Monday, October 23 2017 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 6 hours 56 min ago
In May 2017, the balance of current credit granted by commercial banks to the private sector grew at a nominal annual rate of 14.3% (7.7% real), 1.6 percentage points lower than the rate observed in the previous month (15.9%) and the same rate than in May 2016
In the first quarter of 2017 the banking system posted net income of €3,514 million, the highest quarterly figure since 2009. Operating items followed the trend of the past few quarters, with revenues down slightly and costs well under control.
North Korean crisis heated up as a US student has passed away after the end of its captivity and Pyongyang regime continues with the missile tests. The Trump administration is considering further pressure on Chinese efforts to contain the crisis. The fights in Raqqa and Mosul accelerate, but some uncertainties will remain in the Post-War period.
The economy of the Basque Country grew 2.8% in 2016, will grow as much this year and 2.9% in 2018. This will add around 22,000 new jobs in the period and unemployment shall drop to 9.2%. Although pre-crisis GDP per capita has been recovered, creating more and better jobs remains as a challenge.
The economy of Murcia region grew 3.1% in 2016, and will accelerate to grow 3.4% in 2017 and 2.7% in 2018. This will add around 41,000 new jobs in the period and unemployment shall drop to 16.9%. Although pre-crisis GDP per capita will be recovered, creating more and better jobs remains as a challenge.
Recovery in IP continues with the support from both exporting and domestic demand oriented sectors. We expect the GDP growth in 2Q to accelerate even further, as early signals from May suggest a growth rate close to 6%. Turkish lira stabilized at 3.50-3.55 band as global and local factors balance each other and the CBRT maintains its hawkish tone
Trump’s arrival has meant a change of tone in the discourse around financial regulation. The severe restrictions imposed by Obama on the banking sector in response to the profound international financial crisis are now a thing of the past.
The banking sector is undergoing a significant transformation. In Spain, the old system of 45 savings banks has been reduced to just ten regular banks. In Europe, the number of credit institutions has gone down from 8,600 in 2008 to 6,500 at the start of 2017.
Consumer prices declined by 0.27% in June in contrast to the market call of a slight rise by 0.1%. The data proved to be more positive thanks to the improvement in core inflation backed by the fall in auto prices. Annual inflation fell to 10.9% from 11.7% in May with favorable base impact on food inflation, slight withdrawal in core prices and plummeting energy prices.
China’s official manufacturing PMI (released by NBS last Friday) picked up significantly to 51.7 in June from 51.2 in May, well above market expectations (Consensus: 51). Following the same trend, the Caixin China Manufacturing PMI announced today, which includes a survey sample tilting toward SMEs and exporters, increased to 50.4 in June from 49.6 in the previous month.