Global ETF News Older than One Year
IMF Working Paper-Measuring Quarterly Economic Growth from Outer Space
June 3, 2022--Summary:
This paper presents a novel framework to estimate the elasticity between nighttime lights and quarterly economic activity. The relationship is identified by accounting for varying degrees of measurement errors in nighttime light data across countries. The estimated elasticity is 1.55 for emerging markets and developing economies, ranging from 1.36 to 1.81 across country groups and robust to different model specifications.
The paper uses a light-adjusted measure of quarterly economic activity to show that higher levels of development, statistical capacity, and voice and accountability are associated with more precise national accounts data. The elasticity allows quantification of subnational economic impacts. During the COVID-19 pandemic, regions with higher levels of development and population density experienced larger declines in economic activity.
Source: IMF.org
Consumer Prices, OECD-Updated: 2 June 2022 Inflation in the OECD rises to 9.2% in April 2022 as food and services prices accelerate
June 2, 2022--June 2, 2022-- Consumer prices (CPI) in the OECD rose by 9.2% year-on-year in April 2022, compared with 8.8% in March 2022. Excluding food and energy, year-on-year inflation increased to 6.3% in April 2022, compared with 5.9% in March 2022.
Food price inflation in the OECD continued to strongly pick up, reaching 11.5% in April 2022 compared with 10.0% in March. Services prices accelerated in most OECD countries, rising by 4.4% year-on-year in April 2022 on average across 33 OECD countries, compared with 3.9% in March.
These increases in food and services prices were partly offset by a temporary deceleration in energy prices to 32.5% year-on-year in April 2022, some 1.2 percentage points lower than in March.
Price developments varied somewhat across countries. Nine OECD countries recorded double-digit inflation rates, with the highest rates experienced in Turkey and Estonia. By contrast, inflation fell in five OECD countries, including Italy, Spain and the United States.
Source: OECD
BetaShares-Market Trends: June 2022 Global equities-stabilisation as bond yields level out
June 1, 2022---Global equities continued to weaken in May, albeit with a smaller drop than evident in April - helped by tentative signs that the lift in global inflation and bonds yields may be near a peak.
The MSCI All Country return index declined by 0.2% in local currency terms after a decline of 6.5% in April.
Reflecting a firmer Australian dollar, the decline in unhedged global equities was a little greater at 1.4%, following a decline of 2.5% in April.
Forward earnings continued to grow, rising by 0.9% in the month with current market expectations consistent with further growth of 4.6% by end-22 and 7.5% over 2023. Accordingly, it was the PE ratio that again drove equity prices lower, falling from 15.3 to 15.1- to be now broadly back in the range of the pre-COVID period since 2013.
Source: betashares.com.au
Investing in the green economy 2022 Tracking growth and performance in green equities
June 1, 2022--Tracking growth and performance in green equities
Executive summary
Addressing climate change and environmental issues requires significant investment; estimates suggest that between USD 125 to USD 275 trillion is needed to reach net zero greenhouse gas emissions by 2050.1 As governments and investors seek new ways to deploy ever greater capital towards this and other global environmental challenges, there is a need to create a common language on sustainable activities through which to define, measure and invest in the green economy.
One of the main challenges to developing and implementing such a common language is the lack of in-depth data on the green economy and limited corporate reporting on green products and services.
Source: FTSE Russell
Dollar Dominance and the Rise of Nontraditional Reserve Currencies
June 1, 2022--The US dollar has long played an outsized role in global markets. It continues to do so even as the American economy has been producing a shrinking share of global output over the last two decades.
But although the currency's presence in global trade, international debt, and non-bank borrowing still far outstrips the US share of trade, bond issuance, and international borrowing and lending, central banks aren't holding the greenback in their reserves to the extent that they once did.
Source: IMF.org
Digital Asset Management Review-May 2022
May 31, 2022--Report Summary
Bitcoin and Ethereum fell by 27.3% and 38.1% respectively in May (data up to 26th), a steep decline following a turbulent month for the two largest cryptocurrencies as the collapse of LUNA and TerraUSD sent shockwaves through the sector.
May Highlights
Since April 2022, total AUM across all digital asset investment products has fallen 28.6% to $34.2bn (as of the 26th of May).
Weekly net inflows averaged $66.5mn compared to average weekly outflows of -$49.6mn in April. Weekly inflows for Bitcoin-based products averaged $63.4mn, while Ethereum experienced significant average outflows of $-13.2mn per week.
Source: cryptocompare.com
World Bank-Prospects Group Global Monthly-May 2022
May 27, 2022--Overview
Global growth momentum slowed at the start of Q2, amid rising supply strains and persistently high inflation.
While energy and agriculture prices stabilized in April at high levels, fertilizer prices have continued to rise.
Incoming data point to a contraction in China's output in April, while activity appears to have firmed in other large EMDEs.
Special Focus: The War in Ukraine and Energy Markets
The war in Ukraine has led to significant disruptions to trade and production of energy commodities, exacerbating pre-existing strains in energy markets.
To cushion the impact of the current increase in energy prices policy makers in many economies implemented energy subsidies and tax breaks on a large scale, reversing a trend of declining subsidies in recent years.
Temporary support to vulnerable groups can be more effective at cushioning the impact of rising energy prices than energy subsidies, since the latter have distortionary effects and can delay the transition to a zero-carbon economy.
Source: worldbank.org
IMF Working Paper-Rogue Waves: Climate Change and Firm Performance
May 27, 2022--Summary:
Climate change is an existential threat to the global economy and financial markets. There is a large body of literature documenting potential macroeconomic consequences of climate change, but firm-level empirical research on how climate change affects the performance of firms remains scarce.
This paper aims to close this gap by empirically investigating the impact of climate change vulnerability on corporate performance using a large panel dataset of more than 3.3 million nonfinancial firms from 24 developing countries over the period 1997-2019.
We find that nonfinancial firms operating in countries with greater vulnerability to climate change tend to experience difficulty in access to debt financing even at higher interest rates, while being less productive and profitable relative to firms in countries with lower vulnerability to climate change. We confirm these findings with alternative measures of climate change vulnerability. Furthermore, partitioning the sample reveals that these effects are significantly greater for smaller firms, especially in high-risk sectors and countries and countries with weaker capacity to adapt to and mitigate the consequences of climate change.
Source: IMF
IMF Working paper-For Whom the Bell Tolls: Climate Change and Inequality
May 27, 2022--Summary:
Climate change is the defining challenge of our time with complex and evolving dynamics. The effects of climate change on economic output and financial stability have received considerable attention, but there has been much less focus on the relationship between climate change and income inequality. In this paper, we provide new evidence on the association between climate change and income inequality, using a large panel of 158 countries during the period 1955-2019.
We find that an increase in climate change vulnerability is positively associated with rising income inequality. More interestingly, splitting the sample into country groups reveals a considerable contrast in the impact of climate change on income inequality. While climate change vulnerability has no statistically significant effect on income distribution in advanced economies, the coefficient on climate change vulnerability is seven times greater and statistically highly significant in the case of developing countries due largely to weaker capacity for climate change adaptation and mitigation.
Source: IMF
ETFGI reports thematic ETFs listed globally gathered net inflows of US$7.16 billion during April 2022
May 26, 2022--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that Thematic ETFs listed globally gathered net inflows of US$7.16 billion during April, bringing year to date net inflows to US$38.62 billion.
Total assets invested in Thematic ETFs and ETPs have decreased by 6.8% from US$450 billion at the end of March 2022 to US$419 billion, according to ETFGI's April 2022 ETF and ETP Thematic industry landscape insights report, an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Assets of $419 Bn invested in Thematic ETFs and ETPs listed globally at the end of April 2022.
Assets decreased by 3.8% YTD in 2022, going from $436 Bn at end of 2021, to $419 Bn.
Net inflows of $7.16 Bn during April 2022.
YTD net inflows of $38.62 Bn are 2nd highest after YTD net inflows in 2021 of $49.29 Bn.
$69.55 Bn in net inflows gathered in the past 12 months.
Source: ETFGI
