Global ETF News Older than One Year
How Blended Finance Can Support Climate Transition in Emerging and Developing Economies
November 15, 2022--Innovative instruments and equity finance are needed to enhance risk-sharing through public-private partnerships and maximize the impact of scarce public funds
Emerging market and developing economies account for two-thirds of global greenhouse gas emissions, and many are highly vulnerable to climate hazards.
These economies will need significant financing in coming years to reduce emissions and adapt to the physical effects of climate change.
Many also have high debt and constrained budgets because of the pandemic and face higher government borrowing costs amid rising interest rates around the world, making it especially difficult for public finance to meet pressing climate financing needs.
These factors mean mobilizing private capital on a large scale will be key to achieving their climate objectives.
Source: IMF.org
IMF-Aging Is the Real Population Bomb
November 15, 2022--Population aging is the top global demographic trend; the pandemic can teach us how to prepare for it
Total world population passed the 8 billion milestone on November 15, 2022.
The progression from 7 to 8 billion people took a mere 12 years, conjuring up long-standing fears associated with rapid population growth, including food shortages, rampant unemployment, the depletion of natural resources, and unchecked environmental degradation.
But the most formidable demographic challenge facing the world is no longer rapid population growth, but population aging. Thoughtful preparedness-combining behavioral changes, investment in human capital and infrastructure, policy and institutional reforms, and technological innovations-can enable countries to meet the challenge and take advantage of the opportunities presented by demographic change.
Source: imf.org
COP27: 10 key facts climate scientists want you to know
November 14, 2022--Adapting our world will not save us from the devastating effects of climate change, say scientists.
What is also needed is urgent action to achieve dramatic cuts in CO2 emissions.
Here are 10 insights from climate experts delivered in plain language.
Adapting the world to cope with the effects of climate change can only go so far and time is running out to make radical changes to the way we live if we are to have any hope of averting a climate catastrophe, leading scientists have warned.
Released at the COP27 climate summit in Sharm el-Sheikh, Egypt, a report written by leading climate scientists lays bare the limitations of efforts to adapt to climate change. It says the world needs to urgently reduce the emissions that are changing the climate.
Source: weforum.org
WTO report shows G20 trade restrictions increasing amidst economic challenges
November 14, 2022--November 14, 2022-In a context of economic uncertainty exacerbated by the COVID-19 pandemic, the war in Ukraine and the food security crisis, G20 economies between mid-May and mid-October 2022 introduced export restrictions at an increased pace, particularly on food and fertilizer, according to the 28th WTO Trade Monitoring Report on G20 trade measures issued on 14 November.
WTO Director-General Ngozi Okonjo-Iweala called on G20 countries, and all WTO members, to refrain from adopting new trade-restrictive measures that can further contribute to a worsening of the global economic outlook.
While some trade-restrictive measures have been lifted by G20 countries, the report indicates that the trend has been going in the wrong direction. Export restrictions contribute to shortages, price volatility, and uncertainty.
Source: World Trade Organization (WTO)
Slowing Global Economic Growth is Increasingly Evident, High-Frequency Data Show
November 13, 2022--While there are multiple headwinds weighing on growth, further policy tightening is expected amid the need to bring down elevated inflation
Global economic growth prospects are confronting a unique mix of headwinds, including from Russia's invasion of Ukraine, interest rate increases to contain inflation, and lingering pandemic effects such as China's lockdowns and disruptions in supply chains.
In turn, our latest World Economic Outlook, released last month, lowered our global growth forecast for next year to 2.7 percent, and we expect countries accounting for more than one third of global output to contract during part of this year or next. Moreover, as we discuss in our latest report prepared for the Group of Twenty, recent high-frequency indicators confirm that the outlook is gloomier.
Source: IMF.org
Investors pump record sums into leveraged ETFs
November 13, 2022--The bullish bets, equivalent to more than 5% of all ETF purchases, mean losses were magnified
Investors have poured record sums into high-risk leveraged funds this year in spite of the collapse in financial markets.
The funds, designed to magnify any market gains, also deepen any losses if asset prices fall, meaning many investors are likely to have been left badly out of pocket as stock markets have tumbled this year.
Source: ft.com
IMF Working Paper-U.S. and Euro Area Monetary and Fiscal Interactions During the Pandemic: A Structural Analysis
October 11, 2022--Summary:
This paper employs a two-country New Keynesian DSGE model to assess the macroeconomic impact of the changes in monetary policy frameworks and the fiscal support in the U.S. and euro area during the pandemic.
Moving from a previous target of "below, but close to 2 percent" to a formal symmetric inflation targeting regime in the euro area or from flexible to average inflation targeting in the U.S. is shown to boost output and inflation in both regions.
Meanwhile, the fiscal packages approved in the U.S. and the euro area, and a slower withdrawal of fiscal support in the euro area, have a similar impact on output and inflation as changing the monetary policy frameworks . Simultaneously implementing these policies is mutually reinforcing, but insufficient to fully explain the unexpected increase in core inflation during 2021.
Source: imf.org
IOSCO outlines regulatory priorities for sustainability disclosures, mitigating greenwashing and promoting integrity in carbon markets
November 9, 2022--The International Organization for Securities Commissions (IOSCO) today at COP 27 has outlined the actions it undertakes to protect investors by mitigating greenwashing in financial markets, to contribute to sustainability disclosure standards benefitting issuers and investors, and to promote well-functioning carbon markets.
Sustainability disclosures: timely disclosure and assurance standards
IOSCO has set out its expectations that both disclosures and assurance standards should be ready for use by corporates for their end-2024 accounts. Corporate disclosures underpin valuations in financial markets; sustainability disclosures will play the same role.
Source: IOSCO.org
Here's how central bank digital currencies impact the global economy
November 9, 2022--Central banks are increasingly exploring the idea of having their own digital currencies.
There are 3 key arguments in favour of such a move, including the need to evolve monetary systems as transactions involving physical cash decline.
There are potential challenges and implications for monetary policy, but benefits could include improved privacy standards around payments.
Central banks around the world are exploring the case for central bank digital currency (CBDC) - essentially a digital version of cash (Nielpelt 2021). In a new paper (Ahnert et al. 2022a), we provide an overview of the economics of CBDC. First, we outline the economic forces that shape the rise of digital money and motivate the current debate. We then look at the implications for monetary policy and financial stability before discussing policy issues and challenges. Finally, we highlight several areas where our understanding of digital money could be improved by further research.
Source: weforum.org
ETF investors turn bullish in October
October 7, 2022--Net inflows of $111.5bn were triple that of September and the highest since March
Exchange traded fund buyers turned bullish in October, suggesting some investors believed global equity and bond markets may be approaching their nadir after 12 months of painful losses.
Net inflows to ETFs surged to $111.5bn globally, according to data from BlackRock, triple that of September and the highest reading since March.
Source: ft.com
