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Risk management is top priority, say global investors
September 10, 2010--Solving the risk management challenges they face in the next decade is the top priority for institutional investors, according to a survey by Pyramis Global Advisors, the institutional arm of Fidelity.
Respondents said the top three lessons they had learned from the financial crisis were the need for more downside protection (62%), improved risk management (54%), a better match of assets and liabilities (49%) and a realisation that they were less diversified than they thought (42%).
The survey covered chief investment officers, treasurers and executive directors at 466 corporate and public pension plans in the US, Canada and 11 European countries, with a total $2trn in assets.
The main concern of pension plan sponsors was their current funded status (23%), followed by volatility (21%) – either the volatility of a plan's funded status or its asset volatility – and a low investment return environment (19%).
Source: IP&E
New Forum Report Identifies Smart Grids as Key for a Greener Economy
September 9, 2010-- Accelerating Successful Smart Grid Pilots, a new World Economic Forum report to be presented at the “Summer Davos” in Tianjin on 13 September developed with Accenture and industry experts, sets out the centrality of smart grids as a key enabler for a low-carbon economy and in response to increasingly growing energy demands. Today, 40% of energy is consumed in creating electricity; yet, electricity systems are based on technologies that are over 50 years old. The outdated electricity grids of today require smart grids as a dramatic upgrade to be able to support 21st century energy requirements.
Over 60 industry, policy and regulatory stakeholders were engaged in the Accelerating Successful Smart Grid Pilots report, to identify the factors that determine the success, or otherwise, of smart grid pilots. The research unearthed a number of “lessons learned” from existing pilots, and the report puts forward pragmatic recommendations to accelerate the success of smart grid pilots.
“With an estimated US$ 150 billion lost in a year in the US due to power cuts, smart grids can deliver a more reliable system with flexibility to utilize the full capacity of renewable energy,” said Espen Mehlum, Head of Electricity Industry at the World Economic Forum. “However, utilities are struggling to create the business case for smart grids, as regulatory incentives often fail to provide the right incentives and reflect the low-carbon agenda.”
The report identifies that, through information and communication technologies, the electricity grid would become “smarter”. The efficiency and carbon reduction gains would be substantial. Moreover, consumers would obtain access to new solutions to optimize their electricity consumption.
view full report- Accelerating Successful Smart Grid Pilots
Source: World Economic Forum
United States Falls in Competitiveness Rankings
The United States falls two places to fourth position, overtaken by Sweden and Singapore in the rankings of the World Economic Forum’s Global Competitiveness Report 2010-2011
The People’s Republic of China continues to move up the rankings, with marked improvements in several other Asian countries
September 9, 2010--Switzerland tops the overall rankings in The Global Competitiveness Report 2010-2011, released today by the World Economic Forum ahead of its Annual Meeting of the New Champions 2010 in Tianjin. The United States falls two places to fourth position, overtaken by Sweden (2nd) and Singapore (3rd), after already ceding the top place to Switzerland last year.
In addition to the macroeconomic imbalances that have been building up over time, there has been a weakening of the United States’ public and private institutions, as well as lingering concerns about the state of its financial markets. The Nordic countries continue to be well positioned in the ranking, with Sweden, Finland (7th) and Denmark (9th) among the top 10, and with Norway at 14th. Sweden overtakes the US and Singapore this year to be placed 2nd overall. The United Kingdom, after falling in the rankings over recent years, moves back up by one place to 12th position.
The People’s Republic of China (27th) continues to lead the way among large developing economies, improving by two more places this year, and solidifying its place among the top 30. Among the three other BRIC economies, Brazil (58th), India (51st) and Russia (63rd) remain stable. Several Asian economies perform strongly, with Japan (6th) and Hong Kong SAR (11th) also in the top 20. In Latin America, Chile (30th) is the highest ranked country, followed by Panama (53rd) Costa Rica (56th) and Brazil.
Several countries from the Middle East and North Africa region occupy the upper half of the rankings, led by Qatar (17th), Saudi Arabia (21st), Israel (24th), United Arab Emirates (25th), Tunisia (32nd), Kuwait (35th) and Bahrain (37th), with most Gulf States continuing their upward trend of recent years. In sub-Saharan Africa, South Africa (54th) and Mauritius (55th) feature in the top half of the rankings, followed by second-tier best regional performers Namibia (74th), Botswana (76th) and Rwanda (80th).
view full report-The Global Competitiveness Report 2010-2011
Source: World Economic Forum
Dow Jones Indexes and SAM to Launch European Sustainability Indexes
September 9, 2010--Dow Jones Indexes, a leading global index provider, and SAM, the investment boutique focused exclusively on sustainability investing, today announced the launch of its European sustainability index series. The Dow Jones Sustainability Europe indexes complement the global Dow Jones Sustainability index series and include broad benchmark as well as blue chip indexes for Europe and the Euro zone. The new indexes are designed to serve as benchmarks and to underlie index-linked investment products such as funds, exchange-traded funds, structured products, futures and options.
The Dow Jones Sustainability Europe Index measures the performance of the leading companies in terms of sustainability in Europe. As of September 8, 2010 the index includes 150 components, which is 47% of the free-float market capitalization of the Dow Jones Europe Total Stock Market Index. The index is calculated in euro and U.S. dollars and components are weighted by free-float market capitalization. The Dow Jones Sustainability Europe Index is reviewed annually in September. The top five components of the index are Nestle S.A., HSBC Holdings PLC (UK Reg), Novartis AG, Total S.A. and Banco Santander S.A.
Source: Dow Jones Indexes
Component Changes Made to Dow Jones China Indexes
September 9, 2010-- Dow Jones Indexes, a leading global index provider, today announced changes in the composition of the Dow Jones China Index series. Component changes in the Dow Jones China 88, Dow Jones China Offshore 50, Dow Jones China Broad Market, Dow Jones Shanghai, Dow Jones Shenzhen and Dow Jones CBN China 600 indexes will be effective after the close of trading on Friday, September 17, 2010.
The following six companies will be deleted from the Dow Jones China 88 Index, which tracks the largest and most liquid 88 stocks in China’s Class-A market and reflects roughly 39.65% of the float-adjusted market capitalization of both the Shanghai and Shenzhen Class-A markets: Hong Yuan Securities Co. Ltd. (Financial Services, 000562.SZ), Pangang Group Steel Vanadium & Titanium Co. Ltd. (Basic Resources, 000629.SZ), Shanghai Zhenhua Heavy Industry Co. Ltd. (Industrial Goods & Services, 600320.SH), Shanghai Dazhong Public Utilities (Group) Co. Ltd. (Utilities, 600635.SH), Shenergy Co. Ltd. (Utilities, 600642.SH) and Jinduicheng Molybdenum Co. Ltd. (Basic Resources, 601958.SH).
Source: Dow Jones Indexes
Regular Review Results For Dow Jones Islamic Market Indexes
September 9, 2010-- Dow Jones Indexes, a leading global index provider, today announced the results of the regular annual and regular quarterly review of the Dow Jones Islamic Market Indexes. All changes will be effective after the close of trading on Friday, September 17, 2010
In the Dow Jones Islamic Market China/Hong Kong 30 Index, the following four components will be added: GOME Electrical Appliances Holding Ltd. (Hong Kong, Retail, 0493.HK), Geely Automobile Holdings Ltd. (Hong Kong, Automobiles & Parts, 0175.HK), Anta Sports Products Ltd. (Hong Kong, Personal & Household Goods, 2020.HK) and China Dongxiang Group Co. Ltd. (Hong Kong, Retail, 3818.HK). Companies exiting the index: Cheung Kong Infrastructure Holdings Ltd. (Hong Kong, Construction & Materials, 1038.HK), Kingboard Chemical Holdings Ltd. (Hong Kong, Chemicals, 0148.HK), Pacific Basin Shipping Ltd. (Hong Kong, Industrial Goods & Services, 2343.HK) and China Unicom (Hong Kong) Ltd. (China, Telecommunications, 0762.HK).
The free-float market capitalization of the reconstituted Dow Jones Islamic Market China/Hong Kong 30 Index decreased to US$208.50 billion from US$223.52 billion.
read more
Source: Dow Jones Indexes
Emerging Market ETFs Show Leadership in U.S. Trading: Technical Analysis
ETFs listed in the U.S. that track the stock markets of Colombia, Chile and Thailand have closed at records in the past week, while funds linked to India, Singapore and Malaysia are trading at their highest levels in at least a year. Their gains are in contract to equity benchmarks for the U.S. and Europe,...
Source: Bloomberg
Economy: Recovery slowing amid increased uncertainty, says Interim Economic Assessment
The OECD says the loss of momentum in the recovery is temporary although uncertainty has increased.
“The uncertainty is caused by a combination of both positive and negative factors,” said OECD Chief Economist Pier Carlo Padoan. “But it is unlikely that we are heading into another downturn.”
While consumer spending is set to remain weak, a combination of robust corporate profits and low business investment suggest that capital spending is unlikely to weaken further. Because inventories are now close to desired levels, a renewed depletion of stocks is also unlikely.
Overall financial conditions have stabilised, the report notes, and growth remains strong in the major emerging-market economies.
Source: OECD
NYSE Euronext Announces Trading Volumes for August 2010
NYSE Euronext (NYX) today announced trading volumes for its global derivatives and cash equities exchanges for August 20101. Global derivatives average daily volume ("ADV") increased 8.4% to 6.3 million contracts traded per day in August 2010. The increase in global derivatives ADV versus prior year levels was driven by a 30.3% increase in U.S. equity options ADV, partially offset by a 6.0% decrease in European derivatives ADV during the seasonally slower summer period. Cash equities ADV in August 2010 were down, with European and U.S. cash trading volumes decreasing 1.9% and 21.8%, respectively, compared to prior year levels. Highlights NYSE Euronext global derivatives ADV in August 2010 of 6.3 million contracts increased 8.4% compared to August 2009, but decreased 10.7% from July 2010 levels. Open interest across all global derivatives businesses at the end of August 2010 was 89.0 million contracts, an increase of 1.8% compared to August 2009, but a decrease of 1.2% compared to July 2010. Global derivatives fixed income open interest of 29.5 million contracts was up 19.1% compared to August 2009 and up 4.3% compared to July 2010.
Source: NYSE Euronext
Education: Governments should expand tertiary studies to boost jobs and tax revenues
“In a global economy, it is no longer improvement by national standards alone. The best performing education systems internationally provide the benchmark for success,” said OECD Secretary-General Angel Gurría launching the report in Paris. “With the worldwide recession continuing to weigh on employment levels, education is an essential investment for responding to the changes in technology and demographics that are re-shaping labour markets.” Recent experience demonstrates the value of investing in education. During the economic downturn, young people with low levels of education were hard hit, with unemployment rates for those that had not completed high school rising by almost five percentage points in OECD countries between 2008 and 2009.
view Education at a Glance 2010: OECD Indicators
Source: OECD
September 9, 2010--Exchange-traded funds focused on Latin America and Asia have solidified their leadership position among global equity markets by rising to 52-week highs in recent weeks, according to Vermilion Technical Research.
September 9, 2010--The world economic recovery may be slowing faster than previously anticipated, according the OECD’s latest Interim Economic Assessment. Growth in the Group of Seven countries is expected to be around 1½ per cent on an annualized basis in the second half of 2010 compared with the previous estimate of around 2½ per cent in the OECD’s May Economic Outlook.
September 7, 2010--Global Derivatives Averaged 6.3 Million Contracts per Day in August, Up 8% vs. Prior Year;
Global Derivatives Open Interest of 89 Million Contracts, Up 2%;
U.S. Cash ADV Down 22%, Tape A Market Share Increases to 38%; European Cash ADV Down 2%
September 7, 2010--Governments need to go for world-class quality in their education systems to ensure long-term economic growth, according to the latest edition of the OECD’s annual Education at a Glance.
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