Global ETF News Older than One Year
OECD-Shedding light on the drivers of services tradability over two decades
October 25, 2022--Services have become significantly more tradable in the first two decades of the 21st century. This paper documents that trade costs for financial services, communication services and business services fell by between 30% and 60% between 2000 and 2019. Information and communication technology and growth of air traffic have acted as key drivers of this development.
While there is some variation across sectors, the analysis suggests that these two determinants jointly account for a quarter to half of the aggregate decline in trade costs for services during this 20-year period. Furthermore, services provisions in regional trade agreements (RTAs) can explain between 3% and 14% of the reduction in trade costs for communications services and financial and insurance services. These findings demonstrate the importance of whole-of-government strategies to promote services trade competitiveness, inter alia market access, regulatory reform, as well as investment in physical and digital infrastructure and adoption of new technologies.
Source: OECD
ETFGI reports actively managed ETFs listed globally gathered US$8.80 billion in net inflows in September 2022
October 25, 2022--ETFGI, a leading independent research and consultancy firm covering trends in the global ETF/ETP ecosystem, reported today that actively managed ETFs listed globally gathered net inflows of US$8.80 billion during September, bringing year-to-date net inflows to US$88.82 billion.
Assets invested in actively managed ETFs decreased by 5.5%, from US$465 billion at the end of August 2022 to US$440 billion, according to ETFGI's September 2022 Active ETF and ETP industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Net inflows of $8.80 Bn during September 2022.
Year-to-date net inflows of $88.82 Bn in 2022 are the second highest on record, after year-to-date net inflows in 2021 of $110.65 Bn.
30th month of consecutive net inflows.
Assets of $440 Bn invested in actively managed ETFs and ETPs industry at the end of September 2022.
Source: ETFGI
ETFGI reports global ETFs industry gathered net inflows of US$33.45 billion during September 2022
October 19, 2022--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that the global ETFs industry gathered net inflows of US$33.45 billion during September, bringing year-to-date net inflows to US$593.20 billion.
During September 2022, assets invested in the global ETFs industry decreased by 8.3%, from US$9.11 trillion at the end of August to US$8.35 trillion, according to ETFGI's September 2022 global ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Global ETFs industry gathered $33.45 Bn of net inflows during September.
YTD net inflows of $593.20 Bn are 2nd highest on record, after 2021 YTD net inflows of $923.84 Bn.
40th month of consecutive net inflows.
Assets of $8.35 Tn invested in global ETFs industry at the end of September 2022.
Assets decreased 18.6% YTD in 2022, going from $10.27 Tn at end of 2021 to $8.35 Tn.
Source: ETFGI
IMF-Latest Global Growth Forecasts Show Challenges Facing Economies
October 19, 2022--The global deceleration will be broad-based, with many economies poised to contract, and the outlook remains uncertain
The IMF's World Economic Outlook released last week forecasts that global economic growth will slow from 3.2 percent this year to 2.7 percent next year. The 2022 projection was unchanged from the last estimate, in July, but next year's was cut by 0.2 percentage point.
The global deceleration will be broad-based, and the 2023 projection is less than half of last year's 6 percent expansion. Countries accounting for about a third of the global economy are estimated to have a two-quarter contraction in real gross domestic product this year or next.
The outlook is also fraught with uncertainty. We estimate there is a one-in-four probability global growth will fall below 2 percent next year and that there is a likelihood of 10 percent to 15 percent that it will drop below 1 percent.
Source: imf.org
Sanctioning a cryptocurrency protocol: What does that mean for Web3?
October 17, 2022--The US OFAC has recently sanctioned a cryptocurrency "mixer" for alleged use in money-laundering.
It is the first time the OFAC has sanctioned a software protocol, rather than an individual or legal entity.
The decision has implications for the development of Web3.
In August 2022, the Office of Foreign Assets Control (OFAC) of the United States Treasury Department sanctioned a cryptocurrency "mixer"-programmes used to increase the anonymity of crypto transactions-for its alleged use in money-laundering. It also blacklisted a number of Ethereum addresses associated with the protocol. The sanctioning and the corresponding response by affected actors stirred up intense debate in cryptocurrency circles and beyond about how permissionless protocols should be regulated.
What are the OFAC sanctions?
The OFAC administers trade and economic sanctions on countries and persons (both natural and legal) involved in activities that threaten the security or financial stability of the US- such as terrorism, drug trafficking and money-laundering. < href="https://www.weforum.org/agenda/2022/10/cryptocurrency-regulation-sanctions-web3/" TARGET="_blank">view more
Source: weforum.org
IMF-How Countries Should Respond to the Strong Dollar
October 14, 2022--Policy responses to currency depreciation pressures should focus on the drivers of the exchange-rate moves and signs of market disruptions
The dollar is at its highest level since 2000, having appreciated 22 percent against the yen, 13 percent against the Euro and 6 percent against emerging market currencies since the start of this year.
Such a sharp strengthening of the dollar in a matter of months has sizable macroeconomic implications for almost all countries, given the dominance of the dollar in international trade and finance.
While the US share in world merchandise exports has declined from 12 percent to 8 percent since 2000, the dollar's share in world exports has held around 40 percent. For many countries fighting to bring down inflation, the weakening of their currencies relative to the dollar has made the fight harder. On average, the estimated pass-through of a 10 percent dollar appreciation into inflation is 1 percent. Such pressures are especially acute in emerging markets, reflecting their higher import dependency and greater share of dollar-invoiced imports compared with advanced economies.
Source: IMF.org
The Solar System Isn't Ready to Deal With Humanity's Garbage
October 14, 2022--We're already dumping a ton of trash on Mars-and we haven't even set foot on it yet.
The next time you see a shooting star, there's a small chance it's complete garbage. That's not a knock on any meteors or comets out there.
It's the truth. To deal with trash that piles up on the International Space Station, astronauts put them into big cargo bins and jettison them back into Earth's atmosphere where it all burns up in a blaze of glory.
It's not the most eco-friendly system for taking the space trash out, and it raises questions about what kind of impact we're creating by adding waste and gasses into an already strained atmosphere on Earth. But it's the only one we have right now.
Source: thedailybeast.com
BlackRock assets fall below $8 tln, profit beats on strong ETF demand
October 13, 2022--BlackRock Inc (BLK.N) posted a smaller-than-expected drop in quarterly profit on Thursday as strong demand for exchange-traded funds and other low-risk products cushioned the hit to fee income from a global market rout, but its assets under management fell below expectations.
The threat of a recession, surging interest rates and the Ukraine crisis have slammed both bonds and stocks this year, keeping investors on the back foot in a blow to businesses such as BlackRock. Global market uncertainty has increased in recent weeks as the U.K. government's fiscal plans toppled British markets into chaos; BlackRock's clients have significant exposure in pension vehicles at the center of the drama.
Source: reuters.com
IOSCO issues regulatory measures to address increasing risks and challenges from digitalisation of retail marketing and distribution
October 12, 2020--The Board of the International Organization of Securities Commissions (IOSCO) today published measures that members should consider when determining their policy and enforcement approaches to retail online offerings and marketing.
The measures outlined in the Final Report on Retail Distribution and Digitalisation aim to assist IOSCO members in adapting their regulatory and enforcement approaches, consistent with their legal and regulatory frameworks, to meet the growing challenges posed by rapidly evolving digitalisation and online activities.
Source: IOSCO
IMF-Staff Discussion Note-The Return to Fiscal Rules
October 11,2022--Summary:
Summary:
Governments face difficult policy trade-offs with record debt levels,tightening monetary policies,and urgent demands,including food and energy crises,the climate agenda,and population aging. Governments need to communicate fiscal plans to reduce debt sustainability risks and promote consistent macroeconomic policies.
Many envisage a return to fiscal rules that had been suspended during the pandemic to strengthen credibility. This situation offers an opportunity to rethink fiscal rules and determine how governments can make fiscal policy more agile,including in responding to crises,without undermining fiscal sustainability.
A risk-based medium-term fiscal framework that combines standards,rules,and strengthened institutions would strike a better balance between flexibility and credibility.
Source: imf.org
