Global ETF News Older than One Year
Northern Trust-Economic Updates
October 17, 2013--Less than 24 hours before the U.S. Treasury Department ran out of room to borrow, Congress arrived at an agreement to reopen the government and steer away from debt default. This news came as a great relief, but that feeling may only last a few months.
Following are some highlights and an initial analysis of the accord.
1.A continuing resolution has granted spending authority that should last U.S. government departments through the middle of January. The onset of the next round of automatic cuts (known as the sequester) will not take force until then. The hope is that budget discussions in the coming months will arrive at a more nuanced approach to spending control than the blunt method contained in the sequester.
2.The debt ceiling has been suspended until February 7. This means that the Treasury can borrow to meet its expenses through that date, adding to the debt ceiling on a flow basis. This design is similar to the accord reached last May.
Source: Northern Trust
World Bank-DPG-Weekly Global Economic Brief
October 17, 2013--The temporary resolution of the US debt ceiling standoff briefly supported market confidence, but political uncertainty will persist in coming months
Rapid credit growth observed in some developing countries in recent years implies growing banking sector exposure to rising interest rates
Base metal prices recovered in the third quarter, but price risks are weighted on the downside
The stalemate in US budget negotiations and rising concerns about a potential technical default on US debt has gradually affected market confidence. Contagion to developing countries has been limited but is likely to increase in the absence of a lasting resolution. Investment spending showed signs of improving further in the third quarter in high income economies, supported by strong consumer spending and still easy financial conditions. The outlook, however, remains vulnerable to downside risks from fiscal policy uncertainty in the US. Officially recorded remittance flows to developing countries are projected to increase by 6.3 percent to reach $414 billion in 2013.
Officially recorded remittance flows to developing countries are projected to increase by 6.3 percent to reach $414 billion in 2013 but remain broadly stable as a share of recipient GDP. Based on new migrant stock estimates by the UN Population Division (232 million), and consistent with an expected strengthening of the global economy, remittance flows to developing countries are projected to rise by an annual average of over 8 percent during 2014-2016. Remittance flows to developing Europe and Central Asia, and Latin America and the Caribbean are projected to grow most rapidly, supported by strengthening activity in Euro Area and the US respectively. Nonetheless, high transactions cost continue to hinder remittance flows. In 2013, the global average costs for sending remittances remained broadly unchanged at about 9 percent.
view the World Bank-DPG-Weekly Global Economic Brief
Source: World Bank
New BBA report-Beyond Boundaries: how to drive regulatory coherence
October 17, 2013--The BBA today publishes a new report which calls for a more coordinated global system of regulation for the banking industry.
The regulatory regime governing the world's financial markets is rightly being fundamentally recast in response to the financial crisis. The changes have been far-reaching and profound. Led by the G20, policymakers have shown a desire and willingness to coordinate their actions to reflect the fact that global markets are now more seamless than ever before.
view the BBA report Beyond boundaries: how to drive regulatory coherence
Source: BBA
Public quantitative disclosure standards for central counterparties, consultative report issued by CPSS-IOSCO
October 15, 2013--The Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) have today published for public comment a consultative document on the Public quantitative disclosure standards for central counterparties.
In order that the risks related to the use of central counterparties (CCPs) can be properly understood, CCPs need to make relevant information publicly available, as stated in the CPSS-IOSCO Principles for financial market infrastructures, published in April 2012
view the Consultative report-Public quantitative disclosure standards for central counterparties
Source: BIS
Updated methodology for assessing compliance with capital standards published by the Basel Committee
October 15, 2013--The Basel Committee on Banking Supervision has today published an updated methodology for its jurisdiction-specific Regulatory Consistency Assessment Programme (RCAP).
The RCAP was initiated by the Basel Committee to promote full and consistent implementation of the Basel framework by its member jurisdictions.
Importantly, the RCAP assessments help to highlight the potential of any gaps found in the regulatory regime to affect financial stability and the regulatory environment for internationally active banks.
view the updated Basel III Regulatory Consistency Assessment Programme (RCAP)
Source: BIS
WEF-Energy Harnessing: How to Reduce Emissions and Boost the Global Economy
Only about 11% of the energy contained within resources (gas, coal, oil etc.) is utilised; 89% is lost in the supply chain, from resource production to final use, the so-called energy harnessing landscape.
Energy harnessing efficiency can easily be doubled over the coming two decades, which would lead to sustainable economic growth and a reduction in greenhouse gas emissions
The critical measures and technologies for such a transition have to be supported by smart policies to trigger critical investment.
October 15, 2013--The World Economic Forum has launched a new report, Energy Harnessing: New Solutions for Sustainability and Growing Demand, which establishes the most comprehensive analysis of how we use energy to date.
Energy powers the global economy. Without sufficient energy to heat and light homes, run businesses, power manufacturing plants, and fuel transport, the world would come to a standstill. Energy is provided via an energy harnessing network, a complex system that starts with extraction from a variety of sources and moves to transformation, storage, distribution and utilization.
view the WEF Energy Harnessing: New Solutions for Sustainability and Growing Demand report
Source: WEF (World Economic Forum)
Commodity ETPs turn the corner in Q3
Total assets in commodity ETP assets rose to $135.3 billion, marking the first quarterly rise since Q3 2012, according to ETF Securities.
October 15, 2013--Total assets in commodity ETP (Exchange Traded Products) assets rose by $8.4bn to $135.3bn, marking the first quarterly rise since Q3 2012, according to ETF Securities.
In Q3 2013, the rise was driven by a combination of price increases and the largest quarterly inflows into non-gold commodity ETPs since Q1 2012.
Source: MineWeb
IOSCO Launches its First Securities Markets Risk Outlook
October 15, 2013--The International Organization of Securities Commissions (IOSCO) today published the IOSCO Securities Markets Risk Outlook for 2013-2014. The report highlights important trends, vulnerabilities and risks in securities markets that may be of concern from a systemic perspective.
The Outlook is the result of a joint effort between the IOSCO Research Department and the Committee on Emerging Risks (CER), which is comprised of senior researchers, chief economists and risk officers of almost 30 securities markets regulators from around the world. The information and data were drawn from extensive consultation with experts, industry and other market participants; a survey to regulators, industry and academics; roundtables; and robust data analysis and literature review.
view the IOSCO Securities Markets Risk Outlook 2013-2014 report
Source: IOSCO
Groundbreaking deal set to make London global currency centre for investment in China
October 15, 2013--Britain and China have today (Tuesday 15 October) agreed a series of steps that will both cement London's role as a global offshore hub for trading the Chinese currency the Renminbi (RMB) and act as the spring board for London to also become a hub for RMB investment into China.
The agreements will reinforce London's role, in partnership with Hong Kong.
The agreement is the centrepiece of the conclusions of two-days of talks between the Chancellor George Osborne and his Chinese counterpart Vice-Premier Ma Kai as part of the Economic and Financial Dialogue (EFD) between Britain and China.
Source: HM Treasury
Launch of MSCI ESG DataMetrics facilitates ESG integration
Comprehensive environmental, social and governance (ESG) raw data and indicators now available to support ESG integration
October 15, 2013--MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, announced today the launch of MSCI ESG DataMetrics, a comprehensive set of ESG scores, indicators and raw data to facilitate quantitative analysis, development of proprietary ESG models and reporting on ESG and portfolio footprint analysis.
Remy Briand, Managing Director and Head of MSCI Index and ESG Research, said, "With investor awareness on ESG issues growing and the market maturing, there is a clear need both for access to the underlying metrics that support MSCI ESG Research's analyst assessments as well as for historical data. Clients have requested access to quantitative ESG data and metrics in order to better facilitate ESG integration and analysis. We are happy to provide a substantive set of metrics with the MSCI ESG DataMetrics product."
Source: MSCI
