Capital Markets

Mnuchin expected to be Trump’s Treasury secretary

Donald Trump has chosen Steven Mnuchin as his Treasury secretary, US media outlets reported on Tuesday, positioning the former Goldman Sachs banker to be the latest Wall Street veteran to receive a top administration post. Mr Mnuchin chairs both Dune Capital Management and Dune Entertainment Partners and has been a longtime business associate of Mr […]

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Financial system more vulnerable after Trump victory, says BoE

The US election outcome has “reinforced existing vulnerabilities” in the financial system, the Bank of England has warned, adding that the outlook for financial stability in the UK remains challenging. The BoE said on Wednesday that vulnerabilities that were already considered “elevated” have worsened since its last report on financial stability in July, in the […]

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Zoopla wins back customers from online property rival

Zoopla chief executive Alex Chesterman has branded rival OnTheMarket “a failed experiment”, and said that his property site was winning back customers at a record rate. OnTheMarket was set up last year, aiming to compete with Zoopla and Rightmove, the UK’s two biggest property portals. It allowed estate agents to list their properties more cheaply […]

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Hard-hit online lender CAN Capital makes executive changes

The biggest online lender to small businesses in the US has pulled down the shutters and put its top managers on a leave of absence, in the latest blow to an industry grappling with mounting fears over credit quality. Atlanta-based CAN Capital said on Tuesday that it had replaced a trio of senior executives, after […]

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BoE stress tests: all you need to know

The Bank of England has released the results of its latest round of its annual banking stress tests and its semi-annual financial stability report this morning. Used to measure the resilience of a bank’s balance sheet in adverse scenarios, the stress tests measured the impact of a severe slowdown in Chinese growth, a global recession […]

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Categorized | Currencies

Spain on track but India GDP disappoints

Posted on November 30, 2013

Producer prices fell in France and Italy, while Spain registered a current account surplus of €3bn ($4.1bn) in September, putting the country on track for its first annual profit in decades.



According to the GfK Consumer Confidence Index, UK consumers were less optimistic in November than in the previous month, with the index dropping one point to -12. Consumers’ opinion about the country’s general economic situation in the past 12 months has grown gloomier, while expectations for the next 12 months increased slightly. Consumers were less in the mood to make major purchases in November than in September.


    Household consumption of goods decreased 0.2 per cent in October compared with the previous month, after having decreased by 0.1 per cent in September. The decline in October was influenced by a 4.9 per cent decrease in expenditure on energy products. However, household expenditure on durables rose 0.8 per cent month on month.

    Industrial producer prices declined 0.2 per cent in October month on month, after increasing 0.3 per cent in September. Prices for refined petroleum dipped 0.8 per cent, after three months of rises. Following two months of stability, import prices of industrial products fell 0.3 per cent – affecting all products, except textiles and apparel, which went up 0.8 per cent due to the new winter collections.


    According to provisional data, foreign trade deficit increased by 31.8 per cent in October year on year, reaching $7,375m. While exports decreased 8.2 per cent to $12,105m, imports went up 3.7 per cent to $19,480m.


    GDP increased 0.3 per cent in the third quarter compared with the third quarter last year. While household consumption expenditure increased 2.1 per cent non-adjusted, production of goods dropped 2.1 per cent. Seasonally adjusted, GDP increased 0.1 per cent from September to October.

    Exports of goods went down 2.9 per cent in volume in the third quarter year on year – mainly due to a decline of 23 per cent in exports of mineral fuels, with the exports of petroleum products going down 21 per cent. Meanwhile, imports of goods decreased 2.6 per cent year on year, with the dominating sector in imports – machinery and transport equipment – decreasing 0.5 per cent.


    Producer price index decreased 1 per cent from September to October with respect to the previous month. In the domestic market, the index decreased 1.3 per cent and 0.2 per cent on the non-domestic market. Year on year, the index decreased 2.2 per cent, with both domestic and non domestic markets going down, by 2.7 per cent and 0.8 per cent, respectively.

    In the third quarter, the number of unemployed people rose 14.6 per cent year on year, with the unemployment rate reaching 11.3 per cent of the population. The situation is particularly critical in the south and on the Italian islands, where 18.5 per cent of the population is unemployed.


    Having emerged from a two-year recession in the third quarter, Spain registered a current account surplus of €3bn ($4.1bn) in September, putting the country on track for its first annual profits in decades. A year ago, Spain recorded a €15.7bn current account deficit. The year-on-year change was mostly due to a €15.5bn
    fall in the trade deficit, with Spaniards buying fewer imported goods and domestic companies searching for new markets abroad.



    Current account registered a surplus of $376m in October, after a deficit of $530m in September. Year on year, exports dropped 0.5 per cent year, much less than the 6.3 per cent decline registered in September. Imports went down 4.6 per cent year on year in October and 6.1 per cent in September.


    In the third quarter, GDP expanded 1.66 per cent year on year. The country has cut its 2013 full-year growth forecast for the second time in three months, from 2.31 per cent to 1.74 per cent. In a statement, the government attributed the downward revision to uncertainties arising from the restructuring of the Chinese economy and the US Federal Reserve’s exit from its quantitative easing programme. Thailand has also cut its growth forecast this week.


    GDP grew 4.8 per cent from the second to the third quarter – the fourth successive quarter of economic expansion below 5 per cent. However, the growth was slightly higher than the 4.4 per cent registered in the second quarter, partly due to an expansion in farm output.



    GDP expanded 0.7 per cent in the third quarter, following 0.4 per cent growth in the previous quarter. Both household final consumption expenditure and business gross fixed capital formation rose 0.6 per cent. After three quarters of growth, exports fell 0.5 per cent, with exports of goods and services declining 0.5 per cent and 0.4 per cent, respectively. Month on month, GDP grew for 0.3 per cent in September, a third consecutive monthly increase.


    South Africa

    In October, the trade deficit went up to 12.4bn ($1.2bn), after a 11.9bn deficit in September. The deficit was, though, smaller than economists expected due to a rebound in car exports following the end of a four-week strike by workers in the vehicle-manufacturing and auto-component industries.