International News Industry News

To delegate or not ...    < 2014-02-17 >

Marketparticipants needed to begin reporting derivatives trades from 12 February, butthere are reports of firms still contacting third-parties for delegatedreporting. What are the pros and cons of outsourcing? What does the regulation say aboutdelegated reporting? InEurope, unlike in the US, both buy- and sell-side counterparties need to reportderivatives trades to a trade repository (TR) under the European marketsinfrastructure regulation (EMIR). As a result, buy-side firms need to have as

The road to reporting    < 2014-02-24 >

Dueto new derivatives regulation, European market participants should have beenreporting derivatives trades for the past 12 days – but have they? Was the market ready for reporting? Marketparticipants have had to report derivatives trades since 12 February. Manybuy-side firms have decided to delegate reporting, giving the job to athird-party or broker. Others have chosen to do the reporting themselves, as atthe end of the day, the responsibility will always fall on them. There havebeen repo

Ahead of the curve?    < 2013-10-14 >

As the US market approaches the third weekof trading on swap execution facilities, volume figures suggest the buy-sidehas not yet fully embraced the new venues. Whatdo trading volumes so far suggest regarding buy-side SEF activity? So far, 18 swap execution facilities (SEFs)have been registered by the Commodity Futures Trading Commission (CFTC), with afurther five pending review by the commission when it returns to full capacityafter the current US government shutdown. These venues have gen

European banks struggle behind US counterparts    < 2013-11-05 >

European banks are lagging behind US peers inreducing balance sheet leverage and reliance in wholesale funding, a newEuropean Central Bank (ECB) report has found. The ECB has looked into the structural changesmade in the euro banking sector from 2008 to 2012, and identified some key distinguishingfeatures between European and US banks. The report found that the performance of largeUS banks improved after the financial crisis as a result of lower loan losses,stable fee and commission income, a

Telecommunication continues to lead the way    < 2014-02-10 >

The overall Technical Consumer Goods (TCG) market in Western Europe achieved a sales volume of €44.3 billion in Q2 2013. This corresponds to a decrease of 3.8%. In the first half of the year sales volume amounted to €92.5 billion, which is 2.2% down on last year’s figures. On a country level, Austria, Sweden and Italy generated positive growth rates. The Telecommunication (Telco) market was the only sector within Western Europe with overall significant growth rates. Dri

Euro area unemployment rate at 12.1%    < 2014-02-10 >

The euro area (EA17) seasonally-adjusted unemployment rate was 12.1% in July 2013, stable compared with June. The EU unemployment rate was 11.0%, also stable compared with June. In both zones, rates have risen compared with July 2012, when they were 11.5% and 10.5% respectively. Eurostat estimates that 26.654 million men and women in the EU, of whom 19.231 million were in the euro area, were unemployed in July 2013. Compared with June 2013, the number of persons unemployed decr

Credit constraint indicator edges downwards    < 2014-02-10 >

Credit constraints for German trade and industry edged downwards in August. 19.7% of the companies surveyed reported restrictive access to bank credit. The number of firms reporting credit constraints has not risen above a third in over three years. Companies are enjoying a constantly favourable financial environment as a result. After last month’s increase, credit constraints in manufacturing dropped back down to 18.2%. A decrease was also seen for large and medium-sized compani

Industrial production up by 0.9% in EU    < 2014-02-10 >

In June 2013 compared with May 2013, seasonally adjusted industrial production grew by 0.7% in the euro area (EA17) and by 0.9% in the EU27, according to estimates released by Eurostat, the statistical office of the European Union. In May production decreased by 0.2% and 0.4% respectively. In June 2013 compared with June 2012, industrial production increased by 0.3% in the euro area and by 0.4% in the EU27. Monthly comparison In June 2013 compared with May 2013, pro

Eurozone manufacturing recovery gathers pace in August    < 2014-02-10 >

The recovery in the eurozone manufacturing sector entered its second month during August. At 51.4, up from a flash reading of 51.3, the seasonally adjusted Markit Eurozone Manufacturing PMI® rose for the fourth successive month to reach its highest level since June 2011. National PMIs improved in all nations bar France, while France and Greece were the only countries to register readings below the 50.0 no-change mark. The Netherlands topped the PMI league table, followed by Austria and the

Economic climate clouds over slightly    < 2014-02-10 >

The Ifo Indicator for the world economic climate fell slightly. Both assessments of the current economic situation and the six-month economic outlook deteriorated somewhat. The recovery in the world economy is not really making any headway. After its sharp increase in the second quarter, the economic climate indicator in Asia fell below its long-term average value. The sharp decrease is primarily due to significantly less favourable assessments of both the current economic situation and future

Trade protectionism still on rise across the world    < 2014-02-10 >

Global efforts to battle trade protectionism need to be reinforced to help shield the fragile economic recovery across the world. In a report released today, the European Commission identified about 150 new trade restrictions introduced over the last year, whereas only 18 existing measures have been dismantled. A total of almost 700 new measures have been identified since October 2008, when the European Commission started monitoring global protectionist trends. Although the trend is slower tha

17.3 bn euro surplus for euro area    < 2014-02-10 >

The first estimate for the euro area (EA17) trade in goods balance with the rest of the world in June 2013 gave a 17.3 billion euro surplus, compared with +12.8 bn in June 2012. The May 2013 balance was +14.5 bn, compared with +6.2 bn in May 2012. In June 2013 compared with May 2013, seasonally adjusted exports rose by 3.0% and imports by 2.5%. These data are released by Eurostat, the statistical office of the European Union. The first estimate for the June 2013 extra-EU27 trade balanc

Diversity requires customized product development and product launches    < 2014-02-10 >

Global competition is presenting companies with new challenges. They must be able to develop and launch products that meet local market needs. Factors such as regional market trends, national laws and different customer wishes often lead to a clash between short-term targets for management and long-term innovation cycles. The result: Unsuitable products and falling competitiveness among companies. "According to many international managers, this mismatch is the biggest barrier to the succes

Annual rate at 1.6%    < 2014-02-10 >

Euro area annual inflation was 1.6% in July 20132, stable compared with June. A year earlier the rate was 2.4%. Monthly inflation was -0.5% in July 2013. European Union annual inflation was 1.7% in July 2013, stable compared with June. A year earlier the rate was 2.5%. Monthly inflation was -0.4% in July 2013. In July 2013, the lowest annual rates were observed in Greece (-0.5%), Bulgaria (0.0%) and Denmark (0.4%), and the highest in Estonia (3.9%), Rom

The price of EVs is falling sharply, but production forecasts are down as well    < 2014-02-10 >

OEMs have been successful in developing technology for e-mobility worldwide, with vehicles now ready for series production. The price of an electric car is thus falling sharply, as the e-mobility index for Q3 2013 from Roland Berger Strategy Consultants and Forschungsgesellschaft Kraftfahrwesen mbH Aachen (fka) shows. The index compares the competitive positions of the seven leading automotive nations (Germany, France, Italy, the US, Japan, China and South Korea) in the field of e-mobility. The

Euro area production up by 0.7%    < 2014-02-10 >

In the construction sector, seasonally adjusted production rose by 0.7% in the euro area (EA17) and by 0.8% in the EU27 in June 2013, compared with the previous month, according to first estimates released by Eurostat, the statistical office of the European Union. In May 2013, production rose by 0.5% and 0.3% respectively. Compared with June 2012, production decreased by 3.0% in the euro area and by 1.5% in the EU27 in June 2013. Monthly comparison Among the Member

Profitability has stabilized at a high level, but risks are increasing    < 2014-02-10 >

The average profitability of the global automotive supplier industry remains stable at an astonishingly high level: 6.5% EBIT margin for 2012 and for 2013. The most profitable sectors for suppliers are chassis, powertrain and tires, whereas the interior business in particular saw a further decline in margins. Industry prospects remain reasonably positive for the coming years, with stable EBIT margins of approximately 6% possible. However, business complexities and risks continue to incr

Weak expansion of world trade continues    < 2014-02-10 >

In line with the observations since the beginning of this year, the international exchange of goods continued the move sideways last month. This is indicated by the Container Throughput Index of the Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI) and the Institute of Shipping Economics and Logistics (ISL). Although the seasonally adjusted index slightly increases from 115.9 (corrected) to 116.3 in July, its value is still below the peak in January 2013. The current fla

Production down by 1.5% in euro area    < 2014-02-10 >

In July 2013 compared with June 2013, seasonally adjusted industrial production fell by 1.5% in the euro area (EA17) and by 1.0% in the EU28, according to estimates from Eurostat, the statistical office of the European Union. In June industrial production increased by 0.6% and 0.9% respectively. In July 2013 compared with July 2012, industrial production dropped by 2.1% in the euro area and by 1.7% in the EU28. Monthly comparison In July 2013 compared with June 2013

Same procedure as every year    < 2014-02-10 >

Important decisions on financial policy are due in the USA in the coming weeks. Without the consent of the Republican majority in the House of Representatives, the government can neither determine the budget for the coming fiscal year, which starts in October, nor raise the debt limit (which is due to be reached during the course of October). Any non-agreement in either case could have a noticeable economic impact; this is especially true of the debt limit. However, particularly against this b

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