ForexMart's Forex News

Subject: ForexMart's Forex News Thu Jan 18, 2018 7:44 am

UK Inflation Rate Fell to 3% in December

The inflation rate of Britain edged lower for the first time in six months in December, which was driven by the price of airfares and games and toys. The rate went down to 3 percent versus 3.1 percent in November, this is the fastest decline over five years. While the core measure of consumer price growth also decreased to 2.5 percent five-month low.

The British pound lost its strength on the back of the data publication and currently trades at $1.3772 as of 10:37, lower by 0.2 percent on the day. The numbers can be regarded to be the inflection point for the inflation due to impact from Sterling depreciation after the dwindling of 2016 Brexit referendum. The Bank of England along with the economists showed some projections for the possible downturn in 2018 and others predicted that the economy will be at the 2.4 percent level at the end of this year.

The drop recorded in December was mainly influenced by the technical adjustments of airfares within the inflation basket. However, the Office for National Statistics remains uncertain whether this move signaled for the beginning of a longer-term reduction in the rate. On the same month, services inflation plunged to 2.5 percent, which is the lowest in nine months.

The slackening inflation had a positive effect on households, especially those with low incomes as prices continued to rise. Economists polled by Bloomberg foresee some growth improvement in the currently weak household consumption by 2019. But, it will continue to sit below its recent average in both years. While predictions for headline inflations seems cool, but the Bank of England policymakers focused more on the changes in domestic price pressures caused by low unemployment and contraction of supplies. In November 2017, the BoE approved for an interest rate hike for the first time after 10 years and spoken about the further rate hike in the subsequent years.

According to experts, the upward pressure on inflation partially comes from the sluggish productivity growth which hit the British economy since the Great Recession. On the other hand, policymaker Silvana Tenreyro had a positive outlook during her speech on Monday. Tenreyro stated that the economy will grow in the medium term which could reverse the forecast for interest rates.

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Subject: ForexMart's Forex News Tue Jan 23, 2018 10:13 am

Tax Overhaul Supported Increase for US Economy

The U.S economy is expected to expand by 2.7 percent in 2018 due to President Trump’s tax reduction that led to growth, as indicated in the new report by the International Monetary Fund (IMF) on Monday. This further showed positive news in the economy marking a one-year leadership of the president in the White House. However, inequality in the United States remained to be extreme.

The initial forecast of the IMF for the American growth was only 2.3 percent but they decided to increase their predictions following the approval of the comprehensive amendment of the U.S. tax code in the past 30 years.
The significant corporation tax reduction rate from 35 percent to 21 percent will stir up growth in business investments, based on the recent World Economic Outlook quarter report of the IMF.

The United States also gained benefit from the world economic rebound which resulted in additional trade and purchase of some American products. The Washington-based organization mentioned about almost 120 countries that improved in 2017, which can be seen as a synchronized upward shift of economy since 2010. The IMF recently issued a brighter forecast for the US while the Wells Fargo currently projects for a 3 percent growth for this year. However, the IMF warned that the surge appears to be temporary and other organizations, particularly the World Economic Forum coincided with this statement. According to them, the boost is not enough to lessen the inequality issues which shows that top 1 progressed while the income of middle-classes was stagnant for nearly 20 years.

The reduction in the rate of tax is basically predicted to grow this year until 2018 and the increase will soon fade after the budget deficit ramp up and the government is obliged to seek further options either reduce expenditures or raise the revenue. In addition to it, the trade deficit could possibly even grow along with the economic improvement and Americans purchase more overseas products.

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Subject: ForexMart's Forex News Tue Jan 30, 2018 11:23 am

Uncertainty of Brexit: Puts the Top Financial Center at Risk

Trading relations between Britain and European Union is still uncertain, which poses risk to London being the world’s top financial center based on the business survey on Monday.

There was a slowed growth in the financial sector based on the quarterly survey from business lobby CBI and consultants PwC for the three succeeding quarters in the last three months of the year. For two year, the flat trend or a decline phase has been prominent in the period of two years, although, the general transaction was steady as a whole.

Majority of the businesses are looking for certainty in Britain regarding its trade relations in the future, based on the survey done. A CBI Chief Economist, Rain Newton-Smith, said that clarity is needed to gain back business confidence which would dictate on the good opportunities against the bad ones as “consequences of failure”.

On Monday, it is anticipated for the European Union to approve criteria on negotiations as a transition period of Brexit until March 2019 that includes new trading rules.

The head of financial services at PwC, Andrew Kail, said that the transition period will probably take place but the financial sector needs to prepare to function outside the bloc.

They needed to have a counter measure to sustain its trading status and business model.

Other cities such as Luxembourg, Paris, and Frankfurt Dublin are attempting to gain financial services from London to proceed with their transactions with EU customers after Brexit. Paris could surpass London as the leading financial center in few years time, according to the French Finance Minister, Bruno Le Maire, a statement on Reuters.

Gains from financial companies proceeds to grow in the final quarter of 2017, which is also anticipated to be similar the first three months of the year, based on the recent survey.

When it comes to the workforce, eighteen percent comes from the eurozone, which increased from 8 percent ten years ago. The municipal officials for the capital’s “Square Mile” financial district, a report says that almost one for every five workers in 2016 was from a European country, which has been the highest figure recorded so far. Meanwhile, around 59 percent of employees came from outside of Europe.

Another survey shows 54 percent out of 02 companies wanted to make it simpler to attract more workers for Britain’s financial technology or fintech sector.

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Subject: Economic News Wed Feb 07, 2018 10:49 am

Canadian Free Trade Slow Down its Economy

The Canadian economy had an unfavorable situation in the previous year. The trade data was published yesterday that shows a continuous decline in growth and tried hard to gain profits outside the energy sector despite the positive exchange rate and the demand in exports of US non-energy products reduced in terms of volumes. Also, any recorded growth over the past decades was mainly driven by higher prices.

The inactivity of the past years is considered an enigma for policymakers which may question Canada’s ability to maintain its growth rate followed by the fastest 3 percent expansion in 2017 over six years. Bank of Montreal Economist Benjamin Reitzes mentioned that the country’s current trade environment remains fragile due to the sluggishness of non-commodity exports. Canadians desire is to become “perennial optimists” of international trading amid uncertainties arises regarding advantages of open economies.

According to Prime Minister Justin Trudeau, trade is the main factor for economic growth, making his Liberal Party lawmakers advocates to preserve the North American Free Trade Agreement (NAFTA), which is currently in the seventh round of talks.

The trade performance of the country was dull except for oil and its non-energy trade deficit increased by $8.64 billion (US$6.9 billion) in December and $87 billion for the entire year. Generally, the number of export volumes including oil failed to sustain along with the imports which would mean trade industry was largely driven by the excellent economic performance last year thanks to domestic demand. With this, the Bank of Canada may delay the interest rate hike while evaluating the overall economic condition.

The not so strong non-energy trade indicates that Canada is highly dependent on oil in order to keep its trade balance from falling, even though Trudeau strives to turn around from commodities. Moreover, energy exports came in at 17 percent in 2017 and move higher by 14 percent in the beginning of the year.

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Subject: Economic News Tue Feb 13, 2018 11:15 am

More Pressure Besets Chinese Local Government with New Bond Rules

Local governments of Beijing were pressured to settle their financial problems while a new rule on are issued on lending companies.

Chinese firms have to confirm publicly that funds gained in selling bonds should not add to local government debt and they are not siding on any government financing sector based on the given notice from the country’s top planning agency.

Moreover, corporations should not demand or accept any assurance from local governments on debt financing, as stated by the National Development and Reform Commission (NDRC).

Regulators are looking for means to have a better control in the midst of a wider systemic risk on the high local government debt and their transparent financing.

Authorities are trying to separate financial actions as part of their restriction, which is often related to stand-alone companies in a technical perspective. In particular, credit rating agencies should not associate the financial reports and project data in credit ratings work with the local government credit ratings, according to the NDRC.

The Chinese government is trying to instill on investors that actions will be taken if they did wrongfully.

It means that the government is not responsible on increase in debts by these firms but they are still expected to intercept to provide support for these companies, referred as local government financing vehicles (LGFV) in settling compensation concerns.

The local debt of China’s government increased by 7.5 percent to 16.47 trillion yuan or $2.56 trillion at the end of 2017, based on the calculations by Reuters, which is still within the target figure of the government.

Outstanding corporate debt amounted to 165 percent of GDP, which has been the highest among major economies and is mostly owned by the state.

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Subject: Economic News Mon Feb 19, 2018 11:14 am

France Faces Structural Unemployment Issues

The jobless rate in France had decline generally, but there are no immediate solutions for skill shortages. French unemployment lowered down by double figures during the third quarter last year and resumed to drop until the fourth quarter. According to Bloomberg, the country’s unemployment rate in December 2017 was 8.9 percent while the fastest acceleration in employment creation since 1996. On the other hand, unemployment in 2017 plunge to 1.9 percent which is a major downturn in a decade.

Meanwhile, President Emmanuel Macron promised to lessen the unemployment by 7 percent in the year 2022. Structural unemployment is also one of the largest shortcomings during the Hollande administration in which Macron performed as the Minister of the Economy.

Nevertheless, France is also known for its issue regarding the country’s increasing skills gap. As mentioned by the Financial Times, there are about two million French workers with less qualification which became the underlying factor for structural unemployment. According to estimates, the job market of France was unable to appease the demand of 200,000- to-330,000 posts due to failure finding the appropriate candidate.

Moreover, the current administration plans to have a €15bn investment programme to improve employability skills especially for the below average job seekers and long-term unemployed. In case of the approval of the project, it will take two-to-three years to take effect.

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Subject: Economic News Fri Feb 23, 2018 7:55 am

South Korea’s BOK Prepares for Possible Scenario In Sudden Fed Rate Hikes

The Bank of Korea is ready to face any unfavorable outcome following the policy tightening in the U.S. at a faster rate, according to the chief of South Korea’s central bank, Lee Ju-yeol.

If the Fed acted earlier than expected, it will have an effect on the global financial market, as well as local market. Hence, they prepared beforehand in possible scenarios, as told by Lee Ju-yeol to reporters in Zurich.

He also said that the central anticipated the U.S. Federal Reserve to increase their rate thrice in 2018.

Another factor that will be faced by Korea is the protectionist moves of the U.S. against South Korea, he added.

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Subject: Economic News Tue Feb 27, 2018 1:21 pm

Fall of Taiwan’s Export Orders Growth In January

Export orders of Taiwan are predicted to reach an 18th consecutive month high in January but at a slower pace compared in December. Moreover, the demand for the technology products remains strong for the country, according to the Reuters poll.

The forecast rose to 16.1 percent in January than the previous year, based on the median forecast of 15 analysts in the survey. Contrarily, growth for the month of December was 17.5 percent than 11.6 percent in November.

The export orders of the country signal the demand for Asian exports, including high-technology gadgets, that steers actual exports by two to three months.

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Subject: Economic News Wed Feb 28, 2018 5:47 am

Fed’s Tighter Policy Risk in Higher Rates

More demand for safe-haven assets and low productivity growth induce the Federal Reserve to keep their rates low, according to the St. Louis Federal Reserve President, James Bullard, on Monday.

If the Federal Reserve will proceed with the rate hikes, a tighter policy would be ideal for the current economy. The goal of the federal funds would be around 1.25 and 1.5 percent and current rates still fall between this range as recommended with following a neutral rate that is kept at bay by various factors moving at a slower pace.

If rates have substantially increased without changes in the data, monetary policies would then become restrictive. There is a worry that the FOMC might go on “too fast”, added by Bullard. There must be support from the data to continue with the rate hike.

The Federal Open Market Committee is anticipated to increase its interest rates in March meeting at least twice a year, in reference to the latest December forecast of policymakers.

Bullard is known to be the most cautious among Fed officials when talking about rate hikes while the U.S. is deemed to have a low growth following a low-inflation policy and the rate should not be too high unlike there are clear indications that the economy has changed.

The term “neutral” was discussed during the National Association of Business Economists conference following the remarks of Bullard denoting that the monetary policy is a way to determine the positivity and negativity of economic activity.

Vague as it may be, the neutral rate is sufficient for the Fed in gauging the policy rates. Authorities see the present policy rates have to continue its accommodative monetary policies while inflation is still under composure.

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Subject: Economic News Thu Mar 08, 2018 7:32 am

PBOC’s Lent 105.5 B Yuan in Rollover of MLF Due in March

The People's’ Bank of China lent 105.5 billion yuan or $16.67 billion to various banks on Wednesday under its medium-term lending facility for a year, according to released reports.

The new MLF loans have a similar rollover value in the 1-year batch of MLFs that are due on the same day. Adding 189.5 billion in the same tenor to be expired on March 16.

Moreover, the central bank added that they will avoid reverse repos on Wednesday morning.

On December 14 last year, the PBOC augmented their interest rates on liquidity tools to 3.25 percent, as well as, the one-year MLF.

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Subject: Economic News Fri Mar 09, 2018 11:27 am

The Release of Government's EU Exit Analysis

The EU free trade agreements still expected to cost the UK by 4.8 percent of its projected economic growth for the next 15 years, based on the confidential government ‘EU exit analysis’ released yesterday. The decline in growth amounted to £55 billion of the British government debt by 2033, which could further negate the expected ‘Brexit dividend’ by the supporters of the EU exit. The report was issued by the department of Exiting the EU committee. Moreover, Brexit Secretary David Davis stated that the published document should be kept confidential but some parts of the material were already leaked to the media last month.

The alternative option led by Theresa May’s team is the “Membership of the single market” but was ruled out due to the possible drop in GDP by 1.6 percent. On one hand, the ‘no deal’ Brexit would return the UK trading with the EU-27 under the standards of the World Trade Organisation and would cost 7.7 percent of the GDP based on the government numbers. This could result in a surge of government borrowing by £20 billion and £80 billion, respectively. With this, there are assumptions that approximately 40,000 to 90,000 EU migrants are planning to leave the United Kingdom.

Included in the analysis is the projected economic benefits from the reducing regulations. The government of Britain would likely create its original version of impact assessment, however, some of the think tanks are expected to see potential gains around zero and 2 percent only of the GDP. Nevertheless, the report does not mainly evaluate the short-term economic effect of Brexit.

It further shows that the free trade deal with the United States would benefit the UK GDP by 0.2 percent in the longer term. While another concession with countries under the trans-Pacific and south-east Asia regional group such as Australia, China, India and New Zealand is expected to add 0.1 to 0.4 percent of GDP. Ministers of Britain are hoping to start the talks prior to the Brexit scheduled in March 2019, but this plan seems to be already abandoned.

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Subject: Economic News Thu Mar 22, 2018 9:40 am

March Fed Rate Hike Marks an Optimistic Outlook for 2018
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Subject: Daily Market Analysis from ForexMart Wed May 16, 2018 9:50 am

French Economic Growth at 0.3% in Q2, says BOF

The French economy is projected to expand by 0.3 percent during the period of April-June, this showed unchanged growth pace in the first quarter, according to the initial estimate of the Bank of France on Monday.

The central bank’s business sentiment indicators for both services industry and manufacturing sector had declined by 102 points in the previous month versus 103 points in March. In April, the BOF revised lower its economic growth forecast in Q1 from 0.4 to 0.3 percent due to lackluster activity in the manufacturing industry.

The country’s data reflects a larger reduction in the European economy, as ECB Executive Board member Benoit Coeure mentioned last month that the eurozone is expected to suffer from major correction instead of a downturn as growth rates hold out its multi-year highs.

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Subject: Economic News Tue May 22, 2018 9:42 am

German’s Strong Economic Upswing Despite Weak Growth in Q1, says Finance Ministry

Germany’s economy had a strong growth amid weak data from the largest economy in Europe earlier in 2018, according to the finance ministry on Tuesday. Moreover, economic output expanded by 0.3 percent in Q1 after the 0.6 percent growth in the last quarter of 2017. The finance ministry also mentioned that the downturn was caused by temporary factors such as ill-health conditions and strikes that affect industrial output alongside the above-average number of public holidays during the quarter.

In addition to it, the ministry stated that industrial orders continued to be at an extremely high level and that export activity at German companies could take advantage of the strong development of the world economy.

Reportedly, the combination of moderate inflation, agreed raise in pensions, robust labor market and wage hikes led to the possible solid income development and continuous support in private consumption. The government of Germany believes that the economy will grow by 2.3 percent this year.

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Subject: ForexMart's Forex News Wed Jun 06, 2018 10:37 am

Sluggish Growth of Japan Services Sector in May, New Orders Declined

Japan’s services sector activity rose at a sluggish pace in May than the previous month given the expansion of new orders at the slowest pace since September 2016, based on the private survey on Tuesday. This implies that the economy has lost its momentum in the second quarter.

However, the business confidence increased to the highest for four months in April as the companies launch new products to give way for the expected increases in the future demand.

The Markit/Nikkei Japan Services Purchasing Managers Index (PMI) declined on a seasonally adjusted basis to 51.0 in May from 52.5 in April.

Moreover, there is a rising concern on the lesser demand conditions as new sales rising but at a subdued rate in 20 months, according to an economist at IHS Markit, Joe Hayes, who gathers the survey.

To sustain the business activity, firms started to clear the “backlogs of work”. High business activities dropped for the first time in the first five months of the year.

The composite PMI, which includes both manufacturing and services, decreased to 51.7 from 53.1 in April.

Japanese manufacturing activity rose in May at the slowest rate in seven months due to cooled down new orders based on the revised survey on Friday. This implies lesser domestic demand of the country. Hence, the economy weakened in the first quarter that ends the growth for eight consecutive quarters, which was the longest steady growth since the 1980s bubble economy.

Since the end of the first quarter, the negative outcome on factory data induced uncertainty on the rate of recovery by the economy.

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Subject: Economic News Wed Jun 20, 2018 8:56 am

SNB Keeps an Ultra Loose Monetary Policies

The Swiss National Bank announced the decision to maintain an ultra-loose monetary policy on Thursday and analysts expectations matched from the survey by Reuters giving a unanimous answer.

They reiterated the fragility or exchange rates after the strengthening of the Swiss franc in the past few weeks and began low this year.

At the same time, Chairman Thomas Jordan said that it would be too early to raise rates in Switzerland amid low inflation.

Another issue is the political uncertainty in Italy which will affect the eurozone in the future and it is important for the central bank to be heedful in this situation, according to an analyst.
Forty experts expect the SNB to maintain the target range to be 1.25 percent to minus 0.25 percent in three months on the offered rate of London Interbank, which has been the ongoing target for the past three-and-a-half years.

Also, they expect a negative interest rate of 0.75 percent deposits to be sustained where the commercial bank held a certain value as one of the important tools used by the bank.

Changes in the LIBOR target range is anticipated to happen soonest at the end of the year based on the UBS, while the median consensus deems to set at the end of next year.

Analyst of Credit Suisse initially thought the central bank to raise their rates as early as 2019 based on the economic strength of Switzerland, with a forecast growth of 2.2 percent this year.

The Global Head of Investment Strategy & Research at Credit Suisse Group AG, Nannette Hechler-Fayd’herbe said, “Our base case scenario is where the ECB is considering a first interest rate increase themselves by mid-2019, and the SNB could move a quarter before.” Connoting the reaffirmation of central bank’s decision. However, she added that these two would move together as they are ‘economically interlinked’.

Her expectation is a gradual increase of rates until it reached around 1.20 against the euro in a year.

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Subject: Economic News Thu Jun 28, 2018 8:36 am

NZ’s Negative Outlook on Business Confidence

The business confidence survey of New Zealand signifies a slowdown in the economy that could lead to the possibility for the RBNZ to reduce the official cash rate.

Reserve Bank Governor Adrian Orr is anticipated to maintain the OCR at 1.75 percent at tomorrow’s review. Yet today, the ANZ Business Outlook reported a drop in the confidence level back to the post-election lows. It added more doubt to the growth outlook, as well as, the course of interest rates.

There are various possible reasons that induce the decline in confidence, including uncertainty of the policies in the new government, global trade fiction and effect of Mycoplasma Bovis cattle disease.

The ASB anticipates slow progress in business confidence in the upcoming months, given the ubiquitous support to the NZ economy.

Yet, the longer business confidence continues to be low and more questions will be raised in the economic outlook. "An OCR cut cannot be ruled out if this persists.", they added.

The New Zealand kiwi decline based on the survey results about the low growth situation.
Firms surveyed on their expectations on business condition representing 39% of businesses in total believe to have a gloomy outlook in the next 12 months, as told by the ANZ Senior Economist, Liz Kendall.

Since June of 2017, business confidence is headed for a downturn given strong “headwind” of the economy, she added.

She described it as “expansionary” amid the steadfast consumer confidence giving support but the economy may continue to gently lose steam in the next months despite being substantiated by fiscal stimulus and high commodity prices.

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Subject: Economic News Fri Jun 29, 2018 9:53 am

Japan’s Industrial Output Dropped by 0.2% in May

Japan’s industrial output declined by 0.2 percent in May compared to the previous month, which is the first drop in four months, based on the government report on Friday.

The factory output was 104.4 in the seasonally adjusted index against the total of 100 in 2010, as reported by the Ministry of Economy, Trade, and Industry. Previously, the recorded data was 0.5 percent increase in April.

Forecast of the ministry on the industrial production remains slow.

Industrial shipments dropped to 101.4 by 1.6 percent compared to the increased inventories to 113.5 by 0.6 percent.

Manufacturer’s expected outcome is gaining 0.4 percent in June and 0.8 percent in July, as shown on the survey by the ministry.

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Subject: ForexMart's Forex News Wed Jul 04, 2018 6:22 am

South Korea’s Exports Declined in June

Exports from South Korea had fallen in June following a strong rebound in May amid issues on trade wars between Trump administration and China. While other major economies may weaken the Korean economy since it was dependent on trade.

Foreign shipments in June had declined to 0.1% versus the previous year to $51.23 billion, followed by a surge to 13.2% in the month ahead, based on the initial data released by the trade ministry on Sunday. The latest forecast showed a lower-than-median outlook for 1.5% drop. On the other hand, imports for June increased by 10.7% a year earlier to $44.91 billion, after the 12.7% growth in the past month.

The trade surplus tightened to $6.32 billion in June versus $6.55 billion a month earlier, while the median forecast showed $5.10 billion. The trade ministry partly blamed the sluggish June trade figures to lesser working days after the local elections this year and also mentioned that the rise in exports on the same month last year was because of the large shipbuilding contracts that offered a higher base for comparison and altered the data.

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Subject: Re: ForexMart's Forex News Thu Jul 12, 2018 10:04 am

India Becomes 6th Largest Economy and Beat France

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The World Bank issued the updated economic figures for previous year which showed that India held the sixth rank for the world’s largest economy and pushed France lower into the seventh spot. The gross domestic product (GDP) of India reached $2.597 trillion at the end of 2017 while France’s GDP amounted to $2.582 trillion.

The Indian economy had a strong rebound since July last year following the declines in the past quarters due to economic policies imposed by the Prime Minister Narendra Modi's administration. There are about 1.34 billion Indian citizens which would likely make India the world’s highest population against 67 million French inhabitants. This explains that India’s per capita GDP remains a portion of France which is approximately 20 times higher according to the World Bank.

The consumer and manufacturing expenditure served as the main drivers for India’s economy in 2017 after Modi’s demonetization program of large banknotes way back in 2016 as well as the unorganized new tax system of the country.

India was able to double its GDP in a span of a decade and anticipated to power ahead as Asia’s economic engine as China wind down. The International Monetary Fund stated that India is predicted to grow by 7.4 percent in the current year and 7.8 percent in 2019, supported by tax reform and household spending. This was compared to the world’s forecast average expansion of 3.9 percent.

The Centre for Economics and Business Research mentioned that India would likely beat the GDP of France and the United Kingdom at the end of 2017. The London-based consultancy further told that there is a modest chance for the Indian economy hit the third place for the world’s largest economy by 2032.

Last year, Britain was regarded to be the fifth biggest economy in the world with a GDP worth $2.622 trillion. Meanwhile, the United States hailed as the number one economy followed by China, Japan, and Germany.

Subject: Re: ForexMart's Forex News Fri Jul 13, 2018 9:49 am

Irish Economy to Reach Highest Growth in 2018

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The economy of Ireland is projected to reach its highest record in 2018 based on the latest outlook of the European Commission. Ireland’s gross domestic product (GDP) is projected to expand by 5.6 percent this year and 4 percent in 2018, supported mainly by domestic demand.

Meanwhile, the estimate of the EU executive shows that eurozone GDP has the potential to increase by 2.1 percent, which is below the 2.3 percent forecast according to its May report.

Since Ireland is a very open economy, the country is potential to have revisions in the international taxation and trade environment. While the activities of multinational corporations could affect the headline GDP growth. In the near term, the commission expects that the domestic economic activity could possibly grow at a strong momentum.

In general, the commission reduced its predictions for the EU economic growth for this year because of trade adjustments due to increasing oil prices and tensions with the United States which drove the EU inflation higher.
There is an optimistic outlook for the whole year despite better trade with the United States. Forecasts were mostly taken prior to the United States raising their stakes through 10 percent tariffs on an extra $200 billion worth of Chinese imports, announced on Tuesday.

The worsening trade war has added uncertainty on the outlook that also affected the Chinese financial markets in the past few weeks.

With sluggish credit expansion and domestic demand ranging from government-funded infrastructure investment to consumer spending, China’s economy seems to be showing signs of struggle and weakening.

The huge export sector may add impact on tariffs with the U.S. giving 25 percent tariffs on $34 billion of Chinese imports on Friday, which then triggered Beijing for rapid retaliatory measures on the same amount of U.S. Chinese exports to China.

Moreover, the uncertainty caused by trade war pushed the corporate borrowing costs higher in reaction to soften the economic effect of a multi-year easing on riskier lending. More cash were accumulated through lesser reserve requirements for lenders three times this year.

Subject: Re: ForexMart's Forex News Tue Jul 17, 2018 5:32 am

Drop in Inflation Rate of Malaysia

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The Annual inflation rate of Malaysia declined to 1.3 percent in June from 1.8 percent the month earlier due to the withdrawal of a goods and services tax based on the poll by Reuters.

A survey of ten analysts by Reuters forecast for June ranged from 0.6 percent to 1.9 percent. The central bank of Malaysia kept the interest rates at 3.25 percent at a policy meeting on July 11 despite sluggish inflation and steady growth.

The new government by Prime Minister Mahathir Mohamad starting May 9 general election abolished the consumption tax of 6 percent on June 1, which was implemented for three years.

According to economists, the elimination of goods and services tax affect the inflation and pushed it lower in June, despite the higher cost of transportation and food during the month of fasting in Ramadan and subsequent Eid al-Fitr celebrations.

Subject: Re: ForexMart's Forex News Tue Jul 17, 2018 10:53 am

South Korea to Unite with Asean and India

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The 1950-53 Korean War ended under the Presidency of South Korean leader Moon Jae-in and successfully settled regional programs for economic, political, security, social and cultural. While the previous presidents including Kim Dae-Jung, Roh Moo-hyun, Lee Myung-bak and Park Geun-Hye attempted to fix similar issues but failed to do so.

Whenever the country’s leaders turned their attention to Southeast and South Asia, problems will always come up within the Northeast especially in the Korean Peninsula, which causes immediate distraction and inconsistency.

However, President Moon tried a new method instead of using the same strategy, he positioned South Korea within the ongoing alliance with the Indo-Pacific region. Mr. Moon travels within and outside the country and promised to take a visit on Asean nations on the first two years of his leadership.

Subject: Re: ForexMart's Forex News Wed Jul 18, 2018 9:47 am

Weak Income Growth In UK Despite High Employment

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Income growth in Britain showed down at its weakest rate in six months despite positive figures in record employment. This further adds concerns whether interest rates will be raised since the global financial crisis.

Average weekly earnings grew by 2.5 percent on the year between the period of March and May at a lesser rate with 2.6 percent at three months earlier which was the lowest since September last year based on the report by the Office of National Statistics.

Momentum picks up in the British economy after a sluggish first three months of the year due to heavy snow downfall and the central bank is considering being affected by the speed limit that would begin to raise the inflation rate.

The BoE Governor Mark Carney mentioned that the economy as a whole, as well as, the pay is rising similar to the forecast in May that paves the way for a rate hike in August.

Yet, a central bank deputy said that rising figure did not exceed the recent values of .5-3.0 percent range with the purpose of 3 percent growth rate by the end of the year.

Also, according to him, there have been multiple ‘false dawns’ regarding the growth rate of the income where there could still be a spare storage in the labor market than the initial estimate of the central bank.

There is also another record employment rate and the number of job openings has also reached a record new. Thus, it can be said the labor market is progressing steadfastly based on the reports, as described by the ONS statistician Matt Hughes.

Subject: Re: ForexMart's Forex News Thu Jul 19, 2018 10:12 am

NZ Economy Driven by Rural-Based Firms

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The provincial economies of New Zealand were able to drive economic growth, reinforcing the price recovery in the dairy products as mentioned by Infometrics chief forecast Gareth Kiernan on Wednesday. The regional spending activity was able to improve faster than the activity in the main centers. While prices for exports commodity remained at high levels.

Moreover, the government’s simulatory fiscal policy also ease down the decline. Prior to the approval of the May Budget, the NZ expenditure options was restrained by the said policy which includes fees-free courses in tertiary education as well as the Families Package.

Forecasts from the Treasury shows surplus growth by $7.3billion in 2022, with an expected increase in government revenue and the administration projected for a further boost in spending while keeping its records written.

On the other hand, the lack of workers (skilled and unskilled) continue to hold back the NZ economic growth. Wage inflation expanded in the previous quarter and was able to trigger price pressure across the board for the next few years.

In the provincial areas, issues about the lack of labor and effects of Mycoplasma bovis are the most critical problem in the main centers, as the world economy would likely weaken because of the trade dispute between the US and China.

Low business reliance indicates that those companies who are domestically-centered were uncertain to hire or invest. Meanwhile, households were careful on their expenses due to higher oil prices and sluggish housing market.

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