Global ETF News Older than One Year
IMF Working paper-International Mutual Funds, Capital Flow Volatility, and Contagion-A Survey
April 27, 2011--Summary: Gaining a better understanding of the behavior of international investors is key for informing the debate about the optimal response to capital flows and about reforms to the international financial architecture. In this context, recent research on the behavior of international mutual funds at the micro level has expanded our knowledge about the drivers of portfolio flows and the mechanisms behind the transmission of financial shocks across countries.
This paper provides a brief survey of this literature, with a focus on the empirical evidence for emerging markets. Overall, the behavior of international mutual funds is complex and overly simplistic characterizations are misleading. However, there is broad-based evidence for momentum trading among funds. Moreover, funds tend to avoid opaque markets and assets, and this behavior becomes more pronounced during volatile times. Portfolio rebalancing mechanisms are clearly important in explaining contagion patterns, even in the absence of common macroeconomic fundamentals. From a surveillance point of view, this implies that monitoring the exposures of large investors at a micro level is crucial to assess vulnerabilities.
Source: IMF
IMF Working paper-How to Deal with Real Estate Booms: Lessons from Country Experiences
April 27, 2011--The financial crisis showed, once again, that neglecting real estate booms can have disastrous consequences. In this paper, we spell out the circumstances under which a more active policy agenda on this front would be justified.
Then, we offer tentative insights on the pros and cons as well as implementation challenges of various policy tools that can be used to contain the damage to the financial system and the economy from real estate boom-bust episodes.
view the IMF Working paper-How to Deal with Real Estate Booms: Lessons from Country Experiences
Source: IMF
IMF Sees Long-Term Opportunities for the Middle East and North Africa Despite Short-Term Challenges Amid Unrest
April 27, 2011--Changes taking place in the Middle East and North Africa provide an opportunity for the region to lay the foundation for a socially inclusive and more dynamic growth model, but in the near term, countries face multiple pressures stemming from higher commodity prices and disruptions to economic activity, the IMF said in its April 2011 Regional Economic Outlook for the Middle East, North Africa, Afghanistan and Pakistan (MENAP), released today.
“In the long run, the uprisings could give a boost to the economies in the region by setting a more inclusive growth agenda, improving governance, and providing greater and more equal opportunity for its young and growing population. However, the near-term outlook is challenging, and there is a pressing need to address unemployment and improve social safety nets,” Masood Ahmed, Director of the IMF’s Middle East and Central Asia Department, said at the launch conference of the report in Dubai. “The immediate challenge facing oil-importing countries in the Middle East is to maintain social cohesion and macroeconomic stability in the face of multiple pressures,” he added.
view the Regional Economic Outlook: Middle East and Central Asia report
Source: IMF
Growth from International Capital Flows: The Role of Volatility Regimes -IMF Working Paper
This paper presents new evidence consistent with standard economic theory and a more benign interpretation of cross-border private capital flows. The key observation is that a country’s growth volatility changes over time. With volatility below a threshold, an inflow of foreign capital has promoted growth. However, during periods of volatile growth, more flows have been associated with slower growth. Volatility levels and changes reflect an interaction of domestic production and institutional structures with global factors. view the working paper-Growth from International Capital Flows: The Role of Volatility Regimes
Source: IMF
NASDAQ OMX Group and IntercontinentalExchange Open Letter to NYSE Euronext Stockholders
Dear NYSE Euronext Stockholder:
Source: IntercontinentalExchange
2011 Market’s Measure Preliminary Report
As of April 25, the Dow Jones Industrial Average rose 1.30% in April,
closing at 12479.88. Stock market indexes in Europe, Asia and globally were up in April, according
to preliminary monthly figures from global index provider, Dow Jones Indexes. The Dow Jones Industrial Average rose 1.30% in April, closing at 12479.88. Year-to-date, the
index is up 7.79%.
Source: Dow Jones Imdexes
NYSE boosts case for Deutsche Börse
Duncan Niederauer, chief executive of NYSE, told the Financial Times in a video interview that the companies now believed they could find “closer to €400m” in cost savings than the €300m unveiled in February.
Source: FT.com
NASDAQ OMX and ICE Issue Joint Statement on Superior Proposal
This increase appears not to be a matter of sharpening a pencil, but an unexplained shift in strategy. The discovery that initial synergies having been understated by one-third comes after receiving a superior proposal from NASDAQ OMX and ICE that achieves greater synergies. Importantly, if there are additional synergies to be found after the merger economics have been agreed, then it has to come at the expense of NYSE Euronext stockholders because there has been no increase in the price they are being offered. NYSE Euronext should describe these newly-found synergies in detail in order to support the credibility of these revised estimates, particularly in light of commitments to retain two technology platforms and two headquarters. Increasingly it appears that NYSE Euronext is more focused on protecting the transaction than its stockholders.
NASDAQ OMX and ICE have described in detail our proven and focused long-term strategy from which stockholders would benefit and our companies demonstrated outperformance relative to their proposed strategy of creating a financial supermarket. We look forward to having the same opportunity when the NYSE Euronext Board agrees to due diligence. Additional Details
All details and other supporting information related to this proposal are available on http://www.nasdaq.com/deal and http://ir.theice.com
Source: NASDAQ OMX
Gold and silver set new highs after S&P move
The precious metals – often havens in times of risk aversion – outperformed in spite of resurgent risk appetite in global markets that lifted equities and industrial commodities.
Source: FT.com
Dollar dives, gold rises on US aversion
Upbeat US and European corporate earnings propelled world stocks to a 33-month high. Several US bellwether stocks jumped after strong earnings but many of those companies have significant sales around the world.
Source: FIN24
April 27, 2011--Summary:
Recent commentary has downplayed the growth dividend from international financial integration, highlighting the possibly negative correlation between capital inflows and long-run growth.
April 26, 2011--NASDAQ OMX (NDAQ) and IntercontinentalExchange (ICE) today issued the following open letter to NYSE Euronext stockholders. NASDAQ OMX and ICE also filed an investor presentation that highlights the strategically and financially superior nature of the NASDAQ OMX/ICE proposal when compared to the existing Deutsche Boerse proposal.
NYSE Euronext's management and Board continue to deny that the NASDAQ OMX/ICE proposal is superior to the existing Deutsche Boerse agreement or that they have a fiduciary duty to review the proposal. Simply put, your Board is ignoring corporate governance best practices and the market reality of the situation.
Our proposal offers substantially greater short and long-term value and creates a compelling opportunity for the NYSE Euronext Board to meet with us while presenting no downside risk and only upside for stockholders — the Deutsche Boerse agreement allows for discussions in the event the NYSE Euronext receives a proposal that may possibly be superior.
We have offered mutual due diligence, and appropriate safeguards so that no competitive risks are posed to NYSE Euronext.
Our reverse break-up fee is a significant improvement on the Deutsche Boerse agreement and alongside committed financing, with no conditions, addresses the key concerns of the NYSE Board.
A Monthly Report from Dow Jones Indexes on the Performance of U.S., European, Asia and other Global Stock Market Indexes
April 26, 2011--Dow Jones Industrial Average Posts 1.30% Gain in April, European Stocks Gain 4.15%,
Asia Rises 0.83% and World Equities Rise by 1.69%
Health Care Sector Posts Biggest Gain for April in Europe
Utilities Sector Takes the Hardest Hit for April in Asia
The Dow Jones Europe Index rose 4.15% in April to 298.18. So far this year, the index is up
10.34%.
The Dow Jones Asian Titans 50 Index rose 0.83% in April to 143.17. So far this year, the index is
down 1.74%.
The Dow Jones Global Titans 50 Index rose 1.69% in April, closing at 188.07. Year-to-date, the
index is up 6.19%.
April 25, 2011--NYSE Euronext is set to increase by up to a third its forecast for cost savings from a deal with Deutsche Börse, as the US exchange operator raises the stakes in efforts to counter an $11.3bn bid from Nasdaq OMX and Intercontinental-Exchange.
April 25, 2011--NASDAQ OMX (NDAQ) and IntercontinentalExchange (ICE) today issued a joint statement with regard to their superior proposal for NYSE Euronext:
NYSE Euronext investors should be highly skeptical that after two years of exploratory merger discussions, including more than six months dedicated to finalizing the transaction, NYSE Euronext has suddenly found a reported €100 million in additional synergies.
April 21, 2011--Gold and silver bounded to new highs every day this week as investors shunned the dollar after Standard & Poors issued a warning on the health of the US government’s finances.
April 21, 2011--The dollar tumbled to a three-year low on Thursday against major currencies and gold surged to a new high as investors piled into investments that are less reliant on the US economy.
If you are looking for a particuliar article and can not find it, please feel free to contact us for assistace.
