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Piero Cipollone: Modernising finance: the role of central bank money

Retrieved on: 
Saturday, February 10, 2024

The paper demonstrates how agreement-level data can be used to study drivers of aggregate negotiated wage growth, as well as monitor the breadth of wage increases and account for time-varying factors such as one-off payments, when assessing wage pressures.

Key Points: 
  • The paper demonstrates how agreement-level data can be used to study drivers of aggregate negotiated wage growth, as well as monitor the breadth of wage increases and account for time-varying factors such as one-off payments, when assessing wage pressures.
  • Lastly, the paper shows that the new indicators can provide reliable signals about current and future developments of wage pressures in the euro area while also serving as important cross-checking tools for negotiated wage growth forecasts.

The macroeconomic effects of global supply chain reorientation

Retrieved on: 
Saturday, February 10, 2024
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We analyse the macroeconomic

Key Points: 
    • We analyse the macroeconomic
      effects of supply chain reorientation through localisation policies, using a global dynamic
      general equilibrium model.
    • While arguments about comparative advantage, the potential forgone benefits of international specialisation and industry- and product-specific disruptions are familiar, there is less
      analysis on the macroeconomic effects of supply chain changes resulting from localisation policies.
    • The large sensitivity of the global economy to the recent supply chain shocks suggests that
      the international trade reconfiguration implied by localisation policies could also have sizable
      impacts on key macroeconomic variables such as output, employment and inflation.
    • Thus, localisation focuses on the
      goods in our model most closely related to global supply chains.
    • Retaliation also attenuates any positive effects from
      reshoring on output and implies a reduction in the volume of overall international trade.
    • This finding calls for limiting the scope of reshoring, such as by focusing on vital goods that are
      most susceptible to supply chain disruptions.
    • Either that, or the economic costs are considered a worthwhile trade-off for an increase
      in security of supply, for example.
    • While arguments about comparative advantage, the potential forgone benefits of international specialisation and industry- and product-specific disruptions are familiar, there is less
      analysis on the macroeconomic effects of supply chain changes resulting from localisation policies.
    • Recent supply chain shocks have had large effects, with disruptions in 2021 estimated
      to have reduced euro area GDP by around two percent and doubled the rate of manufacturing producer inflation (Celasun et al., 2022).
    • To analyse this issue, we simulate a (partial) reshoring of production back to Europe in
      a global dynamic general equilibrium framework.
    • Thus,
      localisation focuses on the goods in our model most closely related to global supply chains.3 We
      model reshoring through a direct change to the export goods? production-function parameters.
    • Since reshoring
      effectively shortens the supply chain, the sum of markups along the chain falls.
    • This means that imports that are at the end of the supply chain (i.e.
    • In particular, our work relates to papers examining the potential for countries to reduce
      their exposure to global supply chains.
    • (2021) demonstrate that reduced reliance on foreign inputs does not mitigate pandemicinduced contractions in labour supply.
    • (2021) find no evidence of a relationship
      between global value chain integration and macroeconomic volatility.
    • This dynamic, along with factors such as natural disasters, climate-change
      induced volatility and terrorism mean that supply chain disruptions could be a new normal
      (Grossman et al., 2021).
    • Our work contributes to the literature providing dynamic general equilibrium analyses of
      protectionist policies, in particular those using global macroeconomic models to quantify trade
      policy changes.
    • (2008) analyse the effect of a rise in protectionism in response
      to rising global trade imbalances.
    • Linde? and Pescatori (2019) find that although the macroeconomic costs of a
      trade war are substantial, a fully symmetric retaliation is the best response.
    • (2020) consider a rich input-output structure and demonstrate that closer integration amplifies
      the adverse effects of protectionist trade policies.
    • Several recent studies have also examined the economic effects of a global trade fragmentation.
    • First, we modify a dynamic general
      equilibrium model of the global economy in order to analyse the transmission of localisation
      policies.
    • This allows for a comprehensive treatment of cross-border macroeconomic interdependences and spillovers between the different regions.
    • 4

      There is, however, substantial cross-country heterogeneity in terms of impact, with small open economies
      (SOEs) reliant on global supply chains more affected.

    • ECB Working Paper Series No 2903

      7

      Second, we are able to assess both long-run effects and the transition dynamics of localisation
      policies.

    • Our model contains a detailed monetary block and captures inflation dynamics, which is a key
      concern for supply chain reorientation.
    • Overall, our paper contains a careful analysis of the key aspects of the localisation debate,
      including effects of localisation on domestic competition and efficiency.
    • Section 2 provides a brief overview of the model, the modifications to examine
      global supply chain reorientation, some key details on the calibration and a brief discussion of
      the nature of our exercise.
    • (2020) for discussions of the relative strengths and weaknesses of
      trade and macroeconomic models in assessing large economic shocks.
    • 2.1

      Supply chain reorientation

      Our analysis focuses on imported inputs used to produce goods for export, as the introduction
      of localisation policies is in response to recent disruptions to global supply chains.

    • Since reshoring
      effectively shortens the supply chain, the sum of markups along the chain falls.
    • Further to
      these effects, engagement with global firms provides an opportunity for knowledge spillovers to
      local firms (Criscuolo et al., 2017).
    • This finding calls for limiting the scope of reshoring, such as by focusing on vital goods that are
      most susceptible to supply chain disruptions.
    • (B12)

      Adjusting the share of local inputs in export goods, of course, affects prices and quantities all
      along the supply chain.

Quantitative Brokers Names David Kalita as CEO to Drive Client-Focused Innovation and Expansion for Leading Algo Execution Firm

Retrieved on: 
Tuesday, January 30, 2024

The appointment is effective immediately and Mr. Kalita will be based at the firm's New York headquarters.

Key Points: 
  • The appointment is effective immediately and Mr. Kalita will be based at the firm's New York headquarters.
  • He succeeds QB CEO and Co-Founder Christian Hauff, who stepped down at year-end 2023 and remains on the Board of Directors.
  • "We are excited about David driving this next chapter of development and growth, and thank Christian for his leadership in cementing QB as the leading brand in algo execution."
  • "I am looking forward to collaborating with him and the team to further strengthen our position as the premier trade execution solutions provider."

Spruce Point Capital Management Announces Investment Opinion: Releases Report and Strong Sell Research Opinion on MSCI Inc. (NYSE: MSCI)

Retrieved on: 
Wednesday, January 17, 2024

MSCI, founded as Morgan Stanley Capital International, is a provider of decision support tools and solutions for the global investment community.

Key Points: 
  • MSCI, founded as Morgan Stanley Capital International, is a provider of decision support tools and solutions for the global investment community.
  • In addition, MSCI also faces additional strain from its clients – such as BlackRock – that are under pressures of their own.
  • Higher rates have caused total assets of AUM benchmarked to MSCI indices to decline almost double digits since 2021.
  • For example, Spruce Point observes that MSCI recently experienced year-over-year declines in its organic sales growth, Adjusted EBITDA margin and client Retention Rate metrics.

EQS-News: ENCAVIS AG acquires six more wind farms in 2023 – Acquisition of further solar parks planned to be accounted for FY 2023

Retrieved on: 
Saturday, January 13, 2024

ENCAVIS had set itself the goal of acquiring a total of 750 GWh of additional electricity production per year in the financial year 2023.

Key Points: 
  • ENCAVIS had set itself the goal of acquiring a total of 750 GWh of additional electricity production per year in the financial year 2023.
  • With the acquisition of the new wind farms alone, this target was almost reached, with a total of 720 GWh per year.
  • In addition, the acquisition of further solar parks, which would still be attributable to the financial year 2023, is planned.
  • “In total, we will increase the newly acquired electricity production in the financial year 2023 to 720 GWh per year.

EQS-News: GBC AG: Capital Markets Partner of the 'German Equity Forum' 2023

Retrieved on: 
Saturday, December 30, 2023

As a long-standing Capital Markets Partner of Deutsche Börse, GBC supports the German Equity Forum

Key Points: 
  • As a long-standing Capital Markets Partner of Deutsche Börse, GBC supports the German Equity Forum
    Augsburg, November 22, 2023 - For more than 20 years, the international financial community has been meeting in Frankfurt am Main at the end of November (this time from November 27 to 29, 2023).
  • At the German Equity Forum (EKF), capital market trends will be discussed, equity and bond issuers analyzed and networks cultivated.
  • As a specialist in all aspects of financing and capital market support for medium-sized companies, GBC AG will be on site again this year to support the event.
  • The investment company has been a Capital Markets Partner of Deutsche Börse, an issuing expert for the Munich Stock Exchange, Capital Market Coach for the Vienna Stock Exchange and Capital Market Partner for the Düsseldorf Stock Exchange for many years.

EQS-News: Deutsche Börse admits Mutares to the SDAX

Retrieved on: 
Saturday, December 30, 2023

Effectiveness of inclusion in the selection index as of December 18, 2023

Key Points: 
  • Effectiveness of inclusion in the selection index as of December 18, 2023
    Munich, December 6, 2023 – Mutares SE & Co. KGaA (ISIN: DE000A2NB650) will be promoted to the SDAX.
  • This was decided by Deutsche Börse in its regular review of the small-cap index yesterday.
  • This makes Mutares one of the 70 most liquid and largest listed companies in Germany below the DAX and MDAX in terms of free-float market capitalization.
  • The promotion to the SDAX marks another milestone in the Company's success story since its IPO in 2008.

EQS-News: ENCAVIS AG grows in turbulent times and increases operating earnings per share by around 4%

Retrieved on: 
Saturday, December 30, 2023

The production volume exceeds that of the same period of the previous year, although the latter was meteorologically very strong.

Key Points: 
  • The production volume exceeds that of the same period of the previous year, although the latter was meteorologically very strong.
  • The first-time consolidation of Stern Energy increases revenue of the segment by a good EUR 36.6 million to around EUR 40.0 million.
  • Overall, Encavis achieved an increased consolidated operating profit after taxes of EUR 88.6 million (previous year: EUR 86.9 million).
  • Operating earnings per share*) are expected to amount to more than EUR 0.60, slightly exceeding the previous year's figure (2022: EUR 0.60).

Deutsche Digital Assets (DDA) Partners With Compass Financial Technologies to Launch World's First Bitcoin Index Based on Macro Factors

Retrieved on: 
Tuesday, December 12, 2023

This index dynamically adjusts exposure between Bitcoin and USD in response to key macroeconomic factors and notably, stands as the world's first index leveraging macroeconomic indicators to regulate Bitcoin exposure.

Key Points: 
  • This index dynamically adjusts exposure between Bitcoin and USD in response to key macroeconomic factors and notably, stands as the world's first index leveraging macroeconomic indicators to regulate Bitcoin exposure.
  • Leveraging the findings of this research, DDA and Compass FT present an index solution designed to provide investors with comprehensive exposure to Bitcoin, based on macroeconomic factors as indicated by their explanatory power at a given time.
  • “We are thrilled to partner with Deutsche Digital Assets for the first time and accompany them on releasing this unprecedented, innovative solution,” says Guillaume le Fur, CEO of Compass Financial Technologies.
  • For more information on the DDA Bitcoin Macro Allocation Index, please visit the Compass FT website www.compassft.com or contact the DDA Quantitative Solutions team directly under [email protected].

EQS-News: ENCAVIS acquires the ready-to-build (RTB) solar park project Pozzolo (30 megawatts) in Italy. Acquisition of further generation capacities in wind and solar parks is expected by February 2024.

Retrieved on: 
Thursday, December 21, 2023

ENCAVIS acquires the ready-to-build (RTB) solar park project Pozzolo (30 megawatts) in Italy.

Key Points: 
  • ENCAVIS acquires the ready-to-build (RTB) solar park project Pozzolo (30 megawatts) in Italy.
  • Acquisition of further generation capacities in wind and solar parks is expected by February 2024.
  • ENCAVIS acquires the ready-to-build (RTB) solar park project Pozzolo (30 megawatts) in Italy.
  • “This recent acquisition of the Pozzolo solar park and further acquisitions will contribute to achieve the announced targets”, said Mario Schirru, CIO/COO of Encavis AG, welcoming the acquisition in Northern Italy.