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Risk on, as investors dive back into emerging markets: EPFR
June 18, 2010--Investors set aside sovereign debt fears and shifted their money to higher-returning assets in mid June, with emerging market assets and U.S. equities among the recipients of fresh cash, EPFR Global said in a report on Friday.
Of all the funds tracked by the firm, equity funds posted inflows of $15.4 billion and bond funds took in $3.2 billion for the week ended June 16.
A single, large-cap U.S. exchange traded fund accounted for $10.8 billion of the flows into stock funds, or 70 percent of the total, EPFR said.
The portfolio flow activity suggests the worst of the violent market selloff in riskier assets is over, and economic data, particularly out of China and the United States, were reasons enough for investors to buy back some of the assets they sold in the last few months.
Source: Reuters
Economy : Developing countries set to account for nearly 60% of world GDP by 2030, according to new estimates
June 16, 2010--The rapid growth of emerging economies has led to a shift in economic power: forecasts based on analysis by late economist Angus Maddison suggest that the aggregate economic weight of developing and emerging economies is about to surpass that of the countries that currently make up the advanced world.
According to Perspectives on Global Development: Shifting Wealth, a new publication from the OECD Development Centre, the economic and financial crisis is accelerating this longer-term structural transformation in the global economy. Longer-term forecasts suggest that today’s developing and emerging countries are likely to account for nearly 60% of world GDP by 2030.
While the 1990s was a lost decade for much of the developing world, growth rates picked up significantly in the 2000s, with the number of developing countries beginning to converge strongly with the affluent OECD countries leaping from 12 to 65 (Figure 2). The strong performance of China and India has had a significant impact on the rest of the developing world.
Responding to this trend, the OECD has set out to strengthen its relations with major emerging economies. It has strengthened its links with Brazil, China, India, Indonesia and South Africa and recently welcomed Chile as its 31st member and it has extended invitations to join to Estonia, Israel and Slovenia. Russia is also negotiating to become a member.
Source: OECD
Standard & Poor’s launches S&P WCI sub-indices
June 16, 2010--Standard & Poor’s has launched an extended family of sub-indices based on the S&P World Commodity Index.
The S&P WCI family of indices now includes the single commodity indices and sector indices, as well as regional indices in Asia and Europe.
Launched in May 2010, the S&P WCI is the first index to consist solely of listed commodity futures contracts that trade outside of the US.
“The launch of the S&P WCI is the result of Standard & Poor’s meeting the market’s needs for an international commodity index that would complement the US focused S&P GSCI, providing all-world commodity exposure,” says Michael McGlone, director of commodity indexing at S&P Indices. “The S&P WCI family now includes all the mono and sector indices but notably, the regionally traded commodities in separate S&P WCI Asia and S&P WCI Europe indices.”
Source: Global Fund Wire
Experts warn over shortage of rare metals
June 14, 2010--Europe should support mining exploration and improve recycling of critical minor metals such as antimony, cobalt or rare earth elements, a high-level expert group will recommend tomorrow as it warns of future supply risks.
In a report seen by the Financial Times, the group, will not, however, recommend to Brussels any policy of stockpiling the materials – a contrast with US policy.
The group, chaired by the European Commission and set up as part of Brussels’ effort to secure sustainable supplies for the bloc, will label 14 minerals as “critical” and warn of potential shortages over the coming decades in its first report
Source: FT.com
International fund, ETF flows turn negative in May
June 15, 2010--International mutual funds and exchange-traded funds saw net outflows of $5.4 billion in May, but were still up with net inflows of $26.4 billion year-to-date, according to a Robert W. Baird & Co. report released this week.
Net outflows from U.S. stock funds and ETFs were $19.7 billion in May, and down $13.7 billion year-to-date. Taxable bond funds continued to be the most popular with net inflows of $7.1 billion in May, and up $113.1 billion year-to-date.
Source: Market Watch
Mexican wave helps to push LSE down league table
June 11, 2010--Mexico, you did better than draw with South Africa. In the global game between exchanges, the Mexican bolsa this week squeezed ahead of the Johannesburg stock exchange to top the the FTSE Mondo Visione league table of world exchanges.
This measures the share price performance of exchanges as publicly-listed companies – as opposed to the performance of stocks listed on the exchanges themselves – and is a barometer of how they are doing as businesses.
In the last 12 months the venerable London Stock Exchange has been knocked into 15th place, way behind Brazil’s BM&FBovespa (third) and Bursa Malaysia (fifth).
Source: FT.com
Credit Suisse Launches The Industry’s First Fixed Income Algorithmic Trading Platform Enabling Clients To Trade Directly With A Dealer
This new platform gives clients electronic access to trade directly with Credit Suisse. The initial Onyx™ offering is a suite of algorithmic execution for pair strategies between fixed income futures and cash US Treasuries. These are the very same algorithms that were designed by and have been used by the Credit Suisse trading desk for several years. For the first time, clients have electronic access straight from their desktops to trade cash US Treasuries directly with Credit Suisse, a leading market maker in fixed income. While previously clients had to chose between using an algorithmic execution strategy or trading directly with an actual market marker, Onyx™ serves both purposes. Onyx™ provides advanced execution and direct access to the liquidity only a dealer like Credit Suisse can provide through our extensive voice and electronic market making capabilities and vast customer franchise. All of these are pooled together to facilitate the efficient execution of our clients trades. "The addition of Onyx™ to Credit Suisse's growing suite of algorithmic trading platforms underscores our commitment to fixed income electronic trading," said Tim Blake, Head of US Rates. "We are excited to be able to offer our clients an industry leading product, giving them access to liquidity in the fixed income markets when and where it is available."
"Onyx™ is the gateway into the electronic future of fixed income trading. It brings all the liquidity we have to bear and delivers it in an electronic fashion to clients, helping them achieve their execution goals with greater speed and efficiency," said Ryan Sheftel, Global Head of Electronic Market Making for Rates.
Onyx™ is currently available on PrimeTrade, Credit Suisse's premier execution program. Credit Suisse anticipates offering Onyx on a wider variety of platforms in the near future.
Source: Credit Suisse AG
Cutting Subsidies Could Save Billions
Phasing out such subsidies would send a price signal to create incentive for more efficient use. To read more about the specific IEA input to the report on energy subsides prepared for the G-20 by the IEA, OECD, World Bank and OPEC click here
Source: IEA
Quicker Employment Recovery Expected Outside Europe and the U.S., NYSE Euronext "Back to Business" CEO Survey Reveals
The sixth annual NYSE Euronext CEO Report, which represents the views of a record 325 CEOs of NYSE Euronext listed companies interviewed March 3 - March 31, 2010, will be released in July. The survey, entitled "Back to Business," probes CEOs for their perceptions of the economic recovery and what they view as the major opportunities and challenges, including 2011 planning.
"The annual CEO Report provides a window into the thinking of the world's top business leaders," said Duncan Niederauer, CEO, NYSE Euronext. "This year's report sheds light on CEO sentiment regarding economic recovery and the future business climate. The results show that CEOs are ready to get back to growing their businesses, which is a positive sign for financial markets and the global economy."
The CEOs surveyed lead companies in multiple industries and geographies. Some 44% are based outside of the U.S. The study was conducted by Opinion Research Corporation, an independent market research and consulting firm, on behalf of NYSE Euronext.
"The jobs recovery is classic of what we see as we emerge from recent recessionary periods -- jobs growth lags the business rebound," said Jeffrey Resnick, global managing director of Opinion Research Corporation. "While most CEOs are optimistic, it is somewhat troubling that many CEOs believe a recovery in jobs will not occur until 2014 or later with some saying jobs will never fully be restored."
Nearly half of the CEOs surveyed expect to be adding to their workforce through 2011, with those based outside of the U.S. and Europe being the most likely to hire more people. More than six out of 10 CEOs in Asia and Latin America said they plan to expand their workforce, while only four in 10 European and U.S. CEOs plan an expansion.
The survey also reveals a significant regional difference in the way CEOs rated government efforts to create new jobs. Three in four U.S. CEOs gave their government low ratings for efforts to create jobs, while only one in four outside of the U.S. and Europe did the same.
The survey also points to regional differences in what CEOs view as primary sources for job creation in their countries. U.S. CEOs are about equally likely to think small business and the government will be the primary sources of job creation through 2011. Among CEOs in Europe and the rest of the world, however, few believe their governments will be the primary source; small businesses are widely viewed as the strong growth engine (see chart*).
Key findings on other aspects of the economic recovery will be disseminated periodically until the NYSE Euronext CEO Report is released in its entirety in July.
*To view corresponding charts and additional analysis, including a brief video segment with Opinion Research Corporation's Global Managing Director Jeffrey Resnick, visit: http://www.nysemagazine.com/ceosurvey.
Source: NYSE Euronext
African Barrick Gold and Essar Energy to join FTSE 100
Today’s changes are part of FTSE’s UK Index Series annual review approved by the independent FTSE Europe, Middle East and Africa Regional Committee. The impartial reviews ensure the UK indices remain an accurate reflection of the market they represent and are seen as an essential component to the running of the indices.
The FTSE 100 Index represents the 100 biggest UK blue chip companies, by market capitalisation. The index currently reflects approximately 85% of the UK market providing a broad and accurate investment tool for pension funds, financial products and investment portfolios in the UK and around the globe.
Source: FTSE
June 11, 2010-- Credit Suisse today announced the launch of Onyx™, a groundbreaking algorithmic trading platform designed specifically for fixed income.
June 10, 2010--IEA analysis that will be presented in the World Energy Outlook (WEO) 2010 -- to be released in November -- reveals that fossil fuel subsidies are much higher than previously thought. In 2008, fossil fuel consumption subsidies rose to USD 557 billion, up from USD 342 billion the previous year.
U.S. and European CEOs expect jobs recovery by 2014 or later while CEOs elsewhere see recovery by 2012
June 10, 2010--Nearly half of CEOs plan to expand workforce through 2011
--Small business seen as biggest driver of job creation
Job growth will occur more quickly outside of the U.S. and Europe, according to the latest NYSE Euronext Annual CEO Report. The study finds that chief executives in the U.S. and Europe do not expect a full jobs recovery until 2014 or later, while their counterparts elsewhere expect a full jobs recovery by the end of 2012 (see chart*). Additionally, small business is viewed as a primary source of employment gains while opinions vary on the impact of governments on new job creation.
June 9, 2010--FTSE Group (“FTSE”) confirms today that gold producer African Barrick Gold and integrated energy company Essar Energy will be joining the FTSE 100 Index for the first time. In the rebalance, Thomas Cook Group and the London Stock Exchange Group will leave the UK’s leading blue chip Index and join the FTSE 250 Index.
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