Global ETF News Older than One Year
IMF Working paper-FX Intervention in the New Keynesian Model
September 29, 2017--Summary:
We develop an open economy New Keynesian Model with foreign exchange intervention in the presence of a financial accelerator mechanism. We obtain closed-form solutions for the optimal interest rate policy and FX intervention under discretionary policy, in the face of shocks to risk appetite in international capital markets.
The solution shows that FX intervention can help reduce the volatility of the economy and mitigate the welfare losses associated with such shocks. We also show that, when the financial accelerator is strong, the risk of multiple equilibria (self-fulfilling currency and inflation movements) is high. We determine the conditions under which indeterminacy can occur and highlight how the use of FX intervention reinforces the central bank's credibility and limits the risk of multiple equilibria.
view the IMF Working paper-FX Intervention in the New Keynesian Model
Source: IMF
FTSE Russell delays inclusion of China A-shares in index
September 29, 2017--FTSE Russell said domestic Chinese equities would remain on the stock index provider's "watch list" for possible inclusion in its emerging markets index, citing "high level of stock suspensions".
FTSE Russell, part of the London Stock Exchange Group, in 2016 also refused to include China's A shares in its index, stating it had continuing concerns over market interventions.
Source: Reuters
FTSE Russell announces results of FTSE annual country classification review
September 29, 2017--Poland to be promoted to Developed from Advanced Emerging
Kuwait to be classified as Secondary Emerging
Saudi Arabia will soon meet promotion criteria. Index users and market practitioners readiness now to be assessed; inclusion indexes to be
launched in October
China A-Shares remain on Watch List for possible inclusion as Secondary Emerging
FTSE Russell provides progress update on other current Watch List countries
Source: ftserussell.com
DECPG Global Weekly-September 29, 2017
September 29, 2017--TAKING STOCK
U.S. Q2 GDP growth was revised up; core PCE inflation slowed in August
Euro Area inflation remained stable in September; economic confidence is on the rise
apan core CPI inflation picked up in August; manufacturing PMI improved in September
Brent crude oil prices hit a two-year high
Nigeria kept interest rates unchanged
U.S. Q2 GDP growth was revised up; core PCE inflation slowed in August. The final reading of U.S. Q2 GDP growth came in at 3.1 percent (q/q sa)-the fastest pace of expansion since Q1 2015 (Figure 1). This figure was above market expectations and the previous estimate of 3.0 percent, mainly reflecting a stronger-than-previously estimated increase in private inventory investment. Separately, the U.S. core personal consumption expenditures (PCE) price index rose 1.3 percent (y/y) in August, its slowest pace of increase since October 2015 and below the 1.4 percent rise recorded in July
Source: World Bank
Economic Freedom of the World: 2017 Annual Report
September 28, 2017--The Economic Freedom of the World: 2017 Annual Report is the world's premier measurement of economic freedom, ranking countries based on five areas: size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally, and regulation of credit, labour and business.
This year's report compares 159 countries and territories. In this year's ranking, which is based on 2015 data, Hong Kong is again number one, Canada dropped to 11th from the 5th spot last year and is tied with the United States.
view the Economic Freedom of the World 2017 ANNUAL REPORT
Source: Fraser Institute
Harmonisation of the Unique Product Identifier (UPI)-guidance issued by CPMI-IOSCO
September 28, 2017--A new report provides technical guidance to authorities on a uniform global Unique Product Identifier (UPI) applying to over-the-counter (OTC) derivatives transactions.
The report, entitled Harmonisation of the Unique Product Identifier, is a joint publication by the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO).
Source: IOSCO
DECPG Global Monthly-September 2017
September 28, 2017--Special Focus: New Fiscal Space Database
Fiscal space measures a government's ability to implement effective fiscal policy.
The World Bank released in August 2017 a new database providing a comprehensive picture of fiscal space in 200 economies over 1990-2016.
The database documents the recent improvement of fiscal positions in advanced economies and deterioration in EMDEs, especially commodity exporters.
Monthly Highlights
Global growth: strongest since end-2010. Global growth picked up in 17Q2, reaching 3.6 percent (q/q saar), the strongest reading
since 10Q4 (Figure 1A). :e uptick mainly reBects an acceleration of activity in the United States, the Euro Area, and
Japan, continued robust growth in East Asia and PaciGc, and strengthening growth in Eastern Europe and Central Asia. Global
manufacturing PMIs remained Grmly in expansionary territory in July and August, suggesting continued momentum in 17Q3. :e
ongoing recovery in advanced economies and diminishing obstacles to activity among commodity-exporting emerging
market and developing economies (EMDEs) continue to be key drivers of the pickup in global activity in 2017. Global median
inBation edged up in July and August, reaching 2.4 percent, its highest level since March 2017.
Source: World Bank
ETF Securities Outlook-Make Way for Millennials September 2017
September 28, 2017--Concentration of Millennials in developing world may refocus global growth to these economies.
Headwinds for US Millennials sparked a shift in consumer and financial behaviors.
Millennials and Baby Boomers may create barbell growth engine impacting different sectors.
The Millennial Majority
Millennials, those born between the years of 1982-2000, are a difficult group to define with very different starting points, spending habits, and financial goals than previous generations. Yet one generality about this generation is clear: their size.
With global population estimates ranging from 1.7 to 2.0 billion or more, Millennials are a core factor for future global economic trends. The vast majority of this population, however, is located outside of the developed world.
Source: etfsecurities.com
Ultumus-Subprime ETFs
September 27, 2017--Fund of Funds ETF that tries to be different
Two Roads and Anfield Capital have listed a new actively managed and equally weighted "fund of funds" ETF that tries to be different..
The Anfield Capital Diversified Alternatives ETF (DALT) will invest mostly in "sectors, market segments or asset classes that do not represent the general investment universe," the prospectus says...
Canada
Horizons eyes international horizons-through futures
Horizons ETF is listing a new ETFs in Canada that tracks mid and large cap companies in the world's richest countries outside of North America...
Taiwan
US real estate comes to Taipei
Taiwanese issuer Capital Fund will be listing a new fund next month that tracks the American real estate market. The Capital Dow Jones U.S. Real Estate Index Exchange Traded Fund (00714), will track the popular Dow Jones benchmark, which is also used by iShares. Other popular REIT ETFs, such as those by Vanguard and Charles Schwab, use in-house indexes...
Source: ULTUMUS-Financial Data Management
Better thy Neighbor? Cross-border Effects of Fiscal Actions
September 27, 2017--In the wake of the global financial crisis, fiscal stimulus was advocated widely to help mitigate the recession. The thinking at the time was that fiscal stimulus would be particularly effective because its impact on activity tends to be larger when demand falls short of supply and central banks keep interest rates low. This, in turn, would lead to larger positive cross-border effects-or spillovers-on other countries.
Nearly a decade later, economic circumstances have improved. Do spillovers from fiscal actions still matter today in the context of less global economic slack (excess capacity) and less accommodative monetary policy? The answer is yes.
Source: IMF
