Global ETF News Older than One Year
Wisdom Tree-Post the OPEC meeting: What now?
July 5, 2017--The recent OPEC meeting revealed no new news with respect to production cuts or the ability of OPEC to stabilise the oil price.
Whilst there was a commitment for a longer period of production adjustments for a further nine months with effect from 1 July 2017 the meeting concluded with a lack of discussion of deeper cuts. What was revealed was just how dependent the oil price is on other factors and data points, something that we previously highlighted in our blog Five things you need to know about trading oil.
ULTUMUS-Global ETF Monitor-July 5, 2017
July 5, 2017--Europe:
ETF Securities has listed a new commodities ETF in London, the ETFS Longer Dated All Commodities Ex-Agriculture and Livestock GO UCITS ETF (XAGS).
VanEck has cross-listed an emerging market government bonds ETF into Switzerland, the VanEck Vectors JP Morgan EM Local Currency Bond UCITS ETF (EMLC).
Asia:
Korean banking major Kookmin Bank has listed a new ETF in South Korea, the KB KBStar KQ High Dividend ETF (270800).
Source: ULTUMUS-Financial Data Management
DECPG Global Monthly-June 2017
July 5, 2017--Monthly Highlights
According to the June 2017 Global Economic Prospects report, global growth is projected to strengthen this year to 2.7 percent, and to 2.9 percent in 2018-19.
Global manufacturing and trade have firmed, financing conditions remain benign, and commodity prices have generally stabilized.
Growth in emerging market and developing economies (EMDEs) is expected to increase to 4.1 percent in 2017 and average 4.6 percent in 2018-19.
The improvement is driven by diminishing obstacles to activity in commodity exporters and robust growth in commodity importers.
Risks to the global outlook remain tilted to the downside, and include the possibility of increased protectionism, rising policy uncertainty, and financial market disruptions.
Source: World Bank
BetaShares-Central Banks Bark
July 3, 2017--Global Review & Outlook
The dominant global theme over the past week has been the increase in rhetoric from central banks-other than the US Federal Reserve-suggesting the day is nearing when emergency policy stimulus will need to be unwound.
Global bond yields rose, while the $US and stock prices weakened. The weaker $US, meanwhile, provided some support to commodity prices, with oil up 2.9% for the week.
Source: betashares.com.au
ETF Securities Weekly Flows Analysis-Gold hit by central banks' hawks
July 3, 2017--Gold ETPs saw large outflows on increased expectations of monetary policy normalisation
Positive surprise from Chinese manufacturing activity supported demand for industrial metals ETPs
Temporary factors boosted crude oil prices and inflows into oil ETPs
Largest weekly outflows from Gold ETPs since December last year. We saw US$160mn of outflows from gold ETPs last week after hawkish comments from the ECB and BOE and higher-than-expected German inflation.
Source: etfsecurities.com
Infographic-What is a Stock Market Index?
July 3, 2017--"How did the stock market do today?"
At surface, this seems like a simple question -but it's also deceptively difficult to answer. The market can be defined as many different things, and there are actually over 100,000 publicly traded companies in the world to choose from.
Source: visualcapitalist.com
New Infographic by Invezz.com Explains 5001% Growth in Ethereum With High Chances of Surpassing Bitcoin by 2018
July 3, 2017--A new infographic by Invezz.com reveals the growth of Ethreum and how it is set to overtake Bitcoin by 2018.
Despite the flash crash on Wednesday 21st June, an investment of 1 USD in Ethereum 7 months ago could have garnered a return of 5001 USD.
Key technological innovations at the right time that consolidated huge competitive advantages when compared to other cryptocurrencies.
Source: Invezz.com
Private Sector Infrastructure Investment Commitments in Developing Countries Fell in 2016
June 30, 2017--Growing Interest in Renewable Energy and East Asia a Bright Spot for Infrastructure Investment: World Bank Group
Investment commitments in infrastructure projects with private participation in developing countries declined sharply in 2016, falling by 37 percent compared to 2015, says a new World Bank Group report.
view the Private Participation in Infrastructure (PPI) 2016
Source: World Bank
IMF Working paper-Does the Stock Market Boost Firm Innovation?: Evidence from Chinese Firms
June 30, 2017--Summary:
The paper analyses the effect of the stock market on firm innovation through the lens of initial public offering (IPO) using uniquely matched Chinese firm-level data. We find that IPOs lead to an increase in both the quantity and quality of firm innovation activity. In addition, IPOs expand a firm's scope of innovation beyond its core business.
The impact of IPOs on firm innovation varies across financial constraints, corporate governance, and ownership structures. Our results further illustrate that IPOs induce a firm to increase the number of inventors and enable better retention of existing inventors after the IPO. Finally, we show that the enhanced innovation activity resulting from IPOs increases a firm's Tobin's Q in the long run.
view the IMF Working paper-Does the Stock Market Boost Firm Innovation?: Evidence from Chinese Firms
Source: IMF
IMF Working paper-Extensive Margin Adjustment of Multi-Product Firm and Risk Diversification
June 30, 2017--Summary:
Product scope adjustment is a key mechanism through which multi-product firms achieve efficient resource allocations. In this paper, we take a novel perspective to study firms' product scope adjustment behavior through the lens of asset pricing. Using a unique panel scanner data set containing detailed information on products, matched with the financial information of their manufacturers, we find that multi-product firms with higher product turnover have lower financial risks and lower risk premia.
To understand this channel, we propose a stylized model with a time-dependent (Calvo-type) product turnover rate to highlight the 'risk absorption channel' of product scope adjustment. In response to an economy-wide shock, a firm that can adjust its product scope more flexibly shows lower excess equity returns and lower asset volatility.
Source: IMF
