Global ETF News Older than One Year
London Stock Exchange Group – TMX Group Statement On The Ontario Government Select Committee Report
April 19, 2011--TMX Group and London Stock Exchange Group acknowledge the significant work undertaken by the Ontario Select Committee to review the merits of our transaction. We will review the report in detail and look forward to continued open dialogue with all stakeholders as we work towards obtaining the required regulatory and shareholder approvals to complete our transaction.
The two companies believe the opportunity to create an international exchange leader is significant; our customers, our shareholders and the markets we serve will directly benefit from this strong partnership.
Source: RTT News
Identifying the Linkages Between Major Mining Commodity Prices and China’s Economic Growth-Implications for Latin America -IMF Working paper
April 19, 2011--Summary: Major mining commodity prices are inherently volatile and cyclical. High levels of investment in China have been a key driver in the strong world demand for minerals and metals over the past decade. The urbanization and industrialization of China has been an important factor behind the increase in domestic demand and high investment growth, while its export sector is also an important source of growth and plays a critical role as a catalyst.
Activity in infrastructure, construction, real estate, and automobile manufacturing all contribute to the strong demand for minerals. Over the next five years, the Chinese demand is expected to remain strong, supported by investment and gradually rising consumption rates. However, in the second part of this decade economic growth in China could slow down. For Latin American countries, export receipts should remain strong over the next five years and beyond, given the continued strong demand from China.
Source: IMF
Hedge funds surge to peak of $2,002bn
April 19, 2011--Assets under management in the global hedge fund industry have soared to an all-time peak, surpassing the pre-crisis high thanks to the strongest investor inflows in years.
The world’s hedge funds at present manage $2,002bn of client funds, according to Hedge Fund Research, the industry’s leading data provider .
Source: FT.com
ETFS Precious Metals Weekly: Gold approaches $1500/oz as inflation, debt fears mount
April 18, 2011--Gold price hits new record as inflation concerns take root.
Metal consultancy GFMS publishes forecast of $1600/oz gold spot price by year-end.
Silver nears $50/oz as latest figures show the Chinese economy maintained near double-digit growth in Q1.
Further strong global growth data, particularly for global manufacturing powerhouse China, also added to the bid tone for silver. It reached its highest level since January 1980 last week, closing in on the $50/oz mark.
Gains in platinum group metals prices have been more modest than gold and silver over the past fortnight on downgrades to the near term Japan growth outlook by the IMF and the Japanese government.
Gold price hits new record as inflation concerns take root. Inflation cemented itself as an issue for markets following higher than expected inflation in the US, Europe, China and India. Large sovereign debt overhangs in developed economies, coupled with patchy employment growth, is staying the hand of central banks despite accelerating inflation. Slow currency appreciation is fanning imported inflation in China, while shortages in food markets are boosting inflation in emerging markets generally. Investors appear to be looking at precious metals as a way to hedge against potential inflation and currency debasement risks.
visit www.etfsecurities for more info
Source: ETF Securities
Brazil overtakes China in emerging private equity
April 18, 2011--Brazil has overtaken China as the favourite market for emerging private equity deals over the next year, due to a stronger political and regulatory environment and lower valuations, according to a survey published on Monday.
Private equity investors want to increase their exposure to emerging markets as a whole, to 16-20 percent in the next two years from 11-15 percent currently. This is primarily due to the high economic growth in these markets, according to the Emerging Markets Private Equity Association and Coller Capital survey of 156 private equity investors globally.
Source: Reuters
Brics mull trade system to bypass dollar
April 17, 2011-- Brics nations could benefit considerably by trading directly in their own countries, cutting out unstable internationally convertible currencies, Trade and Industry Minister Rob Davies said on Sunday.
Davies said such a system would take out the money lost to the "middle man" in conversion, and protect Brics trading partners (Brazil, Russia, India, China and South Africa) from the volatility affecting internationally convertible currencies, notably the dollar.
Source: FIN 24
FSB progress report -Progress in the Implementation of the G20 Recommendations
April 15, 2011--The FSB published on 15 April its report to G20 Finance Ministers and Central Bank Governors on implementation of regulatory reforms for strengthening financial stability.
The report focuses on international policy development and implementation that has taken place since the G20 Finance Ministers and Central Bank Governors meeting in February 2011.
Progress in the Implementation of the G20 Recommendations for Strengthening Financial Stability
Source: Financial Stability Board (FSB)
FSB progress report on implementing OTC derivatives market reforms
April 15, 2011--The FSB published on 15 April its progress report on implementation of OTC derivatives market reforms. The report summarises progress made toward implementation of the G20 commitments concerning standardisation, central clearing, exchange or electronic platform trading, and reporting of OTC derivatives transactions to trade repositories.
In particular it looks at progress against the 21 recommendations set out in the FSB's October 2010 report for implementing reforms in an internationally consistent and non-discriminatory implementation to meet the G20 commitments. In the report, the FSB makes several overall observations on progress, including identifying a number of issues meriting additional attention in the near term.
view the OTC Derivatives Market Reforms-Progress report on Implementation
Source: Financial Stability Board (FSB)
Growth Returning to Emerging Europe and Central Asia, but Rising Food and Energy Prices Make Some Countries Vulnerable
April 15, 2011-- Every country in the Emerging Europe and Central Asia (ECA) region[1] is expected to grow in 2011, but some countries are vulnerable to rising food and energy prices, said the World Bank at a press briefing during the World Bank/IMF Spring Meetings 2011.
Rising food and energy prices could push 5.3 million more people into poverty across Emerging Europe and Central Asia,” said Theodore Ahlers, Director of Strategy and Operations of the World Bank’s Europe and Central Asia region. “For most countries in the region growth returned in 2010, following sharp declines in 2008 and 2009. However, the region’s annual growth of around 4.5 percent was much lower than that of other regions in 2010, and projections for 2011–13 indicate only slightly stronger performance.”
Every country in the ECA region should record positive growth in 2011, however growth is more tepid in Central and Southeastern Europe than in the Commonwealth of Independent States (CIS), where high commodity prices have lifted net exports, increased remittance flows from migrants, and boosted private consumption. Yet, higher food and energy prices are a source of vulnerability for net importers as these threaten to increase poverty, particularly in lower income economies in the CIS, and add more pressures to macroeconomic policy management across the region.
Source: World Bank
Fat Tails and their (Un)happy Endings: Correlation Bias and its Implications for Systemic Risk and Prudential Regulation -IMF Paper
April 15, 2011--Summary: The correlation bias refers to the fact that claim subordination in the capital structure of the firm influences claim holders’ preferred degree of asset correlation in portfolios held by the firm. Using the copula capital structure model, it is shown that the correlation bias shifts shareholder preferences towards highly correlated assets, making financial institutions more prone to fail and increasing systemic risk given interconnectedness in the financial system.
The implications for systemic risk and prudential regulation are assessed under the prism of Basel III, and potential solutions involving changes to the prudential framework and corporate governance are suggested.
Source: IMF
