Global ETF News Older than One Year
Oil markets face uncertain future after rebound from historic Covid-19 shock
March 17, 2021--Based on today's policy settings, global oil demand is set to rise every year through 2026, IEA report says, but stronger policies and behaviour changes could bring a peak in demand soon
World oil markets have rebounded from the massive demand shock triggered by Covid-19 but still face a high degree of uncertainty that is testing the industry as never before, according to a new IEA report.
The forecast for global oil demand has shifted lower, and demand could peak earlier than previously thought if a rising focus by governments on clean energy turns into stronger policies and behavioural changes induced by the pandemic become deeply rooted, according to Oil 2021, the IEA's latest annual medium-term market report. But in the report's base case, which reflects current policy settings, oil demand is set to rise to 104 million barrels a day (mb/d) by 2026, up 4% from 2019 levels.
Source: IEA
IEA Oil Market Report March 2021
March 17, 2021--Highlights
World oil demand is expected to rebound by 5.5 mb/d in 2021 after contracting by 8.7 mb/d in 2020. Consumption appears to be slightly higher than expected in 1Q21, supported by cold weather in northern Asia, Europe and the US. A stronger economy and vaccine deployment will support growth in 2H21, reducing the oil demand gap vs 2019 from 4.8 mb/d in 1Q21 to 1.4 mb/d in 4Q21.
Global oil supply fell 2 mb/d in February to 91.6 mb/d after a cold snap shut in US production and Saudi Arabia made an extra cut of 1 mb/d. OPEC+ agreed to extend most of its cuts through April, with Saudi keeping its extra cut in place. Non-OPEC+ will see output rise by 700 kb/d in 2021 after a 1.3 mb/d drop in 2020. US oil supply is set to decline by 180 kb/d, after a fall of 600 kb/d in 2020.
Source: IEA
ETFGI reports assets invested in ETFs and ETPs listed around the world reach a new record of US$8.30 trillion at the end of February 2021
March 16, 2021--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today that reports assets invested in ETFs and ETPs listed around the world reach a new record of US$8.30 trillion at the end of February. ETFs and ETPs listed globally gathered the highest ever monthly net inflows of US$139.46 billion during February, bringing year-to-date net inflows to a record level of US$222.54 billion.
Assets invested in the global ETFs/ETPs industry have increased by 3.0% from US$8.06 trillion at the end of January 2021, to US$8.30 trillion at the end of February, according to ETFGI's February 2021 Global ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Assets invested in ETFs and ETPs listed globally reach a new record of $8.30 trillion at the end of February.
Net inflows of $139.46 Bn in February are the highest ever beating the prior record of $131.99 Bn set in Nov 2020
YTD net inflows are a record $222.54 Bn ahead of the $98.31 Bn in 2020 and beating the prior record of $130.95 set in February 2017
Source: ETFGI
Digital Wallet Users to Exceed 4.4 Billion by 2025, as Mobile Drives Digital Payments' Revolution
March 16, 2021--A new study from Juniper Research has found that the number of unique digital wallet users will exceed 4.4 billion globally in 2025; rising from 2.6 billion in 2020. It found that mobile wallets are leading this 70% growth, as mobile payments rapidly scale across geographical and vertical markets. The increasing alignment between in‑person and remote commerce channels is leading to greater use of mobile wallets than ever before, with online wallet use confined to high-value purchases or complex bill payments.
The research recommends that merchants should undertake complete reviews of their processes to ensure that they are offering a highly capable mobile app. This must be inclusive of a seamless checkout process, the correct mobile wallet integrations and high levels of security, or they will lose out to more mobile-adept merchants.
Source: juniperresearch.com
Rising Market Power-A Threat to the Recovery?
March 15, 2021--The crisis has hit small and medium enterprises especially hard, causing massive job losses and other economic scars. Among these-less noticeable, but also serious-is rising market power among dominant firms as they emerge even stronger while smaller rivals fall away.
We know from experience and IMF research that excessive market power in the hands of a few firms can be a drag on medium-term growth, stifling innovation and holding back investment. Such an outcome could undermine the recovery from the COVID-19 crisis, and it would block the rise of many emerging firms at a time when their dynamism is desperately needed.
Source: IMF
Big tech in finance: regulatory approaches and policy options
March 15, 2021--Highlights
At present, financial services represent a relatively small part of big techs' overall activities, thoughthis can change rapidly due to the unique features of their business models and they could quicklybecome systemically important-r "too big to fail".
Big techs' financial operations are subject to the same requirements as those of other market participants.
As such, big techs need to hold appropriate licences to perform regulated financia lactivities or provide their services in partnership with financial institutions that meet the regulatory requirements
Risks connected with big tech activities in finance may not be fully captured by the regulatory approach up to now, which is geared towards individual entities or specific activities and not therisks that are created by substantive interlinkages within big tech groups and their role as criticalservice providers for financial institutions
Source: BIS
ETF inflows surge past record as investors bet on global recovery
March 11, 2021--Industry makes fastest ever start to a year after attracting $139.5bn in February
The exchange traded fund industry has made its fastest ever start to a year with a new record of $139.5bn in monthly inflows in February as investors, betting on a strong economic rebound in 2021, used ETFs to pour cash into equities.
Not only did the S&P 500, the main US stock market benchmark, hit a fresh all-time high last month, but investors have also taken encouragement from the massive support measures provided by the US Federal Reserve and other central banks to make additional allocations to stocks and commodities via ETFs.
Source: ft.com
State Street Announces Expansion of its Fund Connect ETF Digital Platform
March 10, 2021--Fund Connect ETF becomes latest GlobalLink product to embrace open architecture by making its primary market ETF trading platform available to the industry agnostic of service provider
State Street Corporation (NYSE:STT) today announced that Fund Connect ETF will now be open to support all exchange traded fund (ETF) issuers regardless of their service provider.
The platform was previously only available to issuers receiving securities services from State Street. The Fund Connect platform has long served as a conduit between Authorized Participants (APs) and issuers. This expansion marks a pivotal moment for State Street to build on its proven track record of supporting the growing ETF market.
Source: State Street Corporation
Bitcoin's Greatest Feature Is Also Its Existential Threat
March 9, 2021--The cryptocurrency depends on the integrity of the blockchain. But China's censors, the FBI, or powerful corporations could fragment it into oblivion.
Security researchers have recently discovered a botnet with a novel defense against takedowns. Normally, authorities can disable a botnet by taking over its command-and-control server.
With nowhere to go for instructions, the botnet is rendered useless. But over the years, botnet designers have come up with ways to make this counterattack harder. Now the content-delivery network Akamai has reported on a new method: a botnet that uses the Bitcoin blockchain ledger. Since the blockchain is globally accessible and hard to take down, the botnet's operators appear to be safe.
Source: wired.com
Oil logs first loss in 4 sessions, as buying after attack on Saudi oil facilities fades
March 8, 2021--Brent crude briefly rises past $70 a barrel
Oil futures pulled back Monday, posting their first loss in four sessions after an attack on Saudi oil facilities briefly lifted global benchmark Brent crude prices above $70 a barrel for the first time since early last year.
Warplanes from a Saudi-led coalition dropped bombs on Yemen's rebel-held capital San'a on Sunday, following attacks on Saudi Arabia’s oil and military facilities. The coalition blamed the administration of President Joe Biden for the attacks by Iran-backed Houthi rebels after a decision to remove them from U.S. terror lists.
Source: marketwatch.com
