Global ETF News Older than One Year
Climate change will reshape markets, McKinsey warns
January 16, 2020-Financial markets could face upheaval if the risks of climate change are not taken more seriously, McKinsey warned in a report on Thursday.
Even climate-conscious investors, companies and regulators could be wrongfooted as slight increases in global temperatures threaten to create havoc, the consultancy said.
"Markets have been premised on the context of a relatively stable climate," said Jonathan Woetzel, one of the report's authors. "But there is an edge where risks can spike, which calls into question the capacity of the system."
Source: bizjournals.com
Climate risk and response: Physical hazards and socioeconomic impacts January 2020|Report
January 16, 2020--After more than 10,000 years of relative stability-the full span of human civilization—the Earth’s climate is changing. As average temperatures rise, climate science finds that acute hazards such as heat waves and floods grow in frequency and severity, and chronic hazards, such as drought and rising sea levels, intensify.
In this report, we focus on understanding the nature and extent of physical risk from a changing climate over the next one to three decades, exploring physical risk as it is the basis of both transition and liability risks.
Source: mckinsey.com
Systematic funds suffer 'quant winter'
January 16, 2020--Automated investing is on the rise, but many funds are struggling to meet expectations.
Source: FT.com
BlackRock Responds to Demands for Stronger Climate Action with Bold New Commitments
January 14, 2020--The company still remains the largest investor in coal, oil, gas, and the companies driving deforestation.
January 14, 2020--Today, after more than a year of increasing pressure from climate activists, investors, legislators, and thought leaders, BlackRock CEO Larry Fink, in his highly-anticipated annual letter, announced a sweeping new set of policies which aim to put climate change and sustainability at the center of BlackRock's business model. BlackRock is the world's largest asset manager with almost $7 trillion in assets under management.
In response to today's announcement Diana Best, Senior Strategist for the Sunrise Project which is a core partner of the BlackRock's Big Problem campaign, said: “BlackRock's new initiatives match the size of the crisis we're seeing in 2020 and are the direct result of an outpouring of pressure from the global climate movement.
Source: blackrocksbigproblem.com
IMF-FinTech Note-Regulation of Crypto Assets
January 10, 2020--Summary:
The rapid growth of crypto assets has raised questions about the appropriate regulatory perimeter and the ability of the existing regulatory architecture to adapt to changing conditions.
Effective regulation of financial services promotes long-term economic stability and minimizes the social costs and negative externalities from financial instability. The same underlying principles for regulation should apply to nascent products and services based on innovative technologies, notwithstanding design challenges.
view the IMF-FinTech Note-Regulation of Crypto Assets
Source: IMF
BlackRock joins pressure group taking on biggest polluters
January 9, 2020--World's largest investor signs up to Climate Action 100+ after criticism from activists
BlackRock, the world's largest investor, has joined an influential pressure group calling for the biggest polluters to reduce their emissions, after criticisms that it was undermining action addressing the climate crisis.
The US investment firm has signed up to Climate Action 100+, a group of investors managing assets worth more than $35tn (£s;27tn), that pressures fossil fuel producers and other companies responsible for two-thirds of annual global industrial emissions to show how they will reduce carbon dioxide pollution.
Source: theguardian.com
World Bank-Global Growth: Modest Pickup to 2.5% in 2020 amid Mounting Debt and Slowing Productivity Growth
January 8, 2020--Global economic growth is forecast to edge up to 2.5% in 2020 as investment and trade gradually recover from last year's significant weakness but downward risks persist, the World Bank says in its January 2020 Global Economic Prospects.
Growth among advanced economies as a group is anticipated to slip to 1.4% in 2020 in part due to continued softness in manufacturing. Growth in emerging market and developing economies is expected to accelerate this year to 4.1%.
This rebound is not broad-based; instead, it assumes improved performance of a small group of large economies, some of which are emerging from a period of substantial weakness. About a third of emerging market and developing economies are projected to decelerate this year due to weaker-than-expected exports and investment.
view the World Bank JANUARY 2020 Global Economic Prospects Slow Growth, Policy Challenges
Source: World Bank
Bond ETFs gain traction in the great rotation to passive investing
December 29, 2019--Fund assets balloon fuelled by low costs versus their actively managed counterparts
One of the biggest trends in finance over the past decade has been the explosive growth of cheap, passive investment vehicles known as exchange traded funds.
Although the ETF was first invented back in the early 1990s as a way to invigorate trading on the now-defunct American Stock Exchange, the industry has expanded dramatically in size and breadth since the financial crisis.
Source: FT.com
Our Guide to What the World's Top Central Banks Will Do Next Year
December 22, 2019--It was the year central banks jumped back into the fray, cutting interest to deal with a slowdown driven by a trade war and subsequent decline in manufacturing.
Some, like the Federal Reserve, had at least made some headway on rate hikes before 2019, creating room to loosen amid the weakest growth since the financial crisis.
But others, like the European Central Bank, found themselves in a more difficult position and had to cut benchmarks further below zero, stoking resentment about subzero rates.
Source: bnnbloomberg.ca
IMF Working Paper-Capital Flows at Risk: Taming the Ebbs and Flows
December 20, 2019--Summary:
The volatility of capital flows to emerging markets continues to pose challenges to policymakers. In this paper, we propose a new framework to answer critical policy questions: What policies and policy frameworks are most effective in dampening sharp capital flow movements in response to global shocks? What are the near-versus medium-term trade-offs of different policies?
We tackle these questions using a quantile regression framework to predict the entire future probability distribution of capital flows to emerging markets, based on current domestic structural characteristics, policies, and global financial conditions. This new approach allows policymakers to quantify capital flows risks and evaluate policy tools to mitigate them, thus building the foundation of a risk management framework for capital flows.
view the IMF Working Paper-Capital Flows at Risk: Taming the Ebbs and Flows
Source:IMF
