Global ETF News Older than One Year
Aberdeen Standard Investments Precious Metals Outlook June 2019-Growth and Trade War Concerns Raise Bullish Case for Precious Metals
June 14, 2019--Global trade disputes led by further US-China tariffs has thrown a wrench into the global growth outlook. While official growth figures indicated signs of a slowdown, equity markets appeared to simply shrug off these underlying economic conditions. Yet, the return to headline driving tariffs between the US and China has sparked concerns among both investors and economists alike with the S&P 500 Index falling over 6% in May.
Volatility rose and yields fell as risk-off sentiment spurred investors to defensive assets and cash. Gold rose above $1300/ounce (oz) through month end driven by market expectations that the Federal Reserve (Fed) along with other developed economy central banks will either continue to pause or seek to cut benchmark rates to support further slides in growth and financial markets. This dynamic may lead to a conducive scenario for gold and other precious metals such as silver. The progressing trade war between two major trade partners, the US and China, is a prime example of the type of geopolitical tensions that may benefit precious metals. Further uncertainty and lack of resolution in this trade war may see gold and silver reach bullish scenario levels of $1400/oz and $18/oz, respectively, by year end.
Source: Aberdeen Standard Investments
IMF Working Paper-From Basel I to Basel III: Sequencing Implementation in Developing Economies
June 14, 2019--Summary:
Developing economies can strengthen their financial systems by implementing the main elements of global regulatory reform. But to build an effective prudential framework, they may need to adapt international standards taking into account the sophistication and size of their financial institutions, the relevance of different financial operations in their market, the granularity of information available and the capacity of their supervisors.
Under a proportionate application of the Basel standards, smaller institutions with less complex business models would be subject to a simpler regulatory framework that enhances the resilience of the financial sector without generating disproportionate compliance costs. This paper provides guidance on how non-Basel Committee member countries could incorporate banks' capital and liquidity standards into their framework. It builds on the experience gained by the authors in the course of their work in providing technical assistance on-and assessing compliance with-international standards in banking supervision.
Source: IMF
ETFGI reports assets invested in the Global ETF and ETP industry decreased to 5.32 trillion US dollars at the end of May 2019
June 13, 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 saw net outflows of US$4.05 billion in May, bringing year-to-date net inflows to US$141.04 billion.
Assets invested in the Global ETF/ETP industry have decreased by 4.6%, from US$5.57 trillion at the end of April, to US$5.32 trillion, according to ETFGI's May 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 declined to US$5.32 Tn.
Assets invested in the Global ETF/ETP industry decreased by 4.6% in May.
During May 2019, ETFs/ETPs listed Globally saw$4.05 Bn in net outflows.
Source: ETFGI
Mind the $400 trillion pensions gap
June 13, 2019--There is no quick fix to the global pensions crisis. Many people simply do not save enough for their old age, while government pension schemes face unprecedented strains.
A new World Economic Forum report gives examples of fresh thinking from around the world, showing the financial services industry and policy-makers how to step up.
view the World Economic Forum Investing in (and for) Our Future White Paper
Source: World Economic Forum
Global Foreign Direct Investment Slides for Third Consecutive Year-United Nations Report
June 12, 2019--Contraction largely caused by US multinationals repatriating earnings from abroad
Global foreign direct investment (FDI) flows slid by 13% in 2018, to US$1.3 trillion from $1.5 trillion the previous year-the third consecutive annual decline, according to UNCTAD's World Investment Report 2019.
The contraction was largely precipitated by United States multinational enterprises (MNEs) repatriating earnings from abroad, making use of tax reforms introduced by the country in 2017, designed for that purpose.
Hardest hit by the earnings repatriation were developed countries, where flows fell by a quarter to $557 billion-levels last seen in 2004.
view the UN World Investment Report 2019
Source: UNCTAD
Santorum-Backed Catholic Blockchain Looks To Entice Younger Users To Crypt. Wait. Crypto.
It's even worse than you think, and that's saying something.
June 11, 2019--Every time you think the craziest moments in crypto are behind you, another ghost of 2017 returns to haunt the cryptocurrency markets.
We've already seen the improbable resurrections of BitConnect and Mark Karpeles. Now, one of the ghosts of the 2016 presidential campaign has been resurrected to help launch a cryptocurrency.
Rick Santorum, who is best known for making Donald Trump look sane and reasonable*, has now joined the crowded ranks of cryptocurrency advisors. In addition to haunting the nightmares of Democrats, Santorum is now moonlighting as an advisor to Cathio: the Catholic Blockchain.
Source: cryptobriefing.com
Steampunk Settlement-Futuristic DLT Technology Could Deliver Anachronistic Result
June 11, 2019--Distributed ledger technology (DLT) will have a profound effect on clearing and settlement, but taken too far, it might actually turn the clock backward and reintroduce problems financial markets have been working to alleviate for more than 500 years.
"DLT has great potential to enhance the existing system," says Ken Monahan, Senior Analyst for Greenwich Associates Market Structure and Technology and author of Steampunk Settlement: Deploying Futuristic Technology to Achieve an Anachronistic Result. "But in reality, the technology is evolutionary, not revolutionary, and attempting to replace the clearing infrastructure with this technology is to carry the system not into the future, but into the past."
Source: Greenwich Associates
FTSE Russell The 2019 Smart Beta Survey of Asset Owners result are in
June 10, 2019--Now in its sixth year, the FTSE Russell global institutional surveys provide unique insight into major trends in awareness, popularity and the use of smart beta among global asset owners.
This year we have produced an additional report that examines the integration of ESG into smart beta strategies by asset owners.
Key findings:
78% of survey respondents have implemented, are currently evaluating, or plan to evaluate smart beta strategies
YoY adoption of smart beta strategies has increased by 18% to 60% in North America
Over 75% of European asset owners evaluating or using smart beta expect to apply ESG considerations to smart beta, while only 17% of North American asset owners do
Among those who anticipate applying ESG considerations to a smart beta strategy, over three-quarters are now motivated by avoiding long term risk compared to a little over half just last year.
Source: FTSE Russell
Keeping the Wheels of Commerce Turning
June 10, 2019--The tariff disputes roiling markets are a reminder that the global system of free trade, which has delivered so much prosperity, is a fragile one.
We all know what happened in the 1930s, when trade wars only served to deepen the misery inflicted by the Great Depression.
That is why, after World War II, countries agreed to gradually reduce tariffs.
But many continued to restrict flows of goods across borders in other ways as they sought to give their domestic industries an edge over foreign competitors.
One common method was to impose different exchange rates for different kinds of transactions in a bid to stimulate exports and discourage imports. That is one example of what is known as a multiple currency practice, or MCP. Another is to offer favorable exchange rates to selected industries. view more
Source: IMF
ECB Working Paper-Competition among high-frequency traders, and market quality
June 10, 2019--1 Introduction
High-frequency traders (HFTs) are market participants that are characterized by the high speed with which they react to incoming news, the low inventory on their books, and the large number of trades they execute (SEC (2010)). The high-frequency trading industry grew rapidly since its inception in the mid-2000s and today high-frequency trading represents about 50% of trading in US equity markets (down from a 2009 peak, when it topped 60%; see report of the TABB Group, 2017).
A distinguishing feature of the high-frequency industry is fierce competition (see, e.g., Wall Street Journal, 2017). While existing empirical research focuses on the general effects of high-frequency trading on market liquidity, price discovery and volatility, the question of how competition among HFTs affects market quality and market dynamics is largely unaddressed. Recent theoretical models predict that competition among HFTs can harm market liquidity.
Source: ECB
