Global ETF News Older than One Year
IMF Working Paper-Monetary Policy Is Not Always Systematic and Data-Driven: Evidence from the Yield Curve
January 17, 2020--Summary:
Does monetary policy react systematically to macroeconomic innovations? In a sample of 16 countries-operating under various monetary regimes-we find that monetary policy decisions, as expressed in yield curve movements, do react to macroeconomic innovations and these reactions reflect the monetary policy regime.
While we find evidence of the primacy of the price stability objective in the inflation targeting countries, links to inflation and the output gap are generally weaker and less systematic in money-targeting and multiple-objective countries.
Source: IMF
IMF Working Paper-Predicting Downside Risks to House Prices and Macro-Financial Stability
January 17, 2020--January 17, 2020--Summary:
This paper predicts downside risks to future real house price growth (house-prices-at-risk or HaR) in 32 advanced and emerging market economies. Through a macro-model and predictive quantile regressions, we show that current house price overvaluation, excessive credit growth, and tighter financial conditions jointly forecast higher house-prices-at-risk up to three years ahead.
House-prices-at-risk help predict future growth at-risk and financial crises. We also investigate and propose policy solutions for preventing the identified risks. We find that overall, a tightening of macroprudential policy is the most effective at curbing downside risks to house prices, whereas a loosening of conventional monetary policy reduces downside risks only in advanced economies and only in the short-term.
view the IMF Working Paper-Predicting Downside Risks to House Prices and Macro-Financial Stability
Source: IMF
IEA says oil stocks, non-OPEC output to buffer market from shocks
January 16, 2020--Surging oil production from non-OPEC countries led by the United States along with abundant global stocks will help the market weather political shocks such as the U.S.-Iran stand-off, the International Energy Agency (IEA) said on Thursday.
"For now the risk of a major threat to oil supplies appears to have receded," the Paris-based IEA said in a monthly report.
"Today's market, where non-OPEC production is rising strongly and OECD stocks are 9 million barrels above the five-year average, provides a solid base from which to react to any escalation in geopolitical tension," the IEA said.
Source: Reuters
Climate change will reshape markets, McKinsey warns
January 16, 2020-Financial markets could face upheaval if the risks of climate change are not taken more seriously, McKinsey warned in a report on Thursday.
Even climate-conscious investors, companies and regulators could be wrongfooted as slight increases in global temperatures threaten to create havoc, the consultancy said.
"Markets have been premised on the context of a relatively stable climate," said Jonathan Woetzel, one of the report's authors. "But there is an edge where risks can spike, which calls into question the capacity of the system."
Source: bizjournals.com
Climate risk and response: Physical hazards and socioeconomic impacts January 2020|Report
January 16, 2020--After more than 10,000 years of relative stability-the full span of human civilization—the Earth’s climate is changing. As average temperatures rise, climate science finds that acute hazards such as heat waves and floods grow in frequency and severity, and chronic hazards, such as drought and rising sea levels, intensify.
In this report, we focus on understanding the nature and extent of physical risk from a changing climate over the next one to three decades, exploring physical risk as it is the basis of both transition and liability risks.
Source: mckinsey.com
Systematic funds suffer 'quant winter'
January 16, 2020--Automated investing is on the rise, but many funds are struggling to meet expectations.
Source: FT.com
BlackRock Responds to Demands for Stronger Climate Action with Bold New Commitments
January 14, 2020--The company still remains the largest investor in coal, oil, gas, and the companies driving deforestation.
January 14, 2020--Today, after more than a year of increasing pressure from climate activists, investors, legislators, and thought leaders, BlackRock CEO Larry Fink, in his highly-anticipated annual letter, announced a sweeping new set of policies which aim to put climate change and sustainability at the center of BlackRock's business model. BlackRock is the world's largest asset manager with almost $7 trillion in assets under management.
In response to today's announcement Diana Best, Senior Strategist for the Sunrise Project which is a core partner of the BlackRock's Big Problem campaign, said: “BlackRock's new initiatives match the size of the crisis we're seeing in 2020 and are the direct result of an outpouring of pressure from the global climate movement.
Source: blackrocksbigproblem.com
IMF-FinTech Note-Regulation of Crypto Assets
January 10, 2020--Summary:
The rapid growth of crypto assets has raised questions about the appropriate regulatory perimeter and the ability of the existing regulatory architecture to adapt to changing conditions.
Effective regulation of financial services promotes long-term economic stability and minimizes the social costs and negative externalities from financial instability. The same underlying principles for regulation should apply to nascent products and services based on innovative technologies, notwithstanding design challenges.
view the IMF-FinTech Note-Regulation of Crypto Assets
Source: IMF
BlackRock joins pressure group taking on biggest polluters
January 9, 2020--World's largest investor signs up to Climate Action 100+ after criticism from activists
BlackRock, the world's largest investor, has joined an influential pressure group calling for the biggest polluters to reduce their emissions, after criticisms that it was undermining action addressing the climate crisis.
The US investment firm has signed up to Climate Action 100+, a group of investors managing assets worth more than $35tn (£s;27tn), that pressures fossil fuel producers and other companies responsible for two-thirds of annual global industrial emissions to show how they will reduce carbon dioxide pollution.
Source: theguardian.com
World Bank-Global Growth: Modest Pickup to 2.5% in 2020 amid Mounting Debt and Slowing Productivity Growth
January 8, 2020--Global economic growth is forecast to edge up to 2.5% in 2020 as investment and trade gradually recover from last year's significant weakness but downward risks persist, the World Bank says in its January 2020 Global Economic Prospects.
Growth among advanced economies as a group is anticipated to slip to 1.4% in 2020 in part due to continued softness in manufacturing. Growth in emerging market and developing economies is expected to accelerate this year to 4.1%.
This rebound is not broad-based; instead, it assumes improved performance of a small group of large economies, some of which are emerging from a period of substantial weakness. About a third of emerging market and developing economies are projected to decelerate this year due to weaker-than-expected exports and investment.
view the World Bank JANUARY 2020 Global Economic Prospects Slow Growth, Policy Challenges
Source: World Bank