Global ETF News Older than One Year
The banks that are too complex to exist
June 7, 2012--Why did JPMorgan Chase's top management fail to spot the $2bn-plus losses brewing in the chief investment office this year?
There is no shortage of potential explanations: a cover-up by traders, flawed computer models, poor accounting, lax oversight and excessive complacency have all been blamed.
Source: FT.com
Winthrop Capital Management-Investment Perspective -The Global Debt Crisis
June 6, 2012--The capital markets are now in a period of deleveraging which is marked by austerity, tight credit, transfer of wealth, debt restructuring, and central bank intervention in the capital markets.
And, because of the structural problems with the European Union, Europe is having more difficulty dealing with its deleveraging.
view Winthrop Capital Management-Investment Perspective-The Global Debt Crisis
Source: Winthrop Capital Management
DCGX Academy-UNITY IS STRENGTH -G7 Pledge Support; Markets Rise among turmoil
June 6, 2012--HIGHLIGHTS
India's rupee strengthened against the U.S. dollar.
Indicative bid prices for the rupee were at 55.3700 versus 55.6300 the previous trading day. Offer prices were indicated at 55.3800 versus 55.6400 the previous day. INR advanced for a second day after the G7 nations agreed to act together to tackle Europe's debt crisis, spurring optimism about the global economic outlook.
The G7 agreed yesterday to coordinate their response to Europe's financial turmoil, which has tipped at least eight of the 17 euro-area economies into recession. U.S. service industries expanded faster than economists expected in May, data showed yesterday, increasing demand for emerging-market assets. "The rupee is being boosted by a mildly positive global sentiment, which I think will be a temporary phenomenon," said a trader and added "We are still seeing purchases of dollars by importers, so gains in the rupee are likely to be limited." INR advanced 0.2 % to 55.5525 .The currency's one-month implied volatility, a measure of exchange-rate swings used to price options, was unchanged at 12.9 %.
FOREIGN EXCHANGE
Dollar Falls Versus Peers as Stock Gains Damp Demand for Safety
G-7 Leaders Pledge Cooperation Tackling Spain, Greece Woes
Canada Dollar Gains From 6-Month Low as BOC Signals
Canada Says Rates May Still Rise as Global Risks Increase
China-Bashing Amid Manufacturing Loss Binds Obama to Romney
Pound Poised to Strengthen Against the Euro, BNP Paribas Says.
Greek Euro-Exit 'Moonscape' Result May Threaten Drachma Choice
Aussie Climbs on Faster GDP Growth
Asian Currencies Gain, Led by Ringgit, on U.S. Data, G-7 Pledge
Source: DCGX Academy
Mirae Asset-BRICs weekly -Concerns about Greece and Spain Dominate Markets
June 6, 2012--China
Policy easing expectation continues.
Hong Kong markets ended flat last week but the reignited European debt woes dragged the market down in the month of May. China bourses edged up for the week and also in May due to new easing policy having emerged although the scale of the measures are not be comparable to those implemented in 2008.
Policy easing expectations continued to support the market. China’s automakers rallied after news that the government will provide subsidies to car buyers who trade-in used vehicles for fuel-efficient ones. Elsewhere, government authorities said banks can give discounts on housing loan interest rates to buyers of eco-friendly homes.
India
Economic growth down to a record low.
The Indian equity market went lower last week as measured by the SENSEX Index.
Fourth quarter FY2012 GDP growth slowed to 5.3%, considerably lower than market consensus of 6.1%. This is a record low in quarterly GDP measured in the current GDP series.
Brazil
Selic rate cut by 50 bps to 8.5%.
Rising systemic risk across the Eurozone, and deteriorating growth expectations in Brazil, US and China have contributed to a spike in risk aversion and outflows from EM equities in May.
Brazilian equities posted modest gains in the week ending May 31st, rising 80bps in local currency to trim 1month losses to 11.9%. In USD terms the index rose 2.3% to end the month -14.4%. The deteriorating health of the Spanish banking sector has returned to worry investors.
Russia
Waiting and seeing European politics.
European politics continue to dominate markets. Voting polls will influence market direction, causing further near-term volatility. Recent polls from Greece indicate a rise in support for the pro-bailout New Democracy party, reflecting public support for the country to remain a member of the single currency.
Stability within the Spanish banking sector is also critical to equity market performance, with the recent nationalization of Bankia highlighting the need for capital injections at several of Spain’s large mortgage lenders.
Source: Mirae Asset
Vanguard CEO Bill McNabb: Investors Are Driving Change in the Global Fund Industry
June 6, 2012--Vanguard Chairman and CEO Bill McNabb outlined four broad trends that will shape the future of the global fund industry in a speech to financial advisors at the Morningstar Canada Investment Conference. Mr. McNabb said that changes in regulatory schemes,
advisory fee structures, and advice models, along with the growing demand for low-cost exchange-traded funds, are the “four forces” that will transform the investment industry in the years to come.
These changes are being driven by investor demand. “Individual investors are smart and getting smarter,” said Mr. McNabb. “And that’s a good thing. Increasingly, they are bringing a healthy consumer mentality to their investment portfolios. They want to know what they are buying and how much they are paying for it. And they want to know that they can trust their investment advisors.”
Investor trust has deteriorated noticeably since the global financial crisis. “We cannot underestimate the importance of trust in the relationship between investors and their investment advisors,” said Mr. McNabb.
In many respects, trust is an intangible concept, said Mr. McNabb. But there are some very tangible and tactical things that investment professionals can do to continue to build and maintain client trust over the long term. They are embodied by three core concepts:
Plain talk: Provide greater transparency on fees, and clear and candid explanations about a fund’s objectives, holdings, and risks.
Source: Vanguard
BATS Global Markets Reports May Monthly Results With Record BYX Market Share
BATS Wins 11.7% U.S. Equities Market Share In May, Up From 10.8% One Year Ago -Record Spanish Market Share And Sixth Straight Month As Largest European Equities Market Operator
June 6, 2012--BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, today reported continued strong U.S. equities market share,
which reached 11.7% in May, up from 10.8% one year ago and 11.5% in April.
The BATS BYX Exchange set another monthly U.S. equities market share record in May with 3.0%, while the BATS BZX Exchange recorded 8.7%. Monthly market share for BATS Options held steady at 3.0% for the month. BATS Chi-X Europe capped its sixth straight month as the largest European market center by market share and notional value traded reporting 25.1% overall European market share in May, up from 22.8% one year ago on a pro forma basis and 24.6% in April. BATS Chi-X Europe continued to gain Spanish market share with 5.8% in May compared to 5.6% in April and 1.5% one year ago on a pro forma basis.
Source: BATS
IOSCO Publishes its Final Report on International Standards for Derivatives Market Intermediary Regulation
June 6, 2012--The International Organization of Securities Commissions has published today a report entitled International Standards for Derivatives Market Intermediary Regulation, which recommends high-level international standards for the regulation of market participants that are in the busines of dealing, making a market or intermediating transactions in over-the-counter (OTC) derivatives.
Historically these derivatives market intermediaries (DMIs) often have not been subject to the same level of regulation as participants in the traditional securities market. Without sufficient regulation, some DMIs operated in a manner that created risks to the global economy that manifested during the financial crisis of 2008. The Report follows on the commitment by G-20 leaders in 2009 to reform the OTC derivatives market in response to the crisis.
view the International Standards for Derivatives Market Intermediary Regulation-Final report
Source: IOSCO
World Bank Report-What a Waste: A Global Review of Solid Waste Management
New report points to 70% global increase in urban solid waste
June 6, 2012--A new, far-reaching report on the state of municipal solid waste around the world predicts a sharp rise in the amount of garbage generated by urban residents between now and 2025. The report estimates the amount of municipal solid waste (MSW) will rise from the current 1.3 billion tonnes/year to 2.2 billion tonnes/year, with much of the increase coming in rapidly growing cities in developing countries.
The annual cost of solid waste management is projected to rise from the current $205 billion to $375 billion, with cost increasing most severely in low income countries.
The report, What a Waste: A Global Review of Solid Waste Management, for the first time offers consolidated data on MSW generation, collection, composition, and disposal by country and by region. In itself, this is an accomplishment because, as the report states, reliable global MSW information is either not available or incomplete, inconsistent, and incomparable. Nevertheless, the authors of the report point to a looming crisis in MSW treatment as living standards rise and urban populations grow.
“Improving solid waste management, especially in the rapidly growing cities of low income countries, is becoming a more and more urgent issue,” said Rachel Kyte, Vice President, Sustainable Development at the World Bank. “The findings of this report are sobering, but they also offer hope that once the extent of this issue is recognized, local and national leaders, as well as the international community, will mobilize to put in place programs to reduce, reuse, recycle, or recover as much waste as possible before burning it (and recovering the energy) or otherwise disposing of it. Measuring the extent of the problem is a critical first step to resolving it.”
view the World Bank Report-What a Waste: A Global Review of Solid Waste Management
Source: World Bank
DCGX Academy-SILVER LINING-World Awaits Stimulus- Markets Rise
June 5, 2012--HIGHLIGHTS
INR: Trade Deficit Falls, Crude declines Rupee Rises
The smallest trade deficit in seven months and sliding crude-oil prices are poised to support the rupee, Asia's worst-performing currency this quarter, and revive investment in India's bonds.
The rupee was little changed yesterday after a two-day advance as data showed last week the shortfall narrowed to $13.5 billion in April from $13.9 billion a month earlier. Oil prices fell below $100 a barrel for the first time since October on May 31, reducing import costs for the world's fourth-biggest consumer of the fuel. The rupee, which has slumped 8.6 percent since March, will advance 7 percent to end the year at 52 per dollar, according to analysts .Prime Minister Manmohan Singh's administration has pledged to reduce subsidies to support the currency and lure investors as the government seeks $1 trillion of investments by 2017 to build power plants, roads and bridges.
International funds cut holdings of local debt by $1.1 billion from a record $31.5 billion reached on Feb. 29, more than four times the amount they sold in Indonesia.
FOREIGN EXCHANGE
Euro Rises for 3rd Day Before G-7 Officials Discuss Debt Crisis
Dollar to Rise Versus Most as Central Banks Stimulate, UBS Says
Australian Dollar Advances After RBA Cuts Benchmark Rate to 3.5%
Canada Dollar Touches Six-Month Low Before Central Bank Meeting
S&P Sees at Least 1-in-3 Chance of Greece Euro Exit After Vote
Euro Rises for a third day
The euro rose for a third day before finance ministers and central bank governors from the Group of Seven nations hold a call today to discuss Europe's debt crisis. The yen and dollar fell against most major counterparts as Asian stocks rallied, sapping demand for lower-yielding assets. Australia's dollar advanced before an interest-rate decision by the Reserve Bank. Policy makers may lower benchmark borrowing costs for a second consecutive meeting, according a survey of economists.
Dollar to Rise Versus Most as Central Banks Stimulate, UBS Says
Source: DGCX Academy
Three Key Drivers To BNY Mellon's $27 Stock Value
June 5, 2012--BNY Mellon is the world's largest custodian bank with $26.6 trillion worth of assets under custody and management. JP Morgan Chase and State Street are its nearest competitors managing assets worth $25.2 trillion and $23.2 trillion respectively.
As we briefly discussed in our article Understanding Banks: Types & Functions, custody banks manage assets for other financial institutions – generally broken down into investment servicing and investment management services. In this article, we detail the functions that contribute the most to BNY Mellon’s value.
Source: Forbes
