Hedge funds face a crisis of confidence
June 11, 2017--Hedge funds are dancing with the devil.
They are facing a crisis of confidence and potential lawsuits amid unprecedented fund closures, job losses and -most critically -low investment returns.
Source: nypost.com
Bitcoin bulls runs wild as cryptocurrency surges above $3,000
June 11, 2017--Bitcoin traded above $3,000 for the first time, helped by increased demand from Asia-based investors.
The cryptocurrency climbed to an all-time high Sunday of $3,012.05, according to CoinDesk.
Bitcoin has now more than tripled in value since trading at $968 on Dec. 31, and has gained nearly 30 percent in June alone.
Non-U.S. equity funds experienced record flows of $30.4bn for the month, including
broad Europe accelerating to $9.3bn following the French election, EAFE setting an
all-time high with $8.8bn and broad EM reaching a nine-month high of $5.7bn
Fixed income remained on track for a second consecutive record year by gathering another $14.3bn, led by investment grade flows of $6.
8bn (the best month ever) and followed by EM debt with $2.1bn
Source: BlackRock
Chart: Measuring Global Competitiveness
Source: visualcapitalist.com
DECPG Global Weekly
Growth in both advanced economies and emerging market and developing economies (EMDEs) is expected to accelerate in 2017-to 1.9 percent and 4.1 percent,respectively.
Source: World Bank
IMF Working paper-Capital Controls and the Cost of Debt
A number of heterogeneities suggest that the effect of capital controls on inflows is particularly strong for more financially constrained firms, establishing a novel channel through which capital controls affect economic outcomes. By contrast, we do not find a robust significant effect of restrictions on outflows. view the IMF Working paper-Capital Controls and the Cost of Debt
Source: IMF
IMF Working Paper-A Tie That Binds: Revisiting the Trilemma in Emerging Market Economies
Our findings show that exchange rate regimes do matter. Countries with fixed exchange rate regimes are more likely to experience financial vulnerabilities-faster domestic credit and house price growth, and increases in bank leverage-than those with relatively flexible regimes. The transmission of global financial shocks is likewise magnified under fixed exchange rate regimes relative to more flexible (though not necessarily fully flexible) regimes. We attribute this to both reduced monetary policy autonomy and a greater sensitivity of capital flows to changes in global conditions under fixed rate regimes. view the IMF Working Paper-A Tie That Binds: Revisiting the Trilemma in Emerging Market Economies
Source: IMF
Second set of FAQs on the Liquidity Coverage Ratio issued by the Basel Committee
These respond to a number of interpretation questions received by the Basel Committee related to the January 2013 publication of the LCR standard. view the Basel III-The Liquidity Coverage Ratio: frequently asked questions document
Source: BIS
BetaShares-Global Market Outlook: June 2017 -Tech boom
Helped by solid underlying earnings growth, declining bond yields and still reasonable price-earnings valuations, the tech-heavy Nasdaq-100 Index posted particularly strong gains. The outlook for equity markets generally remains encouraging, with reasonable and increasingly broad-based global economic growth and persistent low inflation.
Source: BetaShares
ETF Securities-Precious Metals Monitor ---May 2017
This has provided a buffer for precious metals as US real interest rates fell commensurately despite lower inflation measures and inflation expectations in recent weeks. With the Federal Reserve (Fed) expected to hike rates in mid-June, investors appear to be less jolted by the prospects of this potential rate increase compared to prior hikes in this tightening cycle. With inflation below targets, mixed economic data, and weaker than expected jobs data we may see a "steady as she goes" approach by the Fed which the market has likely already adjusted.
Source: etfsecurities.com
June 10, 2017--Summary
Global ETP flows of $45.0bn during May pushed assets past the $4 trillion milestone
Industry assets crossed $4 trillion after first reaching $3 trillion just two years earlier,
with organic growth rising from 11% in the first year to 18% in the second year.
June 9, 2017--What makes an economy competitive at the global level, and why?
It's a question that economists, investors, and politicians have been asking themselves for decades. And to help answer it, the World Economic Forum has created the Global Competitiveness Index, or GCI.
June 9, 2017--Taking Stock
The World Bank projects global growth to strengthen in 2017. According to the World Bank's June 2017 Global Economic
Prospects report, released on Sunday, global growth will strengthen to 2.7 percent this year, in line with January forecasts, amid a pickup in manufacturing and trade, rising market confidence, favorable global financing conditions, and stabilizing commodity prices.
June 9, 2017--Summary:
Using a panel data set for international corporate bonds and capital account restrictions in advanced and emerging economies, we show that restrictions on capital inflows produce a substantial and economically meaningful increase in corporate bond spreads.
June 8, 2017--Summary:
This paper examines the claim that exchange rate regimes are of little salience in the transmission of global financial conditions to domestic financial and macroeconomic conditions by focusing on a sample of about 40 emerging market countries over 1986-2013.
June 8, 2017--The Basel Committee on Banking Supervision has today issued a second set of frequently asked questions (FAQs) and answers on Basel III's Liquidity Coverage Ratio (LCR).
June 7, 2017--The MSCI All-Country World Equity Total Return Index rose a further 1.4% in May, after a 1.3% gain in April, to make it seven consecutive monthly increases.
June 7, 2017--Metals shrug off further Fed rate hikes
After peaking near 2.4% at the start of May, US 10 Year Treasury yields saw a precipitous drop ending the month at 2.2%.
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