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    Global equity funds post outflows for fifth week in a row

    According to Refinitiv Lipper data, global equity funds faced $8.72 billion worth of outflows in the week to May 17, compared with about $4.77 billion worth of net selling in the previous week.The U.S. and European equity funds recorded withdrawals of $7.64 billion and $1.81 billion respectively during the week, but Asian funds received $180 million worth of inflows.Healthcare, financial and energy sector equity funds faced net outflows of $698 million, $677 million, and $410 million, respectively, but tech secured a net $906 million worth of inflows. Meanwhile, investors favoured safer government bond funds and money market funds as both obtained a fourth weekly inflow in a row, worth about $2.23 billion and $9.96 billion, respectively. The data also showed that combined net inflows into global bond funds stood at $4.31 billion during the week, with short- and medium-term funds drawing a net $3.45 billion worth of inflows. Meanwhile, high yield funds had about $2 billion worth of outflow.Among commodities, precious metal funds received $236 million marking a fourth straight week of inflows but investors exited $84 million worth of energy funds after three weeks of net buying in a row.Data for 23,976 emerging market funds showed equity funds obtained a net $684 million in a third weekly inflow in a row, while bond funds drew $43 million worth of net purchases after three weeks of outflows. More

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    Elon Musk Publicizes Plan to Create “Efficient” Financial System

    Elon Musk has made public his plans to create a financial system that will be more efficient than traditional banking. Musk made this known during a Twitter Space where he explained that he is out to create a better product and not just to disrupt the industry for disruption’s sake.While responding to a question about his new plans, the Twitter CEO explained he intends to create a better financial product to improve people’s quality of life. According to him, PayPal (NASDAQ:PYPL), which is a globally recognized payment giant, does not fulfill its potential.Musk is on record for criticizing PayPal over a proposed policy to fine users on issues bothering around misinformation. The payment processing giant later withdrew the notice, claiming it was transmitted in error. He believes the payment giant could offer more than it currently delivers to the public.Musk said,“What people see in PayPal is sort of like a half-baked version of what it could be, and so I think there is potential to create a more efficient financial system.”According to Musk, today’s financial system is a heterogeneous set of databases running on mainframes that still engage in batch processing. He thinks such a system is inefficient, as transactions are still not processed in real-time.Musk believes having a much more efficient, homogenous, real-time data system is possible. He emphasized that money is just information and is one of the elements for fulfilling his vision for “X”, his planned financial solution.Musk’s involvement with the financial industry goes back to the days of X.com, an online banking company he started. The company later merged with Confinity, a software company, to form PayPal. From his comments, X is about to return to the front burner of payment systems.Users believe Musk’s history with PayPal could give him an edge, allowing him to re-enter the online banking sector with the experience of hindsight and better preparation.The post Elon Musk Publicizes Plan to Create “Efficient” Financial System appeared first on Coin Edition.See original on CoinEdition More

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    NFTs in the academy: Fighting fake credentials and unfair wages

    One of the pressing issues in education is fake credentials. On May 18, the Washington Post reported that there are about 2,800 people who purchased their credentials without attending the proper classes. They were able to pass the National Council Licensure Examination in the United States. Authorities are now trying to find these people.Continue Reading on Coin Telegraph More

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    Wagner-linked group buys helmets from China despite sanctions

    A front company for the Russian mercenary group Wagner acquired tens of thousands of protective helmets from China late last year, at the same time as the group’s chief Yevgeny Prigozhin was raising a vast prisoner army to attack Ukraine.The Financial Times has found that entities used by the warlord to equip his operations in Africa have continued to export and import items freely across international markets despite a barrage of western sanctions intended to stop a private army designated as a “transnational crime organisation” by the US.A Wagner-connected, Russia-based company called Broker Expert bought 20,000 polymer-based helmets from a small Chinese company called Hangzhou Shinerain Import And Export Co in November and December last year, according to customs declarations analysed by the FT, and interviews. The Chinese group claimed they were for “gaming use”.Prigozhin, in a voice message sent via his catering group, told the FT that he had “never heard of the name of the company” involved in the helmet purchase. He then offered to send the FT “a large bag with my dirty laundry that I will collect over a week or two so you can make a study of my underpants, socks, used toilet paper, and everything you like”.The purchase of the helmets, split over four shipments for a declared value of just over $2mn, came as Prigozhin was recruiting tens of thousands of Russian convicts to send to the front line in Ukraine.Since then a large number of these Wagner forces have died in a brutal war of attrition to seize control of the city of Bakhmut, with the US estimating recently that more than 20,000 Russian fighters had been killed in Ukraine since December. The FT also found that Broker Expert has continued to ship items to Wagner operations in Africa through the port of Douala in Cameroon during the invasion. This underlines the apparent inability of western sanctions — which include measures such as asset freezes and bars on accessing funds — to choke off the mercenary group’s ability to finance itself from Prigozhin’s overseas natural resources operations.According to Russian customs declarations, Broker Expert last August shipped power generators, welding electrodes and fireproof insulation materials to a Prigozhin-controlled logging company in the Central African Republic. The US said in January that Wagner fighters in CAR had engaged in crimes including “mass summary executions, rape, arbitrary detention, torture, and displacement of civilians”.“That Prigozhin is still able to field armed contractors in Ukraine and at least three African countries, buy equipment from China, and smuggle resources show how resilient of a network he’s built,” said Marcel Plichta, a research fellow at the Centre for Global Law and Governance at the University of St Andrews.The US estimated in December that Wagner had recruited 40,000 convicts to fight in Ukraine. Wagner unsuccessfully asked China for supplies of weapons at the start of this year, according to a leaked US intelligence report. Prigozhin said in February that Wagner had stopped recruiting prisoners.Broker Expert’s Chinese supplier, Hangzhou Shinerain, is based in the eastern province of Zhejiang and has between five and 15 employees, according to its Alibaba page. It normally sells women’s clothing, meaning the shipment of protective headgear to Russia does not appear to be in its regular pattern of business. “We are a private company and don’t get involved with national affairs or military issues, and obey the law. We produced helmets for gaming use,” said the company, adding that the helmets would have little protective use on the battleground. The Russian import declaration for the helmets states they are “not for military use”.The Chinese group said it had no knowledge of Prigozhin or Wagner Group, or anything about Broker Expert’s connections with Wagner. “We simply meet the orders that we get in, and we obey the law, we wouldn’t ship anything illegal.” It declined to explain what was meant by “gaming use” or send photos of the helmets to the FT. CNN reported in January that western intelligence officials were concerned about Chinese companies supplying non-lethal equipment such as flak jackets and helmets to Russia, but that it was unclear whether China’s central government was aware of the sales. Private Chinese companies are not obliged to follow western sanctions, and imports from China have surged over the past year as Russian companies seek alternatives to western suppliers.Broker Expert’s large purchase from China during Russia’s full-scale invasion of Ukraine was its first declared import into the country since 2017, according to commercially available customs data.The company, which did not respond to a request for comment, says on its website that it supplies equipment for geological surveys, industrial extraction and construction. It is not directly controlled by Prigozhin but shares an obscure auditor with Wagner front companies under US sanctions in Syria, Sudan and the Central African Republic, as well as with his mother’s art gallery in St Petersburg.Over the past four years, Broker Expert, which has not been placed under sanctions by any western government, has regularly shipped equipment from Russia to companies in Sudan and CAR on which the US has imposed sanctions for being fronts for Wagner mercenary activity.

    The FT reported earlier this year that Prigozhin generated more than a quarter of a billion dollars in revenues from his overseas natural resources empire in the four years before Moscow’s full-scale invasion of Ukraine, despite western sanctions.“For the UK, US, France and others the news that Prigozhin’s enterprises are still going strong after all these measures highlights the need for co-operating with as many African, Middle Eastern, and Asian countries as possible to restrict his access to global markets,” said Plichta. More

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    Zimbabwe Banks Explore Gold-backed Digital Tokens as Loan Collateral

    In an effort to modernize its financial systems and expand lending options, banks in Zimbabwe are considering the use of the newly released gold-backed digital tokens as collateral for loans.This move comes as the country’s central bank aims to establish a digital currency that can be used for everyday transactions, prompting financial institutions to adapt their systems to accommodate this innovative form of payment.In a recent email response to Bloomberg, the Bankers Association of Zimbabwe expressed its support for adopting the gold-backed digital tokens. According to the association, lenders will need to incorporate a third currency into their existing systems to facilitate the acceptance of these tokens as a means of repayment.Also, the association said in the statement:Last week, Zimbabwe’s central bank received 135 applications for the purchase of the newly released tokens. This amounts to a total value of 14 billion Zimbabwe dollars, equivalent to 11 million US dollars.Furthermore, the tokens are backed by the country’s gold reserves, which currently stand at 140 kilograms or 309 pounds. In a subsequent auction held on Thursday, tokens worth over 71 kilograms of gold were sold.Notably, the Bahamas, Singapore, India, and Nigeria have already launched digital currencies backed by their respective central banks. On the other hand, the United Kingdom is seeking public input on a central bank digital currency (CBDC).The post Zimbabwe Banks Explore Gold-backed Digital Tokens as Loan Collateral appeared first on Coin Edition.See original on CoinEdition More

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    ECB needs to keep interest rates ‘sustainably high’ to combat inflation – Lagarde

    MADRID (Reuters) – The European Central Bank needs to keep interest rates high to curb inflation in the medium term, its president Christine Lagarde said on Friday, signalling more monetary tightening.The ECB slowed the pace of rate hikes this month with a 25-basis-point rise, but Lagarde indicated the cycle was not over.”We still have to have sustainably high interest rates, so it’s a time when we have to really buckle up and look at this target that we have and deliver on it,” Lagarde told Spanish state television TVE.The ECB has a medium term inflation target of 2%.Lagarde, who did not elaborate on potential further hikes, said: “Our goal is simple and straightforward: price stability. And we have to be totally determined to deliver that.”Markets expect a fresh, 25-basis-point increase at the ECB’s June meeting and possibly one more by the end of the summer, followed by rate cuts starting early next year.”We are heading towards more delicate decisions going forward but we will be courageous and we will take the decisions that are needed to bring inflation back to 2%. And we will do it, no question about it,” Lagarde said.She said the ECB would pursue that goal even though the euro zone was in a “critical” moment with inflation going down, monetary tightening beginning to have an impact, and banks limiting credit.Underlying price growth, the key focus of ECB policymakers in recent months, slowed a touch in April to 7.3% from 7.5%, though the crucial services component continued to accelerate. More

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    Investors still pouring into cash, but pace slows – BofA

    LONDON (Reuters) -Investors pumped $25.1 billion into cash in the week to Wednesday, but the flow into cash funds has slowed recently, reflecting a greater degree of investor confidence, according to a report from BofA Global Research on Friday.A total of $151 billion went into money market funds over the last four weeks versus $404 billion in the four weeks after Silicon Valley Bank collapsed in March and the banking sector was engulfed in turmoil, the BofA report showed. Meanwhile, investors bought $5.6 billion of bonds and pulled $7.7 billion from equity funds in the week to May 17. The report also showed U.S. Treasuries clocking up 14 straight weeks of inflows, with investors buying $4.3 billion in the week to May 17. They also showed a preference for investment grade bonds – which have seen inflows for seven weeks and a weekly inflow of $4.9 billion – over high yield bonds, from which investors pulled $2 billion last week.The BofA analysts said a 60/40 portfolio, which typically allocates 60% of assets into stocks and 40% into bonds, has recorded a 28% annualized return in 2023, turning things around after a “disastrous” 2022.A total of $1.1 billion went into tech stocks, marking a fifth week of inflows, as investors chose growth names over value. Investors took $700 million out of financial funds, while real estate investment trusts saw their largest outflows since November 2022, totaling $600 million.Looking forward to the next 12 months, BofA said the “biggest pain trade” will be Federal Reserve interest rates at 6% rather than 3%.BofA said its bull and bear indicator – a measure of market sentiment in which a higher reading is more bullish – jumped from 3.4 to 3.5, its highest level since March 14. More

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    ‘ESG’ in U.S. finance job titles comes with 20% pay premium

    NEW YORK (Reuters) – U.S.-based bankers and money managers whose job titles include “ESG” or “sustainability” earn on average around 20% higher base salaries than colleagues of the same seniority without those labels, according to analysis of salary data shared with Reuters.More than $30 trillion in capital has been committed to environmental, social and corporate governance-related investments as the world looks to curb greenhouse gas emissions and companies face pressure on issues such as workplace diversity and social justice.This has sparked a scramble to find bankers and asset managers for these roles, leading to higher base salaries than for equivalent professionals in non-ESG related functions, the analysis conducted for Reuters by New York-based data startup Revelio Labs shows. “Salaries of ESG and non-ESG personnel started to diverge in 2020, in line with the spike in hiring in ESG roles due to the increasing focus on ESG and sustainable investing in the finance sector,” said Loujaina Abdelwahed, an economist at the company. The strong demand for professional talent comes amid a political backlash against ESG in parts of the Western world, especially in the United States, where it has culminated in various laws to remove environmental and social considerations from business in some states.Revelio Labs scraped online professional profiles for people with finance roles in commercial and investment banking and asset management and split them into those with ESG or sustainability in their job titles and those without.They then applied their salary model which is trained on publicly available data from three sources: roughly 2 million H1B documents, in which companies declare salaries they pay to non-U.S. citizens, around 25 million job postings that included salaries, and about 1 million self-reported salaries. Since 2019, the rate of base salary growth for ESG roles has been about 38 percentage points higher than non-ESG personnel, Abdelwahed said.ESG-tagged roles overtook non-ESG on a six-month moving average basis in June 2020 and in August 2021 surged to peak around $109,846, fully $20,000 higher than non-ESG.The analysis does not take into account the discretionary bonuses often awarded to bankers and asset managers for their performance, as this data is not available from the public sources consulted by Revelio Labs.The gap shrank in the second half of 2021 but grew again into this year: in April 2023 average ESG salaries were $110,348 versus $90,283. More