Global ETF News Older than One Year
IMF Working paper-The Effects of Government Spending under Limited Capital Mobility
May 17, 2012--Summary: This paper studies the effects of government spending under limited international capital mobility, as featured by most developing countries. While external financing of government debt mitigates the crowding-out effect, it generates real appreciation, which contracts traded output and lowers the fiscal multiplier in the short run.
The decline of the multiplier is larger when facing debt-elastic country risk premia. Also, government spending is more expansionary with more home bias in government purchases, more sectoral rigidities, and a less flexible exchange rate. Whether the twin-deficit hypothesis holds depends crucially on the extent to which government deficits are financed externally.
view the IMF working paper-The Effects of Government Spending under Limited Capital Mobility
Source: IMF
World Bank Releases Little Green Data Book 2012
New marine indicators highlight decline in the world's oceans
May 17, 2012--The World Bank today released its annual compilation of environmental data for more than 200 countries, providing up-to-date information on agriculture, forests and biodiversity, energy and emissions, water and sanitation, environment and health and oceans.
The World Bank’s Vice President for Sustainable Development Rachel Kyte said the Little Green Data Book 2012 was an important addition to the toolkit for countries to measure, value and manage their natural capital.
view the The Little Green Data Book 2012
Source: World Bank
Job-rich growth essential for G20 recovery, say OECD and ILO
Joint statement by ILO Director-General Juan Somavia and OECD Secretary-General Angel Gurría on the occasion of the G20 Labour and Employment Ministers Meeting, Guadalajara, Mexico, 17 May 2012
May 17, 2012--We, the Heads of the International Labour Organization and the Organisation for Economic Cooperation and Development, call upon the Ministers of Labour and Employment of the G20 countries to put a greater,
renewed emphasis on employment policies that will help economies accelerate and sustain the recovery, achieve higher levels of decent work and get out of the debt trap.
Job creation remains weak in many countries, and too low to reabsorb the mass of unemployed and under-employed. As outlined in one of our joint background papers prepared for the G20 Labour and Employment Ministers meeting, unemployment rates are still close to the peak reached during the downturn in a number of countries. By the end of 2011, some 109 million persons were unemployed across G20 countries, not counting discouraged workers.
Source: OECD
Deutsche Boerse and CFFEX signed co-operation agreement
May 17, 2012--Deutsche Börse and China Financial Futures Exchange (CFFEX) today signed a Memorandum of Understanding (MoU) in Beijing.
The parties agreed on a co-operation and an extensive exchange of information in order to facilitate the further development of both financial markets.
In accordance with the MoU, the two exchange organizations are to start a comprehensive sharing of knowledge and information on business areas and regulatory developments. Further elements of the co-operation agreement include joint training and education initiatives, as well as an employee exchange program and regular visits from each exchange’s senior management.
“We are very pleased to have signed this agreement with CFFEX and look forward to deepening our relationship with leading institutions and authorities of China’s financial markets,” said Andreas Preuss, Deputy CEO Deutsche Börse and CEO of Eurex, the derivatives arm of Deutsche Börse.
Source: Deutsche Börse
Athens and Korea Exchanges Commit to Dual-Listing of Companies
May 17, 2012--The Athens Exchange (ATHEX) and the Korea Exchange (KRX) signed a Memorandum of Understanding (MOU) today in which they committed to cooperate in facilitating the dual-listing of companies on both exchanges.
This MOU, which was signed by Mr. Socrates Lazaridis, Chairman of the Athens Exchange, and Mr. Bongsoo Kim, Chairman and CEO of the Korea Exchange, at a ceremony in Athens on May 17, 2012, marked the first formal engagement between the two exchanges as well as the first sector-focused dual-listing between the two countries. During the ceremony, Mr. Kim also rang the opening bell of the Athens Exchange.
Source: ATHEX
OPEC Monthly Oil Market Report-May 2012
May 16, 2012--Oil Market Highlights
After three consecutive monthly gains, the OPEC Reference Basket declined in April to settle at $118.18/b, representing a drop of $4.79 or 3.9%. Prices remain elevated by the risk premium associated with ongoing geopolitical factors.
The decline in the value of the Basket came with the start of the first month of the typically low demand season in the second quarter. Crude prices shifted into contango for the first time in over a year amid higher supplies and weak consumption. The decline in crude oil prices occurred as refined product prices came down from the peak levels seen in previous months. Moreover, rising global supply contributed to an increase in inventories, preventing prices from moving higher. On 9 May, the OPEC Reference Basket stood at $109.85/b.
World economic growth expectations for 2012 remain unchanged at 3.3%. The US continues to enjoy solid momentum, with the growth forecast revised up by 0.1 pp to 2.3%. In contrast, the Eurozone continues to weaken and is now expected to contract by 0.4%, compared to the minus 0.3% forecast in the previous month. The growth forecast for Japan remains unchanged at 1.8%. With these offsetting revisions in the OECD, growth in the export-led emerging economies is also unchanged. India is expected to expand by 6.9% in 2012, while China is projected to grow at a solid 8.2%. Overall, the global economic outlook remains fragile, with heightened uncertainties in the Euro-zone and potential spill-over effects in the emerging markets.
World oil demand growth in 2012 now stands at 0.9 mb/d, broadly unchanged from the previous report. Given the stabilization of the US economy and the shutdown of Japanese nuclear power plants, world oil demand growth has – at least for the short-term – stopped its declining trend and is showing some growth. Oil demand in non-OECD countries is also indicating a slight improvement. The upcoming driving season in the US might be affected by higher retail gasoline prices and uncertainty regarding economic developments. Japan’s oil usage also could slow if the country were to restart its nuclear plants.
Source: OPEC
Lack of Trust in the Use of Personal Data Threatens to Undermine Digital Economy
New World Economic Forum report, Rethinking Personal Data: Strengthening Trust, examines the impact of trust on personal data use and its potential to drive economic and social value creation
In today's hyperconnected world, trusted data flows are vital for a long-term, balanced ecosystem
The report offers a range of recommendations to bolster trust in personal data usage
May 16, 2012--The lack of trust in how personal data is protected and used has the potential to jeopardize the economic and social value of this important asset class, according to a new World Economic Forum report released today.
Rethinking Personal Data: Strengthening Trust, developed in collaboration with The Boston Consulting Group, explores how the use of personal data can unlock value for governments, organizations and individuals.
The report highlights that trust is declining given numerous high-profile data security breaches, rampant identity theft, a general lack of transparency in how personal data is monetized, and an absence of globally harmonized policies for privacy and the use of data. With the Internet economy of the G20 estimated to nearly double to US$ 4.2 trillion by 2016, its growth could be constrained if the flow of personal data is overly restricted. Areas that could be affected include financial services, healthcare, online retail and marketing, social media and others.
view WEF report-. Rethinking Personal Data: Strengthening Trust
Source: WEF
IOSCO The MMoU: Ten years of Enhancing Cross-border Enforcement Cooperation
May 16, 2012--The Annual Conference of the International Organization of Securities Commissions (IOSCO) in Beijing marks the 10th anniversary of the Multinational Memorandum of Understanding[1], the instrument used by securities regulators to help ensure effective global regulation and preserve and strengthen securities markets around the globe.
In Beijing, the MMoU is being hailed as the pre-eminent standard for international enforcement cooperation and information sharing. Established in May 2002, the MMoU has provided securities regulators with the tools for combating the cross-border fraud and misconduct that can weaken global markets and undermine investor confidence.
Source: IOSCO
Chicago Board Options Exchange and China Financial Futures Exchange Sign Memorandum of Understanding
May 16, 2012--The Chicago Board Options Exchange (CBOE) and the China Financial Futures Exchange (CFFEX) announced today that they signed a Memorandum of Understanding (MOU), which establishes an open channel of communication and lays the foundation for future collaborative efforts between the exchanges.
Executives from both exchanges signed the MOU today at a ceremony in Beijing, China.
The MOU creates an avenue for sharing information and resources between the exchanges, including development of educational programs designed to build understanding of the exchanges' respective products, markets, technologies and regulation. The agreement also creates the opportunity for potential future business initiatives, including joint marketing efforts and product development.
"We are pleased to enter into an agreement with CFFEX that formalizes our long-standing friendship and establishes a strategic alliance between our exchanges," said CBOE Chairman and Chief Executive Officer William J. Brodsky. "Options are important investment and risk management tools and will be an essential part of CFFEX's product development efforts. We look forward to collaborating on initiatives that could benefit both exchanges and potentially expand the global reach of options."
Source: CBOE
NYSE Euronext and China Financial Futures Exchange
Exchanges Enter into Agreement to Develop Futures and Options Markets in Europe, US and China
May 16, 2012-NYSE Euronext (NYX) and the China Financial Futures Exchange (CFFEX) today signed a Memorandum of Understanding (MOU) to promote a bilateral partnership to support the development of the exchanges futures and options markets
The agreement was designed to explore opportunities for extending the global reach of both exchanges. The MOU will enable the two exchanges to explore opportunities for information sharing; exchanging and training employees; as well as business cooperation such as joint research into developing strategies for the derivatives market.
“Asia is a strategic priority for NYSE Euronext and we are delighted to partner with Mr. Zhu and his colleagues at the China Financial Futures Exchange,” said Duncan L. Niederauer, Chief Executive Officer, NYSE Euronext. “This agreement deepens our long term commitment to the region, and by sharing best practices and working collaboratively, CFFEX and NYSE Euronext will further promote the development and advancement of both the Asian and global financial markets.”
Source: NYSE Euronext
