Global ETF News Older than One Year
OFR-Safe Assets as Commodity Money
November 25, 2015--This paper examines the systemic implications of the supply of liquid safe assets, such as Treasury bills. The paper explores how liquid safe assets facilitate the trades of risky assets.
The paper finds that financial markets may be remarkably resilient to changes in the stock of liquid assets. (Working Paper no. 2015-23)
view the Safe Assets as Commodity Money working paper
Source: OFR (Office of Financial Research)
OFR-Safe Assets as Commodity Money
November 25, 2015--This paper examines the systemic implications of the supply of liquid safe assets, such as Treasury bills. The paper explores how liquid safe assets facilitate the trades of risky assets.
The paper finds that financial markets may be remarkably resilient to changes in the stock of liquid assets. (Working Paper no. 2015-23)
view the Safe Assets as Commodity Money working paper
Source: OFR (Office of Financial Research)
DECPG Global Monthly-November 2015
November 25, 2015--Key highlights in the latest issue include:
Global growth in Q3 is currently estimated at about 2.4 percent (q-o-q, saar), little changed from previous quarters.
Growth in the U.S. and the Euro Area slowed in Q3, while Japan's economy contracted.
Despite signs of stabilization, emerging market currencies remain under pressure in a context of weakening capital flows.
The implied probability of U.S. policy interest rates being raised in December rose sharply to over 70 percent.
Commodity prices remain soft.
Special Focus: The Risk and Cost of Sudden Stops. Capital inflows to emerging and frontier economies decelerated significantly this year, driven by a combination of unfavorable global "push" factors and domestic "pull" factors. In a financial market stress situation, the risk of sudden stops would be particularly high in countries with weakening fundamentals and lingering vulnerabilities. The short-run cost of sudden stops can be substantial. In the two years following such events, average GDP and investment growth declined in affected countries by 7 and 21 percentage points, respectively.
Despite decelerating capital flows and currency pressures in 2015, there has thus far been no sign of unusual stress or of a credit crunch in large emerging markets.
Source: World Bank
Bad loans at Europe's banks still double U.S. level-regulator
November 24, 2015--The scale of bad loans held by banks in the European Union is "a major concern" and more than double the level in the United States, despite an improvement in recent years, the EU's banking regulator said on Tuesday.
Non-performing loans (NPL) across Europe's major banks averaged 5.6 percent at the end of June, down from 6.1 percent at the start of the year
Source: Reuters
STOXX Changes Composition of Benchmark Indices
November 24, 2015--STOXX Limited, a leading provider of innovative, tradable and global index concepts, today announced the new composition of STOXX Benchmarks and their sub and sector indices, among them the STOXX Europe 600 Index, STOXX North America 600 Index and STOXX Asia/Pacific 600 Index.
Source: STOXX
The case for why gold may finally be nearing a bottom
November 24, 2015--With gold trading near its lowest level since early 2010 and on track to log a third straight year of losses, it's apparent that sentiment toward the precious metal is bearish, but that doesn't mean that prices are destined to see a sustained move lower.
George Milling-Stanley, head of gold investment strategy at State Street Global Advisors, said gold should find solid support around $1,050 an ounce-the bottom end of its recent trading range.
Source: MarketWatch
CPMI-IOSCO consultative paper Guidance on cyber resilience for financial market infrastructures
November 24, 2015--The Committee on Payments and Market Infrastructures (CPMI)1 and the Board of the International Organization of Securities Commissions (IOSCO)2 today released the consultative paper Guidance on cyber resilience for financial market infrastructures ("the Cyber Guidance").3
view the Consultative report-Guidance on cyber resilience for financial market infrastructures
Source: IOSCO
ETF Securities-Commodity ETP Weekly-Divergent flows following further price falls
November 23, 2015--Falling prices drove bargain-hunting inflows in to oil and PGMs while testing investors' patience in gold and copper.
Continued weakness in oil prices are likely to put oil and gas companies under further pressure for more production and expenditure cuts which bodes well for the global oil market to rebalance as early as next year.
Pressure on precious metals will remain until the Federal Reserve meeting in mid-December. However, the typical "buy on the rumour, sell on the news" investor behavior, could benefit the metal after the move is made.
Source: ETF Securities
CPMI report on digital currencies
November 23, 2015--The Committee on Payments and Market Infrastructures (CPMI)1 today released its report on Digital currencies.
Innovations in the payments domain can have important implications for the safety and efficiency of the financial system and thus are monitored by many central banks.
In this regard, Benoît Cœuré, Chairman of the CPMI, said: "Digital currencies and distributed ledgers are innovations that could have an impact on many areas, not only on payment systems and services. Even if today's schemes do not endure in their present form, it is likely that other products, services and business models based on the same underlying technology will continue to emerge and develop. This might lead to changes in the way that FMIs and other market participants operate."
view the Digital currencies report
Source: BIS
Pfizer, Allergan $160 bln deal forms world's largest drugmaker
November 23, 2015--Pfizer and Allergan are joining in the biggest buyout of the year, a $160 billion stock deal that will create the world's largest drugmaker.
It's also the largest so-called inversion, where an American corporation combines with a company headquartered in a country with a lower corporate tax rate, saving potentially millions each year in US taxes.
Source: Today's Zaman
