Global ETF News Older than One Year
Continued Uncertainty and Recession in Eurozone Weaken Recovery in Emerging Europe and Central Asia
Effective social safety nets are critical for protecting the vulnerable; a looming demographic crisis makes reforms more urgent
April 20, 2012-The moderate recovery in Emerging Europe and Central Asia (ECA) in 2010-2011 is now threatened by continued uncertainty and recession in the Eurozone, resulting in slowing growth across most of the region in 2012, World Bank officials said at a press briefing during the World Bank/IMF Spring Meetings 2012.
Governments need to take actions on the fiscal, financial, and social fronts, with the growing demographic pressures in most countries of the region making these actions even more urgent.
“After a weak recovery in 2010-2011, growth in Emerging Europe and Central Asia is once again slowing, from 5.5 percent in 2011 to a projected 3.4 percent in 2012,” said Philippe Le Houérou, World Bank Vice-President for the Europe and Central Asia Region. “The crisis has left the countries in the region with tighter fiscal space, continuing pressures on banks, and higher levels of unemployment. While expenditures need to be rationalized, it is now critical that countries protect productive spending on human and physical capital and—with unemployment rising and demographic changes pressing—strengthen social safety nets.”
Source: World Bank
Silver price volatility deters investors
April 19, 2012--The price swings in the silver market in the past year have deterred investors in the metal, according to Thomson Reuters GFMS, putting prices on course for a correction of as much as 10 per cent in the next few months.
“To say that silver was on a roller-coaster ride during 2011 would be something of an understatement,” GFMS said in its annual review of the market published by the Silver Institute.
Source: FT.com
Modernizing Emerging Market Core Portfolios
Applying insights from "The Emerging Market Benchmark Bear Hug"
April 19, 2012--As of March 31, 2012, 97% of the assets invested in emerging market equity Exchange Traded Funds (ETFs) tracked broad benchmarks.1 These benchmarks are dominated by sectors that led many frontier countries to emerging market status, and
include economies that graduated to developed market status 15 years ago.
There is a simple solution to help investors modernize their emerging markets (EM) core. Through a blend of ETFs, investors can align their portfolios with the themes that many emerging market strategists believe will drive future EM growth.
Issue: Traditional EM investments may lag long-term growth themes
Emerging market research is largely focused on sustainable domestic demand—organic, local growth vs. export growth—including the themes of infrastructure, urbanization and the rise of the middle class consumer. Many market observers believe these will be the drivers that advance EM countries toward developed market status.
Source: Emerging Global Advisors
ESMA approves credit ratings from Argentina and Mexico for use in the EU
April 18, 2012--The European Securities and Markets Authority (ESMA) announces today that it considers the regulatory frameworks for credit rating agencies (CRAs) of Argentina and Mexico to be in line with European Union rules. Today's announcement allows European financial institutions to continue using credit ratings issued in these countries for regulatory purposes after 30 April 2012.
In order to facilitate regulatory information exchange, and as a precondition to endorsement, ESMA has entered into co-operation agreements for the supervision of CRAs with the national competent authorities of Argentina and Mexico. Ratings issued under the regulatory frameworks of Australia, Canada, Hong Kong, Japan, Singapore and the United States have already been approved for use in the EU.
view the ESMA-Final report Technical advice on CRA regulatory equivalence-US, Canada and Australia
Source: ESMA
ETF Securities: Global Commodity ETF Assets Hit Record $189B In 1Q
Global commodity ETF assets hit record $189 billion in first quarter
Quarterly inflows into commodity ETFs rise by $7.5 billion in first quarter
$1.2 billion of new money flows to oil ETFs in first quarter
April 18, 2012--Investors flocked to commodity-linked exchange-traded funds and products during the first quarter, lifting the sector ETF assets to a record $189 billion, ETF Securities said Wednesday.
A rebound in U.S. economic growth and the restructuring of Greek sovereign debt fanned investor demand for risky assets, lifting inflows into commodity ETFs by $7.5 billion during the first quarter of 2012 from the final quarter of 2011. This was the largest quarterly rise in almost a year.
Source: Wall Street Journal
OPEC: Political Tension Responsible for High Oil prices
April 17, 2012--The Organisation of Petroleum Exporting Countries (OPEC) has said it is supplying the market with enough crude oil but political situations are responsible for the current high oil prices.
President of the organisation cum Iraq's Oil Minister, Abdul Kareem Luaiby, told reporters in Baghdad that oil prices were affected more by political instability than by production matters. He however noted that OPEC was seeking to achieve a balance in world oil prices.
"OPEC has exerted all it can to produce a quantity of oil that is balancing demand, but political situations are governing prices”, Dow Jones Newswires quoted the OPEC Chief to have told reporters in Baghdad.
Source: This Day Live
Global Financial Stability Report-The Quest for Lasting Stability
April 17, 2012--The April 2012 Global Financial Stability Report assesses changes in risks to financial stability over the past six months, focusing on sovereign vulnerabilities, risks stemming from private sector deleveraging, and assessing the continued resilience of emerging markets..
The report probes the implications of recent reforms in the financial system for market perception of safe assets, and investigates the growing public and private costs of increased longevity risk from aging populations.
view the IMF Global Financial Stability Report-The Quest for Lasting Stability
Source: IMF
IMF-Fiscal Monitor-Balancing Fiscal Policy Risks
April 17, 2012--Overall, fiscal risks remain elevated, according to this issue of the Fiscal Monitor, although there are signs that in some key respects they are less acute than six months ago. Though past efforts with fiscal consolidation are beginning to bear fruit, debt ratios in many advanced economies are at historic levels and rising, borrowing requirements remain very large, financial markets continue to be in a state of alert, and downside risks to the global economy predominate.
In this uncertain environment, fiscal policy must find the right balance between exploiting short-term space to support the fragile recovery and rebuilding longer-term space by advancing fiscal consolidation. Against that background, the issue examines in more detail the concept of fiscal space, or the scope that policymakers have to calibrate the pace of fiscal adjustment without undermining fiscal sustainability.
view IMF Report-Fiscal Monitor Balancing Fiscal Policy Risks
Source: IMF
CPSS-IOSCO issue new standards for financial market infrastructures
April 16, 2012--The Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) have today published three documents that promote global efforts to strengthen financial market infrastructures (FMIs):
a report entitled Principles for financial market infrastructures;
a consultation paper on an Assessment methodology for these new standards; and
a consultation paper on a Disclosure framework for the standards.
New and more demanding international standards for payment, clearing and settlement systems, including central counterparties, have today been issued by the CPSS and IOSCO in a report titled Principles for financial market infrastructures. Among other things, the principles will provide important support for the G20 strategy to make the financial system more resilient by making central clearing of standardised OTC derivatives mandatory. CPSS and IOSCO members will strive to adopt the new standards by the end of 2012. Financial market infrastructures (FMIs) are expected to observe the standards as soon as possible.
Source: IOSCO
New standards for financial market infrastructures issued by CPSS-IOSCO
April 16, 2012--The Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) have today published three documents that promote global efforts to strengthen financial market infrastructures (FMIs):
a report entitled Principles for financial market infrastructures; 1 a consultation paper on an assessment methodology for these new standards; and
a consultation paper on a disclosure framework for the standards.
New and more demanding international standards for payment, clearing and settlement systems, including central counterparties, have today been issued by the CPSS and IOSCO in a report titled Principles for financial market infrastructures. Among other things, the standards will provide important support for the G20 strategy to make the financial system more resilient by making central clearing of standardised OTC derivatives mandatory. CPSS and IOSCO members will strive to adopt the new standards by the end of 2012. Financial market infrastructures (FMIs) are expected to observe the standards as soon as possible.
view the Principles for financial market infrastructurespaper
view the Disclosure framework for financial market infrastructures-Consultative report
Source: BIS
