Monday, October 23 2017 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 6 hours 59 min ago
Weekly economic update focusing on the major economic indicators to be released the week of September 4, 2017. Special topic: economic impact of Hurricane Harvey
In July 2017, the balance of current credit granted by commercial banks to the private sector grew at a nominal annual rate of 12.7% (5.9% real), 1.1 percentage points lower than the rate observed in the previous month (13.8%) and 4.4 percentage points below that registered in July 2016 (17.1%)
We consider that the better than expected data for the first half and the momentum of external demand, observed at the time, are sufficient to upwardly revise our growth forecast for this year to 2.2%. By 2018, we anticipate GDP growth of 2%
Highlights: The BCBS consulted on the implications of FinTechs in the financial sector. The ECB consulted on its guide for on-site inspections and investigations on internal models. EBA issued a consultation on the scope of its approach to FinTechs, and ESMA updated its guidelines on transaction reporting under MiFID II.
Despite that July activity indicators slightly disappointed the market, China’s economy seemingly resumed its momentum in August. The official manufacturing PMI picked up to 51.7 from 51.4 of the previous month. Meanwhile, the Caixin China Manufacturing PMI surged to 51.6 from 51.1 in the previous month, beating the market consensus at 51.0.
Minutes from the July FOMC meeting revealed that some members continue to raise concern with tame inflation. However, FOMC members have echoed agreement to start shrinking the balance sheet soon
Our China Vulnerability Sentiment Index (CVSI) improved in August, underpinned by gains in the SOE, Housing and Shadow banking component while FX speculative pressures persist despite slowing capital outflows.
Harvey will be remembered as one of the most destructive storms in U.S. history. Gross losses could reach $60bn, dragging down Texas real GDP by more than 1%. However, the net economic impact will be modest after reconstruction is completed. The biggest challenge for Houston is to maintain its long-term attractiveness
Financial institutions and traders can face operational risks if the switch to an alternative benchmark is delayed. A paced transition plan will be introduced for U.S. institutions. The Fed will likely ensure that institutions follow the plan and switch from Libor
The importance of financial innovation is increasing in the eyes of the authorities and the media. This is due to the fact that new banking services that are emerging with the entry of new firms into the markets. However, it can also signal the appearance of new areas of risk, requiring closer supervision by the authorities.
Engineers insist that sometime between 2030 and 2050 is when fiction will become reality, and artificial intelligence (AI) will exceed that of a human. Economists have a different answer - it will be at least another 100 years before that point. Who is right?
Weekly economic update focusing on the major economic indicators to be released the week of August 28, 2017. Special topic: the state of the auto market
Together with Greece, Spain was the European country with the highest unemployment increase during the Great Recession, despite a fall in GDP similar to that in other economies. Objective of this paper: to quantify the macroeconomic effects of the changes in the labour market since 2012.