Global ETF News Older than One Year
IMF Working paper-Capital Controls and the Cost of Debt
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.
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
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.
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
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).
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
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.
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
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%.
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
Better but not good enough: New approaches are needed to make globalisation work for all, OECD says in latest Economic Outlook
June 7, 2017--The global economy is expected to pick up moderately but greater efforts are needed to ensure that the benefits from growth and globalisation are more widely shared, according to the OECD's latest Economic Outlook.
"After five years of weak growth, there are signs of improvement," OECD Secretary-General Angel Gurría said launching the Outlook during the Organisation's annual Ministerial Council Meeting and Forum in Paris.
vie moreview the OECD Global Economic Outlook, June 2017
Source: OECD
Infographic-The Demographic Timebomb: A Rapidly Aging Population
June 6, 2017--With record-high amounts of student debt, questionable job prospects, and too much avocado toast in their bellies, many millennials already feel like they are getting the short end of the stick.
But here's another economic headwind they face as they are coming of age: the percentage of the global population that is 65 or older will double from 10% to 20% by 2050.
Source: visualcapitalist.com
Betting on a green China and MSCI stamp of approval
June 5, 2017--Country's A-share market contains many environmentally friendly companies.
Source: FT.com
IMF-Chart of the Week: Why Energy Prices Matter
June 5, 2017--World Environment Day is an occasion to consider why it's so important to get energy prices right. The IMF has long argued that energy prices that reflect environmental costs can help governments achieve their goals not only for improving public health but also for inclusive growth and sound public finances.
A number of countries such as Egypt, Indonesia, Mexico, and Saudi Arabia have recently taken important steps to increase energy prices towards market levels.
Source: IMF
Global Growth Set to Strengthen to 2.7 percent as Outlook Brightens
June 4, 2017--Commodity Exporters Gradually Recovering from Recent Low Prices
The World Bank forecasts that global economic growth will strengthen to 2.7 percent in 2017 as a pickup in manufacturing and trade, rising market confidence, and stabilizing commodity prices allow growth to resume in commodity-exporting emerging market and developing economies.
According to the World Bank's June 2017 Global Economic Prospects, growth in advanced economies is expected to accelerate to 1.9 percent in 2017, which will also benefit the trading partners of these countries. Global financing conditions remain favorable and commodity prices have stabilized.
view the Global Economic Prospects: A Fragile Recovery June 2017
Source: World Bank
