Global ETF News Older than One Year
How much investment do we need to reach net zero?
August 25, 2021--To become climate neutral by mid-century, the European Union and other major economies must substantially reduce their greenhouse gas (GHG) emissions during this decade. The EU aims to reduce its emissions by 55 percent by 2030 compared to 1990 levels with a wide range of policies recently proposed in the 'Fit for 55' package. Meanwhile, the United States (US) aims to reduce its emissions by 50-52 percent by 2030 compared to 2005 levels, and China wants it’s its CO2 emissions to peak before 2030. To achieve this, serious investments will be needed.
Below, we review the multiple estimates of the investment required to reach climate goals and discuss the macroeconomic relevance of investment on top of what will already be spent to replace existing infrastructure.
Global energy investment trends
Global energy investments currently stand at around $2 trillion per year or 2.5 percent of global GDP, according to the International Energy Agency (IEA). In an illustrative pathway they recently developed, this will have to rise to $5 trillion or 4.5 percent of GDP by 2030 and stay there until at least 2050 to reach net zero CO2 emissions by 2050 (Figure 1). Much of this will be spent on electricity generation and infrastructure to electrify new economic sectors and to make the electricity system more suitable for much higher volumes and variability of renewable energy.
Source: bruegel.org
The Impact of Fintech on Central Bank Governance
August 24, 2021--Summary:
Fintech presents unique opportunities for central banks. The rapid changes in technology that are transforming the financial system will allow central banks to enhance the execution of various of their core functions, such as currency issuance and payment systems. But some aspects of fintech pose major challenges. Central banks have always been at the cutting edge of financial technology and innovation.
In the past, the invention of the banknote, the processing of payments through debits and credits in book-entry accounts, and the successive transitions of interbank payment systems from the telegraph to internet protocols were all transformative innovations. Today, central banks are facing new and unprecedented challenges: distributed ledger technology, new data analytics (artificial intelligence [AI] and machine learning), and cloud computing, along with a wider spread of mobile access and increased internet speed and bandwidth. The purpose of this note is to discuss the authors' preliminary views on how, from a legal perspective, central banks can best deal with the impact of fintech on their governance. These preliminary views are based on a review of central banks' reaction thus far to the challenges posed by fintech to the legal foundations of their governance.
Source: IMF.org
Global economic data disappointments add to rising growth angst
August 23, 2021--US reports are missing expectations at the highest pace since the depths of the pandemic
US and international data releases are missing forecasts at an accelerating pace, highlighting rising investor angst that the spread of the Delta coronavirus variant will slow the pace of the global economic recovery.
Several closely watched US economic measures published in recent weeks have come in well below Wall Street expectations, indicating the powerful economic growth from the depths of the Covid crisis may be losing steam.
Source: ft.com
Lack of Water Linked to 10 Percent of the Rise in Global Migration
August 23, 2021--In the Middle East and North Africa, the region with the highest levels of forced displacement, water resilience is key to long-term growth
As climate change accelerates a global water crisis, rainfall variability is expected to be one of the contributing forces in migration, according to a new World Bank report released today.
The report anticipates that the world's cities, which receive migrants and are now home to 55% of the global population, will face a rising number of "day-zero" events-when taps run dry.
The report, Ebb and Flow, provides the first-ever global assessment of the impact of water on migration. It is based on analysis of the largest data set on internal migration ever assembled, covering nearly half a billion people from 189 population censuses in 64 countries, and several national and global data sets that have been combined for the first time.
Source: World Bank
Ebb and Flow: Water, Migration, and Development
August 23, 2021--This report examines the link between water and migration,and the implications for economic development. The report is based on analysis of the largest data set on internal migration ever assembled,covering nearly half a billion people from 189 population censuses in 64 countries from 1960 to 2015.
It assesses how rainfall shocks are related to migration relative to other key variables such as age,gender,education,and household size. The report is in two parts. Volume 1 covers water,migration,and development. Volume 2 focuses on water,forced displacement and conflict in the Middle East and North Africa.
Source: World Bank
1 in 2 Unsure of Globalization's Benefits, Survey Finds
August 19, 2021--Globalization questioned by almost half of those surveyed, with many advocating for trade barriers
Decline in trust and ambivalence likely a symptom exacerbated by the COVID-19 pandemic
For fair outcomes, governments need to work with local officials to create policies related to the environment, jobs and tax, expert says.
Public perception of globalization has declined over the past two years, with almost half unsure of its benefits and more than one-third advocating for trade barriers.
Findings from the latest World Economic Forum/Ipsos market survey of almost 20,000 people in 25 countries show a mix of polarization and ambivalence about free trade, globalization, and protectionist policies.
Trends show 75% of those surveyed agreeing that expanding trade is a good thing, yet almost 40% believe there should be more trade barriers to limit imports of foreign goods and services. Notably, 36% are neutral or have no option.
Source: weforum.org
Chainalysis Releases 2021 Global Crypto Adoption Index To Kick Off Geography Of Cryptocurrency Report Series
August 18, 2021--The index provides insights into the data the blockchain platform provides by measuring cryptocurrency adoption and the methodology behind it around the globe.
Chainalysis, the blockchain data platform, today released its 2021 Global Crypto Adoption Index, the second iteration of its efforts to measure grassroots cryptocurrency adoption around the world. The index is the first part of Chainalysis's series of reports which will be followed by a DeFi index and regional analyses.
As cryptocurrency adoption continues to grow globally, organizations ranging from banks to institutional investors to everyday consumers are taking notice and incorporating digital assets into their financial strategy. But patterns of cryptocurrency usage vary widely around the world.
Source: Chainalysis, Inc.
BIS-Could corporate credit losses turn out higher than expected?
August 18, 2021--Key takeaways
Credit risk forecasts should provide information both about losses in a baseline scenario ("expected losses") and about the potential for extreme outcomes ("unexpected losses").
Policy support measures have kept debt service costs low during the pandemic, thus underpinning benign baseline forecasts of corporate credit losses up to 2024.
High indebtedness, built up when the pandemic impaired real activity, suggests increased tail risks: plausible deviations from the baseline scenario feature ballooning corporate insolvencies.
Source: bis.org
Spread of COVID-19 Delta variant knocks oil demand outlook-IEA
August 12, 2021--Rising demand for oil abruptly reversed course in July and is set to proceed more slowly for the rest of the year due to the spread of the COVID-19 Delta variant, the International Energy Agency said on Thursday.
"Growth for the second half of 2021 has been downgraded more sharply, as new COVID-19 restrictions imposed in several major oil consuming countries, particularly in Asia, look set to reduce mobility and oil use," the Paris-based IEA said.
Source: reuters.com
IOSCO publishes results of examination of ETF behavior during COVID-19 induced market stresses
August 12, 2021--The Board of the International Organization of Securities Commissions (IOSCO) today published a view more
Source: IOSCO
