Global ETF News Older than One Year
Short-sellers step up scrutiny of ESG stocks
October 24, 2020--Whenever big money starts flowing into a hot new sector, it seems inevitable that companies that list on the stock market fall short of hype and hope around them.
One of the market's current hottest areas is environmental, social and governance investing. And, like the cryptocurrency boom and cannabis stock surge, the flood of money has been followed closely by allegations of fraud.
These claims are often made by activist investors and short-sellers, who bet on the fall in value of stock or bond. As interest in ESG has surged, they have been on the prowl, looking for companies where investors have overlooked flaws and fraud in the rush to gain exposure to a technology or sector.
While often assailed by companies under attack, these short-sellers play a key role in identifying these issues.
Source: technocodex.com
Emerging-market currencies diverge on expectations of Biden win
October 24, 2020--Rising expectations for Joe Biden winning the US election are shaking up emerging-market currencies, with exchange rates moving to anticipate a softer line on Beijing and a tougher one on Moscow and Ankara.
As the polls have shifted further in favour of the Democratic challenger over the past month and a half, emerging-world currencies joined a global rally in riskier assets- reflecting a growing expectation that a sweeping victory for Mr Biden's party would clear the way for a second major stimulus package for the world’s biggest economy.
A broad MSCI index of EM currencies has risen about 2.4 per cent since the start of September.
A Biden presidency would "likely be seen as a more favourable outcome for emerging markets currencies as a whole, given a less confrontational approach on tariffs,"” said Meera Chandan, a currency strategist at JPMorgan Chase.
Source: technocodex.com
Emerging and Frontier Markets: Policy Tools in Times of Financial Stress
October 23, 2020--After the unprecedented hit to economic activity in emerging market economies from the COVID-19 pandemic, their economic output is projected to shrink by 3.3 percent in 2020. Central banks across emerging markets responded swiftly and forcefully with an unprecedented response of their own. They did this by using a variety of policy tools and, to a great extent, helped stabilize markets and keep them functioning.
Nearly all central banks cut rates, most of them intervened in currency markets, and about half of them cut reserve requirements for banks, which provided liquidity to the financial system and eased credit conditions. And some 20 emerging market central banks for the first time launched quantitative easing-formally known as asset purchase programs-by buying government and private sector debt to alleviate stress and help keep markets functioning. Our recent analysis in the Global Financial Stability Report shows these asset purchase programs have generally proven effective, including by helping to stabilize local financial markets.
Source: IMF
The Commodity Markets Outlook in eight charts
October 22, 2020--Almost all commodity prices recovered in the third quarter following steep declines earlier in the year due to the COVID-19 pandemic. Crude oil prices have doubled since their April low, supported by sharp oil supply cuts, but prices remain one-third lower than pre-pandemic. Metal prices recovered rapidly in response to a faster-than-expected pick up of China's industrial activity.
Some food prices have also risen. Looking ahead, oil prices are expected to increase gradually from current levels and average $44 per barrel in 2021, up from an estimated $41 per barrel this year , as a slow recovery in demand is matched by an easing in supply restraint. Metal and agricultural prices are projected to see modest gains in 2021. The main risk to price forecasts is the duration of the pandemic, including the risk of an intensifying second wave in the Northern Hemisphere.
view the World Bank Commodity Markets Outlook Persistence of commodity shocks October 2020
Source: World Bank
World Economic Forum Launches Call to Action for Governments to Set Targets beyond GDP Growth to Guide Economic Recovery
October 21, 2020--World Economic Forum launches call to action for global convergence by governments on Dashboard for a New Economy
The new dashboard aims to move beyond GDP and give equal weight to people, planet, institutions and prosperity, recognizing their close interlinkages
Recent Chief Economists Survey suggests the risk of economic and social polarization is still high and countries are not yet prepared enough to shape the required structural transformation
The World Economic Forum launches today the Dashboard for a New Economy platform, representing a renewed international effort to converge on and implement economic policy targets beyond GDP growth. Some pioneering countries, such as New Zealand, have made significant progress in implementation, yet global progress is still limited.
The dashboard framework and principles are an open invitation for governments, economists and other stakeholders to converge on a common core set of targets to guide the economic recovery (Table 1). The purpose of the report is not to present a new and separate framework but to provide a platform for stakeholders to unite around a shared vision of what constitutes economic success in the post-pandemic world.
Source: World Economic Forum (WEF)
PayPal to open up network to cryptocurrencies
October 21, 2020--PayPal Holdings Inc said on Wednesday it will allow customers to hold bitcoin and other virtual coins in its online wallet and shop using cryptocurrencies at the 26 million merchants on its network.
The new service makes PayPal one of the largest U.S. companies to provide consumers access to cryptocurrencies, which could help bitcoin and rival cryptocurrencies gain wider adoption as viable payment methods.
Source: Reuters
Recession and Automation Changes Our Future of Work, But There are Jobs Coming, Report Says
October 21, 2020--The workforce is automating faster than expected, displacing 85 million jobs in next five years
The robot revolution will create 97 million new jobs, but communities most at risk from disruption will need support from businesses and governments
In 2025, analytical thinking, creativity and flexibility are among the top skills needed; with data and artificial intelligence, content creation and cloud computing the top emerging professions
The Future of Jobs 2020 report has found that COVID-19 has caused the labour market to change faster than expected. The research released today by the World Economic Forum indicates that what used to be considered the "future of work" has already arrived.
By 2025, automation and a new division of labour between humans and machines will disrupt 85 million jobs globally in medium and large businesses across 15 industries and 26 economies. Roles in areas such as data entry, accounting and administrative support are decreasing in demand as automation and digitization in the workplace increases. More than 80% of business executives are accelerating plans to digitize work processes and deploy new technologies; and 50% of employers are expecting to accelerate the automation of some roles in their companies. In contrast to previous years, job creation is now slowing while job destruction is accelerating.
Source: World Economic Forum (WEF)
Socially Responsible, Low-Carbon Capitalism Can Ensure 'Job-Full' Recovery From COVID-19
October 20, 2020-Climate change is a bigger crisis than COVID-19- investing in a low-carbon future will drive greater wealth and more jobs, says CEO of Unilever
Fault lines in capitalism have accelerated gaps in wealth, education and job opportunities -we need to restructure to ensure a "job-full" recovery from the COVID crisis, says leading US hedge-fund investor
Governments and central banks are increasingly deciding where money flows-they must make the right decisions to invest in reskilling workers for a digital, low-carbon economy
COVID-19 has caused a jobs crisis but, if we are to recover from the pandemic, two more fundamental crises need tackling: climate change and the nature of capitalism itself. This was the view of leaders taking part in the World Economic Forum's Jobs Reset Summit, which opened today.
"The low-carbon revolution will be a booming space for jobs," said Alan Jope, Chief Executive Officer, Unilever, United Kingdom. Jope said he hopes the recovery from the pandemic will prove a turning point in the battle with climate change, because a greener business can drive both revenues and job creation.
According to the European Union, investments in renewable energy could create three times as many jobs as investing in fossil fuels. "One of the most dangerous mindsets in the world," said Jope, "is to set up a false dichotomy between sustainability and economic growth." Unilever has saved 800 million euros in sustainable sourcing, while attracting more customers through low-carbon products. A business that is trying to be responsible is a magnet for talent, he said, adding: "We see purpose as a pathway to better profits."
Source: World Economic Forum (WEF)
The pandemic will structurally change the global economy more than we think
October 20, 2020--It is time to rethink many of the basic principles of our economic model to mitigate the impacts of the COVID-19 pandemic.
Those who say there are no letters left in the alphabet to describe the evolution of the world economy after the pandemic are absolutely right.
It is abundantly clear now that we cannot expect to see a rapid V-shaped recovery-nor should we expect a complete stagnation or a L-shaped recovery.
The square root-shaped economy
The newest version of recovery, the K-shape, reflects the increasing disparity between the winning and losing sectors, including the middle class.view more
Source: bruegel.org
IMF Policy Paper-Digital Money Across Borders: Macro-Financial Implications
October 19, 2020--Summary:
Rapid ongoing progress with digital technologies has increased the prospects for adoption of new forms of digital money for both domestic and international transactions. These include central bank digital currencies (CBDCs) and the so-called global stable coins (GSCs) proposed by large technological companies or platforms.
This paper explores the complex interactions between the incentives to adopt and use CBDCs and GSCs across borders and discusses the potential macro-financial effects.
view the IMF Policy Paper-Digital Money Across Borders: Macro-Financial Implications
Source: IMF
