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china central bank

World economy 16th February 2022

China Continued To Deleverage Towards The End Of 2021 Thanks To The Corporate Sector But With An Increase In Government Debt

Alicia García Herrero (Natixis) | China’s debt-to-GDP ratio continued to decrease in Q4 2021 to 264.3% from 266.5% in Q3. Notwithstanding the deleverage path in 2021, the debt is still much higher than the pre-pandemic one (247.5% in Q4 2019). Chinese corporates contributed the most to the deleveraging process, as their debt to GDP ratio further dropped to 155.1% in Q4 2021 from 158.3% in Q3 2021. Because of the…

telefonica

World economy 10th February 2022

Brazil’s Competition Regulator Approves Sale Of Oi To Telefónica, Claro y TIM; Telefónica Will Pay €910 M And Secure 10,5 Extra Clients

Banca March | The board of CADE, Brazil’s competition body, has given the green light to the sale of Oil Movel, the fixed line business belonging to the country’s fourth fixed line operator Oi. It has been bought by the consortium formed by Telefónica – it operates under the Vivo brand in Brazil – Italy’s TIM and Mexico’s Claro. We should recall that the combined offer from Telefónica, TIM and…

An exterior view of China Evergrande Centre in Hong Kong

World economy 8th February 2022

China’s Regulatory Crackdown: What To Expect?

Alicia García Herrero (Natixis) | Chinese policy makers have been engaged in a massive regulatory crackdown for over a year. A number of sectors have been affected, starting with the tech sector, followed by the education sector. At the same time the real estate sector has also been severely affected by a specific regulatory crackdown (the three red lines) and a more general antitrust push has also taken place. In…

LaIndia

World economy 7th February 2022

India Country Report | Robust Growth Outlook For India ́s Economy In 2022, Provided An Accelerated Vaccination Rollout

Crédito y Caución (Atradius) | Prime Minister Narendra Modi and his government remain in a strong position. Modi’s Bharatiya Janata Party (BJP) has an absolute majority in the lower house of parliament, and the opposition remains weak on the national level. While the handling of the second coronavirus wave in early 2021 has dented Modi ́s popularity somewhat, a rising vaccination rate should help him to retain his dominant position…

Carbon emissions

World economy 5th February 2022

There’s A Massive Bubble In The Price Of Carbon – And Yet It Won’t Bring Down Emissions Any Faster

Steffen Böhm (The Conversation) | Carbon trading was supposed to encourage companies to reduce their emissions. Yet for many years, the carbon price was trading well below €20 (£17) per tonne on the EU Emissions Trading System (ETS), which is by far the most established market for trading carbon in the world. Most agreed that this did not send any financial signals to carbon-intensive industries to invest in green technologies….

Pampilla

World economy 2nd February 2022

Peru Asks Repsol For Guarantees “That There Cannot Be Another Spill”

16 days after one of the worst oil spills in Peru, the country’s environment minister, Rubén Ramírez, announced the suspension of all hydrocarbon loading and unloading activities until Repsol “can offer sufficient guarantees that another spill cannot occur”. The company responded by calling the decision “disproportionate and unreasonable”. Approximately 11,900 barrels of crude oil were spilled at Repsol’s Pampilla refinery while an oil tanker was unloading; this is believed to…

real estate investment trusts in China

World economy 30th January 2022

China’s Real Estate Sector: Size Does Matter

Luís Pinheiro de Matos (CaixaBank Research) | China’s real estate sector is often described as «the most important sector in the world» because of the importance it has amassed in recent decades in the Asian giant’s growth model. We analyse how significant a role it plays in the Chinese economy and the risks of the Evergrande effect.

Jerome Powell

World economy 27th January 2022

Jay Powell Sets The Stage For Monetary Tightening

Juan Pedro Marín-Arrese | The hawkish and straightforward message Jerome Powell delivered yesterday surprised analysts and markets alike. They expected a non-committal press conference following a routine FOMC meeting. Instead, Powell unfolded the planned roadmap for monetary tightening. He even announced a rate hike in March, breaking the rule of refraining from providing precise tips on future action, coupled with a sharper than expected increase in federal funds rates. It…

metaverse landscape glow 760x380 1

World economy 26th January 2022

Metaverse: The next Internet reality

Capital Group |The term metaverse has become, almost overnight, a buzzword due to Facebook’s name change to Meta to focus on its new mission: bringing the metaverse to life. Before the hype generated by this announcement, most people barely understood the term. But anyone who has experienced virtual reality or augmented reality will have been somewhat familiar with the metaverse.So what is the metaverse and how can we define it?…

msci world index

World economy 23rd January 2022

The New Silicon Valley: Asian Markets

Frank Schwarz (MainFirst ) | Any investor approaching the subject of ETFs cannot ignore the MSCI World index. It is not only because of its high profile that this index makes its way into many portfolios seeking broad diversification. But how much diversification does the MSCI World really offer? Presented as a globally distributed investment with some 1,600 companies, around 65% of its weight is accounted for by the US,…