Australia's Economic Outlook in Six Charts
February 21, 2019--Economic growth in Australia picked up strongly in the first half of 2018, and the economy made further strides in its adjustment and rebalancing after the end of the mining investment and commodity price boom.
Despite strong employment growth and declining unemployment rates, wage growth was low and underemployment still above its longer-term average. In the absence of wage or other cost pressure, inflation remained below the central bank's 2 to 3 percent target range. After a recent housing boom, a housing market correction is now underway.
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Source: IMF
Currency Matters
February 20, 2019--Currency, for most investors, has always been a topic that causes consternation.
While many investors recognise the diversification value that international investments can bring, the fact that, by definition, such investments bring with them currency considerations adds an additional element to the decision.
There is no doubt that managing the currency risk that comes with international assets can be a rather complex area. With the growing number of exchange traded products providing investors with easy access to international exposures on the ASX, currency becomes an increasingly important consideration as investors look to create diversified portfolios.
To hedge or not to hedge?
Currency fluctuations can dramatically affect the returns on international investments, both positively and negatively. As an example, should the Australian dollar rise against the USD, any investment returns from a US dollar based investment would be reduced as they are converted back into AUD.
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Source: BetaShares
SEBI may allow mutual funds & PMS in commodities at March board meet; indices too on cards
February 20, 2019--SEBI may also give its consent to indices in the commodities market
The Securities and Exchange Board of India (SEBI) may allow mutual funds and portfolio management services (PMS) in the commodities market at its upcoming board meet scheduled for the second week of March.
The markets regulator has almost finalised regulations for their entry as a new participant.
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Source: moneycontrol.com
Perpetual bond policy will be fine-tuned to aid banking sector
February 20, 2019--China's central bank will further improve its policy on perpetual bonds, with the first issued by a commercial bank last month to supplement capital and the banking sector's capability to support the real economy, bank Vice-Governor Pan Gongsheng said on Tuesday.
Pan, who aside from his role with the People's Bank of China is the head of the State Administration of Foreign Exchange, made the statement at a policy briefing hosted by the State Council Information Office on Tuesday.
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Source: chinadaily.com.cn
Sustainable Finance Is Growing in the World's Worst-Polluting Country
February 19, 2019--Tao Zhang is bullish on sustainability in China-especially when it comes to livestock emissions. The founder of U.S.-China impact investing consortium Dao Ventures has spent much of the past year looking to accelerate investment in more environmentally friendly plant-based or lab-grown meat for Chinese consumers through a new company, Dao Foods.
Climate change activists are worried that China's increasing appetite for meat is further straining natural resources and causing methane emissions to soar. Yet Zhang and a new crop of impact investors believe that this, and China's many other environmental and social concerns, can be solved with capital.
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Source Bloomberg
Publication of JPX Working Paper, Vol.26 "Initiatives in Utilizing Blockchain and Facilitating Open Innovation in Capital Market"
and a supplemental material to JPX Working Paper, Vol.22 "Study on Applicability of Distributed Ledger Technology in Trade Ma
February 19, 2019--Japan Exchange Group, Inc. (JPX) today published JPX Working Paper, Vol.26 "Initiatives in Utilizing Blockchain and Facilitating Open Innovation in Capital Market" and a supplemental material to JPX Working Paper, Vol.22 "Study on Applicability of Distributed Ledger Technology in Trade Matching Processes".
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Source: Japan Exchange Group, Inc. (JPX)
Indonesia's Commodity Futures Regulator Releases Regulation for Crypto Futures Market
February 18, 2019--Indonesia's commodity futures regulator has established a legal framework for operating crypto and digital assets futures markets, according to an official press release published on Feb. 18.
The Indonesian Commodity Futures Trading Supervisory Agency (Bappebti), which operates under Indonesia's Ministry of Trade, has officially required multiple entities involved in crypto futures trading to seek regulatory approval and apply for registration before legally operating in Indonesia.
The news follows the recent release of legislation that officially recognizes Bitcoin (BTC) and other digital assets as trading commodities.
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Source: cointelegraph.com
Bharat-22 ETF additional offering turns out to be a big draw
February 15, 2019--Bharat-22 ETF additional offering received applications aggregating approximately Rs 50,000 crore
The single-day additional offering of Bharat-22 Exchange Traded Fund (ETF) turned out to be a roaring success as the Rs 3,500 crore offer got subscribed over 14 times, aggregating approximately Rs 50,000 crore.
"Bharat-22 ETF (additional offering) received applications aggregating approximately Rs 50,000 crore and was subscribed over 14 times in one day," ICICI Prudential AMC, the manager of the issue, said in a statement.
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Source: The Economic Times of India
IMF Working Papers-Demographics and the Natural Rate of Interest in Japan
February 15, 2019--Summary:
Japan's aging and shrinking population could lower the natural rate of interest and, together with low inflation expectations, challenge the Bank of Japan's efforts to reflate the economy.
This paper uses a semi-structural model to estimate the impact of demographics on the natural rate in Japan. We find that demographic change has a significantly negative impact on the natural rate by lowering trend potential growth. We also find that the negative impact has been increasing over time amid stronger demographic headwinds. These findings highlight the importance of boosting potential growth to offset the negative demographic impact and lift the natural rate in Japan.
view the IMF Working Papers-Demographics and the Natural Rate of Interest in Japan
Source: IMF
ICICI Pru Bharat 22 ETF AOP opens on February 14
February 14, 2019--This AOP is a part of the Government of India's overall disinvestment program announced earlier by the DIPAM, Ministry of Finance, using the ETF route.
ICICI Prudential Mutual Fund has announced the additional offering period (AOP) of ICICI Pru MF Bharat 22 ETF.
This AOP is a part of the Government of India's overall disinvestment program announced earlier by the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, using the ETF route.
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Source: The Economic Times of India
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