Please see below selected recent intelligence about Asia Pacific. Please contact Dominic Kelleher with any questions.
- The Financial Times published an FT Focus - Asia special edition.
- According to BankofAmericaMerrilLynch, for Asia Pacific’s most influential CFOs, 2015 will be a year of growth but will require a heightened level of courage, commitment and care to deliver on expectations. Change will be inevitable. Challenges will be multi-faceted. Risk and market volatility will remain a reality. But with an actively managed finance strategy and a clear understanding of the diverse headwinds, opportunities will materialise. These are some of the projections of Asia Pacific’s leading CFOs.
- integrAsian, a new Economist Intelligence Unit study, sponsored by ANZ Banking Group, looked at how trade and investment ties between Asian economies are evolving, and the opportunities as well as risks this process is creating for the private sector. This report is based on a survey of senior executives at 525 companies in Australia, China, Hong Kong, India, Indonesia, Singapore and Taiwan, as well as interviews with business leaders and experts. It also examines how growing integration affects the business strategies of firms in the region through profiles of companies in three industries: information technology, consumer electronics and energy.
- KPMG Australia announced a record 51 new partners and executive directors. The breakdown by line of service is as follows: Advisory 50% (dominated by management consulting and deal advisory); Private Enterprise 18%; Tax 18%; Audit 10% and Shared Services 4%.
- A stronger-than-expected jump in mining exports helped Australia’s economy to expand by 2.3% in the first quarter compared with the same three months last year. Joe Hockey, the Treasurer, said the figures reflected the “deep resilience” of the economy. But with consumer spending still weak, the Reserve Bank of Australia erred on the side of caution and kept interest rates on hold at a record low of 2%.
- China will increase support for cross-border e-commerce as the world's second-largest economy shifts from manufacturing to higher-value services, the government said. China's e-commerce industry has been booming in recent years, with companies like Alibaba Group Holding Ltd and JD.com Inc benefiting from a rising middle class with more disposable income. The government released policy guidelines that include tax policies aimed at boosting domestic consumption and pilot projects to ease overseas payments, according to a statement posted on the central government's website www.gov.cn.
- According to Eurasia Group, China’s leadership is undertaking an historic reform agenda, seeking to overhaul political and corporate governance in order to shift toward more sustainable growth. To facilitate this process, senior leaders will work to strengthen their internal standing within the government and to bolster popular legitimacy by demonstrating progress on issues such as the environment and income inequality.
- China aimed to pledge a multi-billion dollar investment in Europe’s new infrastructure fund at a summit in late June in Brussels, Reuters reported. The exact sum has yet to be decided. In return for the investment in Europe, China is expected to ask Europe to invest in its revival of the Silk Road. The “One Belt, One Road” initiative is expected to build energy and communications links such as railways, highways, oil and gas pipelines, power grids, Internet networks, maritime and other infrastructure links across Central, West and South Asia to as far as Greece.
- The Economist Intelligence Unit now expects the Chinese economy to grow by 6.8% in 2015, as rising incomes support household spending growth but as slowing growth in investment - especially in property- holds back the pace of expansion. falling global oil prices and excess local industrial capacity will cause average consumer price inflation to slow to 1.2% in 2015, from 2.1% in 2014. The renminbi is expected to weaken against the US dollar in 2015, depreciating on an annual average basis for the first time since 1994.
- Japan’s economy grew in the first quarter at a much faster rate than had been thought. A revised estimate found that GDP expanded by 3.9% at an annualised rate, up from the 2.4% that was first reported last month. Inventories remained very high, prompting more warnings about a possible oversupply of goods in the economy, but the upward revision also reflected a surge in business investment.
- Deloitte appointed its first Asia Pacific leader to come from Japan. Yoichiro Ogawa, who has a 30-year career with Deloitte Japan, will serve a four-year term. In his role, Ogawa will be responsible for driving market leadership and quality across the region, strengthening the firm's brand and client services and identifying further growth opportunities while working with member firm leaders to enhance bonds and collaboration. In addition to the Asia Pacific regional leadership role, Ogawa will also become the Deloitte global managing director of regions and will serve as a member of the network's executive and operating committees. Ogawa's appointment is part of the new leadership team set up by Punit Renjen, Deloitte's global chief executive as of 1 June 2015.