Global ETF News Older than One Year
IMF Working Papers-The Long-Run Decoupling of Emissions and Output: Evidence from the Largest Emitters
March 14, 2018--Summary:
For the world's 20 largest emitters, we use a simple trend/cycle decomposition to provide evidence of decoupling between greenhouse gas emissions and output in richer nations, particularly in European countries, but not yet in emerging markets.
If consumption-based emissions—measures that account for countries' net emissions embodied in cross-border trade-are used, the evidence for decoupling in the richer economies gets weaker. Countries with underlying policy frameworks more supportive of renewable energy and climate change mitigation efforts tend to show greater decoupling between trend emissions and trend GDP, and for both production- and consumption-based emissions. The relationship between trend emissions and trend GDP has also become much weaker in the last two decades than in preceding decades.
Source: IMF
WEF-Global Energy Transition Must Accelerate to Thwart Climate Change
March 14, 2018--The World Economic Forum launched today the Fostering Effective Energy Transition report, which ranks 114 countries on how well they are able to balance energy security and access with environmental sustainability and affordability.
The report finds that worldwide progress towards environmental sustainability has stalled, while energy prices have risen in real terms in more than half of the countries surveyed despite an overall fall in fuel prices
Sweden, Norway and Switzerland lead the rankings table; France and UK lead the way among the G7 countries; and the world’s two largest economies, the United States and China, score highly on their readiness for energy transition.
Source: WEF (World Economic Forum)
6 out of 10 people would consider cryptocurrency investment
March 13, 2018--Six out of 10 people with currently no exposure to cryptocurrencies would consider including cryptocurrencies like Bitcoin into their investment portfolios, reveals a new global poll.
Meanwhile, seven out of 10 people who do hold cryptocurrencies are planning to increase their exposure in the next 12 months.
In a survey carried out by deVere Group, one of the world's largest independent financial services organisations, 62 per cent of those who do not have any cryptocurrency said 'yes', 26 per cent 'no', and 12 per cent 'do not know' when asked: "Would you consider, or are you considering, including at least one cryptocurrency into your investment portfolio?"
71 per cent of investors who do currently have cryptocurrencies as part of their portfolio said that they are looking to increase this exposure over the next year, 25 per cent said that they would not, and 4 per cent cited that they did not know.
Source: devere-group.com
ThinkMarkets launches multiple assets blockchain-based exchange
March 13, 2018--The ThinkMarkets Group, will launch in April what looks to be potentially a market disruptive multi-asset blockchain-based exchange. TradeConnect will allow investors to trade a wide range of financial products such as FX, commodities, precious metals, equities and cryptocurrencies, says the group.
The stakes for the exchange segment are high. In the first half of 2017 the value of FX markets, stock, futures, commodities and OTC derivatives markets stood at over $542trn. As blockchain has evolved and been increasingly inserted into day to day market operations, it consistently represents an opportunity to disrupt traditional markets. Trading markets, already a segment that has undergone massive change since 2003, is no different.P>view more
Source: ftseglobalmarkets.com
Addressing the Dark Side of the Crypto World
March 13, 2018--Whether Bitcoin's value goes up or Bitcoin's value goes down, people around the world are asking the same question: What exactly is the potential of crypto-assets?
The technology behind these assets-including blockchain-is an exciting advancement that could help revolutionize fields beyond finance.
It could, for example, power financial inclusion by providing new, low-cost payment methods to those who lack bank accounts and in the process empower millions in low-income countries.
The possible benefits have even led some central banks to consider the idea of issuing central bank digital currencies.
Source: IMF
IMF Working Papers-The Distribution of Gains from Globalization
March 13, 2018--Summary:
We study economic globalization as a multidimensional process and investigate its effect on incomes. In a panel of 147 countries during 1970-2014, we apply a new instrumental variable, exploiting globalization's geographically diffusive character, and find differential gains from globalization both across and within countries:
Income gains are substantial for countries at early and medium stages of the globalization process, but the marginal returns diminish as globalization rises, eventually becoming insignificant.
Within countries, these gains are concentrated at the top of national income distributions, resulting in rising inequality. We find that domestic policies can mitigate the adverse distributional effects of globalization.
view the IMF Working Papers-The Distribution of Gains from Globalization
Source: IMF
BIS Central bank digital currencies
March 12, 2018-- Central banks must carefully weigh the implications for financial stability and monetary policy of issuing digital currencies, according to a report from the Committee on Payments and Market Infrastructures (CPMI) and the Markets Committee.
The report considers a wholesale CBDC (for use in financial markets), and a general purpose CBDC (for use by the general public) and their implications for payments, monetary policy and financial stability.
It finds that wholesale CBDCs might be useful for payments but more work is needed to assess the full potential. Although a CBDC would not alter the basic mechanics of monetary policy implementation, its transmission could be affected.
view the BIS Central Bank Digital Currencies Report
Source: BIS
Volatility drives first ETF outflows in two years
March 12, 2018--The blast of volatility that shook Wall Street in February drove investors to pull money from exchange traded funds that track US equities for the first time in two years.
The US withdrawals have raised questions over whether the ETF industry can sustain its breakneck pace of expansion after four consecutive...
Source: FT.com
IMF Working Papers-Growth Accelerations and Reversals in Emerging Market and Developing Economies: The Role of External Conditions
March 12, 2018--Summary:
This paper investigates how country-specific external demand, external financial conditions, and terms of trade affect medium-term growth in Emerging Market and Developing Economies and the occurrence of growth accelerations and reversals.
The importance of country-specific external conditions for medium-term growth has increased over time-in particular, the growing contribution of external financial conditions accounts for one-third of the increase in average income per capita growth between 1995–2004 and 2005–14. Stronger external demand and financial conditions significantly increase the probability of growth accelerations, while a strengthening of any of the three conditions significantly decreases the probability of reversals.
Source: IMF
IOSCO seeks to protect senior investors from financial fraud, unsuitable investments and other risks
March 12, 2018--The Board of the International Organization of Securities Commissions has published today a report that examines the growing vulnerability of ageing investors to financial fraud and other risks and identifies sound practices for enhancing their protection.
The report Senior Investor Vulnerability reveals that seniors are at a higher risk than other investors of losing money to fraud or of being misled by others. It also indicates that the biggest risks to senior investors are unsuitable investments, financial fraud and their diminished cognitive capability which affects their financial decision-making. Complex products, deficient financial literacy, and social isolation pose additional risks to senior investors.
view the IOSCO Senior Investor Vulnerability Final Report
Source: IOSCO
