Global ETF News Older than One Year
Eventual asset value decline will be catastrophic
March 24, 2017--The mania for average returns has been suppressing short term losses, or corrections.
Source: FT.com
MSCI seeks feedback on potential China stocks inclusion
March 23, 2017--Global index provider MSCI Inc (MSCI.N) is seeking feedback from market participants on whether to add Chinese shares to a widely tracked index, a move which could trigger billions of dollars in capital inflows into mainland stocks and ease pressure on its yuan currency.
Source: Reuters
World Economic Forum-World's Largest Economies Lag Behind in Delivering Secure, Affordable, Sustainable Energy
March 22, 2017--When it comes to achieving affordable, environmentally sustainable and secure energy systems, a group of small economies is quickly accelerating away from the rest of the world.
The top 20 performers in the fifth annual Global Energy Architecture Performance Index Report 2017 have achieved twice the average increase in their score compared to that of all other countries.
The report, developed in collaboration with Accenture Strategy and launched today at the European Commission, ranks 127 countries based on their ability to provide energy across three dimensions of the "energy triangle".
view the Global Energy Architecture Performance Index Report 2017
Source: WEF (World Economic Forum)
IMF Working paper-Private and Public Debt: Are Emerging Markets at Risk?
March 22, 2017--Using a dataset covering a large sample of emerging economies (EMEs), we study the relationship between debt and economic performance in bad times.
While previous research has shown that private debt buildups exacerbate the duration and intensity of recessions in advanced economies (AEs), we document that this effect is very pronounced in EMEs as well. Moreover, although rapid public debt buildups are unlikely to be the primary trigger of financial crises, in EMEs they are associated with deeper and longer recessions than in AEs. Part of this difference is explained by a less supportive fiscal policy in EMEs during crises.
view the IMF Working paper-Private and Public Debt: Are Emerging Markets at Risk?
Source: IMF
Fintech can help fight AML, but might also increase risk of financial contagion, head of MAS says
March 20, 2017--While novel financial technologies could reduce certain risks for financial institutions, they could also imperil them and trigger, among other things, financial contagion, according to Ravi Menon, the managing director of the Monetary Authority of Singapore.
Source: mlexfs-core.com
Asset managers set for multi-year adjustment phase-Morgan Stanley
March 20, 2017--Adustment process could usher in an era of large-scale consolidation
Asset managers are facing a multi-year adjustment process that will affect earnings and shares, according to analysts at Morgan Stanley.
Source: globalinvestormagazine.com
Fixed-income ETF flows across assets and maturities
March 20, 2017--Bond ETFs see net outflows on rising rates, commodities slide
Cash fled global bond exchange-traded funds in the week ended March 8 as commodity prices slid. U.S. corporate high yield led outflows as high grade inflows stalled and U.S.
Treasuries saw net inflows. Recent bond flows also reflect better interest-rate risk appetite. Yet the longer trend shows shorter-duration ETF inflows outpacing longer-duration funds.
Source: Bloomberg
Bassanese Bites: $US Breather
March 19, 2017--The Week in Review
The key development last week was market's "sell the fact" reaction to the Fed rate hike.
With the Fed signalling an earlier than market expected March rate hike in recent weeks, traders seemed to be anticipating a more hawkish Fed statement and possible lift in the number of rate hikes the Fed expects to make this year from 3 to 4.
As it turned out, the Fed was not more hawkish and stuck with its (current) plans of only two further rate hikes this year. Bonds yields and the $US dollar dropped, and equities rejoiced.
Source: BetaShares
DECPG Global Weekly-March 17, 2017
March 17, 2017--Taking Stock
U.S. Federal Reserve raised interest rates. On March 15th, the U.S. Federal Reserve raised its benchmark federal fund rate by 25 basis points to a range of 0.75-1 percent, in line with market expectations.
The interest rate hike, the third during the ongoing tightening cycle, came amid strong employment numbers and rising inflation. In its statement, the Federal Reserve noted that headline price inflation had moved closer to the 2 percent target and business sentiment had improved.
Source: World Bank
Blockchains and the G20: Building an Inclusive, Transparent and Accountable Digital Economy
March 17, 2017--At a time when governments must fight to restore the public's faith in cross-border economic cooperation, blockchain technologies can play a critical role in strengthening economic resilience while ensuring the global economy works to the benefit of all.
The G20 must take decisive steps to harness this technology in service of its policy goals across the core focus areas of economic resilience, financial inclusion, taxation, trade and investment, employment, climate, health, sustainable development and women's empowerment.
Source: Centre for International Governance Innovation
