Global ETF News Older than One Year
A new way to measure growth and development: The Inclusive Development Index
March 6, 2018--Recent political developments in many countries suggest that most of their citizens lack confidence in the assumption of the standard growth model that everyone in a society benefits from GDP growth. This column proposes a multidimensional 'Inclusive Development Index', based on a dashboard of indicators in growth and development, inclusion, and intergenerational equity and sustainability.
GDP per capita growth is weakly correlated with performance in many of the new index's indicators, including those pertaining to employment, income and wealth inequality, and carbon intensity.
Global economic growth is making a stronger than expected comeback. It is likely to accelerate to as much as 4% in 2018, from 3.2% in 2016 (IMF 2018).
World Gold Council-Gold-backed ETFs lost 5.1t in February
March 6, 2018--Gold-backed ETFs collectively held 2,393.4t (US$101.4bn) at the end of February after losing 5.1t (US$146mn) during the month.
Regional fund flows
Asian-listed funds added 7.9t (US$317mn, 8.3% AUM)
European funds lost 7.3t (US$240.6mn, 57bp AUM).
North American funds lost 5.1t (US$196mn, 37bp AUM)
Funds in other regions lost 0.7t (US$28mn, 1.6% AUM)
Source: World Gold Council (WGC)
World Economic Forum Convenes New Consortium to Address Fintech Cybersecurity
March 6, 2018--The World Economic Forum today announced the creation of a new consortium to strengthen cybersecurity for financial technology companies (fintechs) and data aggregators. The consortium's founding members include global bank Citigroup, insurance company Zurich Insurance Group, fintech lender Kabbage, information technology company Hewlett Packard Enterprise (HPE), and financial infrastructure provider The Depository Trust & Clearing Corporation (DTCC).
Its aim is to create a framework for the assessment of cybersecurity in financial technology.
The consortium came about after leading cybersecurity experts convened by the World Economic Forum identified the growing threat of cyber-attacks to financial services providers as a key concern for the global financial system. Their assessment and proposed solutions were published today in Innovation-Driven Cyber-Risk to Customer Data in Financial Services, a white paper.
view the Innovation-Driven Cyber-Risk to Customer Data in Financial Services white paper
Source: WEF (World Economic Forum)
Polish confirms bid for Tel Aviv stock exchange
March 6, 2018-- Poland's state-run stock exchange GPW (GPW.WA), along with state fund PFR, has submitted a non-binding offer to buy a 71.7-percent stake in Tel Aviv Stock Exchange TASE, GPW said on Tuesday.
Last week, a source close to TASE said that more than ten stock exchange operators have shown an interest in buying a controlling stake.
Source: Reuters
Cryptocurrencies Could Threaten Financial Stability, Says Head of BIS
March 6, 2018--Official from Bank for International Settlements calls on central banks to intervene to stem risks
Central banks must be prepared to intervene to stem risks from digital currencies, as Bitcoin has become a "combination of a bubble, a Ponzi scheme and an environmental disaster," central banking official Agustin Carstens said Tuesday.
The warning indicates public authorities are moving toward a crackdown on digital currencies amid concerns they could undermine the broader financial system. view more
Source: Wall Street Journal
IMF Working Papers-How Well Do Economists Forecast Recessions?
March 5, 2018--Summary:
We describe the evolution of forecasts in the run-up to recessions. The GDP forecasts cover 63 countries for the years 1992 to 2014. The main finding is that, while forecasters are generally aware that recession years will be different from other years, they miss the magnitude of the recession by a wide margin until the year is almost over.
Forecasts during non-recession years are revised slowly; in recession years, the pace of revision picks up but not sufficiently to avoid large forecast errors. Our second finding is that forecasts of the private sector and the official sector are virtually identical; thus, both are equally good at missing recessions. Strong booms are also missed, providing suggestive evidence for Nordhaus' (1987) view that behavioral factors-the reluctance to absorb either good or bad news-play a role in the evolution of forecasts.
view the IMF Working Papers-How Well Do Economists Forecast Recessions?
Source: IMF
FSB publishes Global Shadow Banking Monitoring Report 2017
March 5, 2018--The Financial Stability Board (FSB) today published the Global Shadow Banking Monitoring Report 2017. The Report presents the results of the FSB's seventh annual monitoring exercise to assess global trends and risks from shadow banking activities.
The 2017 monitoring exercise covers data up to end-2016 from 29 jurisdictions, which together represent over 80% of global GDP, including, for the first time, Luxembourg. Also for the first time, the Report assesses the involvement of non-bank financial entities in China in credit intermediation that may pose financial stability risks from shadow banking, such as maturity/liquidity mismatches and leverage.
view the FSB Global Shadow Banking Monitoring Report 2017
Source: Financial Stability Board (FSB)
Record oil output from US, Brazil, Canada and Norway to keep global markets well supplied
March 5, 2018--Oil production growth from the United States, Brazil, Canada and Norway can keep the world well supplied, more than meeting global oil demand growth through 2020, but more investment will be needed to boost output after that, according to the International Energy Agency's latest annual report on oil markets.
Over the next three years, gains from the United States alone will cover 80% of the world's demand growth, with Canada, Brazil and Norway-all IEA family members-able to cover the rest, according to Oil 2018, the IEA's five-year market analysis and forecast.
view the IEA Oil 2018 summary report
Source: International Energy Agency (IEA)
ETF Securities-Precious Metals Monitor-- February 2018
March 5, 2018--Key Highlights
Volatility, Inflation, and Tariffs...Oh My!
February may be the shortest month, but it was packed with several market drivers. The return of volatility caught many investors off guard at the onset of the month. Sparked by concerns around rising inflation, US 10-year yields neared 3.0% while the S&P 500 saw a 10% drawdown with the Chicago Board Options Exchange Volatility (VIX) Index hitting its highest level since August 2015.
Comments from the new Federal Reserve (Fed) Chairman, Jerome Powell, served to further spook markets this month as market expectations increased for further rate hikes in 2018. The month closed on news of trade tensions following an announcement of US tariffs on steel and aluminium. Throughout this month of volatility, precious metals served to mitigate against the market drawdown and related risk factors. If continued market and geopolitical uncertainty persists in 2018, investors may further increase allocations to precious metals as core risk management tools.
Source: etfsecurities.com
Too-clever ETFs are a car crash waiting to happen
March 5, 2018--At what point does innovation become dangerous?
The long winding road of financial inventiveness is littered with innumerable crashes, and observers must now be wondering whether the exchange traded funds industry is in danger of becoming too clever for its own good. The standard narrative of...
Source: FT.com
