Global ETF News Older than One Year
IMF-Global Liquidity Transmission to Emerging Market Economies, and Their Policy Responses
October 30, 2017--Summary:
This paper distills and identifies global liquidity (GL) momenta from the macro-financial data of advanced economies through a factor model with sign restrictions as policy-driven, market-driven, and risk averseness factors.
Using a panel factor-augmented VAR, we investigate responses of emerging market economies (EMEs) to GL shocks. A policy-driven liquidity increase boosts growth in EMEs, elevating stock prices and currency values, while a risk averseness rise has an opposite effect. A market-driven GL expansion boosts stock markets and lowers funding costs, promoting competitiveness and current account. Inflation targeting EMEs fare better than EMEs under alternative regimes with respect to macrofinancial volatility.
Source: IMF
$63 Trillion of World Debt in One Visualization
October 27, 2017--If you add up all the money that national governments have borrowed, it tallies to a hefty $63 trillion.
In an ideal situation, governments are just borrowing this money to cover short-term budget deficits or to finance mission critical projects. However, around the globe, countries have taken to the idea of running constant deficits as the normal course of business, and too much accumulation of debt is not healthy for countries or the global economy as a whole.
Source: visualcapitalist.com
DECPG Global Weekly-October 27, 2017
October 27, 2017--Taking Stock
U.S. GDP growth remained robust in Q3; the composite PMI hit a 9-month high in October. The first reading on U.S.
Q3 GDP came in at 3 percent (q/q saar), above market expectations, following the 3.1 percent growth recorded in Q2 (Figure
1). The Q3 expansion reflected strong contributions from inventory investment and net exports, which were partially offset by a slowdown in personal consumption and non-residential fixed investment.
Meanwhile, the Markit flash U.S. composite purchasing managers' index (PMI) for October came in at a 9-month high of 55.7, up from 54.8 in September, suggesting that U.S. private sector growth picked up in October, partly due to a rebound in the manufacturing sector (a reading above 50 signals expansion). ECB kept policy rates on hold, extended bond purchases until September 2018 but halved the pace.
Source: World Bank
Oil prices to average $56 a barrel in 2018, up from 2017 average of $53/bbl
October 26, 2017--Oil prices are forecast to rise to $56 a barrel in 2018 from $53 this year as a result of steadily growing demand, agreed production cuts among oil exporters and stabilizing U.S. shale oil production, while the surge in metals prices is expected to level off next year, the World Bank said on Thursday.
Prices for energy commodities-which include oil, natural gas, and coal--are forecast to climb 4 percent in 2018 after a 28 percent leap this year, the World Bank said in its October Commodity Markets Outlook.
view the World Bank October 2017 Commodity Markets Outlook
Source: World Bank
The MSCI Nigeria Indexes To Remain In The MSCI Frontier Markets Indexes
October 26, 2017--MSCI Inc. (NYSE: MSCI), a leading provider of research-based indexes and analytics, announced today its decision to retain the MSCI Nigeria Indexes in the MSCI Frontier Markets Indexes.
The market will be removed from the review list for potential reclassification to Standalone status.
MSCI will also no longer apply the special treatment for the MSCI Nigeria Indexes announced on April 29, 2016.
Source: msci.com
Fidelity says fund companies need to 'fundamentally rethink' fees
October 26, 2017--Abigail Johnson throws down the gauntlet over making structures fairer for investors.
Source: FT.com
Final guidelines on identification and management of step-in risk issued by the Basel Committee
October 25, 2017--The Basel Committee on Banking Supervision released today the final Guidelines on identification and management of step-in risk.
Step-in risk refers to the risk that a bank provides financial support to an entity beyond, or in the absence of, its contractual obligations should the entity experience financial stress.
Source: BIS
World Bank-Reducing Risks in Developing Countries is Key to Spur Investment and Growth
October 25, 2017--A stable business environment, effective regulations, and political stability are among the key drivers of foreign direct investment (FDI) into developing countries, according to a new survey released today by the World Bank Group.
The survey of 750 executives of multinational corporations is part of the Global Investment Competitiveness Report 2017-2018, the first of a biennial series exploring the drivers of investment competitiveness in developing countries. The report finds that international investors prioritize political stability, security, macroeconomic conditions, and conducive regulatory environment when deciding where to make investments that can spur growth and create jobs.
view the 2017/2018 Foreign Investor Perspectives and Policy Implications report
Source: World Bank
Inforgraphic-The Power of Smart Contracts on the Blockchain
October 25, 2017--The world is waking up to the impressive capabilities of the blockchain.
As a foundational technology that things can be "built on top" of, the potential applications of the blockchain go way beyond just payments or cryptocurrencies.
Source: visualcapitalist.com
DECPG Global Monthly-October 2017
October 25, 2017--Overview
The global recovery is ongoing, but momentum is likely to have moderated somewhat following a strong performance
in 17Q2.
Global goods trade growth generally remains solid and services trade is gradually strengthening.
Global financing conditions have slightly tightened, and capital flows to emerging markets and developing economies (EMDEs) have softened.
Brent oil prices continued to rise in October, underpinned by rising demand and high compliance with the productioncut agreement.
Source: World Bank
