Global ETF News Older than One Year
Hedge funds surge to peak of $2,002bn
April 19, 2011--Assets under management in the global hedge fund industry have soared to an all-time peak, surpassing the pre-crisis high thanks to the strongest investor inflows in years.
The world’s hedge funds at present manage $2,002bn of client funds, according to Hedge Fund Research, the industry’s leading data provider .
Source: FT.com
ETFS Precious Metals Weekly: Gold approaches $1500/oz as inflation, debt fears mount
April 18, 2011--Gold price hits new record as inflation concerns take root.
Metal consultancy GFMS publishes forecast of $1600/oz gold spot price by year-end.
Silver nears $50/oz as latest figures show the Chinese economy maintained near double-digit growth in Q1.
Further strong global growth data, particularly for global manufacturing powerhouse China, also added to the bid tone for silver. It reached its highest level since January 1980 last week, closing in on the $50/oz mark.
Gains in platinum group metals prices have been more modest than gold and silver over the past fortnight on downgrades to the near term Japan growth outlook by the IMF and the Japanese government.
Gold price hits new record as inflation concerns take root. Inflation cemented itself as an issue for markets following higher than expected inflation in the US, Europe, China and India. Large sovereign debt overhangs in developed economies, coupled with patchy employment growth, is staying the hand of central banks despite accelerating inflation. Slow currency appreciation is fanning imported inflation in China, while shortages in food markets are boosting inflation in emerging markets generally. Investors appear to be looking at precious metals as a way to hedge against potential inflation and currency debasement risks.
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Source: ETF Securities
Brazil overtakes China in emerging private equity
April 18, 2011--Brazil has overtaken China as the favourite market for emerging private equity deals over the next year, due to a stronger political and regulatory environment and lower valuations, according to a survey published on Monday.
Private equity investors want to increase their exposure to emerging markets as a whole, to 16-20 percent in the next two years from 11-15 percent currently. This is primarily due to the high economic growth in these markets, according to the Emerging Markets Private Equity Association and Coller Capital survey of 156 private equity investors globally.
Source: Reuters
Brics mull trade system to bypass dollar
April 17, 2011-- Brics nations could benefit considerably by trading directly in their own countries, cutting out unstable internationally convertible currencies, Trade and Industry Minister Rob Davies said on Sunday.
Davies said such a system would take out the money lost to the "middle man" in conversion, and protect Brics trading partners (Brazil, Russia, India, China and South Africa) from the volatility affecting internationally convertible currencies, notably the dollar.
Source: FIN 24
FSB progress report -Progress in the Implementation of the G20 Recommendations
April 15, 2011--The FSB published on 15 April its report to G20 Finance Ministers and Central Bank Governors on implementation of regulatory reforms for strengthening financial stability.
The report focuses on international policy development and implementation that has taken place since the G20 Finance Ministers and Central Bank Governors meeting in February 2011.
Progress in the Implementation of the G20 Recommendations for Strengthening Financial Stability
Source: Financial Stability Board (FSB)
FSB progress report on implementing OTC derivatives market reforms
April 15, 2011--The FSB published on 15 April its progress report on implementation of OTC derivatives market reforms. The report summarises progress made toward implementation of the G20 commitments concerning standardisation, central clearing, exchange or electronic platform trading, and reporting of OTC derivatives transactions to trade repositories.
In particular it looks at progress against the 21 recommendations set out in the FSB's October 2010 report for implementing reforms in an internationally consistent and non-discriminatory implementation to meet the G20 commitments. In the report, the FSB makes several overall observations on progress, including identifying a number of issues meriting additional attention in the near term.
view the OTC Derivatives Market Reforms-Progress report on Implementation
Source: Financial Stability Board (FSB)
Growth Returning to Emerging Europe and Central Asia, but Rising Food and Energy Prices Make Some Countries Vulnerable
April 15, 2011-- Every country in the Emerging Europe and Central Asia (ECA) region[1] is expected to grow in 2011, but some countries are vulnerable to rising food and energy prices, said the World Bank at a press briefing during the World Bank/IMF Spring Meetings 2011.
Rising food and energy prices could push 5.3 million more people into poverty across Emerging Europe and Central Asia,” said Theodore Ahlers, Director of Strategy and Operations of the World Bank’s Europe and Central Asia region. “For most countries in the region growth returned in 2010, following sharp declines in 2008 and 2009. However, the region’s annual growth of around 4.5 percent was much lower than that of other regions in 2010, and projections for 2011–13 indicate only slightly stronger performance.”
Every country in the ECA region should record positive growth in 2011, however growth is more tepid in Central and Southeastern Europe than in the Commonwealth of Independent States (CIS), where high commodity prices have lifted net exports, increased remittance flows from migrants, and boosted private consumption. Yet, higher food and energy prices are a source of vulnerability for net importers as these threaten to increase poverty, particularly in lower income economies in the CIS, and add more pressures to macroeconomic policy management across the region.
Source: World Bank
Fat Tails and their (Un)happy Endings: Correlation Bias and its Implications for Systemic Risk and Prudential Regulation -IMF Paper
April 15, 2011--Summary: The correlation bias refers to the fact that claim subordination in the capital structure of the firm influences claim holders’ preferred degree of asset correlation in portfolios held by the firm. Using the copula capital structure model, it is shown that the correlation bias shifts shareholder preferences towards highly correlated assets, making financial institutions more prone to fail and increasing systemic risk given interconnectedness in the financial system.
The implications for systemic risk and prudential regulation are assessed under the prism of Basel III, and potential solutions involving changes to the prudential framework and corporate governance are suggested.
Source: IMF
Improving the Odds of Achieving the MDGs-IMF Report
April 15. 2011--Forward
This year we are facing historic development
challenges—from natural disasters,
to food and fuel price spikes, and profound change in the Middle East. Despite high average growth in the developing world, it is crucial to provide opportunities to those that are
being left behind. Wealthier economies are experiencing slower growth—but development assistance needs remain high. In our interconnected
world, sustainable recovery means supporting inclusive growth.
Only four years remain until the 2015 deadline for reaching the Millennium Development
Goals. The Global Monitoring Report 2011: Improving the Odds of Achieving the MDGs— Heterogeneity, Gaps, and Challenges underlines the urgency of helping countries that are behind
on meeting key targets for extreme poverty, hunger, disease, and child and maternal mortality.
The report lays out the challenges that remain;
analyzes efforts to improve human development; and assesses the role of growth, policy reforms, trade, and donor policies in meeting the MDGs.
view report-Improving the Odds of Achieving the MDGs
Source: IMF
IOSCO progresses G20 objectives on commodities markets
April 15, 2011--The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published its Task Force on Commodity Futures Markets - Report to the Financial Stability Board (Report). The Report sets out IOSCO’s current work on the supervision of commodity derivative markets, market transparency, and the ongoing monitoring of developments in OTC financial oil markets.
The Report was prepared in response to the G20’s request in Seoul, November 2010, for an update to be provided to the Financial Stability Board on IOSCO’s workstreams in support of the G20’s aim of improving the regulation and supervision of exchange-traded, OTC derivative and physical commodity markets. It also outlines IOSCO’s future plans and possible additional new areas of focus.
view the report-Task Force on Commodity Futures Markets Report to the Financial Stability Board
Source: IOSCO
