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Updated: 1 hour 32 min ago

The US reviews its banking regulation

July 3, 2017
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.

Banking once again focuses on retail

July 3, 2017
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.

Inflation moderation also supported by core prices

July 3, 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: June PMIs indicate an stronger-than-expected growth momentum

July 3, 2017
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.

U.S. | Weekly podcast: employment and construction spending

July 1, 2017
Weekly economic update focusing on the major economic indicators to be released the week of July 3, 2017

Renewables: The answer is blowin’ in the wind

July 1, 2017
The prevalence of fossil fuels in the production of electricity is being challenged by the rapid expansion of renewable sources such as wind and solar. Around the world, wind energy capacity has increased fivefold since 2007, reaching 487GW in 2016

Financial Regulation: Weekly Update. 30 June 2017

June 30, 2017
Highlights: Veneto Banca and Banca Populare di Vicenza are liquidated after ECB and SRB’s decisions using State Aid authorised by the EC. The BCBS consults on a simplified alternative to the standardised approach to market risk. The FSB issues a report on the financial stability implications of FinTech. Finally, the EC proposes a regulation for PEPPs.

China | Vulnerability sentiment deteriorates in June

June 30, 2017
Our China Vulnerability Sentiment Index (CVSI) deteriorated in June, dragged by Housing and Exchange Rate component, which together offset a stable SOE Index and improving Shadow Banking Index. The deleveraging campaign has gained traction, with notable easing in shadow lending growth, though concerns over its effectiveness continues to undermine sentiment.

Fiscal Policy in Europe: Lessons from the Crisis and Options for the Future

June 29, 2017
We analyse fiscal policy in the Eurozone during the last crisis in order to obtain the main lessons for the current debate on how to strength the European Monetary Union. We show that the interaction between uncertainties on national policies of countries with macroeconomic imbalances and an incomplete monetary union.

Interest margins and efficiency. The impact of the crisis across EU countries

June 29, 2017
On the wake of the financial crisis, European banks undertook an important restructuring effort. This process was steered by the reaction of investors and public authorities, which adopted new regulation and implemented accommodative monetary policy. Despite the European harmonisation, idiosyncratic country factors led to a very different outcome across countries.

Retail or not retail. Have European banks become more retail on the wake of the crisis?

June 29, 2017
In early 2017, retail banking activities represented 30% of EU banks’ balance sheet. The crisis triggered an increase in the orientation of banks towards their core banking activities. Driven by market forces and new regulation, retail deposits expanded from 22% of the balance sheet to almost 30%.

Banco de México: End of the cycle of rate hikes

June 27, 2017
Banco de México last Thursday increased its monetary policy rate by 0.25% to 7%

U.S. | Interest Rates Chartbook. June 2017

June 27, 2017
The FOMC raised the Fed funds rate 25bp to 1.25% after the June meeting. In addition, it signaled a firm intention to raise rates one more time in 2017 and provided clear guidance on balance sheet normalization as it prepares to roll off the process in coming months

The enemies of trade

June 26, 2017
Globalisation, which is simply a process which favours greater exchange by overcoming geographical distances and administrative and cultural obstacles, is being called into question.

Catalonia Economic Outlook. First half 2017

June 26, 2017
The Catalan economy grew by 3.5% in 2016 and will remain dynamic in 2017 (+ 3.3%) and in 2018 (+ 2.8%). 230,000 jobs will be created by the end of 2018 and the unemployment rate will drop to 9.3%. Although GDP per capita GDP will recover in 2017, creating more and better jobs remains the main challenge.