Global ETF News Older than One Year
IEO Releases Evaluation of IMF Performance in the Run-Up to the Financial and Economic Crisis: IMF Surveillance in 2004–07
February 9, 2011--The Independent Evaluation Office (IEO) of the International Monetary Fund (IMF) released today its evaluation of the IMF Performance in the Run-Up to the Financial and Economic Crisis. This evaluation was discussed by the IMF’s Executive Board on January 26, 2011. In releasing the report, IEO Director Moises Schwartz explained that the evaluation’s main aim is to improve the effectiveness of IMF surveillance in
warning the membership on emerging risks and vulnerabilities to the global economy.
The evaluation focused on the performance of IMF surveillance during the 2004-2007 period. The report found that the IMF provided few clear warnings about the risks and vulnerabilities associated with the impending crisis before its outbreak. During the run-up to the crisis, the banner message of IMF surveillance was characterized by overconfidence in the soundness and resiliency of large financial institutions, and endorsement of the financial practices in the main financial centers. The risks associated with housing booms and financial innovations were downplayed, as was the need for stronger regulation to address these risks.
The IEO found that the IMF’s ability to identify the mounting risks was hindered by a number of factors, including a high degree of groupthink; intellectual capture; and a general mindset that a major financial crisis in large advanced economies was unlikely. Weak internal governance and an institutional culture that discourages contrarian views also played an important role.
Source: Independent Evaluation Office (IEO)
Dow Jones Index Data Monthly Reports
February 9, 2011--The following Dow Jones Index Data Monthly Reports for OCtober 2010 are now available.
Index Data Monthly Report: Dow Jones-UBS Commodity Indexes
Index Data Monthly Report: Latin America Edition.
Index Data Monthly Report: Dow Jones Brookfield Infrastructure Indexes
Source: Dow Jones Indexes
French oil giant Total facing investor resolution on tar sands
Company to face questions at AGM in May
February 9, 2011--French activist investor PhiTrust Active Investors is to quiz Total SA on the tar sands issue at the oil major’s forthcoming annual shareholder meeting.
PhiTrust says it will table a resolution on the risks involved in its tar sands operations in Alberta, Canada. Fellow oil firms BP and Shell have faced similar shareholder resolutions on the tar sands issue in the past, but PhiTrust claims it is the first such resolution in France. Total is set to hold its Annual Shareholders’ Meeting in Paris on May 13.
Source: Responsible Investor
NYSE Euronext, Deutsche Boerse shares suspended
February 9, 2011--Officials at stock exchange operators NYSE Euronext and Germany's Deutsche Boerse AG say trading of their own shares has been halted — after shares of the New York-based stock exchange operator soared 12 percent.
Caroline Tourrier, spokeswoman for NYSE Euronext, said the stock exchange's shares were suspended pending a press release. She declined further comment.
A Deutsche Boerse spokesman declined to comment on why trading in its shares has been halted.
Two rival exchanges — the London Stock Exchange Group PLC and TMX Group Inc., which operates the Toronto Stock Exchange — announced a merger earlier Wednesday.
NYSE Euronext shares last traded at euro27 ($36.81), up 12 percent, while Deutsche Boerse's last quoted share price was euro58.42, up 1.7 percent.
Source: Associated Press
The World Federation of Exchanges Publishes 2010 Market Statistics
February 7, 2011-- Global equity market capitalization on regulated exchanges increased 14.9 percent to $54.8 trillion (USD) in 2010 as markets continued their rebound from the 2008 financial crisis, the World Federation of Exchanges (WFE ) reported in its annual publication of market statistics.
The 2010 total market capitalization for the more than 50 WFE-member exchanges, which had increased 45.5 percent increase in 2009, approached its record high of $60.8 trillion (USD) last achieved at the end of 2007. The Asia-Pacific region’s capitalization gained 19.5 percent, followed by the Americas (+17.1 percent) and Europe-Africa-Middle east (+7.4 percent).
Source: WFE
Investors back onshore hedge funds
February 7, 2011--A majority of hedge fund investors are eschewing traditional offshore funds in favour of tightly regulated onshore vehicles – a sign of the lasting impact of the Madoff scandal and 2008 liquidity crisis.
According to a comprehensive industry survey, 55 per cent of hedge fund investors would now prefer to allocate money in onshore so-called Ucits funds compared with just 21.7 per cent in traditional offshore Cayman Island funds.
Source: FT.com
Food price boom puts palm oil on emerging markets’ radar
February 4, 2011--Palm oil output and stocks, already lagging robust demand due to rains in top Southeast Asia producers, could be made worse should the cooking ingredient become the next target for emerging markets seeking to buy big and dampen adverse effects of booming world food prices.
As governments from India and Thailand to Egypt act to quell soaring food inflation and public anger, world cooking oil supplies look uncertain as the impact of dry weather and social unrest in the Argentine soy crushing sector lingers. A scramble for palm oil may see world consumption outpace production, going beyond a supply deficit of 246,000 tons as seen in US Department of Agriculture data in the current marketing year to September.
Source: Todays Zaman
Classifications of Countries Based on Their Level of Development: How it is Done and How it Could be Done-IMF Working paper
February 4, 2011-- The paper analyzes how the UNDP, the World Bank, and the IMF classify countries based on their level of development. These systems are found lacking in clarity with regard to their underlying rationale.
The paper argues that a country classification system based on a transparent, data-driven methodology is preferable to one based on judgment or ad hoc rules. Such an alternative methodology is developed and used to construct classification systems using a variety of proxies for development attainment.
Source: IMF
Copper and oil prices climb on fears of supply disruption
February 4, 2011--Oil and copper prices broke this week above $100 a barrel and $10,000 a tonne respectively, amid strong demand and supply worries.
“The strength of the global economic recovery is driving commodities like base metals and energy higher and these two sectors have been the best performers during the past week,” said Ole Hansen, senior commodity analyst at Saxo Bank in Denmark.
Source: FT.com
NYSE Euronext Announces Trading Volumes for January 2011
Global Derivatives Averaged 9.0 Million Contracts per Day in January
European Derivatives Volumes Down 8% vs. Prior Year; Up 42% Sequentially
European Cash Trading Volumes Up 28%, U.S. Cash Down 12% vs. Prior Year
February 4, 2011--NYSE Euronext (NYX) today announced trading volumes for its global derivatives and cash equities exchanges for January 2011 .
Global derivatives average daily volume (“ADV”) of 9.0 million contracts traded per day in January 2011 decreased 2.7% versus the prior year, but increased 35.6% sequentially.
The decrease in global derivatives ADV versus prior year levels was driven primarily by a 7.5% decrease in European derivatives, partially offset by a 3.0% increase in U.S. equity options ADV. The strong sequential increase was driven by a 78.0% increase in European fixed income derivatives and a 29.5% increase in U.S. equity options. Cash equities ADV in January 2011 was mixed, with European cash ADV increasing 27.8% and U.S. cash trading volumes decreasing 12.2% from January 2010 levels.
Source: NYSE Euronext
