Global ETF News Older than One Year
IMF-Predicting Financial Crises: The Role of Asset Prices
August 4, 2023--Summary:
We explore the early warning properties of a composite indicator which summarizes signals from a range of asset price growth and asset price volatility indicators to capture mispricing of risk in asset markets. Using a quarterly panel of 108 advanced and emerging economies over 1995-2017, we show that the combination of rapid asset price growth and low asset price volatility is a good predictor of future financial crises.
Elevated levels of our indicator significantly increase the probability of entering a crisis within the next three years relative to normal times when the indicator is not elevated. The indicator outperforms credit-based early warning metrics, a result robust to prediction horizons, methodological choices, and income groups. Our results are consistent with the idea that measures based on asset prices can offer critical information about systemic risk levels to policymakers.
Source: imf.org
This is the state of food security in 2023
August 2, 2023-- Compounding crises are threatening to delay the goal of eradicating world hunger by 2030.
A new United Nations report found that the number of people facing hunger has increased since 2019.
Here's why more people are hungry now than before the pandemic, and how initiatives by the UN and the World Economic Forum initiatives seek to reverse the trend.
The global pandemic, coupled with conflict and climate crisis-related weather patterns has delayed the goal of eradicating world hunger by 2030.
A new report by the United Nations (UN) has shed light on an increase in the number of people facing hunger in recent years. According to the State of Food Security and Nutrition in the World (SOFI) report, an additional 122 million people have been pushed into hunger since 2019.
Source: WEF (World Economic Forum)
Crypto Asset Management Market to Reach USD 10.91 Billion by 2032; Increasing Demand for Crypto Assets as a Financial Instrument to Propel Growth: The Brainy Insights
August 2, 2023--The market will experience rapid growth due to the legalization of crypto assets in several nations during the forecast period. Also, the increasing number of individual investors exploring crypto assets will augment the market growth. North America region emerged as the most significant global crypto asset management market, with a 39% market revenue share in 2022.
The Brainy Insights estimates that the USD 1 billion in 2022 global crypto asset management market will reach USD 10.91 billion in 2032. The crypto assets market is worth a billion as of 2022. Bitcoin is the most popular cryptocurrency as of now. Several other crypto assets have also been introduced in the market, some backed by government institutions. The younger generation with a higher risk appetite is willing to invest in crypto assets rather than traditional banking instruments. The crypto asset management services will witness increased demand as they offer convenient, expert and timely advice and means for consumers to transact their crypto assets.
Source: The Brainy Insights
Has the bond ETF boom helped nurture the private credit frenzy?
August 1, 2023--Barclays thinks so
A lot of people viscerally hate the idea of fixed income ETFs, but despite the recent choppiness in bond markets ETFs keep going, growing and altering the nature of the underlying market.
The rising popularity of corporate bond ETFs-and the portfolio trading that they help enable -makes it easier for investors to manage portfolios, lowers trading costs and increases liquidity, according to a new Barclays report.
This has major implications. Barclays argues that ETFs have dramatically lowered the "liquidity risk premium"- the extra returns that investors demand to compensate for owning less-liquid securities- and led to lower yields across the entire market for US junk bonds.
Source: ft.com
WTO issues 2023 edition of the World Trade Statistical Review
July 31, 2023--The WTO issued today (31 July) the latest edition of the World Trade Statistical Review, its annual flagship publication featuring key data on global trade in merchandise and commercial services.
The World Trade Statistical Review 2023 presents recent trends in international trade at a time of geopolitical and macroeconomic strains and technological challenges affecting the global economy and supply chains.
The data cover merchandise and services trade broken down by geographical origin, main product groups and sectors, along with related data on key economic developments such as GDP growth, commodity prices, and exchange rate fluctuations.
Source: WTO (World Trade Organization)
WTO-New publication sets out common framework for measuring digital trade
July 28, 2023--A new edition of the Handbook on Measuring Digital Trade issued today (28 July) provides a framework and practical guidance on how to measure digital trade.
Building upon the first edition issued in 2019, the Handbook aims to address the challenges inherent in measuring digital trade and to establish consistent practices that will allow for comparable data across countries. The publication is jointly authored by the WTO, the International Monetary Fund, the Organisation for Economic Cooperation and Development and the United Nations Conference on Trade and Development.
Source: WTO (World Trade Organization)
Global benchmark launches to define what 'high quality' carbon credits are
July 28, 2023--Approved high-quality carbon credits will be available to buyers by the end of the year, according to the Integrity Council for the Voluntary Carbon Market.
A new benchmark has launched to bring more clarity to the definition of a high-quality carbon credit, which companies are increasingly using to offset their climate impact.
On Thursday (28 July), the Integrity Council for the Voluntary Carbon Market (ICVCM), a governance body for the voluntary carbon market, released a global benchmark for high-integrity carbon credits, with the aim of bringing more transparency to how carbon offsetting contributes to global climate goals.
Source: eco-business.com
Inflation Remains Risk Confronting Financial Markets
July 27, 2023--Central banks may keep interest rates higher for longer than currently priced; given investors' benign inflation outlook and growing expectations for a soft landing, this could increase financial stability risks and weigh on growth
Overall inflation has moderated meaningfully in recent months in the United States and euro area, as energy and food prices have fallen significantly. Year-on-year headline inflation is now around 3 percent in the United States and below 5.5 percent in the euro area.
However, core inflation, excluding food and energy prices, has declined more slowly. Services inflation has proven to be particularly sticky.
According to market pricing, investors expect headline inflation to continue to decline quite rapidly in coming quarters. However, some market participants still see upside risks to the inflation outlook, likely reflecting recent stickiness in core inflation. Indeed, pricing from inflation options-financial instruments that offer protection against inflation moving higher or lower than its current level-shows that such upside risk is particularly pronounced in Europe, where investors assign roughly similar odds to inflation returning to the European Central Bank's 2 percent target and inflation remaining around 4 percent. In the United States, investors appear to put high odds on inflation being above target at around 3 percent.
Source: imf.org
Hottest July ever signals 'era of global boiling has arrived' says UN chief
July 27, 2023--As wildfires raged across Southern Europe and North Africa, top UN climate scientists said on Thursday that it was "virtually certain" that July 2023 will be the warmest on record.
Echoing that warning in New York, UN Secretary-General António Guterres said that "short of a mini-Ice Age" in coming days, July 2023 would likely "shatter records across the board".
"Climate change is here. It is terrifying. And it is just the beginning," said the UN chief, warning that the consequences are as clear as they are tragic: "children swept away by monsoon rains, families running from the flames (and) workers collapsing in scorching heat."
'Remarkable and unprecedented'
Tweet URL In Geneva, scientists from the World Meteorological Organization (WMO) and the European Commission's Copernicus Climate Change Service described conditions this month as "rather remarkable and unprecedented".
They said that new data showed that so far, July has seen the hottest three-week period ever recorded and the three hottest days on record.
Source: news.un.org
IMF-World Economic Outlook Update-Near-Term Resilience, Persistent Challenges July 2023
July 25, 2023--The global recovery is slowing amid widening divergences among economic sectors and regions
Global growth is projected to fall from an estimated 3.5 percent in 2022 to 3.0 percent in both 2023 and 2024. While the forecast for 2023 is modestly higher than predicted in the April 2023 World Economic Outlook (WEO), it remains weak by historical standards.
The rise in central bank policy rates to fight inflation continues to weigh on economic activity. Global headline inflation is expected to fall from 8.7 percent in 2022 to 6.8 percent in 2023 and 5.2 percent in 2024. Underlying (core) inflation is projected to decline more gradually, and forecasts for inflation in 2024 have been revised upward.
The recent resolution of the US debt ceiling standoff and, earlier this year, strong action by authorities to contain turbulence in US and Swiss banking reduced the immediate risks of financial sector turmoil.
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Source: imf.org
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