Friday, January 19 2018 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 6 hours 4 min ago
Future trends in European banking regulation. Global regulatory framework. CRD V: state of play. Banking Union: barriers and other issues. European initiatives on NPLs. Resolution: lessons learned. CCPs in the post-Brexit era. Fintech keeps climbing up the political agenda.
In August, industrial production (IP) growth came in at 5.2% yoy (cal.adj.) and retail sales index’ growth rate accelerated further. As August data signals further acceleration in the economic activity, our monthly GDP indicator (GBTRGDPY Index at Bloomberg) nowcasts 8.2% growth for 3Q (26% information for September).
Next week we will know the International Monetary Fund's diagnosis of the state of the economy at its weekly meeting with the World Bank, which also brings together governors from central banks, finance ministers and representatives from the financial sector and wider civil society from around the world.
In this presentation we analyse the effects of pension systems on growth and welfare, seeking an efficient balance between contributiveness, distortions, incentives, and equality and insurance against risks. PAYG systems should remain a fundamental part of the welfare state, using notional accounts and minimum pensions to reduce inequality and the risk of social exclusion.
A few days ago, we saw the conclusion of the third round – out of the seven initially agreed - of the renegotiation process of the North American Free Trade Agreement (NAFTA), a positive agreement for Mexico, the United States and Canada that, since it was signed in 1994, has led to trade between these countries almost quadrupling.
Weekly economic update focusing on the major economic indicators to be released the week of October 9, 2017. Special topic: analysis of several recently published economic indicators
Highlights: Spanish Council of Ministers approved Decree Law to facilitate firms’ mobility. ECB issued a consultation on its NPLs guidelines, and issued an opinion on proposed regulation for CCPs supervision and authorization. BCBS issued a statement on NSFR and derivative liabilities treatment. Finally, EBA and ESMA published their corresponding workplans for 2018.
Economic activity increased in 47 states, and declined in AK, DE and WV. Stronger global growth, a rebound in the mining sector and increased trade activity supporting regional growth. Florida and Texas to face headwinds from hurricanes Irma and Harvey, but effects should be transitory. Fundamentals in the Sunbelt region remain auspicious in spite of weather events
In August 2017, Mexico received US$2,469.3 million in family remittances. This is the highest figure ever in the receipt of remittances for a month of August. Due to the appreciation of the peso observed this year compared to 2016, in real terms remittances contracted by 1.7%. Thus, remittances have declined in real terms for three consecutive months
In August 2017, the balance of current credit granted by commercial banks to the private sector grew at a nominal annual rate of 13.2% (6.2% real), 0.6 percentage points higher than the rate observed in the previous month (12.6%), but 2.8 percentage points below that registered in August 2016 (16.1%)
CPI increased by 0.65% (mom) in September. Annual consumer inflation, hence, rose to 11.2% from August’s 10.7%. Core inflation was the negative surprise, reaching 11%. Negative food inflation in contrast to its seasonal average avoided the headline to climb up further. We expect the headline to increase further before it reaches 10% at the end of 2017 with base effects.
We analyse the main characteristics of the Spanish labour market, its performance during the crisis, the macroeconomic effects of the reforms since 2012, and its challenges during the current recovery. High levels of unemployment, temporary employment and inequality call for further measures to achieve a more efficient, equitable and inclusive labour market.
European political arena focused the world attention in September given the German elections and the Catalonian political uncertainty after the referendum vote. North Korea crisis remained as one of the main world threats, as well as the regional instability in Middle East, which increased uncertainties after the Kurdish independency referendum results.
Besides the economic losses caused by this natural disaster, the palpable effects are limited and only relevant to very specific regions and do not represent a major change in the economic growth rates at a national level. The earthquakes did not damage the productive capacity of the economy, as productive infrastructure was largely unaffected
Our China Vulnerability Sentiment Index (CVSI) for September held on to its recent gains with regulators focusing on maintaining macro-financial stability ahead of the crucial 19th Chinese Communist Party Congress (CCP). Activity moderation extended in August, led by policy efforts to reduce overcapacity, curb leverage and reduce housing inventory.