Global ETF News Older than One Year
ICAP plc agrees to acquire PLUS Stock Exchange plc
May 18, 2012--ICAP plc, the world's leading interdealer broker, is pleased to announce that it has agreed to acquire PLUS Stock Exchange plc ("PLUS"), the smaller company equity exchange for £1 in cash subject to PLUS Markets Group plc shareholder consent and FSA approvals.
PLUS is one of only five RIEs (Recognised Investment Exchange) in the UK. It provides listing and quoting services to around 140 companies and generates revenue of approximately £3 million a year. However, the business is presently loss making.
Source: ICAP
Lyxor AM to Merge its ETF and Indexing Activities
The new unit will be called "ETF & Indexing"
May 18, 2012--Lyxor AM has decided to merge its ETF and indexing asset management activities. Consequently, Juan San Pío, Head of ETF Institutional Sales for Iberia and Latin America, will now be in charge of indexing products, becoming Head of ETF & Indexing Institutional Sales for Iberia and Latin America, according to Funds People.
The new unit,"ETF & Indexing", is to be led directly by Alain Dubois, Chairman of Lyxor Asset Management. Simon Klein, in addition to his role as Head of ETF Europe, will be promoted to Global Head of Business Development, ETF & Indexing and will become a member of Lyxor’s Executive Committee. He will report to Alain Dubois and Christophe Baurand, Global Head of Business Development for Lyxor AM.
Source: Funds America
IMF Working Paper-Quantifying Structural Subsidy Values for Systemically Important Financial Institutions
May 17, 2012--Summary: Claimants to SIFIs receive transfers when governments are forced into bailouts. Ex ante, the bailout expectation lowers daily funding costs. This funding cost differential reflects both the structural level of the government support and the time-varying market valuation for such a support.
With large worldwide sample of banks, we estimate the structural subsidy values by exploiting expectations of state support embedded in credit ratings and by using long-run average value of rating bonus. It was already sizable, 60 basis points, as of the end-2007, before the crisis. It increased to 80 basis points by the end-2009.
view the Quantifying Structural Subsidy Values for Systemically Important Financial Institutions
Source: IMF
IMF Working paper-The Effects of Government Spending under Limited Capital Mobility
May 17, 2012--Summary: This paper studies the effects of government spending under limited international capital mobility, as featured by most developing countries. While external financing of government debt mitigates the crowding-out effect, it generates real appreciation, which contracts traded output and lowers the fiscal multiplier in the short run.
The decline of the multiplier is larger when facing debt-elastic country risk premia. Also, government spending is more expansionary with more home bias in government purchases, more sectoral rigidities, and a less flexible exchange rate. Whether the twin-deficit hypothesis holds depends crucially on the extent to which government deficits are financed externally.
view the IMF working paper-The Effects of Government Spending under Limited Capital Mobility
Source: IMF
World Bank Releases Little Green Data Book 2012
New marine indicators highlight decline in the world's oceans
May 17, 2012--The World Bank today released its annual compilation of environmental data for more than 200 countries, providing up-to-date information on agriculture, forests and biodiversity, energy and emissions, water and sanitation, environment and health and oceans.
The World Bank’s Vice President for Sustainable Development Rachel Kyte said the Little Green Data Book 2012 was an important addition to the toolkit for countries to measure, value and manage their natural capital.
view the The Little Green Data Book 2012
Source: World Bank
Job-rich growth essential for G20 recovery, say OECD and ILO
Joint statement by ILO Director-General Juan Somavia and OECD Secretary-General Angel Gurría on the occasion of the G20 Labour and Employment Ministers Meeting, Guadalajara, Mexico, 17 May 2012
May 17, 2012--We, the Heads of the International Labour Organization and the Organisation for Economic Cooperation and Development, call upon the Ministers of Labour and Employment of the G20 countries to put a greater,
renewed emphasis on employment policies that will help economies accelerate and sustain the recovery, achieve higher levels of decent work and get out of the debt trap.
Job creation remains weak in many countries, and too low to reabsorb the mass of unemployed and under-employed. As outlined in one of our joint background papers prepared for the G20 Labour and Employment Ministers meeting, unemployment rates are still close to the peak reached during the downturn in a number of countries. By the end of 2011, some 109 million persons were unemployed across G20 countries, not counting discouraged workers.
Source: OECD
Deutsche Boerse and CFFEX signed co-operation agreement
May 17, 2012--Deutsche Börse and China Financial Futures Exchange (CFFEX) today signed a Memorandum of Understanding (MoU) in Beijing.
The parties agreed on a co-operation and an extensive exchange of information in order to facilitate the further development of both financial markets.
In accordance with the MoU, the two exchange organizations are to start a comprehensive sharing of knowledge and information on business areas and regulatory developments. Further elements of the co-operation agreement include joint training and education initiatives, as well as an employee exchange program and regular visits from each exchange’s senior management.
“We are very pleased to have signed this agreement with CFFEX and look forward to deepening our relationship with leading institutions and authorities of China’s financial markets,” said Andreas Preuss, Deputy CEO Deutsche Börse and CEO of Eurex, the derivatives arm of Deutsche Börse.
Source: Deutsche Börse
Athens and Korea Exchanges Commit to Dual-Listing of Companies
May 17, 2012--The Athens Exchange (ATHEX) and the Korea Exchange (KRX) signed a Memorandum of Understanding (MOU) today in which they committed to cooperate in facilitating the dual-listing of companies on both exchanges.
This MOU, which was signed by Mr. Socrates Lazaridis, Chairman of the Athens Exchange, and Mr. Bongsoo Kim, Chairman and CEO of the Korea Exchange, at a ceremony in Athens on May 17, 2012, marked the first formal engagement between the two exchanges as well as the first sector-focused dual-listing between the two countries. During the ceremony, Mr. Kim also rang the opening bell of the Athens Exchange.
Source: ATHEX
OPEC Monthly Oil Market Report-May 2012
May 16, 2012--Oil Market Highlights
After three consecutive monthly gains, the OPEC Reference Basket declined in April to settle at $118.18/b, representing a drop of $4.79 or 3.9%. Prices remain elevated by the risk premium associated with ongoing geopolitical factors.
The decline in the value of the Basket came with the start of the first month of the typically low demand season in the second quarter. Crude prices shifted into contango for the first time in over a year amid higher supplies and weak consumption. The decline in crude oil prices occurred as refined product prices came down from the peak levels seen in previous months. Moreover, rising global supply contributed to an increase in inventories, preventing prices from moving higher. On 9 May, the OPEC Reference Basket stood at $109.85/b.
World economic growth expectations for 2012 remain unchanged at 3.3%. The US continues to enjoy solid momentum, with the growth forecast revised up by 0.1 pp to 2.3%. In contrast, the Eurozone continues to weaken and is now expected to contract by 0.4%, compared to the minus 0.3% forecast in the previous month. The growth forecast for Japan remains unchanged at 1.8%. With these offsetting revisions in the OECD, growth in the export-led emerging economies is also unchanged. India is expected to expand by 6.9% in 2012, while China is projected to grow at a solid 8.2%. Overall, the global economic outlook remains fragile, with heightened uncertainties in the Euro-zone and potential spill-over effects in the emerging markets.
World oil demand growth in 2012 now stands at 0.9 mb/d, broadly unchanged from the previous report. Given the stabilization of the US economy and the shutdown of Japanese nuclear power plants, world oil demand growth has – at least for the short-term – stopped its declining trend and is showing some growth. Oil demand in non-OECD countries is also indicating a slight improvement. The upcoming driving season in the US might be affected by higher retail gasoline prices and uncertainty regarding economic developments. Japan’s oil usage also could slow if the country were to restart its nuclear plants.
Source: OPEC
Lack of Trust in the Use of Personal Data Threatens to Undermine Digital Economy
New World Economic Forum report, Rethinking Personal Data: Strengthening Trust, examines the impact of trust on personal data use and its potential to drive economic and social value creation
In today's hyperconnected world, trusted data flows are vital for a long-term, balanced ecosystem
The report offers a range of recommendations to bolster trust in personal data usage
May 16, 2012--The lack of trust in how personal data is protected and used has the potential to jeopardize the economic and social value of this important asset class, according to a new World Economic Forum report released today.
Rethinking Personal Data: Strengthening Trust, developed in collaboration with The Boston Consulting Group, explores how the use of personal data can unlock value for governments, organizations and individuals.
The report highlights that trust is declining given numerous high-profile data security breaches, rampant identity theft, a general lack of transparency in how personal data is monetized, and an absence of globally harmonized policies for privacy and the use of data. With the Internet economy of the G20 estimated to nearly double to US$ 4.2 trillion by 2016, its growth could be constrained if the flow of personal data is overly restricted. Areas that could be affected include financial services, healthcare, online retail and marketing, social media and others.
view WEF report-. Rethinking Personal Data: Strengthening Trust
Source: WEF
