IMF: The economics of lockdown
October 21, 2020--Government lockdowns are contributing considerably to the recession, according to new research by the IMF in their latest World Economic Outlook.
Vulnerable groups, such as women and young people, are particularly affected.
Voluntary isolation is also a contributor to economic adversity, meaning lifting lockdowns is unlikely to result in a decisive and sustained economic boost.
Until the health crisis is resolved, the economic crisis cannot be.
One enduring lesson from the COVID-19 pandemic is that any lasting economic recovery will depend on resolving the health crisis.
Our research in the latest World Economic Outlook shows that government lockdowns-while succeeding in their intended goal of lowering infections-contributed considerably to the recession and had disproportional effects on vulnerable groups, such as women and young people. But the recession was also largely driven by people voluntarily refraining from social interactions as they feared contracting the virus. Therefore, lifting lockdowns is unlikely to lead to a decisive and sustained economic boost if infections are still elevated, as voluntary social distancing will likely persist.
Source: IMF
'Attack of the debt tsunami': Coronavirus pushes global debt to record high
November 19, 2020--The IIF said global debt would break new records in the coming months to reach $277 trillion by the end of the year.
Among advanced nations, debt surged above 432% of GDP in the third quarter- a 50 percentage points increase from 2019.
The coronavirus crisis pushed global debt levels to a new high of over $272 trillion in the third quarter, the Institute for International Finance said, as it warned of the "attack of the debt tsunami."
Source: cnbc.com
What is securities lending, why do ETFs do it and is it risky?
November 19, 2020--The practice introduces some counterparty risk but offers a route to additional earnings
Securities lending should really be called securities renting. The owner of the securities "lends" them in return for a fee. While the securities are on loan the borrower transfers collateral in the form of other securities such as shares, bonds or cash to the lender.
The value of the collateral is equal to or greater than the value of the securities being borrowed.Exchange traded fund providers are particularly interested in the practice because ETFs -like pension funds and sovereign wealth funds, which are also big securities lenders- tend to be long-term owners.
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Source: FT.com
Leveraging Islamic Fintech to Improve Financial Inclusion
Discussions around financial participation now look at making finance (both conventional and Islamic) more accessible to the general public. Strong leadership from financial regulators drive overall financial inclusion
Malaysia's framework for consumer and investor protection, covers both Islamic and conventional products
view the World Bank report-Leveraging Islamic Fintech to Improve Financial Inclusion
Source: World Bank
Traders unlikely to return to trading desks every day post-pandemic, research suggests
A recent poll of 210 financial services compliance professionals globally by Greenwich Associates found that just 4% expect their firms to require traders to return to in-house trading desks every day after the pandemic.
Source: thetradenews.com
Rocketing Bitcoin Stakes Claim as Pandemic Refuge for Brave
Bitcoin is seizing the spotlight from gold as a hedge against risks such as further dollar weakness or a pick-up in inflation, after widening its performance lead over the yellow metal.
The cryptocurrency's approximately 150% jump in 2020 puts the digital coin's price relative to gold at the highest in almost three years, data compiled by Bloomberg show.
Source: bloomberg.com
Global gold-backed ETFs: A popular gateway to the gold market
The increased quantity, size and location of gold ETFs have provided easier and more efficient access for investors allowing them to utilise many general advantages of ETFs.
While there are numerous ways for investors to own gold, such as bars, coins, derivatives, over-the-counter (OTC) instruments and gold stocks, many have embraced gold ETFs for qualities such as cost efficiency, transparency, and liquidity.
The growth and evolution of gold ETFs have already helped advance the broader gold market and are likely to continue to do so, providing additional support for the role of gold in portfolios.
Gold ETFs are global
Future Series: Cybersecurity, emerging technology and systemic risk
Enhanced cybersecurity is the only means by which this challenge can be addressed, but the approach to cybersecurity needs to be overhauled before the industry finds itself in any fit state to tackle the threat.
Source: weforum.org
Cut-throat ETF price war is over, industry professionals say
Index-tracking bond ETFs are cheaper nonetheless at 0.14 per cent, down from a peak of 0.26 per cent in 2013, whereas some fairness funds managed by Constancy Investments at the moment are free.
Source: medtech.news
ETFGI reports ETFs and ETPs listed globally have gathered a record 539.58 billion US dollars in year to date net inflows as of the end of October 2020
ETFs and ETPs listed globally gathered net inflows of US$52.21 billion during October, bringing year-to-date net inflows to a record level of US$539.58 billion which is significantly higher than the US$399.88 billion gathered at this point last year and close to the US$571.14 billion gathered in all of 2019, according to ETFGI's October 2020 Global ETFs and ETPs industry landscape insights report, the monthly report which is part of the annual paid-for research subscription service. (All dollar values in USD unless otherwise noted.)
Highlights
Source: ETFGI
November 18, 2020--Among ASEAN, OIC and other middle-income country, Malaysia stands as a leader in developing its Islamic finance industry as well as attaining financial inclusion
Deliberate policy measures since the 1960s have cultivated Islamic finance as a source of financial inclusion
Religious objections to financial participation have essentially been eliminated.
Regulatory initiatives with clear targets and tracking of milestones have pushed Malaysia to rank well in this regard
Standardized and comprehensive frameworks for consumer and investor protection
Dedicated institutions have grown out of this, raising confidence and promoting financing inclusion
November 18, 2020--Firms tackled remote working by shifting focus to compliance infrastructure and partnering with external technology providers, Greenwich Associates research found.
A small minority of traders are expected to return to trading desks every day in the post-pandemic world, as firms are tipped to support remote working in the long-term, research has suggested.
November 18, 2020--Jump versus gold spotlights case for Bitcoin as store of value
Coin's volatility is top argument against 'digital gold' claim
November 17, 2020--Gold-backed exchange-traded funds and similar products (gold ETFs)1 have flourished since their introduction in 2003, attracting both institutional and retail investors across the globe.2
Recently, gold has become globally accepted as a strategic asset amidst a high-risk and low-rate environment spurring investment demand and the expansion of the gold-ETF market.
Through September 2020, holdings in the 83 active gold ETFs we track totalled 3,880t, with total assets under management (AUM) of US$235.4 billion (bn)3- record highs in both tonnage and value terms.
November 16, 2020--Unless action is taken now, by 2025 next generation technology, on which the world will increasingly rely, has the potential to overwhelm the defences of the global security community.
November 13, 2020--A cut-throat value battle that has brought on charges for mainstream change traded funds to sink to unprecedented lows might have now run its course, trade professionals imagine.
Common expense ratios for passive fairness ETFs have nearly halved from 0.34 per cent to fell to simply 0.18 per cent within the US throughout the previous decade, in accordance with the Funding Firm Institute, a commerce physique.
November 13, 2020--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs and ETPs ecosystem, reported today reports ETFs and ETPs listed globally have gathered a record US$539.58 billion in year to date net inflows as of the end of October 2020.
ETFs and ETPs listed globally have gathered a record $539.58 Bn in year to date net inflows at the end of October 2020.
Strong net inflows of $52.21 billion during October.
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