Monday, October 23 2017 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 6 hours 58 min ago
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.
The positive evolution of the real estate market has resulted in a new growth of housing prices in 2Q17. The data for the third quarter show a better performance than in the same period of the previous year: sales and construction activity were supported by the good performance of the economy and the mortgage market.
The last few days have been filled with important events for the future of Europe, with positive and negative news at the same time, and an outcome that will depend a lot on the negotiations in the coming months.
Weekly economic update focusing on the major economic indicators to be released the week of October 2, 2017. Special topic: natural interest rate
The FOMC announced the start of the balance sheet normalization process to begin in October while maintained the Fed funds rate target range at 1%-1.25%
Highlights: ECB published a guide on materiality assessment for counterparty risk models. ESMA issued RTS on derivatives trading obligation. EBA and US Agencies agreed on cooperation framework for resolution. EBA issued opinion on the design of new prudential framework for investment firms. Finally, US Agencies proposed simplified capital requirements for smaller banks.