Friday, April 26 2019 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 11 hours 7 min ago
The current infrastructure does not respond to the needs of its main demanders. New way of measuring railway efficiency in the face of a changing reality. Network model for the calculation of the coherence of the railway network. Railway network does not meet manufacturing needs. Railway incompatibilities point to investment opportunities.
Positive tone in markets after the announcement of a potential deal that includes some funding for the border in the US. This has somewhat allayed fears over another partial government shutdown ahead of this Friday’s deadline. Optimism on the US-China trade relationship ahead of high-level talks also weighed. On another front, Brexit negotiations continued to be uncertain
The economy of Aragon may have grown 2.6% in 2018, and will moderate to 2.4% in 2019 and 2.0% in 2020. It will create over 14,000 new jobs by 2020, although some risks are more likely to materialize now, than they were some months ago. Total employment will be still far from its pre-crisis level. Inclusive growth is a challenge.
The recovery of the Spanish economy will carry on in the coming years, although the slowdown in growth continues. GDP is expected to grow by 2.4% in 2019 and by 2% in 2020. In this context, job creation is expected to continue, in an environment of soft adjustment of world growth and growing internal and external uncertainty.
Although the U.S. maintains significant advantages such as the strongest military, the world’s reserve currency, the largest economy and the highest ranked universities, there are growing concerns that the country is losing the technological race.
Markets started the week on the front foot after last week’s increase in volatility. US-China trade talks later this week increased the optimism about a potential agreement ahead of the trade truce deadline. US politics are also in the spotlight amid a new potential shutdown. The release of the US CPI, German’s GDP and Brexit negotiations could also be drivers for markets
Global slowdown, increased global financial volatility and worsening commodity prospects will limit growth in the region, in addition to idiosyncratic factors. After growing 1.6% in 2018, the region will expand 2.1% in 2019 and 2.4% in 2020.
As with many questions, the answer depends on the context. Few things are better for social progress and welfare than a sustainable rise in wages resulting from increases in productivity, and for growth to be equitable and reach all workers.
Despite the slowdown seen during much of 2017 and consolidated in 2018, the GDP growth rate remained above that observed in the rest of the EMU, and even accelerated in the last quarter of the previous year.
Can economic policies contribute to the increase in demand? The scope for expansionary fiscal policies is limited, in some cases due to the high levels of debt and, in other cases, due to the need to comply with fiscal rules, or otherwise undermine their credibility.
Financial markets started the week with mild movements but as the week went by, risk-off mood came back driven by increasing concerns over global growth. The State of the Union address in the US did not bring any insight into the border wall stance issue ahead of the Government funding expiration on February 15th. Moreover, Brexit negotiations remain stalled.
Highlights: FSB issues report on non-bank financial intermediation. ESMA agrees MoUs for no-deal Brexit, and issues statement on the use of UK data in ESMA’s databases. ECB issues statement on liquidity risk analysis, and results for 2018 stress test. Council and EP agree on measures for investment fund market and rules for derivatives. FRB issues CCAR and DFAST scenarios.
FinTech is gaining momentum in financial services due to the important role of technology in reshaping the Financial System. In order to identify the dynamics created by the FinTech ecosystem, we analyse data from the media and social networks.
Banxico did not soften its tone; likely to remain hawkish in the near-term. Banxico unlikely to soften its stance in the near-term but the wording tempered the ready-to-hike disposition of the previous statement. We continue to expect the next move in the monetary policy rate to be down, but not until later in the year.
After many days of calm, financial markets returned to risk-off mood with a significant drop in developed equity markets amid the resurface of fears over a global economic slowdown. The update of the European Commission economic forecast, which signaled a cut in the euro zone economic growth and inflation rate, was one of the main drivers today in financial markets
Firm policies helped to stabilize Turkish Financial Markets and the economy is re-balancing fast. The economic activity adjustment gained momentum at the end of 2018 but there are early signs of bottoming-out. We expect policymakers stick to sound policies.
The balance of risks has deteriorated on the back of growth concerns in the US and China. A global trade war continues to be relevant despite the current truce, while a resurface of debt tensions in the Eurozone should not be ruled out yet due to high political instability. On a positive note, the U-turn in the Fed’s stance reduces the likelihood of overshooting.
Of the remittances received by Mexico in 2018, 94.1% came from the U.S., 97.7% were sent by electronic means and 71.7% were disbursed in non-banking institutions. 7 states accounted for half of the remittances that arrived in the country: Michoacán (US$3,393 millon), Jalisco (3,288), Guanajuato (3,046), Mexico (1,903), Oaxaca (1,731), Puebla (1,699) and Guerrero (1,615).
Fall in inflation along with lower risks takes further hikes in the near-term off the table. Balance of risks to inflation improved in the intermeeting period with the recent rally in the MXN combined with a larger-than-expected fall in inflation in the first half of January. We expect the next move in the monetary policy rate to be a cut, but not until later in the year.
Markets continued to show minor movements as yesterday’s State of the Union address in the US did not bring any insight into the border with Mexico, the main issue to avoid a new shutdown. On another front, the US-China trade relations seems to be evolving positively as he said that a deal is possible while, according to US Treasury Secretary, US-China talks will continue