Global ETF News Older than One Year
Education: Governments should expand tertiary studies to boost jobs and tax revenues
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.
“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
Diamond to be new head of Barclays
September 7, 2010--Barclays on Tuesday confirmed Bob Diamond, head of its fast-growing investment bank, as its next chief executive.
Mr Diamond, who runs BarCap from New York but will move back to London to take up his new post, will be paid an annual salary of £1.35m, up from the current £250,000. His annual bonus will be two and a half times his salary – £3.37m – and he will also receive a long-term incentive plan of five times his salary.
Source: FT.com
Harvest fears push up global grain prices
September 3, 2010--Much has been written about the Great Moderation and the Great Depression over recent years but much less attention has been paid to the Great De-Rating. That could be about to change. An increasing number of market professionals are asking themselves if the brutal de-rating suffered by equities during the past decade means the cult of equity is dying.
Certainly investors have fallen out of love with equities. Since the dotcom bubble burst, the trailing price earnings ratio for the London stock market has dropped from more than 25 to about 10. Dividend yields on a trailing and prospective basis are now higher than 10-year UK gilts, something that has rarely happened in the past 50 years, while the weighting of equities in UK private pension funds has fallen sharply, by 37 percentage points on some measures.
Source: FT.com
Dow Jones Index Data Monthly Reports
August 2, 2010--The following Dow Jones Index Data Monthly Reports for August 20,2010 are now available:
Index Data Monthly Report: Asia Pacific Edition
Index Data Monthly Report: MENA Edition
Index Data Monthly Report: Dow Jones Islamic Market Indexes
Index Data Monthly Report: Europe Edition
Index Data Monthly Report: Dow Jones-UBS Commodity Indexes
Index Data Monthly Report: Latin America Edition
Index Data Monthly Report: U.S. Edition
Index Data Monthly Report: Dow Jones Brookfield Infrastructure Indexes
visit Dow Jones Indexes for more info.
Source: Dow Jones Indexes
Moving Public Debt onto a Sustainable Path
Debt problems began before crisis, will take years to fix
Detailed long-term plans to reduce debt would help protect fragile recovery
Credible action by countries essential to manage risks
September 2, 2010--The global economic crisis has eroded the government coffers of advanced economies and countries will need to return debt levels to a sustainable path to manage fiscal risks, foster long-term growth, and create jobs in the coming years.
The IMF said governments need to develop credible fiscal plans that focus on longer-term solutions, rather than on quick fixes, to protect the fragile recovery and reassure financial markets. In some cases, a marked departure from the normal historical pattern of adjustment to rising public debt is needed to manage fiscal risks.
The research is part of the IMF’s ongoing analysis to help countries emerge out of the crisis and return to economic growth and more sustainable debt levels.
Long-Term Trends in Public Finances in the G-7 Economies, Fiscal Space, and Default in Today’s Advanced Economies: Unnecessary, Undesirable and Unlikely provide a comprehensive analysis of the fiscal challenges faced by different countries in the coming years.
Source: IMF
Emerging market dollar-issues soar
September 1, 2010--Companies and governments in emerging markets can borrow more cheaply in the dollar than in their own currencies for the first time in two years – in a further boost to buoyant dollar-denominated bond markets.
Issuance of emerging market dollar-denominated bonds has surged to record levels this year as the cost of borrowing in the US currency has fallen.
In August, according to JPMorgan indices, yields on emerging market dollar-enominated debt averaged 5.7 per cent against comparable yields in local currencies of 6.5 per cent
Source: FT.com
Average Daily Volume of 7.8 million Contracts at Eurex and ISE in August
Eurex Repo continues to grow
September 1, 2010--At the international derivatives markets of Eurex, an average daily volume of 7.8 million contracts was traded in August (August 2009: 9.1 million). Thereof, 5.4 million contracts were traded at Eurex (August 2009: 5.4 million) and 2.4 million contracts were traded at the International Securities Exchange (August 2009: 3.7 million).
In total, 171.2 million contracts were traded on both exchanges compared with 191.5 million contracts in August 2009.
At Eurex, the equity index derivatives segment was the most active segment, totaling 55.5 million contracts, compared with 55.7 million contracts in August 2009. Futures on the EURO STOXX 50 reached 24.8 million contracts and options recorded another 21.2 million contracts. The futures and options on the DAX index reached a combined turnover of 7.9 million contracts.
The Eurex segment of equity-based derivatives (equity options and single stock futures) recorded 25.0 million contracts (August 2009: 25.1 million). Thereof, equity options totaled at 21.4 million contracts. Single stock futures totaled 3.6 million contracts.
Eurex’s interest rate derivatives segment reached 38.5 million contracts, compared with 32.0 million in August 2009. Approximately 16.7 million contracts were traded in the Euro-Bund-Future, 8.6 million contracts in the Euro-Schatz Future, 8.5 million contracts in the Euro-Bobl-Future and nearly 69,000 contracts in the Euro-BTP-Future.
Source: Eurex
* New Report * ETF Landscape Industry Review July 2010
August 31, 2010--Current ETF and ETP landscape, as at end July 2010
Global
At the end of July 2010 the global ETF industry had 2,282 ETFs
with 4,872 listings, assets of US$1,095.2 Bn, from 124 providers
on 42 exchanges around the world.
YTD assets increased by 5.7%, compared to the the 3.7%
decrease in the MSCI World Index in US dollar terms.
The top 100 ETFs, out of 2,282, account for 63.9% of global ETF AUM, while 1,187 ETFs have less than US$50.0 Mn in assets and 457 ETFs have less than US$10.0 Mn in assets.
YTD the number of ETFs increased by 17.3% with 368 new ETFs launched, while 33 ETFs were delisted.
The number of ETFs listed in Europe surpassed the US in April 2009, now with 969 ETFs listed in Europe, compared to 866 in the US at end July 2010.
There are currently plans to launch 970 new ETFs.
YTD the number of exchanges with official listings increased from 40 to 42.
YTD the average daily trading volume in US dollars increased by 30.9% to US$66.4 Bn.
MSCI ranks first in terms of ETF AUM tied to its benchmarks with assets of US$263.9 Bn and 323 ETFs, while Standard & Poor’s (S&P) ranks second with US$244.3 Bn and 277 ETFs, followed by Barclays Capital with US$110.3 and 78 ETFs.
Globally, iShares is the largest ETF provider in terms of both number of products, 453 ETFs, and assets of US$506.8 Bn, reflecting 46.3% market share; State Street Global Advisors is second with 110 products and US$153.3 Bn, 14.0% market share; followed by Vanguard with 47 products and assets of US$113.1 Bn and 10.3% market share at the end of July 2010.
The top three ETF providers, out of 124, have 70.6% market share.
Globally, net sales of mutual funds (excluding ETFs) were minus US$283.3 Bn, while net sales of ETFs were positive US$71.3 Bn during the first six months of 2010 according to Strategic Insight.
Additionally, there were 849 other Exchange Traded Products (ETPs) with 1,415 listings and assets of US$128.6 Bn from 47 providers on 20 exchanges.
Combined, there were 3,131 products with 6,287 listings, assets of US$1,223.7 Bn from 150 providers on 45 exchanges around the world at the end of July 2010.
Source: Global ETF Research & Implementation Strategy Team, BlackRock
Knight Direct Joins ExNet By Orc Software For Global Market Access
August 31, 2010--Swedish company Orc Software AB (STO: ORC) said today that US firm Knight Direct, part of financial services firm Knight Capital Group (NYSE: KCG | PowerRating), has jointed the Orc ExNet broker connectivity network to offer algorithmic execution services and market access to clients.
The partnership allows Orc Software's users to trade securities directly via Knight Direct, and provides access to the latter's extensive set of execution algorithms.
By joining Orc ExNet, Knight Direct is able to offer its suite and global market access to an even wider community of traders, managing director at a Knight Capital's subsidiary Bradley Duke said.
Orc ExNet provides hedge funds, proprietary traders, and other advanced traders with non-membership access to major liquidity pools worldwide, including official exchanges and electronic communication networks (ECNs).
Source: Nordic Business Report
Annual inflation in OECD area edges up to 1.6% in July 2010
August 31, 2010--Consumer prices in the OECD area rose by 1.6% in the year to July 2010, up from 1.5 % in June. This small increase mainly reflected developments in energy and food prices, which increased by 6.2% and 1.1% respectively in the year to July, compared with rises of 4.7% and 0.6% in June.
Excluding food and energy, consumer prices rose by 1.2% in the year to July 2010, down from 1.3% in June.
Deflation continued in Japan where consumer prices fell by 0.9% in the year to July, compared with a decline of 0.7% in June. Inflation rose in all other G7 countries except the United Kingdom, where annual inflation was 3.1% in July down from 3.2% in June. In Canada, inflation was 1.8% in the year to July, up from 1.0% in June. In France, inflation was 1.7% in July, up from 1.5% in June. Prices rose 1.7% in Italy in July, up from 1.3% in June. In Germany, prices rose 1.2% in July, up from 0.9% in June. Inflation was 1.2% in the United States in July, up from 1.1% in June. Euro area annual inflation (HICP) was 1.7% in July up from 1.4% in June.
Source: OECD
