to US$1,722 Bn.
Flows
In July 2012, ETFs/ETPs saw net inflows of US$23 Bn. YTD through end of July 2012, ETFs/ETPs saw net inflows of US$131 Bn.
iShares gathered the largest net ETF/ETP inflows in July with US$6,008 Mn, followed by SPDR ETFs with US$4,556 Mn and Vanguard with US$4,317 Mn net inflows.
Vanguard gathered the largest net ETF/ETP inflows YTD with US$34,254 Mn, followed by iShares with US$31,463 Mn and SPDR ETFs with US$16,228 Mn net inflows.
Commerzbank experienced the largest net ETF/ETP outflows in July with US$211 Mn, followed by United States Commodity Funds with US$207 Mn and Daiwa Asset Management with US$154 Mn net outflows.
DB/x-trackers experienced the largest net ETF/ETP outflows YTD with US$1,686 Mn, followed by Commerzbank with US$1,086 Mn and EasyETF with US$775 Mn net outflows.
Summary for United States ETFs and ETPs
At the end of July 2012, the US ETF industry had 1,190 ETFs, assets of US$1,083 Bn, from 34 providers on 3 exchanges. Including other Exchange Traded Products (ETPs), at the end of July 2012, the US ETF/ETP industry had 1,486 ETFs/ETPs, assets of US$1,209 Bn, from 52 providers on 3 exchanges.
Summary for European listed ETFs and ETPs
At the end of July 2012, the European ETF industry had 1,332 ETFs, with 4,782 listings, assets of US$284 Bn, from 39 providers on 21 exchanges. Including other Exchange Traded Products (ETPs), at the end of July 2012, the European ETF/ETP industry had 1,942 ETFs/ETPs, with 6,029 listings, assets of US$319 Bn, from 45 providers on 22 exchanges.
Summary for Asia Pacific (ex-Japan) listed ETFs and ETPs
At the end of July 2012, the Asia Pacific (ex-Japan) ETF industry had 381 ETFs, with 496 listings, assets of US$68 Bn, from 86 providers on 14 exchanges. Including other Exchange Traded Products (ETPs), at the end of July 2012, the Asia Pacific (ex-Japan) ETF/ETP industry had 400 ETFs/ETPs, with 518 listings, assets of US$69 Bn, from 88 providers on 14 exchanges.
Summary for Latin America listed ETFs and ETPs
At the end of July 2012, the Latin American ETF industry had 35 ETFs, with 533 listings, assets of US$10 Bn, from 16 providers on 4 exchanges. Including other Exchange Traded Products (ETPs), at the end of July 2012, the Latin American ETF/ETP industry had 35 ETFs/ETPs, with 562 listings, assets of US$10 Bn, from 19 providers on 4 exchanges.
to request report
Source: ETFGI
Banks face valuation losses as Libor discarded
Traders and accountants have known for some time what is only becoming apparent to the public now--the London Interbank Offered Rate or Libor, the interbank funding rate now at the centre of a rigging scandal, is not the appropriate price to value most derivative deals on banks' books.
Source: Reuters
Recovery and resolution of financial market infrastructures, consultative report issued by CPSS-IOSCO
Financial market infrastructures (FMIs) play an essential role in the global financial system. The disorderly failure of an FMI can lead to severe systemic disruption if it causes markets to cease to operate effectively. Accordingly, all types of FMIs should generally be subject to regimes and strategies for recovery and resolution. view the CPSS-IOSCO
-Recovery and resolution of financial market infrastructures-consultative report
Source: BIS
Sweeping changes at BlackRock
Media reports have suggested that Mr Fink might be approached for the job as next US Treasury Secretary if Barack Obama is re-elected as president in November.
Source: FT.com
August 3, 2012--Global banks are delaying what will be an inevitable shift to valuing unsecured derivative positions at market rates because it could hit their bottom lines, but new global prudential regulations next year are set to force their hands.
July 31, 2012--The Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) have today published for public comment a consultative report on the Recovery and resolution of financial market infrastructures.
August 3, 2012--Larry Fink moved to quash speculation that he might leave his post as chief executive of BlackRock as the world's largest asset manager announced sweeping changes to its organisational structure and an expansion of its senior leadership team this week.
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