Global ETF News Older than One Year
BofA Merrill Lynch Fund Manager Survey Finds Gloom Lifting Over Global Growth Prospects
January 17, 2012-- Global investors have started 2012 with a reawakened sense of optimism towards the global economy and greater appetite for risk, according to the BofA Merrill Lynch Survey of Fund Managers for January.
The global survey of 214 institutional investors shows far fewer predicting a global slowdown. Only a net 3 percent believe the world economy will weaken in the coming 12 months down from a net 27 percent in December – the biggest one-month improvement in the growth outlook since May 2009.
Many investors are showing more appetite to take risk. BofA Merrill Lynch’s Composite Risk and Liquidity Indicator is the highest since July 2011, before the sovereign debt crisis fully emerged. Cash levels have fallen to their lowest levels since July 2011. Cash now makes up, on average, 4.4 percent of a portfolio, down from 4.9 percent in December. The proportion of investors taking lower than normal levels of risk has improved to a net 33 percent of the panel, compared to a net 42 percent in December.
One concern that investors have highlighted is geopolitical risk. The proportion of respondents viewing geopolitical risk as “above normal” has jumped to 69 percent from 48 percent last month. This has, in the past, been correlated with a spike in the oil price.
“Investors are tip-toeing rather than hurtling toward higher risk exposure; the U.S. market and high quality cyclical sectors, such as energy and tech, have been the main beneficiaries of lower cash holdings,” said Michael Hartnett, chief Global Equity strategist at BofA Merrill Lynch Global Research. “Despite improvement in global and European growth expectations asset allocators remain deeply skeptical towards European equities, especially banks,” said Gary Baker, head of European Equities strategy at BofA Merrill Lynch Global Research.
Source: Bank of America
NZX and Markit shake hands on final deal
January 16, 2012-- NZX is pleased to announce that leading global financial information services company, Markit, will pay NZX US$21.4 million, by 31 January 2012, to bring to completion the performance of each party’s obligations in respect of the 2009 sale by NZX of the TZ1 environmental registry to Markit.
Under the June 2009 purchase agreement between Markit and NZX, Markit had the option to acquire the consideration shares issued to TZ1 based on the environmental registry's performance.
Markit has chosen to exercise this option and pay NZX in cash for its shareholding in Markit.
“Markit is a world class organisation, and one with which we have been proud to be associated. NZX has enjoyed an excellent working relationship with Markit since 2009, and the fact that final payment is to be made in front of what was expected reflects the strength of that relationship,” said NZX CEO Mark Weldon.
The full details of the TZ1 transaction have previously been disclosed in NZX's Annual Financial Statements.
Source: NZX
BlackRock -New ETF Landscape Report: Industry Summary
January 16, 2012--2011 Asset Growth Highlights (US$):
Under the backdrop of various macro-economicchallenges in 2011, the global Exchange Traded Products (ETPs) industry grew 2.9% on the year,ending with $1.53tn in Assets Under Management
(AUM). While growth was lower than in recent years, the difference was primarily driven by unfavorable market return which has historically
been a strong contributor to industry asset growth.
Fixed income ETPs expanded at the fastest rate with 24% growth or $50.6bn over 2010 driven entirely by strong cash inflows of $49.8bn, topping the $40 billion collected in 2010. This expansion was largely driven by US-listed products.
Developed equity captured healthy net inflows of $93bn offset by negative market return of ($65.5bn) to deliver modest growth of $27.7bn or a 3.3% increase in assets on the year.
Emerging markets equity products surrendered 18.7% of asset values due to negative market returns of ($43bn) and net redemptions of ($1.8bn) for the year.
Emerging markets equity products surrendered 18.7% of asset values due to negative market returns of ($43bn) and net redemptions of ($1.8bn) for the year.
Source: BlackRock
European Hedge Funds Line Up Bets on China Downturn
January 16, 2012--European hedge fund managers are betting that China's once red hot economic growth will cool dramatically in 2012, hitting companies, economies and commodity prices that have been fuelled by the world's second largest economy in recent years.
Managers are taking bets ranging from short positions on equity markets or the currency to buying credit protection on companies that export to China. Others are shorting natural resources stocks in other countries that rely on Chinese demand.
Source: Reuters
ETFS US Precious Metals Weekly: Surge in China gold imports highlights strength of emerging market gold demand
January 16, 2012--China’s imports of gold in November on an annualized basis were equivalent to around 1/3 of total global supply of gold in 2011, 2.5
times official sector buying in 2011 and nearly 7 times global gold ETP net
inflows.
While the magnitude of monthly purchases in November is unlikely to continue at these levels and likely reflects buying in advance of the Lunar new year holiday in late January, possible reserve accumulation and some temporary factors, the sustained magnitude of China’s gold imports in the second half of 2011 highlights the growing importance of China as a structural source of demand and price support for gold.
Gold, EUR/USD move out of lock-step as markets digest more growth-friendly data and shift out of deleveraging mode. ECB president Draghi also noted that acute near term banking sytem strains have eased somewhat, although the region’s growth outlook remains precarious. The end of 2011 was marked by unusually strong positive correlation between gold and the EUR, as investors shifted year-end positions to USD as Euro debt tensions spiked. However, gold has steadily recovered in 2012 even as the Euro has remained under pressure, highlighting a reduction of the gold/dollar inverse relationship recently.
Spotlight back on European sovereign debt crisis talks this week after S&P takes axe to sovereign debt ratings, including France’s AAA status. Greek debt package talks will reconvene on January 18 after stalling on private sector contributions to the bailout, needed by 20 March to stave off public sector bankruptcy. Deputy finance chiefs from the G20 will also meet this week to discuss the possibliility of bolstering IMF resources as the Europe debt situation drags on. Headway in such talks could help bolster the nascent recovery in sentiment for non-cash assets such as precious metals in the days and weeks ahead of the next European leaders summit on January 30.
visit www.etfsecurities.com for more info.
Source: ETF Securities
UN report-World Economic Situation and Prospects 2012
January 15, 2012--The world economy is on the brink of another major downturn. Global economic growth started to decelerate on a broad front in mid-2011 and is estimated to have averaged 2.8 per cent over the last year. This economic slowdown is expected to continue into 2012 and 2013. The United Nations baseline forecast for the growth of world gross product (WGP) is 2.6 per cent for 2012 and 3.2 per cent for 2013, which is below the pre-crisis pace of global growth.
Persistent high unemployment in the United States and low wage growth are holding back aggregate demand and, together with the prospect of prolonged depressed housing prices, this has heightened risks of a new wave of home foreclosures. Growth in the euro zone has slowed considerably since the beginning of 2011 and the ever-simmering sovereign debt crisis heavily weighs on consumer and business confidence across Europe. The failure of policymakers in developed countries to address unemployment and prevent sovereign debt distress and financial sector fragility from escalating has posed the most acute risk for the global economy in the outlook for 2012-2013, with renewed global recession being a distinct possibility.
Meanwhile, developing countries and economies in transition are expected to continue to stoke the engine of the world economy, growing on average by 5.4 per cent in 2012 and 5.8 per cent in 2013 in the baseline outlook. Among the major developing countries, growth in China and India is expected to remain robust. GDP growth in China slowed from 10.3 per cent in 2010 to 9.3 per cent in 2011 and is projected to further slow to below 9 per cent in 2012-2013. India's economy is expected to expand by between 7.7 and 7.9 per cent in 2012¬2013, down from 8.5 per cent in 2010.
Low-income countries have experienced only a mild slowdown. In per capita terms, income growth slowed from 3.8 per cent in 2010 to 3.5 per cent in 2011 and, despite the global downturn, the poorer countries may see average income growth at or slightly above this rate in 2012 and 2013. The same holds for average growth among the United Nations category of least developed countries (LDCs).
Against this background, the report discusses several policy directions which could avoid a double-dip recession, including: optimal design of fiscal policies to stimulate more direct job creation and investment in infrastructure, energy efficiency and sustainable energy supply, and food security; stronger financial safety nets; better coordination between fiscal and monetary policies; and the provision of sufficient support to developing countries in addressing the fallout from the crisis and the coordination of policy measures at the international level.
view UN report-World Economic Situation and Prospects 2012
Source: UN
NYSE won't make more concessions for merger, exec says
January 13, 2012--A senior executive of the New York Stock Exchange said it would not make further concessions to secure approval by EU regulators of its planned merger with German stock market operator Deutsche Boerse.
"We won't go any further because that threatens the business logic of the deal," NYSE Euronext deputy chief executive Dominique Cerutti told the French business daily La Tribune.
NYSE chief executive Duncan Niederauer acknowledged Thursday that it appeared the European Commission was set to reject the plans to create the world's biggest stock exchange group, although he said they had received no formal notification.
Source: AFP
NYSE Euronext Maintains Leading Position in Global Exchange Traded Products Market
In the European markets, all-time high turnover volumes for ETFs & ETVs and over 65,000 new certificates and warrants listings in 2011
NYSE Arca listed nearly 300 new ETPs in 2011 – a new record-
Over $1 trillion in combined listed assets under management on NYSE Arca, more than any U.S. exchange group
January 12, 2012---NYSE Euronext (NYX) today announced that it led the market in Exchange Traded Products (ETP) listings with more than 450 new ETN, ETF and ETV listings globally in 2011.
Over 65,000 new certificates and warrants were also listed in the European markets of NYSE Euronext. NYSE Arca, its fully electronic U.S. market, reported nearly 300 new ETP listings in 2011 -- setting a new record compared to 220 new products in 2010. On its European markets, ETF turnover volume [1] reached an all-time high of €117 billion, an increase of 17% compared to 2010.
In the U.S., NYSE Arca listed nearly 300 new ETPs, including the launch of nine new active Exchange Traded Funds (ETFs) from issuers, and 70% and 110% respective increases from 2010 in new listings of Exchange Traded Notes (ETNs) and Exchange Traded Vehicles (ETVs). Of the nearly 300 new listings, NYSE Arca added 201 ETFs, 77 ETNs and 19 ETVs. Combined assets under management for NYSE Arca-listed ETPs increased 5% from December 2010 to reach $1 trillion, far more than any other U.S. exchange group.
Source: Standard & Poor's
Economic Freedom, Not Goverment Spending, Provides Path To Prosperity, 18TH Index of Economic Freedom Shows
Hong Kong and Singapore top Index; United States falls to 10th; countries trying to spend their way out of recession failed, data shows
January 12, 2012--Economic freedom declined worldwide in 2011 as many countries attempted -- without success -- to spend their way out of recession, according to the 18th annual Index of Economic Freedom, released today by The Heritage Foundation and The Wall Street Journal.
The average economic freedom score for the 2012 Index stands at 59.5 (on a scale in which 100 represents the ideal), down two-tenths of a point from 2011.
“The mounting burden of reckless government spending has overwhelmed gains in economic freedom in other policy areas,” write the Index editors. “Tension between government control and the free market has heightened around the world, particularly in developed countries.”
Hong Kong and Singapore finished first and second in the rankings for the 18th straight year. Australia and New Zealand ranked third and fourth, and Switzerland fifth. Canada finished sixth, slipping almost a full point and falling out of the group of “free” economies into the “mostly free” category.
Chile took seventh place and moved almost a full point toward greater economic freedom. Mauritius was eighth with an overall score of 77 and became the first Sub-Saharan country to rank among the top 10. Ireland finished ninth to best the United States, which dropped to tenth. P>read more
Source: The Heritage Foundation
ISDA Announces Membership and Mission of the Industry Clearing Committee
Janury 11, 2012--The International Swaps and Derivatives Association, Inc. (ISDA) announced today the membership and charter of the Industry Clearing Committee (ICC).
The ICC, which consists of a broad cross-section of over-the-counter (OTC) derivatives industry market participants, was formed by ISDA in June 2011 to meet current and emerging industry needs in respect of clearing.
More specifically, the ICC will assist in coordinating industry efforts to reach optimal levels of central counterparty clearing and to address obstacles in achieving those levels.
The ICC will also provide recommendations on central counterparty clearing practices across multiple OTC derivative asset classes. The aims and functions of the ICC are to:
Be representative of the sell-side, buy-side, Central Counterparty Clearing houses (CCPs) and Futures Commissions Merchants (FCMs) in order to deliver collaborative solutions
Extend the reach of clearing in terms of both eligible product types and clearing participants
Source: ISDA
