|
|
| |
 |
|
| HKECIC Weekly Market News |
| 15 July 2019 |
|
|
|
| |
 |
| |
| |
| Market Snapshots |
| Asia and Australasia |
Singapore: Economic growth eases to 0.1% in Q2
Singapore economic growth slowed to 0.1% yr/yr in Q2 2019, easing from 1.1% in the previous quarter, according to an advance estimate from the Ministry of Trade and Industry. This is the slowest quarterly growth since mid-2009. The manufacturing sector, which accounts for about one-fifth of the economy, has led the economic decline. The sector further contracted by 3.8% yr/yr in Q2 after a 0.4% decline in Q1. The contraction was due to output declines in the electronics and precision engineering clusters. Meanwhile, the growth of construction sector slowed to 2.2% yr/yr in Q2 from 2.7% in Q1, while the services producing industries advanced at 1.2% yr/yr in Q2, unchanged from the previous quarter. On a quarter-on-quarter seasonally-adjusted annualized basis, the economy shrank by 3.4% in Q2, after posting growth of 3.8% in Q1. |
|
|
| Europe |
Eurozone: European Commission lowered 2020 economic outlook
The European Commission has lowered the Eurozone’s 2020 GDP growth forecast to 1.4% from 1.5% it estimated earlier, while keeping the 2019 forecast unchanged at 1.2%. The commission views that the near-term outlook for the European economy is clouded by external factors including global trade tensions and significant policy uncertainty. These have continued to weigh on confidence in the manufacturing sector, which is the most exposed to international trade, and are projected to weaken the growth outlook for the remainder of 2019. The commission confirmed that the economic slowdown in the Eurozone during 2019 was mostly caused by weaker growth in Germany, the bloc’s largest economy, and Italy, its third largest.
UK: Retail sales fell in June over Brexit uncertainty
According to the latest retail sales update from the British Retail Consortium (BRC) and KPMG, total sales in UK fell 1.3% yr/yr in June, against an increase of 2.3% in June 2018. This marks the worst June performance on record. Chief Executive of BRC Helen Dickinson attributed the rising real wages have failed to translate into higher spending as ongoing Brexit uncertainty led consumers to put off non-essential purchases. Over the three months to June, in-store sales of non-food products declined 4.3% yr/yr. Nevertheless, online sales of non-food products grew 3.3% yr/yr in June. Fashion performed particularly well thanks to end-of-season sales and upcoming holidays. |
|
|
| North America |
Canada: Central bank holds key interest rate steady at 1.75%
The Bank of Canada kept the benchmark interest rate at 1.75% for a sixth-straight meeting amid the US and Europe have signaled their readiness to provide more accommodative monetary policy to strengthen their economy. This is the highest rate since December 2008. The central bank said in a statement that recent data show the Canadian economy is returning to potential growth. However, the outlook is clouded by persistent trade tensions. Taken together, the degree of accommodation being provided by the current policy interest rate remains appropriate. The Bank now sees Canada’s real GDP growth to average 1.3% in 2019 and about 2% in 2020 and 2021, citing ongoing trade conflicts and competitiveness challenges are dampening the outlook for trade and investment. |
|
|
|
| |
|
| |
|
|
| |
Charming Charlie Holdings Inc., a US-based clothing, jewelry and accessories retailer, has filed for Chapter 11 bankruptcy protection with plans to close all of its 261 stores in 38 states. It is the company’s second bankruptcy filing in less than two years. The company said in a court filing that it faced headwinds given the continuous decline of the brick-and-mortar retail industry. Going-out-of-business sales are already underway and the chain expects to cease all operations by 31 August. |
|
|
| |
|
|
| |
Hong Kong Export Credit Insurance Corporation
2/F, Tower 1, South Seas Centre, 75 Mody Road, Tsim Sha Tsui East, Kowloon, Hong Kong |
| Phone：(852) 2732 9988 Website : www.hkecic.com E-mail : info@hkecic.com |
| If you no longer wish to receive email messages from HKECIC, please click "unsubscribe". |
|
|
|
| |
Copyright © 2019 Hong Kong Export Credit Insurance Corporation |
|
|
|
|
Disclaimer
The information contained in the ‘Weekly Market News’ (WMN) is compiled by the Hong Kong Export Credit Insurance Corporation ("HKECIC") for general information only. Whilst HKECIC endeavours to ensure the accuracy of this general information, no statement, representation, warranty or guarantee, express or implied, is given as to its accuracy or appropriateness for use in any particular circumstances.
HKECIC is not responsible for any loss or damage whatsoever arising out of or in connection with any information including data or programmes on the WMN. HKECIC reserves the right to omit, suspend or edit all information compiled by HKECIC on the WMN at any time in its absolute discretion without giving any reason or prior notice. Users are responsible for making their own assessment of all information contained in this WMN and are advised to verify such information and obtain independent advice before acting upon it.
|
|
