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IMF-World Economic Outlook, April 2019 Growth Slowdown, Precarious Recovery

April 10, 2019--After strong growth in 2017 and early 2018, global economic activity slowed notably in the second half of last year, reflecting a confluence of factors affecting major economies.

China's growth declined following a combination of needed regulatory tightening to rein in shadow banking and an increase in trade tensions with the United States. The euro area economy lost more momentum than expected as consumer and business confidence weakened and car production in Germany was disrupted by the introduction of new emission standards; investment dropped in Italy as sovereign spreads widened; and external demand, especially from emerging Asia, softened. Elsewhere, natural disasters hurt activity in Japan. Trade tensions increasingly took a toll on business confidence and, so, financial market sentiment worsened, with financial conditions tightening for vulnerable emerging markets in the spring of 2018 and then in advanced economies later in the year, weighing on global demand. Conditions have eased in 2019 as the US Federal Reserve signaled a more accommodative monetary policy stance and markets became more optimistic about a US-China trade deal, but they remain slightly more restrictive than in the fall.

view the IMF World Economic Outlook, April 2019 Growth Slowdown, Precarious Recovery

Weak Spots in Global Financial System Could Amplify Shocks

April 10, 2019--In the United States, the ratio of corporate debt to GDP is at record-high levels. In several European countries, banks are overloaded with government bonds. In China, bank profitability is declining, and capital levels remain low at small and medium-size lenders.

Vulnerabilities like these are on the rise across advanced and emerging market economies, according to the IMF's latest Global Financial Stability Report. They aren't all setting off alarm bells just yet. But if they continue to build, especially with still-easy financial conditions, they could amplify shocks to the global economy, raising the odds of a severe economic downturn a few years down the road.

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ETF investor inflows tumble 28% in first quarter

April 10, 2019--Lyxor and State Street Global Advisors among worst performers so far in 2019
ETF investor inflows tumble 28% in first quarter

This year's battle between providers of exchange traded funds to drum up new business has made an anaemic start with worldwide investor inflows down more than a quarter in the first three months.

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ETFGI reports assets invested in the Global ETF and ETP industry reached a new record US$5.40 trillion at the end of March 2019

April 10, 2019--ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that ETFs and ETPs listed Globally gathered net inflows of US$37.48 billion in March, bringing year-to-date net inflows to US$99.14 billion. Assets invested in the Global ETF/ETP industry finished the month up 1.42%, from US$5.32 trillion at the end of February, to US$5.40 trillion, according to ETFGI's March 2019 Global ETF and ETP industry landscape insights report, an annual paid-for research subscription service.

(All dollar values in USD unless otherwise noted.)

Highlights
Assets invested in the Global ETF/ETP industry reach a new record US$5.40 Tn.
April 11th marks the 19th anniversary of the listing of the first ETF in Europe.
Assets invested in the Global ETF/ETP industry rise 1.41% in March.


ETF investor inflows tumble 28% in first quarter

April 10, 2019--Lyxor and State Street Global Advisors among worst performers so far in 2019
ETF investor inflows tumble 28% in first quarter

This year's battle between providers of exchange traded funds to drum up new business has made an anaemic start with worldwide investor inflows down more than a quarter in the first three months.

view more

Global Business Value Of Artificial Intelligence In Banking To Reach $300 Billion By 2030, IHS Markit Says

April 10, 2019--Artificial intelligence (AI) is revolutionizing the banking sector by detecting fraud in financial transactions on the basis of a pre-defined set of rules. In 2018 AI in banking business was estimated to be $41.1 billion, which includes the cost savings and efficiencies of introducing AI technology compared to keeping existing infrastructures and processes.

With the projected increase in the number of AI projects that are launched and become commercially deployed, the business value of AI in banking is projected to reach $300 billion by 2030, according to global business information provider IHS Markit (NASDAQ: INFO).

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Deutsche Boerse to pay $850m for analytics firm AxiomaDeutsche Boerse to pay $850m for analytics firm Axioma

April 9, 2019--German exchange operator Deutsche Börse is buying Axioma for $850 million and combining the analytics specialist with its index businesses in a new company.

US-based Axioma will be rolled in with Deutsche Börse-owned Stoxx and Dax in a new company with a valuation of EUR2.6 billion and led by Axioma CEO Sebastian Ceria.

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SocGen Is Latest Bank to Shutter Its Commodities Business

April 9, 2019--Bank Shutting OTC commodities business, trading subsidiary
Comes after BNP shut its U.S commodities derivatives desk
Add Societe Generale SA to the list of banks and financial institutions to take a big step back from commodities amid a slump in trading profits.

The French bank said on Tuesday that it is planning to close its over-the-counter commodities business and its proprietary trading subsidiary as part of a global move to cut about 1,600 jobs after a slump in trading revenue.

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Machine-learning on the rise in financial services: Refinitiv

April 9, 2019--The use of machine-learning has picked up across the financial services industry, although problems such as data quality continue to dog its progress, a study by Refinitiv has found.

In a report, Refinitiv, the financial data provider, said more than 90 percent of the organizations it surveyed had either deployed machine-learning in multiple areas of the organization or have made a start in some pockets.

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IMF Working Paper-Illuminating Economic Growth

April 9, 2019--Summary:
This paper seeks to illuminate the uncertainty in official GDP per capita measures using auxiliary data. Using satellite-recorded nighttime lights as an additional measurement of true GDP per capita, we provide a statistical framework, in which the error in official GDP per capita may depend on the country's statistical capacity and the relationship between nighttime lights and true GDP per capita can be nonlinear and vary with geographic location.

This paper uses recently developed results for measurement error models to identify and estimate the nonlinear relationship between nighttime lights and true GDP per capita and the nonparametric distribution of errors in official GDP per capita data.

We then construct more precise and robust measures of GDP per capita using nighttime lights, official national accounts data, statistical capacity, and geographic locations. We find that GDP per capita measures are less precise for middle and low income countries and nighttime lights can play a bigger role in improving such measures.

IMF Working Paper-Illuminating Economic Growth

Americas


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Europe ETF News


September 10, 2024 ESAs warn of risks from economic and geopolitical events

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Asia ETF News


August 26, 2024 ETF Empowering Investors in China's Transition to Sustainable Economy

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Middle East ETF News


August 30, 2024 ADX logs $506.4mln in ETF trading Jan-Aug 2024
August 28, 2024 TCW expands global footprint with opening of Dubai office

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Africa ETF News


September 04, 2024 Africa: Climate-ECA Reveals Africa Loses Up to 5 Percent of GDP
August 27, 2024 Uganda joins African exchanges link

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ESG and Of Interest News


September 09, 2024 World Trade Report 2024 highlights trade's role in supporting inclusiveness
September 03, 2024 State of the Climate in Africa 2023
August 27, 2024 US unveils new tools to withstand encryption-breaking quantum. Here's what experts are saying
August 16, 2024 Africa: Gender Equality Has Everything to Do With Climate Change

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Infographics


August 27, 2024 Charted: $5 Trillion in Global Commodity Exports, by Sector

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