Tuesday, May 22 2018 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 4 hours 33 min ago
Highlights: CPMI & IOSCO issue guidelines for CCP stress test. ECB consults on cyber resilience. ESAs issue risks and vulnerabilities report. EBA issues remuneration practices report. Spanish Congress passes law on whistleblowers. FRB consults on simplifications to capital rules and stress tests. FRB and OCC consult on changes to enhanced supplementary leverage ratio.
Q1 economic indicators are robust. The outturns of trade, industrial production and investment are better than expected. However, headwinds remain in place, mainly from domestic tightening policy and trade skirmishes with the US, which, in our baseline scenario, is unlikely to evolve into a full-blown trade war. Growth is most likely to moderate through the year.
The economy of Extremadura grew 2.4% in 2017 and will grow 2.7% in 2018 and 2.4% in 2019. This will add around 10,000 new jobs in the period and unemployment shall drop to 23,3%. Although pre-crisis GDP will be recovered, creating more and better jobs remains as a challenge.
We expect Banxico to hold rates steady (at 7.50%) next Thursday. As we expected, disinflation pressures are taking hold and inflation is set to fall further; he inflation outlook improvement warrants a more dovish tone. We think Banxico is likely to signal a pause in the near-term. We expect Banxico to begin an easing cycle to begin in October.
Today, Chinese President Xi Jinping has delivered his keynote speech at the Boao Forum for Asia, an annual summit that's been dubbed the "Asian Davos," in which he highlighted his support for opening up policies and regional economic integration. The speech came amid the escalating trade tensions between China and the U.S.
Inflation fell sharply in the first three months of the year as we expected. Inflation set to fall further; Banxico will most likely keep rates unchanged on Thursday.
US treasury’s review of the Orderly Liquidation Authority. IFRS 9: Supervisory practices, behavioural impacts and regulatory interactions. Brexit negotiations. European low-risk asset for the euro zone. Sustainability: the New Normal in Finance. EU proposal for Covered Bonds: a challenge for the Spanish market. Main regulatory actions around the world.
The debate on how to advance towards greater integration in Europe is intensifying with the approach of June, the self-imposed deadline for Europe’s leaders to come up with specific new reforms for the euro zone. The International Monetary Fund has recently joined the fray with a proposal for a stabilisation fund to cushion fluctuations in the economic cycle.
In Spain, an important part of the growth in the pre-crisis years was driven by accumulated physical capital. In recent years, however, investment has had to adjust to the prevailing economic climate. Moreover, although the level of capital is not relatively low, it has been inefficiently distributed between sectors and regions and hasn't done much to increase productivity
This Economic Watch introduces the European Central Bank's (ECB) Monetary Policy Tone index developed from ECB documents, using text mining and Natural Language Processing (NLP) techniques. This analysis allows us to objectively identify and track the relevant thehmes within the ECB’s monetary policy discourse.
In this presentation, we show how to monitor social and geopolitical events with Big Data with a special focus on the refugee crisis.
We identified the most relevant factors for the implementation of a CBDC in LatAm, under different designs. We concluded that the region could benefit more from the adoption of a CBDC than developed countries. However, the existence of costs associated with implementation casts uncertainty on where it will be adopted first.
After three months of stability, home sales grew in January. The positive economic situation, coupled with good news from the mortgage market, continues to bolster residential demand. The biggest highlight in construction for January was an increase in the sale of land and a moderation in the growth of visas.
Highlights: ECB issues annual report on supervision and a consultation on guidelines to internal models. EBA issues a consultation on guidelines for PSD2. ESMA prohibites binary options and issues a series of reports, and guidelines for trade repositories. BdE publishes a report on banking supervision. BoE and FCA issue statements on the regulatory approach after Brexit.