Better thy Neighbor? Cross-border Effects of Fiscal Actions
September 27, 2017--In the wake of the global financial crisis, fiscal stimulus was advocated widely to help mitigate the recession. The thinking at the time was that fiscal stimulus would be particularly effective because its impact on activity tends to be larger when demand falls short of supply and central banks keep interest rates low. This, in turn, would lead to larger positive cross-border effects-or spillovers-on other countries.
Nearly a decade later, economic circumstances have improved. Do spillovers from fiscal actions still matter today in the context of less global economic slack (excess capacity) and less accommodative monetary policy? The answer is yes.
Source: IMF
This Trader Made 295% on Cryptocurrency Derivatives
September 27, 2017--U.K. brokerage uses contracts for difference to trade bitcoin
Regulators race to catch up with exploding market in tokens.
Jay Smith has little doubt the cryptocurrency market will crash. P> The price of bitcoin has increased sixfold in the past year, despite a 25 percent plunge this month triggered by China's crackdown on digital tokens. Not a week goes by without startups launching new ones to fund everything from dentistry to Las Vegas strip clubs.
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Source: Bloomberg
The Unequal Burden of Rising Temperatures: How Can Low-Income Countries Cope?
September 27, 2017--The Earth's temperature is rising and its climate is changing. The increase in temperatures will shape the economic future of communities and countries across the globe. All countries will feel the direct negative effects from unmitigated climate change.
But as our research in Chapter 3 of the October 2017 World Economic Outlook shows, the effects of higher temperatures will not be equal everywhere and the brunt of the adverse consequences will be borne by those who can least afford it-low-income countries.
Over the past four decades, the global average surface temperature has increased at a pace that is unprecedented in the past 20,000 years.
Source: IMF
Ultumus-Political Animals-Donkey or Elephant
September 26, 2017--September 26, 2017--In another sign that ETFs are becoming more like active management, new issuer Event Shares has listed two new actively managed ETFs that use politics to decide which companies to buy...
The Democrat Policies Fund (DEMS) will look at which companies are most likely to benefit from Democrats and long those likely to benefit...
The Republican Policies Fund (GOP) will do the same as DEMS, but for Republicans...
Europe
UK and France
Lyxor wants the best of Japan
Lyxor has listed a new Japanese dividend ETF in London and Paris that tracks large Japanese companies based how big and how consistent their dividend payments are...
Source: ULTUMUS-Financial Data Management
BlackRock insights on German elections, fixed income & more
September 26, 2017--German election: In Merkel we trust
German Chancellor Angela Merkel has won a fourth term but now faces tricky coalition talks after mainstream parties posted their worst results since the 1940s.
We see the outcome slowing momentum behind a Franco-German drive to promote deeper eurozone integration.
The powerful position of German finance minister could be key in coalition talks and the future of the eurozone.
Source: BlackRock
'Crypto' hedge funds spring up in crowded field
September 26, 2017--Managers lured by soaring value of bitcoin and other cryptocurrencies.
Source: FT.com
WGC-Enhancing the Wealth of Nations: Gold and Sovereign Wealth Funds
September 26, 2017--Sovereign wealth funds, like many other investors, are under pressure to generate returns in a low-yield, low growth environment. Many are expanding into alternative assets to seek growth and income opportunities. Despite this, few sovereign wealth funds have invested in gold due to ongoing misconceptions about gold's performance, financial behaviour, and liquidity.
However, gold has unique qualities that can meet the needs of sovereign wealth funds. It features a long-term pro-growth trajectory without sacrificing its short-term diversification and safe haven characteristics. It has virtually no correlation with funding sources like oil, while continuing to be one of the world's most liquid asset classes.
Source: World Gold Council (WGC)
Global Investor Confidence Declines in September by 2.4 points to 104.4
September 26, 2017--North American Confidence Continues Decline, While European and Asian Confidence Rises
State Street Global ExchangeSM today released the results of the State Street
Investor Confidence Index(R) (ICI) for September 2017.
The Global Investor Confidence Index decreased to 104.4, down 2.4 points from August's revised reading of 106.8. The decline in sentiment was driven by a 6.3 point drop in the North American ICI to 105.6. By contrast, the European ICI rose by 4.7 points to 93.7 along with the 3.7 increase in the Asian ICI to 102.8.
Source: State Street Corporation
New Focus Needed to Raise Global Competitiveness
September 26, 2017--Ten years on from the global financial crisis, economies remain at risk from further shock and are ill-prepared for the next wave of innovation and automation, The Global Competitiveness Report 2017-2018 finds
A decade of data illustrates the importance of balancing flexibility with protection in labour markets and why big hoped-for gains in productivity from innovation have remained elusive.
Switzerland remains the world's most competitive economy, followed by the United States and Singapore.
Ten years on from the global financial crisis, the prospects for a sustained economic recovery remain at risk due to a widespread failure on the part of leaders and policy-makers to put in place reforms necessary to underpin competitiveness and bring about much-needed increases in productivity, according to data from the World Economic Forum’s Global Competitiveness Report 2017-2018, published today.
view the The Global Competitiveness Report 2017-2018
Source: WEF (World Economic Forum)
Cross-border debt issuance the 'norm' by 2025, Aite Group report says
September 25, 2017--T2S to transform European debt issuance, boost demand for European bonds / Eighty percent of respondents expect increased demand for multi-currency CSD services by 2025.
Cross-border debt issuance will be the norm by 2025, according to a report published by global research and advisory firm Aite Group today. The report also indicates that TARGET2-Securities (T2S) will boost demand for European bonds and alter the European issuance landscape while Asia and the U.S. will continue to increase in strategic importance for international investors. The research paper is titled "The Future of Global Debt Issuance: 2025 Outlook" and was commissioned by Clearstream.
view the research paper-The Future of Global Debt Issuance: 2025 Outlook
Source: Deutsche Börse Group