Global ETF News Older than One Year
Swiss pensions bankrupt by 2025: US Social Security by 2030
April 24, 2015--Nobody would imagine that the SFr 800bn ($840bn) Swiss pension scheme could go bankrupt. But Swiss pension experts suggest it "will be bankrupt within 10 years (without)…a radical overhaul of the retirement system."
The problem is simple-a combination of low/negative interest rates and an increase in life expectancy.
A major analysis in the Financial Times sets out the key details:
Prof Martin Eling of St Gallen University estimates that "occupational pension funds will face a SFr 55bn ($57bn) hole in their funding by 2030 if the government does not overhaul the system"
Source: ICIS
IMF Unveils New Way of Assessing Country Reserves
April 24, 2015--IMF develops first comprehensive framework for assessing reserve adequacy
Aim is to help strike balance between benefits, costs of holding reserves
Prudent level depends on country's economic, financial structure
The IMF has developed a new framework for determining the appropriate level of international reserves held by its member countries, emphasizing the need to take account of the specific needs of different types of economies.
Reserves-the assets denominated in foreign currency, plus gold, held by a central bank-occupy an important place in the policy toolkit of most economies. Together with sound policies, they can help reduce the likelihood of balance of payment crises and preserve economic and financial stability. In addition to these important benefits, reserves also have costs.
Source: IMF
Deutsche to pay U.S., UK $2.5 bln over interest rate manipulation
April 23, 2015--Deutsche Bank will pay U.S. and British authorities $2.5 billion and its London subsidiary will plead guilty to wire fraud for manipulation of benchmark interest rates, U.S. authorities said on Thursday.
As part of the deal, Germany's largest bank also entered into a deferred prosecution agreement with the U.S. Justice Department and admitted its role in manipulating the London Interbank Offered Rate (Libor).
Source: Reuters
Continued Weakness in Commodity Markets May Signal Long Term Easing of Prices, Says WB Report
April 22, 2015--Well-supplied markets are continuing to drive down prices of commodities, across the board, says the latest issue of the World Bank's Commodity Markets Outlook (CMO), released today.
Most indices edged further down during the first quarter of 2015, with food down 7.3 percent, crude oil down 13 percent and metals down 9 percent compared to the fourth quarter of 2014. Prices are expected to stay weak for the rest of this year, with only a marginal recovery expected in 2016.
view the World Bank Commodity Markets Outlook (CMO) report
Source: World Bank
Founder of iShares' capital markets team departs
April 22, 2015--The founder of iShares' capital markets business has left after 15 years,
one of several recent senior changes at the exchange-traded funds provider that include a brace of sales promotions.
Source: Financial News
STOXX Limited And KRX Enter Into MOU
April 22, 2015--STOXX Limited, a leading provider of innovative, tradable and global index concepts, and The Korea Exchange, Inc. (KRX) today announced the signing of a memorandum of understanding (MOU) to create a long-term cooperation between the two companies.
Under the MOU, STOXX and KRX intend to create a long-term business relationship to aid in the development of index projects. Furthermore, the companies will leverage one another's strengths in promoting the other parties indices as underlying for financial products.
"STOXX is honored to enter into this MOU with KRX, which is one of the leading global exchanges," said Hartmut Graf, chief executive officer, STOXX Limited.
Source: STOXX
Basel Committee removes selected national discretions and replies to frequently asked question on funding valuation adjustment
April 21, 2015--The Basel Committee has agreed to remove certain national discretions from the Basel capital framework. National discretion allows countries to adapt the Basel standards to reflect differences in local financial systems.
However, the use of national discretions can also impair comparability across jurisdictions and increase variability in risk-weighted assets.
Source: BIS
IMF-The Elusive Pursuit of Inflation
April 17, 2015--Weak demand culprit for low inflation in advanced economies, panelists say
Signs that unconventional monetary policy is working
Emerging markets need smart policies and robust economies to withstand spillover effects
Having worked for years to tame inflation, the world's central banks are now facing an increasing challenge to reawaken it. In a Spring Meetings seminar, top economists discussed the causes of low inflation, the tools to raise it and implications for global currency movements.
With core inflation in Europe, Japan, and the United States well below their target levels, two out of three central banks are currently expanding quantitative easing and one is signaling a slower exit.
Source: IMF
IMF-Now Is the Time-Fiscal Policies for Sustainable Growth
April 17, 2015--Fiscal risks remain significant in both advanced and emerging market and developing economies. Fiscal policy continues to play an essential role in building confidence and, where appropriate, sustaining aggregate demand.
According to this issue of the Fiscal Monitor, strengthening fiscal frameworks-particularly to manage public finance risks and ensure debt sustainability-must be part of the fiscal policy response. Countries should seize the moment created by lower oil prices to start the process of energy taxation and energy subsidy reform. Finally, fiscal policy can contribute substantially to macroeconomic stability, through the workings of automatic stabilizers. By doing so, fiscal policy can also unlock significant growth dividends.
view the IMF-Now Is the Time-Fiscal Policies for Sustainable Growth
Source: IMF
DECPG Global Weekly- April 17, 2015
April 17, 2015--Taking Stock
Oil prices declined after a 6-day gain. Oil prices dropped for the first time in six days on Thursday and continued to fall early Friday as Saudi Arabia boosted its crude oil production to the highest level in three decades in March, adding to a global supply
glut.
Since closing at a 6-year low of $43.86 a barrel on March 17, the U.S. oil price had previously rallied on expectations that a drop in the number of active U.S. oil rigs may lead to a production slowdown that may ease the global surplus.
U.S. retail sales rose while industrial production fell. U.S. retail sales rose 0.9 (m/m) in March, the largest increase in a year, but still less than expected, following a revised 0.5 percent decline in February. The increase was partly due to a substantial rebound in sales of motor vehicles and parts. Meanwhile, industrial production declined 0.6 percent (m/m) in March, more than expected, as utilities output fell steeply.
Source: World Bank
