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ETF Securities: Gold Price Hits All Time High, Demand For Gold ETCs Soars
October 7, 2009--The gold price broke to an all time record high of $1,045 per ounce yesterday on the back of surging investor demand for a hedge against persistent weakness in the US dollar. With the US dollar weakening on the back of historically low interest rates and growing sovereign and private investor concerns about the sustainability of rapidly rising US government debt and quantitative easing, demand for gold has soared. On the back of these growing concerns about the structural outlook for the US dollar, ETF Securities has seen soaring demand for its physically-backed gold ETCs, with total gold holdings backing its ETCs up over 40% since end of last year. ETF Securities' total gold holdings now stand at 8,380,282.792 ounces (US$8.7bn), up 110% over the past two years.
Nicholas Brooks, Head of Research and Investment Strategy at ETF Securities commenting on the rise in the gold price said:
"The US dollar has been in structural decline for some time and the continued rapid rise in US government debt and extremely loose monetary policy has clearly raised a red flag for both sovereign and private holders of US dollars. After many years of being net sellers of gold, recently central banks have turned net buyers. Private investors - both large institutions and individual investors - have also been turning to gold to hedge against possible structural dollar weakness and possible government temptation to turn to inflation as a method of reducing the real value of rapidly rising government debt. The surge in demand for gold does not appear to be short term in nature as we have been seeing very rapid growth of investor holdings of gold through our ETCs for over a year now. Combined flows into ETFS Physical Gold and Gold Bullion Securities have increased by 2,304,888 ounces since September of last year, a 41% rise. This trend has accelerated recently, with gold holdings rising by 5% over just the past six weeks, highlighting growing sovereign and private investor concerns about the sustainability of US policies."
FTSE Xinhua Quarterly Review Results - Jiangxi Copper (A) To Be Added To FTSE/Xinhua China A 50 Index - BYD (H) To Be Added To FTSE/Xinhua China 25 Index
October 7, 2009--FTSE Xinhua Quarterly Review Results - Jiangxi Copper (A) To Be Added To FTSE/Xinhua China A 50 Index - BYD (H) To Be Added To FTSE/Xinhua China 25 Index
Both indices are widely followed, forming the basis of Exchange Traded Funds (ETFs), and derivative products on exchanges around the world.
The definition of Red Chips has been updated to reflect the view of investors which has evolved to include components such as assets and revenues derived from Mainland China in addition to ownership of Mainland Chinese entities.
Several changes were approved to FTSE Xinhua B 35 index, FTSE Xinhua 200, 400 and Small Cap Index. Full details of all inclusions and deletions for the FTSE Xinhua Index Series can be obtained here. The changes will be effective after the close of trading on Friday 16 October, 2009.
The FTSE Xinhua Index Series is reviewed quarterly in January, April, July and October by an independent index committee, comprising a group of local and international financial market experts. The index series is widely regarded as the leading measure of the China market by domestic and international investors with total assets tracking and benchmarking against the index series was exceeding USD 92 billion worldwide till the end of September 2009.
More information about the FTSE Xinhua Index Series is available at www.ftsexinhua.com
The demise of the dollar
October 6, 2009--n the most profound financial change in recent Middle East history, Gulf Arabs are planning - along with China, Russia, Japan and France - to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.
Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.
The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.
Jeffries wants its commodities ETF to be global benchmark
October 6, 2009--Jefferies, the U.S. securities and investment banking group, said on Monday it hopes its recently launched exchange-traded fund (ETF) that invests in the stocks of commodity producers will become a global benchmark.
The Thomson Reuters-Jefferies CRB Global Commodity Equity Index Fund tracks an index containing shares of 150 companies based in 32 countries that are involved in the production and processing of commodities.
Launched on Sept. 21, it is Jefferies' first publicly traded ETF that is comprised of corporate stocks. The company also publishes the Reuters-Jefferies CRB Index .CRB, a major vehicle used by investors in commodities.
Statement by Secretary Timothy F. Geithner to the Plenary Session
and World Bank Annual Meetings,
Delivered by
Acting Assistant Secretary Mark Sobel
October 6, 2009--On behalf of Secretary Geithner and the U.S. delegation, thank you to the people of Istanbul and our host country Turkey. It is fitting that we meet today in this great country - a land at the crossroads of history and civilization.
During the Great Depression, the global economy faced a crossroads, and it chose the path of unilateralism and inwardness. Over the last year, we faced the deepest challenge since then. Standing at another crossroads, the international community chose the path of unprecedented cooperation and multilateralism. We took decisive action to restore growth, boost employment, and repair financial systems. We mobilized nearly $1 trillion in support for emerging markets, helping to slow a serious capital drain.
The United States is doing and will do its part. We supported U.S. and global growth through our stimulus plan, restored confidence in the U.S. financial system through our stability and regulatory reforms as well as our transparent stress tests, and helped stem the loss of confidence facing emerging markets through President Obama's successful call for rapidly mobilizing $500 billion through a renewed New Arrangements to Borrow at the IMF.
We are now witnessing stabilization of the global economy and the beginnings of recovery. But we cannot be complacent. Conditions remain fragile. The international community must implement its critical agenda to sustain the recovery and help create jobs, to strengthen regulatory frameworks, and to begin preparing cooperative exit strategies. We also need to pursue additional trade liberalization, including an ambitious and balanced conclusion to the Doha Development Round.
Together, we recognize that the world cannot return to a pattern of uneven growth, characterized by an excessive reliance on a single engine of consumption-led growth, while others relied heavily on external demand. First and foremost, the responsibility for tackling these problems rests with sovereign governments, including my own.
But as we build a strong, sustained and balanced global economy, we must advance a forward-looking agenda so that the IMF and World Bank can enhance their legitimacy and update their missions to meet future challenges.
For the IMF, this means that rigorous surveillance must help us shed light on trends that could lead to the next unsustainable boom. Under the new G-20 Framework for Strong, Sustainable and Balanced Growth, the IMF must provide forward-looking analysis of whether the world's major countries are implementing economic policies, including exchange rate policies, which are collectively consistent with G-20 objectives. The IMF will need to be a truth-teller.
The World Bank will need to focus more on building resilience to crisis and foundations for prosperity. As the world emerges from crisis, the poorest will require strong and sustained support from the multilateral development banks. With concessional financing deploying more quickly, donors must commit to successful and timely replenishments of IDA and the African Development Fund. When considering the MDB capital requests, we must recognize the importance of maintaining the IBRD's financial soundness. As the centerpiece of the multilateral development system, the World Bank is best positioned to address challenges that require globally coordinated action. In particular, the Bank must more actively prioritize work on three emerging global priorities, agriculture and food security, support in the most fragile environments, and facilitating the transition to a green economy.
For the IMF and World Bank to be effective in these tasks, their broad membership must consider them legitimate and representative. We are delighted that the international community is now committed to achieving a 5% shift in IMF quota share toward dynamic underrepresented countries by January 2011 and the call to shift at least 3% of the Bank's voting power to developing and transition countries and the recommitment to reach an agreement by the 2010 Spring Meetings.
The past six months have plainly demonstrated the benefits of stronger Ministerial engagement in setting strategic policies and priorities at the international financial institutions. To sustain this, we must find a way to enhance the effectiveness and efficiency of both the IMFC and the Development Committee. Furthermore, we need far more efficient and strategic Executive Boards, which better reflect the realities of the global economy.
In closing, the international community has rarely shared such a sense of common purpose and urgency. All of our countries – developing, emerging, or advanced – want to avoid a repeat of the worst economic crisis in decades. So let us press forward on this path of multilateralism to offer greater hope and prosperity for people in every corner of the world.
NASDAQ OMX Sees Momentum In Initial Public Offerings & Listing Application Growth
October 6, 2009-The NASDAQ OMX Group, Inc.
(Nasdaq:NDAQ), the world's largest exchange company, has seen increased
listings momentum through IPOs and listing applications during the
second half of 2009. Year to date, NASDAQ OMX has won 15 IPOs that have
raised $ 4.2 billion. Currently the exchange has 171 listing
applications in the pipeline from sectors including biotech, technology
and social media.
Recently, NASDAQ OMX welcomed Shanda Games which raised over $1
billion, more than any other Chinese IPO listed on NASDAQ. Shanda Games
is the second Chinese IPO for NASDAQ this year, joining game developer
Changyou.com which listed in April 2009. Greater China continues to be
a key market for NASDAQ OMX, with a total of 116 listings. Other recent
NASDAQ OMX wins included A123 Systems, Avago and Talecris Therapeutics.
"With the IPO market showing signs of revival, NASDAQ OMX continues to build momentum by winning the majority of IPOs coming to market across a variety of industry sectors," said Bruce Aust, Executive Vice President, NASDAQ OMX. "While we haven't seen a return to the levels we saw in 2006 and 2007, we are encouraged by the recent IPOs and the pickup in IPO and listing applications we've seen in the last several months."
This week, insurance industry risk specialist Verisk Analytics Inc.
plans to list on NASDAQ, marking the largest U.S. initial public
offering in the last 12 months. NASDAQ OMX continues to attract
switches from NYSE Euronext with a total of 14 companies transferring
to NASDAQ in 2009. These companies have a total value of over $13.1
billion and include Mattel Inc., R&R Donnelly & Sons, and Dreamworks
Animation.
Top asset managers lose USD16trn in a year
September 5, 2009--Assets managed by the world’s largest 500 fund managers fell by over 23 per cent in 2008 to USD53.4trn, down from USD69.4trn the year before, according to the Pensions & Investments/Watson Wyatt World 500 ranking.
The fall in assets is the first since 2002 and the largest since the research began in 1996.
Carl Hess, global head of investment consulting at Watson Wyatt, says: “2008 was a dreadful year for fund managers with the majority posting record losses. Even after the strong market recoveries since March this year, our expectation is that values will remain below 2007 levels, meaning the outlook for this year’s revenues and earnings in the sector remain poor.”
Gold Q3 ETF inflows dwindle, investors switch
October 5, 2009--Inflows into gold-backed exchange-traded funds dwindled in the third quarter as investors switched their interest to other products, with the holdings of six funds tracked by Reuters rising only 1 percent.
The six -- the SPDR Gold Trust GLD, ETF Securities' ETFS Physical Gold (PHAU.L) and Gold Bullion Securities (GBSx.L), and products operated by Julius Baer, Zurich Cantonal Bank and iShares -- saw inflows of just over 697,000 ounces in Q3, against 995,000 ounces in the second quarter.
Gold stays above $1,000 on softer dollar, ETF rises
Wariness of long futures caps, physical demand underpins
Spot gold seen in $980-$1,010/oz range in near term
SPDR Gold holdings XAUEXT-NYS-TT up, iShares Silver slips
October 5, 2009--Gold stayed above $1,000 an ounce on
Monday as the dollar remained pressured after last week's jobs
data pushed the currency down broadly on concerns the U.S.
economic recovery may not be as robust as previously thought.
Traders remained wary of a sudden liquidation of speculative
long positions in U.S. gold futures even after such positions
eased slightly from record highs in the week ended Sept. 29,
putting a cap on prices.
At the same time, physical demand emerged at the market's lows last week to underpin prices.
ICE Reports Record September And Third Quarter ADV - OTC Energy Commissions Second Highest Quarter On Record - $2.75 Trillion Cleared in CDS
October 2, 2009-IntercontinentalExchange (ICE), operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, today reported strong growth in futures volumes and OTC energy commissions in the third quarter of 2009.
Each of ICE's futures exchanges recorded year-over-year average daily volume (ADV) increases for the month of September 2009.
ICE operates three regulated futures exchanges: ICE Futures Europe(R), ICE Futures U.S.(R) and ICE Futures Canada(R).
-- September 2009 ADV across all three ICE futures exchanges increased 9% over September 2008, to a record 1,168,431 contracts, including record ADV at ICE Futures U.S.
-- Third quarter 2009 ADV for all ICE Futures contracts increased 24% over third quarter 2008, to a record 1,062,429 contracts. ICE Future Europe established new ADV and total volume records of 676,020 and 43,265,279 contracts, respectively, in the quarter.
-- ADV for the first nine months of 2009 for all ICE Futures contracts was 1,031,737 contracts, up 12% over the same period of 2008.