Global ETF News Older than One Year
2011 International Comparison Program Summary Results Release Compares the Real Size of the World Economies
April 29, 2014--The International Comparison Program (ICP) released new data today showing that the world economy produced goods and services worth over $90 trillion in 2011, and that almost half of the world's total output came from low and middle income countries.
Under the authority of the United Nations Statistical Commission, the 2011 round of ICP covered 199 economies-the most extensive effort to measure Purchasing Power Parities (PPPs) across countries ever. ICP 2011 estimates benefited from a number of methodological improvements over past efforts to calculate PPPs.
view the Main Results for the Largest Economies and Economies with Highest and Lowest GDP per capita
Source: World Bank
ETF Securities-Precious Metals Weekly-Gold Benefits with Bonds as Russia-Ukraine Tensions Escalate
April 28, 2014--The deteriorating situation in the Ukraine continues to benefit gold and other defensive assets. Escalating Russian aggression towards the Ukraine is causing investors
to build their holdings of defensive assets, including gold. Indeed, US long bonds, along with gold have been some of the best investments so far in 2014, highlighting investor anxiety
about the potential ramifications from Russian conflict.
Gold is also gaining traction as a portfolio diversifier as equity markets have displayed their sensitivity to emerging market headwinds. It is also interesting to note that gold forward offered (GOFO) rates have recently moved negative again, indicating a tight market. As the chart below shows, often a sharp fall in GOFO rates precedes a rise in the gold price.
False hopes of South Africa strike resolution pressures platinum price-we expect weakness to be short lived. Platinum and palladium prices were pressured last week by the prospect of a strike resolution as the major (PGM) producers agreed to raise wages near to levels being demanded by the union.
Source: ETF Securities
IMF Policy Paper-Global Liquidity-Issues for Surveillance
April 25, 2014--Summary:The paper starts by presenting evidence of commonality in global financial conditions. This commonality is then related to specific drivers of global financial conditions through a range of transmission channels, including cross-border banking and portfolio flows. Empirical analysis shows a range of price and quantity factors, including measures of risk, bank leverage, and interest rates in financial centers, to drive in part these flows.
ountry specific policies, including exchange rate and prudential frameworks, are shown to affect the transmission of global conditions. Much remains unknown though, including how evolving structures of global funding, changing institutions, and ongoing financial innovations affect the mechanics of liquidity creation, the channels of liquidity transmission, and potential risks going forward.
view the IMF Policy Paper-Global Liquidity-Issues for Surveillance
Source: IMF
Learning about the unknown: the economic impacts of aging in Europe and Central Asia
April 25, 2014-- Population aging is becoming a key global challenge that will have profound economic, social and cultural implications for decades ahead.
Many countries in the Europe and Central Asia (ECA) Region have rapidly aging populations, yet significantly less income and wealth than other regions to deal with the adverse economic consequences of aging.
Economists from the World Bank Group recently met during a workshop in Munich, Germany to discuss these challenges, share ongoing work on a forthcoming report, and exchange knowledge with international experts.
Source: World Bank
Shanghai Stock Exchange to act as official distributor and licensor of Deutsche Borse market data in mainland China
April 24, 2014--Deutsche Börse and Shanghai Stock Exchange (SSE) announced on 23 April 2014 a partnership in which SSE via its wholly owned subsidiary China Investment Information Services (CIIS) will act as the official distributor and licensor of Deutsche Börse market data products in mainland China.
A signing ceremony attended by Deutsche Börse Executive Board Member Hauke Stars and Bo Que, Vice President of Shanghai Stock Exchange, was held today in Suzhou, China to celebrate the new partnership.
Source: Deutsche Börse
EDHEC-Risk Institute study shows that progress remains to be made in risk management for pension funds
April 24, 2014--In a new study produced as part of the BNP Paribas Investment Partners research chair on "Asset-Liability Management and Institutional Investment Management," EDHEC-Risk Institute attempts to assess the views of pension funds and sponsor companies as they relate to their reactions to dynamic liability-driven investing (LDI) strategies and their desire to integrate this approach into their processes.
Between November 2013 and January 2014, EDHEC-Risk Institute surveyed 104 investors, to determine how LDI and DLDI strategies are used in practice and the reasons that motivate the adoption or non-adoption of such techniques.
Source: EDHEC
Addressing New Digital Divide Key for Balanced Growth
Global Information Technology Report 2014 finds little progress in bridging the gap between the world's most networked economies and the rest of the world
The Nordic countries continue to dominate the Networked Readiness Index;
the US improves on the back of ICT infrastructure and innovation capacity
Most emerging markets struggle to realize their digital potential, which could have a drag on global growth
April 23, 2014--Little progress is being made in bridging the digital divide between technology savvy nations and others, according to the 13th edition of the Global Information Technology Report 2014.
The stalling of progress is worrisome for emerging and developing nations, which are at risk of missing out on many positive impacts information and communications technologies (ICT) bring, including increased innovation, economic competitiveness and greater social inclusion.
view the WEF-The Global Information Technology Report 2014-Rewards and Risks of Big Data
Source: WEF (World Economic Forum)
Barclays Is Expected to Announce Exit From Commodities
April 18, 2014--Investment banks, which rushed into the new territory of physical commodities starting at the turn of the century, are now beating a retreat.
The latest bank expected to make an exit is Barclays, which plans to announce on Tuesday that it will get out of large parts of its commodities business, according to a person briefed on the British bank's plans.
Source: New York Times
Market Uncertainty, Geopolitical Risks To Drive Investors Back Into Gold--SPDR Exec
April 18, 2014--Increased volatility in equity markets and geopolitical uncertainty are expected to drive investors back into the gold market this year, said one analyst.
In an interview with Kitco News, David Mazza, head of research at SPDR ETFs and SSGA Funds, said that he is already starting to see investors take more interest in gold and SPDR Gold Shares physically-backed exchange-traded fund (NYSE: GLD). He added that investors are using the yellow metal to create "defensive" positions in their investment portfolios.
Source: Forbes
WisdomTree Completes Investment to Create WisdomTree Europe
WisdomTree Takes Majority Stake in U.K. ETP Group Boost; WisdomTree and Boost Product Ranges to Serve European Investors
April 17, 2014--WisdomTree Investments, Inc. (Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager, announced today that it has completed the acquisition of Boost ETP, a UK-based exchange-traded product ("ETP") provider, in a move that expands WisdomTree's footprint to Europe.
WisdomTree will commence the previously announced build-out of a local European platform to offer a select range of UCITS ETFs under the WisdomTree brand and continue to manage and grow the Boost lineup of short and leveraged fully collateralized ETPs under the Boost brand. "We are excited to deepen and expand our offerings as the world's eighth largest ETF sponsor and look forward to serving the European market," said WisdomTree CEO and President Jonathan Steinberg.
Source: WisdomTree
