Global ETF News Older than One Year
Developing Countries Are Driving Global Growth, but Risks Remain
January 12, 2011-Led by developing countries, the world economy is moving on from a post-crisis bounce-back phase of recovery to slower but still solid growth this year and next
Developing countries face three main short-term risks—tensions in financial markets, large and volatile capital flows, and a rise in high food prices
For the longer-term, countries need to shift focus from short-term crisis management toward measures that address underlying structural challenges
The world economy is moving on from a post-crisis bounce-back phase of recovery to slower but still solid growth this year and next. Global GDP, which expanded by 3.9% in 2010, is expected to slow to 3.3% in 2011, according to the World Bank’s Global Economic Prospects 2011.
Most of the developing world has weathered the financial crisis well, and, by the end of 2010, many emerging market economies had recovered or were close to resuming the growth potential they had attained prior to the crisis.
"On the upside, strong developing-country domestic demand growth is leading the world economy, yet persistent financial sector problems in some high-income countries are still a threat to growth and require urgent policy actions," said Justin Yifu Lin, the World Bank’s chief economist and senior vice president for development economics.
Source: World Bank
Dow Jones Index Data Monthly Reports
January 12, 2011---The following Dow Jones Index Data Monthly Reports for OCtober 2010 are now available.
Index Data Monthly Report: U.S. Edition
Index Data Monthly Report: Dow Jones-UBS Commodity Indexes
Index Data Monthly Report: Europe Edition
Index Data Monthly Report: Latin America Edition
Index Data Monthly Report: Dow Jones Brookfield Infrastructure Indexes
Source: Dow Jones Indexes
Capital markets must absorb longevity risk, insurers say
January 12, 2011--Capital markets will have to help governments and the insurance industry absorb some longevity risk, insurers have said.
They said the most likely solution to dealing with the massive increase in public debt due to age-related liabilities was that people would have to work longer
Source: IP&E
Markit Buys Risk Analytics Firm QuIC
January 12, 2011-- Markit, a leading, global financial information services company, today announced that it has acquired QuIC Financial Technologies, Inc (QuIC). QuIC provides the world’s leading financial organisations with risk analytics solutions to test market and credit risk tolerance in financial portfolios and simulate risk at the enterprise level.
The acquisition will enable Markit to meet the growing demand for risk analytics and enterprise risk management services by combining its strengths in data and valuations with QuIC’s analytics expertise. Markit and QuIC’s integrated platform will be well-positioned to offer a comprehensive solution for risk-related services spanning independent pricing, valuations and analytics across asset classes.
QuIC will become part of Markit’s valuations and analytics services unit, and will continue to provide all of its existing high-quality services to clients throughout the financial industry. Markit’s rich data set, which spans all major asset classes in the cash and over-the-counter derivative markets - including credit default swaps, bonds, loans, equities, commodities and rates - will become a valuable input into the QuIC Engine™, the high speed computational framework that powers QuIC’s solutions.
Source: Markit
Contributions to GDP growth – Third quarter of 2010
Investment slowdown weakens OECD GDP growth in the third quarter of 2010
January 12, 2011--Real GDP in the OECD area grew by 0.6% in the third quarter of 2010, down from the 0.9% of the previous quarter. Capital formation contributed 0.2 percentage point to overall growth, down from the 0.5 percentage point recorded in the second quarter.
Private consumption was the main contributor, adding 0.4 percentage point to overall growth; while stockbuilding contributed 0.3 percentage point. For the third consecutive quarter, net exports dragged down GDP growth (by 0.3 percentage point in the third quarter of 2010).
Source: OECD
Gold Must Exceed $2,000 to Be Considered in a Bubble, Deutsche Bank Says
January 11, 2011--Gold would have to exceed $2,000 an ounce to be considered in a bubble, and the metal will gain this year on investment in exchange-traded funds and central-bank buying, Deutsche Bank AG said.
Gold will “perform strongly” on investor demand and low real interest rates in the U.S., Michael Lewis, London-based head of commodities research at Deutsche Bank, said in a report today. A bubble may form because investors are buying gold as a hedge against both inflation and deflation, he said.
Source: Bloomberg
The global financial crisis has accelerated the shift in economic power to emerging economies.
January 11, 2011--In the latest in the series of PwC’s ‘World in 2050’ reports, analysis reveals that the E7 emerging economies (China, India, Brazil, Russia, Mexico, Indonesia and Turkey) are set to overtake the G7 economies (US, Japan, Germany, UK, France, Italy and Canada) before 2020.
view the World in 2050 The accelerating shift of global economic power: challenges and opportunities
The world in 2050:Can rapid global growth be reconciled with moving to a low-carbon economy?
view the Beyond the BRICs: A broader look at emerging market growth prospects
view the How big will the major emerging market economies get and how can the OECD compete? report
Source: PricewaterhouseCoopers LLP
Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate IMF Working paper
January 10, 2011--This paper analyzes the impact of capital inflows and exchange rate flexibility on the real exchange rate in developing countries based on panel cointegration techniques. The results show that public and private flows are associated with a real exchange rate appreciation.
Among private flows, portfolio investment has the highest appreciation effect-almost seven times that of foreign direct investment or bank loans-and private transfers have the lowest effect. Using a de facto measure of exchange rate flexibility, we find that a more flexible exchange rate helps to dampen appreciation of the real exchange rate stemming from capital inflows.
view the Capital Flows, Exchange Rate Flexibility, and the Real Exchange Rate
Source: IMF
Composite Leading Indicators (CLIs), OECD, January 2011
January 10, 2011--OECD composite leading indicators (CLIs), designed to anticipate turning points in economic activity relative to trend, point to an increasing pace of economic expansion in November 2010.
The CLIs for China, the United States, France and Japan show clear signs of accelerating economic activity, while the one for Russia points strongly to steady expansion.
The German CLI is unchanged from the previous month at a rate above 100 and should therefore be interpreted as a sign of a continued, stable pace of expansion. Signs of stabilization in the pace of economic expansion are also present in the CLIs for Canada, Italy, the United Kingdom and India.
Source: OECD
HK price differentials create renminbi openings
January 10, 2011--Banking regulators have quietly taken a major step towards harmonised global regulation by agreeing to raise worldwide capital requirements whenever an individual country declares a credit bubble.
Part of the larger Basel III banking reform package, the countercyclical capital buffer heralds a step change in the way national banking regulators interact and is the first concrete example of “macroprudential” regulation that seeks to moderate the economic cycle.
Source: FT.com
