Friday, April 26 2024 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
BEIJING - Reform measures outlined in documents released on Friday night indicate that decisions taken by the 3rd Plenum of the Chinese Communist Party are unprecedented and way above market expectations, ANZ Bank says in a client note. The document outlines major policy reforms that will take place soon, and which will have a major impact on China’s economic developments in the next five to 10 years.
HONG KONG – Following its Country Risk Conference held in Hong Kong this week, global trade credit insurer Coface has released its 2014 Economic Forecast, forecasting that the Eurozone will be out of recession and that growth will accelerate in the US in 2014.
~~SINGAPORE - Edwards Lifesciences Corporation (NYSE: EW), a global leader in the science of heart valves and hemodynamic monitoring, has expanded its heart valve manufacturing facility in Singapore to accommodate growing worldwide demand for tissue heart valves. Edwards has invested some S$95 million in Singapore since 2005.
~~TOKYO - Preliminary Q3 GDP in Japan slowed to 1.9% saar from 3.8% in Q2, dragged down by sluggish exports and weaker-than-expected private consumption and investment. Growth would have been much worse were it not for a pickup in public investment spending.
~~TAIPEI - Foreign manufacturers and exporters of suspect olive and grape seed oils will be required to present documentation for the products or face seizures and inspections at port, health officials said Thursday. The regulations will affect companies dealing in imported oils which have been found to contain copper cholorophyllin.
~~BEIJING – In an assessment of a Communique released following the China leadership’s “Third Plenum”, BBVA Research says a full interpretation must await further details, we it believes the Communiqué is broadly consistent with the new leadership’s repeated emphasis on reform, in particular the “decisive” role of the market in allocating resources.
~~MADRID – Lawyers Baker & McKenzie say a new law introduced in Spain to support entrepreneurs and their internationalisation may particularly benefit Asian investors, who can remain tax resident outside of Spain while benefiting from a Spanish Golden Visa and the freedom of unlimited travel and circulation in the EU.
~~JAKARTA - After pausing last month, Bank Indonesia (BI) has resumed its tightening campaign with a 25 basis points rate increase in order to contain the current account deficit and support the currency against further downside pressures. Under Governor Agus Martowardojo, who took office in May, BI has now lifted rates by 1.75% since June, to 7.50%, following an administered fuel price increase and an episode of currency volatility and capital outflows from earlier expectations of QE tapering.
~~MANILA – The Philippines Department of Tourism has moved to assure incoming tourists that areas outside those affected by Typhoon Haiyan are safe and operating normally.
NEW DELHI – India’s trade deficit widened in October to US$10.6 billion from US$6.8 billion in September on seasonal import demand, but overall external developments remained positive, with exports up by 13.5% y/y from 11.2% in September, for a fourth consecutive month of double-digit growth, supported by currency depreciation and improving external demand from the US, EU and China. Import growth has continued to contract (-14.5% y/y vs -18.1% in September). BBVA Research says the full-year current account deficit is expected to amount to 4.2% of GDP compared to 5.0% in 2012.
NEW YORK - In contrast to the "first arrow" of Abenomics - bold monetary policy to end deflation in Japan - the "third arrow" - the growth strategy- has underwhelmed most observers, ratings agency Standard & Poor’s, says in a report published today. "There is no lack of content and ideas in the growth strategy, but it seems to be largely a product of the bureaucracy, showing little imprint of the Prime Minister's vision and direction," says Paul Sheard, S&P chief global economist and author of the report.
HONG KONG – In an update of its Asia regional outlook, BBVA Bank says risks stem from prospects of renewed capital outflows from QE tapering, and uncertainty about the sustainability of China’s growth momentum.
MELBOURNE – A Roy Morgan Research survey shows that Australian business confidence rose to a record high level during October, building on an extraordinary peak achieved following the September federal election. An increase of two points from September to a score of 136.3 is the highest level of Business Confidence recorded since the survey began in December 2010.
JAKARTA - As expected, Indonesia’s Q3 GDP growth slowed - for a fifth consecutive quarter. Q3 GDP growth came in at 5.6% y/y (consensus: 5.6% compared to 5.8% in Q2. The outturn was broadly in line with expectations, which had factored in the impact of recent interest rate hikes on consumer and business spending, as well as the drag from lower commodity prices (Indonesia is a commodity producer).
TAIPEI - Taiwan and Japan have signed off on five agreements to co-operate in areas such as electronic commerce and protection of patent applicants in what is seen as an expansion of an investment pact implemented in 2011. The agreements on electronic commerce and patent protection are the first of their kind that Taiwan has secured with another country.
SHANGHAI - Officials at the Shanghai Pilot Free Trade Zone (FTZ) have responded to criticisms of a "negative list" which places restrictions on foreign investment in the FTZ, saying that the current list of restrictions will be relaxed next year and revised on a yearly basis. The negative list covers 1,069 businesses in 89 divisions within 18 main categories, identifying sectors in which investment is restricted or prohibited. It also contains 190 measures to control how business is conducted and managed.