7 Global shares mixed TL Bureau, Tokyo European shares were mostly higher in early trading Thursday after a drop in Asia, AP reported. France's CAC 40 added 0.4% in early trading to 5,242.66, while Germany's DAX rose nearly 0.6% to 11,902.87. Britain's FTSE 100 edged up 0.2% to 7,201.12. U.S. shares were set to drift higher with Dow futures up 0.3% at 25,187. S&P 500 futures were also higher, adding 0.4% to 2,791.40. Japan's benchmark Nikkei 225 dropped 0.3% to finish at 20,942.53. Australia's S&P/ASX
200 slipped 0.7% to 6,392.10. South Korea's Kospi edged up 0.8% to 2,038.80. Hong Kong's Hang Seng was down 0.3% at 27,149.04, while the Shanghai Composite lost 0.3% to 2,905.81. Benchmark U.S. crude added 77 cents to $59.58. It fell 0.6% to settle at $58.81 a barrel Wednesday. Brent crude, the international standard, gained 32 cents to $68.19 per barrel. The dollar rose to 109.74 Japanese yen from 109.31 yen on Wednesday. The euro weakened to $1.1134 from $1.1154.
BUSINESS FSO - Swiss retail trade turnover fell in April 2019 TL Bureau, Neuchâtel Turnover in the retail sector fell by 0.1% in nominal terms in April 2019 compared with the previous year. Seasonally adjusted, nominal turnover rose by 0.4% compared with the previous month. These are provisional findings from the Federal Statistical Office (FSO).
Australian Climate Roundtable renews its commitment to successful action on climate change TL Bureau, Melbourne
union and environment groups represented. The Australian The Australian Climate Climate Roundtable includes Roundtable has met to reaf- the Australian Aluminium firm its commitment to foster Council, the Australian common ground on the vital Conservation Foundation, the issue of climate change and Australian Council of Social energy transition. Members Service, the Australian affirmed the Roundtable’s joint Council of Trade Unions, the principles for climate policy. Australian Energy Council, the They also welcomed the Australian Industry Group, the National Farmers’ Federation Business Council of Australia, to the group – adding the land the Investor Group on Climate sector to the breadth of indus- Change, the National try, business, community, Farmers’ Federation and
Federal Court finds Vocation Ltd (In Liquidation) and its officers made misleading statements to market TL Bureau, Brisbane
The Federal Court of Australia has today delivered judgment in ASIC’s civil penalty proceedings against Vocation Ltd (In Liquidation) and its officers, Mark Hutchinson (former CEO), John Dawkins (former Chairman), and Manvinder Gréwal (former CFO). The proceedings relate to various statements made to the Australian Securities Exchange (ASX) and in documents relating to a fully underwritten placement to institutional and sophisticated investors in September 2014 and a review undertaken by the Victorian Department of Education and Early Childhood Development (DEECD) into two of Vocation's main registered training organisations (RTOs).
WWF-Australia. Our organisations remain concerned about the effects of climate change and agree on the continuing importance to Australia’s prosperity, environment and social cohesion of a fair, just, effective and efficient response to climate change. These are issues for public policy to address over the next three years and beyond. There is no way through this debate other than by finding common ground.
Domestic Demand is Key to Sustaining Growth in China Amid High Uncertainty: World Bank Report TL Bureau, BEIJING China’s economic growth has so far remained resilient in the face of high global uncertainty. GDP growth was 6.4 percent year on year in the fourth quarter of 2018 and in the first quarter of 2019, compared to 6.8 percent in the first half of 2018. Growth is projected at 6.2 percent for 2019 and 6.1 percent for 2020. In an external environment that has become less favorable due to slowing global growth and rising trade tensions, China’s economy will need to rely increasingly on domestic demand to sustain rapid growth, according to Managing Higher Uncertainty, the May 2019 edition of the World Bank’s China Economic Update released today. “In response to the growth moderation and less favorable external conditions, the government introduced a fiscal stimulus emphasizing tax incentives,” said Martin Raiser, World Bank Country Director for China. “While the central government has fiscal space to further increase spending, if necessary, the additional stimulus should be appropriately funded either directly at the central level or through additional fiscal transfers to the provinces. Higher spending on health, education, and social protection could help boost demand and improve the quality of services, if combined with reforms to increase efficiency.” Renewed trade tensions contributed to rising financial market
volatility in early May. Financial asset prices dropped sharply in response to the US announcement of higher tariffs on imports from China. Amid higher market volatility, the People’s Bank of China has maintained a prudent overall monetary policy stance with some targeted easing. Higher bank loans and corporate and government bond issuance led to slightly stronger growth in credit to the non-financial sector in the first four months of 2019. In 2018, lower value-added tax (VAT) rates and import duties, higher export VAT refunds, and slower growth in personal income taxes contributed to a consolidated fiscal deficit of 3.9 percent of GDP. In 2019, new tax and fee reductions and a higher limit for local government on-budget borrowing may lead to a higher consolidated deficit of about 5.9 percent of GDP. Taking into account the expected stimulus, the World Bank baseline projection for GDP growth in 2019 remains unchanged at 6.2 percent. Despite the positive surprise in GDP growth in the first quarter of 2019, net exports are unlikely to provide a sustained boost in the coming months, as new tariffs take effect and global growth slows. The escalation in trade tensions, weaker business confidence, and slower global trade growth, are expected to weigh on investment and exports in 2020, prompting a downward revision to next year’s growth forecast.
IMF Reaches Staff Level Agreement on the First Review of Ecuador’s Economic Program under the Extended Fund Facility TL Bureau, Washington DC End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision. An International Monetary Fund (IMF) team led by Anna Ivanova met with Ecuadorian officials to further discuss the imple-
mentation of Ecuador’s economic program, supported by the IMF under the Extended Fund Facility (EFF). Ms. Anna Ivanova issued the following statement today: “Following productive discussions, the IMF team and the Ecuadorian authorities reached a stafflevel agreement on the completion of the first review under the EFF arrangement. Subject to the approval by the IMF Executive Board, which is expected to consider the review in June, US$250.57 million would be made available to Ecuador. “Ecuador has made considerable progress in implementing its program aligned with the Prosperity Plan, which seeks to boost
competitiveness and job creation, achieve the prosperity of all Ecuadorians, protect the most vulnerable, strengthen the institutional bases of dollarization, and strengthen the fight against corruption. Steadfast implementation of the program will help Ecuador better prepare for handling external shocks such as a potential fall in oil prices, tightening of external financing conditions, weaker global growth, as well as spillovers from the crisis in Venezuela. “Ecuador has taken significant steps in strengthening the fiscal position, which is a key priority to help solidify the institutional foundations of the dollarization system. The authorities share the view
that steadfast commitment to fiscal sustainability remains paramount. Progress on public financial management reforms has been encouraging as well with the recent publication of an action plan aimed at strengthening budget preparation, execution, and cash management practices. “The authorities are committed to strengthening the institutional foundations of the Central Bank (BCE). This reform will help: (i) align the BCE’s objectives and functions with best practices, (ii) strengthen the autonomy of the central bank, and (iii) introduce strong internal and external audit function in the BCE. It will also help strengthen the international reserve position.
