Pension reform has improved Brazil’s growth prospects amid an anemic recovery.

The October 2019 IIF Global Regulatory Update provides updates on the Financial Stability Board along with current work streams in Regulatory Capital, Recovery and Resolution, Cyber Security, Digital Finance, Sustainable Finance, Insurance and upcoming events. 

This paper looks at global digital identity developments, the implications and opportunities for financial service providers, and how the emerging digital identity ecosystem is increasing access to finance and financial inclusion. 

Pickup in volatility as uncertainty over trade and the economy climb to two-decade highs; Issuance of green and sustainable debt set to reach $400bn in 2019, with growing diversity in issuers; Many emerging markets will face tough challenges in LIBOR transition, given their reliance on FX debt and hedging; Weekly Insight will resume on October 24th, after the IIF Annual Membership Meeting, World Bank/IMF Annual Meetings

We see global growth slowing to 2.6% in 2019 and only recovering modestly in 2020. Trade tensions weigh on growth and stoke volatility in emerging market capital flows. Increasingly accommodative monetary policy supports risk appetite and flows to EM. Global push factors appear to be the key drivers of EM flows and asset performance. Investors’ search for yield is deepening synchronization across emerging markets. Differentiation is, to a significant degree, the result of changes in benchmark weights.

Slowing jobs growth is adding to already elevated recession fears. We show that recent slowing is consistent with a longer-term trend, reflecting the gradual tightening in the labor market over years. Slower jobs growth is therefore a symptom of a maturing labor market, and should not be interpreted as a signal that US recession is rising.

Investor interest in government bonds has picked up in recent months in the hope of a change in government and implementation of reforms. Macroeconomic imbalances, however, have risen to concerning levels, and a renewed EU Excessive Deficit Procedure is clearly on the horizon.