Thursday, March 30 2017 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 39 min 31 sec ago
In this issue we review: Trends and developments in the Spanish banking sector. Spanish banks’ ROE, COE and P/BV ratio. Evolution of the financial burden of families in Europe. Management of non-performing assets in Europe. Peru: deposits in soles and exchange rate expectations.
A 50 bp “dovish” hike aimed at minimizing the probabilities of second round effects and at setting the conditions for the end of the hiking cycle
We develop a new indicator to track Chinese vulnerability sentiment in real time, combining Big Data with key financial indicators and official statistics. Our Chinese Vulnerability and Sentiment Index (CVSI) shows improving risk narratives since 2H16, in line with a pick-up in economic activity and a change in the policy mix put in place by Chinese authorities.
The G20 meeting which was held in Baden-Baden (Germany) on 17 and 18 March was not attended in person by Trump, although his influence was very present. Certain traditional G20 messages have executed an about-turn which reflects the new US position.
In recent weeks, we have learned of certain initiatives to repeal the reform of the 2013 pensions system, its revaluation mechanism and the sustainability factor (which kicks in from 2019), as well as others to raise pensions by 1.2% in 2017, with a revision clause if inflation outstrips this figure.
Weekly economic update focusing on the major economic indicators to be released the week of March 27, 2017. Special topic: 100th episode!
The inventory of existing homes for sale has declined y-o-y for 21 consecutive months. Locked low mortgage interest rates and short supply of new housing have contributed to the current situation. The high share of homeowners underwater does not seem to currently play a major role. Low unsold inventory is expected to persist, underscoring the need for new housing units
China has rapidly transitioned from a predominantly lower-middle class society to a middle, upper-middle and Affluent class society over past decade. Recent years have seen rising disposable incomes for high-income Chinese households, boosting demand for high value products – A visible shift from mass to premium.
After growing at 0.4% in 4Q16, our MICA-BBVA model continues to estimate a quarterly GDP growth in the eurozone of 0.5% QoQ in 1Q17 and puts a slight upward bias to our projection of 1.6% for this year. Confidence indicators reflect this mood better than activity data. Finally, despite the 2.0% YoY headline inflation in February, core measures remain subdued at 0.9% YoY.
The economy of the Balearic Islands grew 3.2% in 2016, and will still grow 2.6% in 2017 and 2.5% in 2018, creating some 32,000 new jobs in those two years, although some external factors’ contribution shall slow down. Recovering pre-crisis per capita income, and creating more and better jobs remain as challenges.
Public opinions toward certain trade issues have shifted since the election cycle. Policies aimed at reducing trade imbalances seem to have a high priority for the Trump administration
There is still much uncertainty about the new economic policies that will eventually be implemented in the US, with three dimensions particularly relevant for Latin America: changes in policies on trade, immigration and remittances.
The abandonment of the Trans-Pacific Partnership (TPP) and statements by both the president and the new US trade authorities seem to indicate that the US is turning towards bilateralism and is likely to consider the balance of trade as the variable on which to base its policies.