Global ETF News Older than One Year
Eurex Clearing's partnership program gains broad market support
November 20, 2017--Eurex Clearing's offer to accelerate the development of a liquid, EU based alternative for the clearing of interest rate swaps gains broad market support.
Around 20 market participants from the US, the United Kingdom and Continental Europe already decided to participate in Eurex Clearing's partnership program. The early sign-up period expires on November 20, and the participants will be disclosed on the Eurex Clearing website.
Source: Eurex
Russell/Nomura Total Market Index adds 151 new firms in annual reconstitution
November 20, 2017--FTSE Russell and Nomura Securities Co., Ltd. today announced that 151 new stocks were added to the Russell/Nomura Total Market Index, which captures 98% of the float-adjusted market capitalization of the Japanese equity market, as part of the annual reconstitution process on 20 November 2017.
Increase in market capitalization reflects rise in Japan equity markets.
The number of constituents in the Russell/Nomura Total Market Index increased by 114 to 1,600. There were 151 additions to the Index and 37 companies were deleted, with market cap weighted turnover at a modest 1.6%.
Source: FTSE Russell
Legal & General looks to expand in US
November 19, 2017--Strategy is based on using its two big existing businesses as a foundation for a third.
Source: FT.com
DECPG Global Weekly
November 17, 2017--Taking Stock
U.S. core inflation edged up in October; industrial production expanded strongly. The U.S. core consumer prices-which excludes food and energy prices-rose 1.8 percent (y/y) in October, after recording a 1.7 percent increase in each of
the five preceding months.
Headline consumer prices rose 2.0 percent (y/y) in October, down from September's 2.2 percent increase, reflecting a decline in gasoline prices. Separately, U.S. industrial production rose 0.9 percent (m/m, sa) in October, compared with a 0.4 percent increase in September, reflecting a strong post-hurricane recovery in manufacturing production.
Euro Area GDP growth edged down in Q3; inflation decelerated in October. The flash estimate of Euro Area GDP growth in Q3 came in at 0.6 percent (q/q, sa), below the 0.7 percent increase recorded in Q2.
Source: World Bank
Fork talk lifts bitcoin to all-time high near $8,000
November 17, 2017--Bitcoin hit an all-time high just below $8,000 on Friday, on talk that a software upgrade whose suspension sent the cryptocurrency into a tailspin at the end of last week was, after all, going ahead within hours.
Talk that the upgrade-which could split or "fork" bitcoin into two versions-would go ahead was driven by a statement on the website of Coinbase, the world's largest bitcoin company with operations in 32 countries.
Source: Reuters
iSTOXX Global Economic Growth Select 50 Index licensed to Citi
November 17, 2017--STOXX Ltd., the operator of Deutsche Boerse Group's index business, and a global provider of innovative and tradable index concepts, today introduced the iSTOXX Global Economic Growth Select 50 Index. It was licensed to Citi as an underlying for structured products.
It is a complementary index to the iSTOXX Europe Economic Growth Select 50 which was launched earlier this year. "We are delighted to build on the cooperation with Citi which has been growing for several years now. After the successful launch of the iSTOXX Europe Economic Growth Select 50 Index, we are now adding a global version to the index family The iSTOXX Global Economic Growth Select 50 Index comprises stocks that combine liquidity with high dividend yields and low stock price volatility. The entire basket is tilted towards companies with a substantial revenue exposure to countries with a strong economic outlook," said Matteo Andreetto, chief executive officer, STOXX Limited.
Source: Deutsche Börse Cash Market
Thomson Reuters-Estimated Net Flows Into ETFs Eclipse Those Into Conventional Funds for October
November 16, 2017--Conventional mutual fund investors continued their search for yield in October, padding the coffers of fixed income funds, while authorized participants (APs-those investors that actually create and redeem ETF shares) remained risk-seeking.
Mutual fund investors continued to give stock & mixed-equity funds a cold shoulder for the month, redeeming some $15.9 billion, while for the seventeenth consecutive month APs were net purchasers of stock & mixed-equity ETFs, injecting $36.9 billion. Year to date through October 31, 2017, conventional equity mutual funds handed back some $135.3 billion net, while equity ETFs took in $263.3 billion. On the fixed income side of the equation the focus of fund investors and APs stayed in step, with conventional bond funds attracting $239.1 billion year to date and bond ETFs drawing in $111.1 billion for the same period. In this segment I highlight the October fund-flow trends for both types of investment vehicles.
Source: Thomson Reuters
A Rebalancing China and Resurging India: How Will the Pendulum Swing for Russia?
November 16, 2017--Russia Pivots Towards China and India
Like most countries, Russia's economic prospects are closely linked to its ability to export and penetrate new dynamic markets. While both Europe and the Commonwealth of Independent States (CIS) remain the main destinations for Russia's exports, the country is beginning to strengthen its economic relationships with important new dynamic markets such as China and India.
In the global market, China is now the world's second largest importer, after the United States, and in many metal markets it represents more than half of global demand. Russia's trade with China has increased substantially in recent decades: merchandise trade between the two nations has almost tripled over the past ten years.
Source: World Bank
Industrial Commodities Prices Should Stabilize in 2018 After This Year's Gains
November 16, 2017--Prices for industrial commodities-energy and metals-are forecast to level off in 2018 after steep gains this year, while agricultural prices are anticipated to remain soft.
Among the most salient trends affecting commodity prices now are the evolution of the U.S. shale oil industry and China's role as a major consumer of industrial commodities.
The emergence of the United States as a dominant player in the global oil market-it is now on par with Russia and Saudi Arabia-is shaping the oil price outlook. Oil is expected to average $56 per barrel in the coming year, up from an average of $53 per barrel in 2017.
Source: World Bank
IMF Working Papers-Booms, Crises, and Recoveries: A New Paradigm of the Business Cycle and its Policy Implications
November 16, 2017--Summary:
All types of recessions, on average, not just those associated with financial and political crises (as in Cerra and Saxena, AER 2008), lead to permanent output losses.
These findings have far-reaching conceptual and policy implications. A new paradigm of the business cycle needs to account for shifts in trend output and the puzzling inconsistency of output dynamics with other cyclical components of production. The 'output gap' can be ill-conceived, poorly measured, and inconsistent over time. Persistent losses require more buffers and crisis-avoidance policies, affecting tradeoffs in prudential, macroeconomic, and reserve management policies. The frequency and depth of crises are key determinants of long-term growth and drive a new stylized model of economic development.
Source: IMF
