Global ETF News Older than One Year
LSE seen as bid target on the rebound
May 18, 2011--If there is one deal that Bob Greifeld, Nasdaq OMX chief executive, has wanted to clinch above all others, it is buying the London Stock Exchange.
The British bourse escaped his grasp in 2007, after a bruising takeover attempt that turned hostile the previous year.
Source: FT.com
Global stocks hit 1-month low
May 17, 2011--World stocks fell to a one-month low on Tuesday on lingering doubts over the global economic recovery and worries about the debt of peripheral euro zone nations, while oil was pushed down by demand concerns and a firm dollar.
Wall Street stocks opened lower after weak data on housing and industrial production added to concerns the recovery is taking longer than expected. The euro zone's blue chip Euro STOXX 50 index fell 0.6%, down for the fourth consecutive session, after the chairman of euro zone finance ministers suggested Greece's debt could undergo a "soft" restructuring.
Source: FIN24
Impact of the Global Crisis on Banking Sector Soundness in Asian Low-Income Countries -IMF Working paper
May 17, 2011--Summary: The paper takes stock of the impact of the global financial crisis that began in late 2007 on banking sectors of Asian low-income countries, by exploring bank-level data provided by Bankscope.
The paper examines three key channels of possible crisis spillovers: exposures to (i) valuation changes of mark-to-market financial assets, (ii) a drop in crossborder funding, and (iii) rises in NPLs prompted by international real economic linkages. The paper finds that despite relatively low financial integration, the impact of the crisis on LIC banks, particularly the largest ones, were not insignificant. Impacts were most palpable through a loan-to-crossborder funding nexus.
Source: IMF
Emerging Market Growth Poles are Redefining Global Economic Structure, Says World Bank Report
May 17, 2011--– By 2025, six major emerging economies—Brazil, China, India, Indonesia, South Korea, and Russia—will account for more than half of all global growth, and the international monetary system will likely no longer be dominated by a single currency, a new World Bank report says. As economic power shifts, these successful economies will help drive growth in lower income countries through cross-border commercial and financial transactions.
The report, Global Development Horizons 2011—Multipolarity: The New Global Economy, projects that as a group, emerging economies will grow on average by 4.7 percent a year between 2011 and 2025. Advanced economies, meanwhile, are forecast to grow by 2.3 percent over the same period, yet will remain prominent in the global economy, with the euro area, Japan, the United Kingdom, and the United States all playing a core role in fueling global growth.
“The fast rise of emerging economies has driven a shift whereby the centers of economic growth are distributed across developed and developing economies – it’s a truly multipolar world,” said Justin Yifu Lin, the World Bank’s chief economist and senior vice president for development economics. “Emerging market multinationals are becoming a force in reshaping global industry, with rapidly expanding South-South investment and FDI inflows. International financial institutions need to adapt fast to keep up."
view report-World Bank Global Development Horizons 2011 Multipolarity: The New Global Economy
Source: World Bank
NYSE Euronext Acknowledges Withdrawal Of Proposal By Nasdaq OMX Group, Inc. And Intercontinentalexchange, Inc.
May 16, 2011--NYSE Euronext (NYSE:NYX - News) today acknowledged the withdrawal of the proposal from Nasdaq OMX Group, Inc. (Nasdaq:NDAQ - News) and IntercontinentalExchange Inc. (NYSE:ICE - News) to acquire all outstanding shares of NYSE Euronext.
“As we have consistently maintained, the combination with Deutsche Boerse creates the world’s premier exchange group -- a geographically diverse business across multiple asset classes that will create compelling long term value for our shareholders. We look forward to continuing to share this vision with shareholders and other stakeholders as we move toward our vote on July 7th,” said Duncan L. Niederauer, Chief Executive Officer of NYSE Euronext.
NYSE Euronext’s financial advisers are Perella Weinberg Partners, BNP Paribas, Citigroup, Goldman, Sachs and Co., and Morgan Stanley & Co., Inc. Its legal advisers are Wachtell, Lipton, Rosen & Katz, Stibbe N.V. and Milbank, Tweed, Hadley & McCloy LLP.
Source: NYSE Euronext
ETFS Precious Metals Weekly: Silver Price Stabilizes Following COMEX Rout
May 16, 2011--Silver price stabilizes as COMEX futures speculative futures positions are cleared out.
Gold investor demand shows resilience as buying interest emerges below the $1,500/oz mark.
Japan auto maker earnings indicate an uneven recovery in auto-catalyst demand.
Silver price stabilizes as COMEX futures speculative futures positions are cleared out. The silver price rebounded last week following the rout of the previous week. Global silver ETP flows also stabilized, as much of the froth was taken out of the market. Barring further COMEX margin hikes, the outlook for silver will likely be highly dependent on investor views of the durability of the economic recovery
Gold investor demand shows resilience as buying interest emerges below the $1,500/oz mark. Data this week showed CPI inflation in China has topped the 4% full year government target each month so far this year to April, highlighting the strength of global inflation pressure. Sovereign debt concerns were brought back into sharp relief early last week as well, as S&P downgraded Greece’s government debt rating one notch from B to BB-. Both factors are providing support to gold.
visit www.etfsecurities.com for more info.
Source: ETF Securities
NASDAQ OMX and IntercontinentalExchange Withdraw Their Proposal to Acquire NYSE Euronext
May 16, 2011--The NASDAQ OMX Group, Inc. (NDAQ) and IntercontinentalExchange (ICE) today announced that following discussions with the Antitrust Division of the U.S. Department of Justice, they are withdrawing the joint proposal they made in April, 2011 to acquire NYSE Euronext and will not commence the exchange offer to acquire all of the outstanding shares of NYSE Euronext.
NASDAQ OMX CEO Bob Greifeld said: "We took the decision to withdraw our offer when it became clear that we would not be successful in securing regulatory approval for our proposal despite offering a variety of substantial remedies, including the sale of the NYSE SRO and related businesses. We saw a unique opportunity to create more value for stockholders and strengthen the U.S. as a center for capital formation amid an ongoing shift of these vital activities and jobs outside of our country.
"NASDAQ OMX has demonstrated an ability to outperform, whether the comparison is against all other equity exchanges today, or even against the largest derivatives exchanges. We have achieved outstanding earnings growth over the last few years and are confident that our global model features a healthy mix of product diversification and will continue to thrive based on our efficiency and ability to innovate.
Source: NASDAQ OMX
Causes of Asset Shortages in Emerging Markets- IMF Working paper
May 16, 2011--Summary: We first illustrate that emerging markets (EMs) face a shortage of financial assets, with financial assets not growing as rapidly as domestic savings. We then estimate the asset shortage in EMs for 1995-2008.
We develop a model that explains how asset shortage develop, and then econometrically estimate the causes of asset shortages. We conclude with policy implications.
view the IMF Working paper-Causes of Asset Shortages in Emerging Markets
Source: IMF
Public-Private Partnerships in Europe and Central Asia
May 16, 2011--Summary
The global financial crisis that began in late 2008 has set back ambitious infrastructure development plans among many countries in Europe and Central Asia (ECA). Many such plans relied on Public-Private Partnerships (PPP) arrangements. Furthermore, the financial crisis resulted in sharp declines in gross domestic product (GDP) and country’s deteriorating fiscal space restricted the scope for maintaining the level of investment or introducing counter-cyclical measures driven by public sector investment in infrastructure.
Soaring levels of public debt, limited room to cut expenditures, and lower tax receipts due to slower than expected economic growth will mean that the ‘fiscal space’ in the region to make public investments in infrastructure will be strained in the coming years. The ability of many ECA country governments to expand expenditure any further, even for productive investments in infrastructure, will thus prove challenging.
Nevertheless, the year 2010 saw some countries and cities reaching financial close on multi-billion projects while others are still struggling to close their first PPP project in highway. The comparison of the Pulkovo Airport in Russia and the Comarnic-Brasov Highway in Romania is an illustration of this situation. On one hand St Petersburg developed a robust PPP project that involved the rehabilitation of an existing asset with established demand. On the other hand, the Romania examples show how projects with large capital requirements with unknown demand risk are still considered risky for the private sector, especially in the context of reduced liquidity from the financial
view report-Public-Private Partnerships in Europe and Central Asia
Source: World Bank
State Street eyes securities services buys
May 16, 2011-State Street plans to expand its securities services arm outside the US through acquisitions, benefiting from European lenders' needs to shed ancillary businesses to raise capital.
“The market is going to deliver opportunity,” Jay Hooley, the trust bank’s chief executive, told the Financial Times. “I think we’re poised very well, from the standpoint of business model and capital strength, to take advantage of acquisitions as they present themselves.”
Source: Financial Trust
