Global ETF News Older than One Year
Has the bond ETF boom helped nurture the private credit frenzy?
August 1, 2023--Barclays thinks so
A lot of people viscerally hate the idea of fixed income ETFs, but despite the recent choppiness in bond markets ETFs keep going, growing and altering the nature of the underlying market.
The rising popularity of corporate bond ETFs-and the portfolio trading that they help enable -makes it easier for investors to manage portfolios, lowers trading costs and increases liquidity, according to a new Barclays report.
This has major implications. Barclays argues that ETFs have dramatically lowered the "liquidity risk premium"- the extra returns that investors demand to compensate for owning less-liquid securities- and led to lower yields across the entire market for US junk bonds.
Source: ft.com
WTO issues 2023 edition of the World Trade Statistical Review
July 31, 2023--The WTO issued today (31 July) the latest edition of the World Trade Statistical Review, its annual flagship publication featuring key data on global trade in merchandise and commercial services.
The World Trade Statistical Review 2023 presents recent trends in international trade at a time of geopolitical and macroeconomic strains and technological challenges affecting the global economy and supply chains.
The data cover merchandise and services trade broken down by geographical origin, main product groups and sectors, along with related data on key economic developments such as GDP growth, commodity prices, and exchange rate fluctuations.
Source: WTO (World Trade Organization)
WTO-New publication sets out common framework for measuring digital trade
July 28, 2023--A new edition of the Handbook on Measuring Digital Trade issued today (28 July) provides a framework and practical guidance on how to measure digital trade.
Building upon the first edition issued in 2019, the Handbook aims to address the challenges inherent in measuring digital trade and to establish consistent practices that will allow for comparable data across countries. The publication is jointly authored by the WTO, the International Monetary Fund, the Organisation for Economic Cooperation and Development and the United Nations Conference on Trade and Development.
Source: WTO (World Trade Organization)
Global benchmark launches to define what 'high quality' carbon credits are
July 28, 2023--Approved high-quality carbon credits will be available to buyers by the end of the year, according to the Integrity Council for the Voluntary Carbon Market.
A new benchmark has launched to bring more clarity to the definition of a high-quality carbon credit, which companies are increasingly using to offset their climate impact.
On Thursday (28 July), the Integrity Council for the Voluntary Carbon Market (ICVCM), a governance body for the voluntary carbon market, released a global benchmark for high-integrity carbon credits, with the aim of bringing more transparency to how carbon offsetting contributes to global climate goals.
Source: eco-business.com
Inflation Remains Risk Confronting Financial Markets
July 27, 2023--Central banks may keep interest rates higher for longer than currently priced; given investors' benign inflation outlook and growing expectations for a soft landing, this could increase financial stability risks and weigh on growth
Overall inflation has moderated meaningfully in recent months in the United States and euro area, as energy and food prices have fallen significantly. Year-on-year headline inflation is now around 3 percent in the United States and below 5.5 percent in the euro area.
However, core inflation, excluding food and energy prices, has declined more slowly. Services inflation has proven to be particularly sticky.
According to market pricing, investors expect headline inflation to continue to decline quite rapidly in coming quarters. However, some market participants still see upside risks to the inflation outlook, likely reflecting recent stickiness in core inflation. Indeed, pricing from inflation options-financial instruments that offer protection against inflation moving higher or lower than its current level-shows that such upside risk is particularly pronounced in Europe, where investors assign roughly similar odds to inflation returning to the European Central Bank's 2 percent target and inflation remaining around 4 percent. In the United States, investors appear to put high odds on inflation being above target at around 3 percent.
Source: imf.org
Hottest July ever signals 'era of global boiling has arrived' says UN chief
July 27, 2023--As wildfires raged across Southern Europe and North Africa, top UN climate scientists said on Thursday that it was "virtually certain" that July 2023 will be the warmest on record.
Echoing that warning in New York, UN Secretary-General António Guterres said that "short of a mini-Ice Age" in coming days, July 2023 would likely "shatter records across the board".
"Climate change is here. It is terrifying. And it is just the beginning," said the UN chief, warning that the consequences are as clear as they are tragic: "children swept away by monsoon rains, families running from the flames (and) workers collapsing in scorching heat."
'Remarkable and unprecedented'
Tweet URL In Geneva, scientists from the World Meteorological Organization (WMO) and the European Commission's Copernicus Climate Change Service described conditions this month as "rather remarkable and unprecedented".
They said that new data showed that so far, July has seen the hottest three-week period ever recorded and the three hottest days on record.
Source: news.un.org
IMF-World Economic Outlook Update-Near-Term Resilience, Persistent Challenges July 2023
July 25, 2023--The global recovery is slowing amid widening divergences among economic sectors and regions
Global growth is projected to fall from an estimated 3.5 percent in 2022 to 3.0 percent in both 2023 and 2024. While the forecast for 2023 is modestly higher than predicted in the April 2023 World Economic Outlook (WEO), it remains weak by historical standards.
The rise in central bank policy rates to fight inflation continues to weigh on economic activity. Global headline inflation is expected to fall from 8.7 percent in 2022 to 6.8 percent in 2023 and 5.2 percent in 2024. Underlying (core) inflation is projected to decline more gradually, and forecasts for inflation in 2024 have been revised upward.
The recent resolution of the US debt ceiling standoff and, earlier this year, strong action by authorities to contain turbulence in US and Swiss banking reduced the immediate risks of financial sector turmoil.
view full report
Source: imf.org
ETFGI reports Thematic ETFs listed globally gathered net inflows of US$6.62 billion during June
Total assets invested in Thematic ETFs have increased by 18.3% YTD in 2023, going from $221 Bn at end of 2022 to $261 Bn, according to ETFGI's June 2023 ETF and ETP Thematic industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Source: ETFGI
34% of Professional Investors Are Interested in Building Biodiversity-themed Financial Products
The virtual event shed light on the substantial commitment of financial institutions to incorporate biodiversity into their decision-making processes. Notably, the 140 signatories of the Finance for Biodiversity initiative collectively manage an impressive $20 trillion in assets. This signals a noteworthy upcoming shift within the industry; currently investments focused on biodiversity represent only $2.9 billion compared to the over $40 trillion associated with the broader ESG market.
Source: Clarity AI
Emerging Market Economies Bear the Brunt of a Stronger Dollar
In emerging market economies, a 10 percent US dollar appreciation, linked to global financial market forces, decreases economic output by 1.9 percent after one year, and this drag lingers for two and a half years. In contrast, the negative effects in advanced economies are considerably smaller in size, peaking at 0.6 percent after one quarter and are largely gone in a year.
Source: imf.org
July 21, 2023--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs ecosystem, reported today that Thematic ETFs listed globally gathered net inflows of US$6.62 Bn during June, bringing year to date net inflows to US$19.11 billion.
Thematic ETFs listed globally gathered net inflows of $6.62 Bn during June.
YTD net inflows of $19.11 Bn are the fourth highest on record, while the highest recorded YTD net inflows were $60.58 Bn for 2021, followed by YTD net inflows of $21.44 Bn for 2022 and YTD net inflows of $17.52 Bn for 2020.
9th month of consecutive net inflows.
Assets of $261 Bn invested in Thematic ETFs and ETPs listed globally at the end of June 2023.
Assets increased by 18.3% YTD in 2023, going from $221 Bn at end of 2022 to $261 Bn.
July 19, 2023--Clarity AI and GIST Impact Host Successful Virtual Event on Investing and Biodiversity
Global sustainability tech platform, Clarity AI and impact data and analytics provider GIST Impact recently convened over 180 asset managers, wealth managers, and asset owners for a highly engaging virtual event, to discuss the crucial role of biodiversity in the investment landscape.
July 19, 2023--The US dollar's strengthening last year to a 20-year high had major implications for the global economy. We examine these spillovers from the currency's appreciation in our latest External Sector Report.
Building on recent research by Maurice Obstfeld and Haonan Zhou, we find that negative spillovers from US dollar appreciations fall disproportionately on emerging market economies when compared with smaller advanced economies.
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