Global ETF News Older than One Year
Carbon Disclosure Project Global 500 report: Commercial interests driving greenhouse gas emissions reduction at world’s largest companies
September 14, 2011-- The 2011 edition of the annual Carbon Disclosure Project (CDP) Global 5001 report, published today, which examines carbon reduction activities at the world’s largest public corporations, has found for the first time in the ten year history of the survey, that the majority have climate change actions embedded as part of their business strategy. The report, written by global professional services firm PwC on behalf of CDP, attributes this to growing board-level awareness of the link between energy efficiency and increased profitability.
The report, entitled Accelerating low carbon growth, analyzed disclosures from 396 of the world’s largest companies2, which revealed 68% have climate change at the heart of business strategies, compared with 48% in 2010. There was also a marked rise in the number of companies reporting reduced greenhouse gas emissions as a result of emissions reduction activities (45%, up from 19% in 2010).
A correlation was also established between higher stock market performance over time, and representation on CDP’s Carbon Performance Leadership Index (CPLI) and the Carbon Disclosure Leadership Index (CDLI). Companies with a strategic focus on climate change provided investors with approximately double the average total return of the Global 500 from January 2005 to May 2011.
Paul Simpson, CEO of the Carbon Disclosure Project, said: “The improved financial performance of companies with high carbon performance is a clear indicator that it makes good business sense to manage and reduce carbon emissions. This is a win win for business – the short ROIs many emissions reducing activities have, can help increase profitability. Companies yet to take action on climate change will have to work hard to remain competitive as we head towards an increasingly resourced constrained, low carbon economy.”
view the CDP Global 500 Report 2011: Accelerating Low Carbon Growth
Source: Carbon Disclosure Project (CDP)
Dow Jones Indexes Launches Three Series of Volatility Risk Control Indexes
Dow Jones Europe Titans 80 Volatility Risk Control, Dow Jones Eurozone Titans 80 Volatility Risk Control Indexes
Support Dow Jones Indexes’ expansion plans in Europe
Dow Jones BRIC 50 Volatility Risk Control Indexes to track performance
of leading stocks, at various levels of volatility, in four key countries
September 13, 2011--Dow Jones Indexes, a leading global index provider, today announced the launch of three series of indexes designed to target various levels of volatility.
The new index families are:
• the Dow Jones Europe Titans 80 Volatility Risk Control Indexes;
• the Dow Jones Eurozone Titans 80 Volatility Risk Control Indexes; and
• the Dow Jones BRIC 50 Volatility Risk Control Indexes.
Each series includes four indexes targeting predetermined levels of market volatility (5%, 10%, 15%, 20%) by dynamically allocating between an underlying index and a cash component represented by EONIA (Euro OverNight Index Average) . Volatility levels are reflected in the index by leveraging (up to 150%) or deleveraging (relative to cash) exposure to the equity components in the underlying index.
The Dow Jones Europe Titans 80 Volatility Risk Control and Dow Jones Eurozone Titans 80 Volatility Risk Control Indexes are the latest examples of Dow Jones Indexes’ expanded offerings for the European region; in June 2011, the firm launched two European blue-chip stock gauges, the Dow Jones Europe Titans 80 Index and the Dow Jones Eurozone Titans 80 Index, measuring leading companies within each region and the indexes on which the new volatility risk control indexes are based.
Source: Dow Jones Indexes
ISDA and S&P Indices to Co-brand S&P Credit Default Swap Indices
September 13, 2011 – The International Swaps and Derivatives Association, Inc. (ISDA) and S&P Indices announced today that they will co-brand S&P’s
existing Credit Default Swap (CDS) Indices as S&P/ISDA CDS Indices. The S&P/ISDA CDS Indices seek to reflect the credit default swap market for U.S. corporate credits and increase
transparency for market participants.
“We are very pleased to announce this partnership with S&P Indices,” said Robert Pickel, ISDA Executive Vice Chairman. “The S&P/ISDA CDS Indices will continue to provide market participants a key benchmark designed to further increase transparency and efficiency in the OTC derivatives market.”
“We are excited to co-brand our family of CDS indices with ISDA, the premier trade organization of participants in the over-the-counter derivatives markets,” said Alexander Matturri, Executive Managing Director at S&P Indices. “S&P/ISDA CDS Indices offer market participants additional, important transparency and insight into the credit default swap market. By working closely with ISDA and market participants, we expect to broaden the family of S&P/ISA CDS indices and attract even greater interest in these indices by both institutional investors and dealers alike.”
Source: ISDA
Highlights of the latest OMRil Market Report-IEA
September 13, 2011--Uncertain global economic and financial prospects underpinned volatile oil futures prices in August and early September. WTI and Brent followed divergent paths last month, with the price spread hitting record levels of over $27/bbl in early September. Prices at writing were $111/bbl for Brent and $86/bbl for WTI.
Global oil demand is revised down by 0.2 mb/d for 2011 and by 0.4 mb/d for 2012 on lower non-OECD readings and reduced economic growth expectations. Global GDP growth is now seen at 3.9% in 2011 and at 4.2% in 2012 with significant downside risks. Demand estimates now stand at 89.3 mb/d in 2011 (+1.0 mb/d y-o-y) and 90.7 mb/d in 2012 (+1.4 mb/d y‑o‑y).
World oil supply rose by 1.0 mb/d in August, to 89.1 mb/d, with non-OPEC production up by 0.8 mb/d. Rising US and Latin American production offset heavy maintenance and field outages in the North Sea. Non-OPEC supply has been revised lower to 52.8 mb/d in 2011 on outages in the Middle East and China, rising to 53.8 mb/d in 2012.
August OPEC crude oil output was up by 165 kb/d, to 30.26 mb/d with production still 1.04 mb/d below the 31.3 mb/d 3Q11 ‘call on OPEC crude and stock change’. However, the ‘call’ for 4Q11 has been lowered by 0.2 mb/d to 30.5 mb/d, due to weaker demand. With the end of Libya’s civil conflict on the horizon, we have revised up our Libyan capacity outlook for 4Q11 by 0.1 mb/d, to 0.3 mb/d
Source: International Energy Agency
ETF redemptions at highest level since 2008
September 12, 2011--Global ETF redemptions reached the highest level since June 2008 last week, with the majority in the SPDR S&P 500 ETF. now.
There were US$15bn worth of redemptions in equity ETFs, according to Cowen; $14bn of those came from the US and almost $10bn were in State Street Global Advisors' SPDR S&P 500 ETF (SPY).
Although the US market has been volatile for several weeks - the S&P 500 has fallen 16% since the end of July - and trading has spiked, it is only now that the redemptions have picked up pace.
Source: IFA Online
BlackRock calls for regulations for synthetic ETFs
September 12, 2011--BlackRock sent a letter to the Financial Stability Board arguing that regulations should be implemented to counter risks related to synthetic exchange-traded funds.
The investment-management firm also called for "full transparency" of the funds. "BlackRock supports full transparency and regulatory rules for ETFs that would mitigate the conflict of interest involved in fund managers investing in swaps with affiliated swap counterparties," the firm said.
Source: GFS News
BlackRock calls for regulations for synthetic ETFs
September 12, 2011--BlackRock sent a letter to the Financial Stability Board arguing that regulations should be implemented to counter risks related to synthetic exchange-traded funds.
The investment-management firm also called for "full transparency" of the funds. "BlackRock supports full transparency and regulatory rules for ETFs that would mitigate the conflict of interest involved in fund managers investing in swaps with affiliated swap counterparties," the firm said.
Source: GFS News
Responses to the FSB note on ETFs
September 12, 2011--On 12 April 2011, the Financial Stability Board (FSB) published a note on ETFs. The FSB indicated that it would welcome feedback from the public on this note by 16 May 2011.
The FSB wishes to thank those who have taken the time and effort to express their views. The FSB and its member authorities and standard setting bodies are continuing to monitor developments in the ETF market closely, and will use the feedback received as an input for their work.
Source: FSB
ETFS Precious Metals Weekly: Gold Price Holds Near Record High As Greek Debt Default Risk Escalates
September 12, 2011--Gold speculative futures positions rise for first time since early August as spot prices hover near record highs on rising sovereign debt concerns. Markets are now pricing a nearly 100% probability of a Greek government debt default as the deadline for the release of the next tranche of bailout funds looms this week.
Intra and inter-government disagreements within the Eurozone featured prominently last week as euro-area governments struggle to meet painful fiscal cutback provisions under the weight of slowing growth and revenues. Significantly, Germany is exploring methods to ring fence its banks from any Greek debt default.
Inflation, currency debasement concerns as governments outline plans to further pump-prime economies, maintain competitive exchange rates. US President Obama unveiled a $400bn+ package to boost employment last week as Fed minutes confirmed that the US central bank is exploring options to further underwrite flagging US growth and employment. The Swiss National Bank announced plans to sell unlimited Swiss Francs to maintain a minimum EUR/CHF rate last week as the perceived safe haven currency has soared recently.
Platinum group metals prices remain resilient as supply issues help check growth worries. Mooted mining nationalization priorities in South Africa and mining indigenisation in Zimbabwe highlight the uncertain supply environment in Africa, home to over three-quarters of global platinum production and over onethird of global palladium production.
visit www.etfsecurities.com for more info
Source: ETFS Securities
OECD composite leading indicators signal widespread slowdown in economic activity
September 12, 2011--Composite leading indicators (CLIs) for July 2011, designed to anticipate turning points in economic activity relative to trend, continue to point to a slowdown in economic activity in most OECD countries and major non-member economies. The CLI for the OECD area fell 0.5 point in July; the fourth consecutive monthly decline.
Compared to last month’s assessment, the CLIs for Canada, France, Germany, Italy, the United Kingdom, Brazil, China and India are pointing more strongly to a slowdown in economic activity.
The CLIs for the United States and Russia are now also pointing more clearly to a slowdown in economic activity than in last month’s assessment. The outlook for Japan continues to indicate a potential turning-point in economic activity.
Source: OECD