Monday, June 26 2017 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 6 hours 3 min ago
Weekly economic update focusing on the major economic indicators to be released the week of June 26, 2017
Highlights: The Council of Ministers issued a Royal Decree Law creating a senior non-preferred debt instrument to comply with MREL in Spain. The European Council endorsed the procedure to determine the new location of the EU agencies post-brexit. The EBA published the rules to grant access to ELA. The FED published the results to the Stress Test.
Advancements in machine learning, mobile robotics, and computing power have led to machines that are increasingly capable of performing non-routine tasks and navigating in real time. Artificial intelligence is gaining traction as an attractive investment within the tech industry
All the signs are that in the next few days Congress will give its definitive approval to the General State Budget for 2017 following intense debate. The pace and make-up of fiscal consolidation and the fiscal policy options have again been subjected to multiple amendments.
We expect another 25bp rate hike to take the fondeo rate to 7.0%
Mapping financial education, financial inclusion and national strategies. The Multidimensional Index of Financial Inclusion. Measuring the interaction of financial literacy, national strategies and financial inclusion.
GDP growth was revised up to 0.6% QoQ (+0.1pp) in Q1, while improving industrial production along with very strong confidence suggest that the growth momentum will remain steady in Q2 (MICA-BBVA: 0.6%). Recently, foreign trade and retail sales have moderated slightly. Headline and core inflation declined in May, reversing the Easter calendar effect and remain subdued.
The Spanish economy gained traction throughout the first half of the year. Quarterly GDP growth is estimated to accelerate up to 1.0% in 2Q17. If this forecast is confirmed, it would imply an upward bias in growth considered in BBVA’s scenario (0.8% QoQ) for the current quarter and (3.0%) for the whole of 2017.
The economy of La Rioja grew 1.5% in 2016, and will accelerate to grow 2.9% in 2017 and 2.7% in 2018. This will add around 5,000 new jobs in the period and unemployment shall drop to 10.9%. Although pre-crisis GDP per capita will be recovered, creating more and better jobs remains as a challenge.
On Wednesday 14 June, the Federal Reserve stayed true to the script by raising interest rates to 1.25%, although there was more to the move than just the rate hike. There are at least three elements from the recent meeting on monetary policy which deserve special mention.
A few weeks ago the majority of analysts were saying that Theresa May’s real motive in calling early elections in the UK was to strengthen her majority against the hardest wing of her party. This would have enabled her to accept “softer” conditions in a possible agreement on Brexit.
Weekly economic update focusing on the major economic indicators to be released the week of June 19, 2017. Special topic: review of the most recent economic developments
Highlights: Council agreement on creditor hierarchy, IFRS9 and large exposures. U.S. Treasury publishes report on financial regulation, EC proposes amendments to EMIR in relation to Central Counterparties, ECB publishes Macroprudential bulletin and a memorandum of understanding with the Office of Financial Research.