Global ETF News Older than One Year
DECPG Weekly-December 18, 2015
December 18, 2015--Taking Stock
U.S. Fed raised policy rates; IP contracted in November. The U.S. Federal Reserve raised policy interest rates for the first time in nearly a decade. On Wednesday, in a widely anticipated move, the Federal Open Market Committee (FOMC) increased the target range of the federal funds rate by 25 basis points to 0.25-0.5 percent.
The FOMC policy statement emphasized that future interest rate increases would be gradual and would depend on incoming data. Meanwhile, U.S. industrial production contracted by 0.6 percent in November (m/m), the largest decrease since March 2012, following the 0.4 percent fall in October (Figure 1). The decline was more than expected, partly due to a sharp drop in utilities output, which fell by 1.1 percent. Manufacturing output was unchanged.
Euro Area IP rose more than expected; PMI dipped. Euro Area industrial production advanced 0.6 percent (m/m) in October, reversing a 0.3 percent fall in September. The latest reading exceeded expectations and was the first monthly increase in 3 months, led by a rise in capital goods output and durable consumer goods production. Meanwhile, the flash Markit composite output index for the Euro Area unexpectedly fell to 54.0 in December from 54.2 in November, reflecting diverging performance in manufacturing and services.
Renaissance Capital's 2015 US IPO Annual Review
December 18, 2015--Coming off of two banner years, the 2015 IPO market was a disappointment with 169 IPOs raising only $30 billion, a six-year low.
There is no single explanation for the decline in 2015 activity; rather, it was driven by a number of factors, including uncertainties about Federal Reserve and European monetary policies, concerns over the Chinese economy, poor IPO performance, declining energy prices and increases in M&A and private market transactions.
view the Renaissance Capital's 2015 US IPO Annual Review
Source: Renaissance Capital
Wealth managers must fight harder for next generation of clients
December 18, 2015--Wealth managers need to sharpen up if they are to retain the next generation of affluent families as clients, a report into global family wealth...
Source: FT.com
Outcomes from COP21: Forests as a Key Climate and Development Solution
December 18, 2015--STORY HIGHLIGHTS
Healthy forests and landscapes can help us realize real reductions in global emissions in the short and long term.
The important role that forests have in addressing climate change was formally recognized in the Paris Agreement.
The specific inclusion of REDD+ in the text builds on years of work find ways to positively incentivize countries to reduce carbon emissions at a landscape scale and conserve their standing forests at the same time.
Last weekend, at COP21 in Paris, international governments recognized and acknowledged the key role that resilient forests and landscapes play for both climate change and development in the final agreement achieved and through a number of financial pledges and green initiatives.
Source: World Bank
World Bank Keeps 2015 Growth Projections for Russia, and Slightly Revises 2016-2017 Outlook
December 18, 205--December 18, 2015--The World Bank has updated its economic outlook for Russia for 2015-2017 to reflect a recent downward adjustment in oil prices. The new most likely scenario assumes an average oil price of US$51.9 per barrel for 2015 and of US$49.4 per barrel for 2016 from previously projected US$53.0 per barrel in 2015 and 2016.
The assumed lower oil prices are expected to have no impact on growth in the last quarter of 2015. On this basis, the World Bank keeps its 2015 projections of a 3.8 percent real GDP contraction by this year. Growth for 2016 was revised slightly down to -0.7 percent (from -0.6 percent).
"The revised forecast is largely driven by the recent downward adjustment in oil prices that is expected to keep pressure on the ruble exchange rate, somewhat delaying the retreat of inflation in 2016," said Birgit Hansl, World Bank Lead Economist for the Russian Federation.
view the Russia Economic Report-Balancing Economic Adjustment and Transformation report
Source: World Bank
International Migration at All-Time High
December 18, 2015--The number of international migrants is expected to surpass 250 million this year, an all-time high, as people search for economic opportunity. And, fast growing developing countries have increasingly become a strong magnet for people from other parts of the developing world.
In a demonstration of their economic footprint, international migrants will send $601 billion to their families in their home countries this year, with developing countries receiving $441 billion, says the Migration and Remittances Factbook 2016, produced by the World Bank Group's Global Knowledge Partnership on Migration and Development (KNOMAD) initiative.
Source: World Bank
BIS-Identification and measurement of step-in risk released by the Basel Committee
December 17, 2015--The Basel Committee on Banking Supervision today released a consultative document entitled Identification and measurement of step-in risk. The objective is to mitigate potential spillover effects from the shadow banking system to banks.
This work falls within the G20 initiative to strengthen the oversight and regulation of the shadow banking system and mitigate the associated potential systemic risks.
view the Identification and measurement of step-in risk-consultative document (December 2015)
Source: BIS
IMF Survey-Slowing Global Growth has Varied Effects on Low-Income Countries
December 17, 2015--Lower commodity prices: some lose, some gain
Countries with diversified exports fared better than commodity exporters
Rising vulnerabilities in many countries, including to climate change
Low-income developing countries have seen weakened external conditions over the past eighteen months, but the net impact has varied significantly across these countries, according to a new study by the IMF.
While all of the 60 IMF member countries classified as low income countries have been affected by slowing global growth, the key shock has been the dramatic drop in commodity prices over the past eighteen months.
Source: IMF
IMF Working Paper-Emerging Market Portfolio Flows: The Role of Benchmark-Driven Investors
December 17, 2015--Summary: Portfolio flows to emerging markets (EMs) tend to be correlated. A possible explanation is the role global benchmarks play in allocating capital internationally, the s called "benchmark effect." This paper finds that benchmark-driven investors indeed play a large role in a key segment of the market-the EM local currency government bond market-, accounting for more than one third of total foreign holdings as of end-2014.
We find that the prominence of these investors declined somewhat after the May 2013 taper tantrum, but remain high. This distinction is important in understanding the drivers of EM capital flows and their sensitivity to different types of shocks. In particular, a high share of benchmark-driven investors may result in capital flows that are more sensitive to global shocks and less sensitive to country factors.
Source: IMF
EDHEC-Risk Newsletter
November 17, 2015--EDHEC-Risk Institute newsletter.
The summary of this issue reads as follows:
1. New conceptual framework to better achieve individual investors' goals-an edito by Lionel Martellini, Professor of Finance, EDHEC Business School, Director, EDHEC Risk Institute
2. Yale School of Management-EDHEC-Risk Institute Certificate in Risk and Investment Management programme-an interview with Will Goetzmann and Lionel Martellini
3. Industry Analysis: IPE Supplement Autumn 2015, P&I Supplement August 2015...
4. Features: Alternative Equity Beta Investing: A Surveyview more
Source: EDHEC-Risk Institute
