Thread: Company News by ForexMart

Central Bank of Denmark Probable Membership in E.U. Banking Union
The central bank of Denmark has taken into account on a positive note its participation to the European Union's banking union. The government has decided to launch a review according to the central bank on Tuesday.

This is a significant step from the country as the focus which would be the could lead to a final decision when the Brexit has already been concluded come autumn of 2019. At the same time, this would help the Nordic country in consideration as the financial center.


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Oil Recovered As Bonds Progressed

Oil improved after a sharp decline and both of the European stocks and bonds were in the red on Thursday as the market awaits for the ECB minutes. This would determine the next actions of the central bank. Although, the Fed Reserve showed mixed signals on Wednesday. Bond yields climbed higher again as the benchmark of U.S. Treasuries rose more than 2.34 percent which increased the global borrowing rates.

The market was caught in between the ambiguous results from FOMC minutes and the U.S. employment statistics on Friday. The beginning of G20 summit has been the center of attention after the long-range missile test this week launched by the North Korea.


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Qatar Stays Strong With $340 billion Reserves in QCB

Qatar holds reserves worth $340 billion that could prop up the country despite being secluded by its powerful Arab neighbors according to its central bank governor Sheikh Abdullah Bin Saoud al-Thani. He has confidently said that they could weather shocks with their sufficient reserves. In particular, the central bank has $40 billion reserves including gold and Qatar’s Investment Authority sovereign wealth fund keeps $300 billion in reserves that can be utilized for liquidation.

Qatari stocks have declined and its currency has volatility in trading the spot market when neighboring countries including Saudi Arabia, Bahrain, Egypt and the United Arab Emirates cut its diplomatic ties with the country as it was accused of fostering terrorism. However, Doha repudiated this recrimination.

Although there have been outflows from foreign investors, these did not have much of an effect. The strength of the Qatari riyal is highly dependent on the U.S. dollar which is anticipated to continue as he said. Also, the long-term contracts for the gas and oil sectors were not disrupted. Moody’s rating adjusted its outlook of Qatar’s credit rating back to stable following its negative rating but there are still risks from the political dispute with other Arab countries. Nevertheless, the country has taken some countermeasures to face the crisis.


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Emerging Markets and Bonds Selloff Continues The U.S. dollar against the Japanese yen reached a four-month high while both the bonds and the emerging market currencies are under pressure once again on Tuesday. There are looking for higher interest rates in expanding number of major economies.
There are higher expectations as the MSCI world index is steadily progressing as it rose for a third day although it declined after the Europe stock market dropped. This staggered as the bonds yields from euro zone continued its uptrend in March but halted on Monday as the market turned its attention to the monetary tightening of large economies globally.
The Federal Reserve aims to adjust the large collection of bonds to ease the financial crises where speeches were given on Wednesday while the both the ECB and BoE officials are scheduled to talk on Tuesday. They are divided on whether to proceed with a rate hike yet the overnight index swaps market are priced high and 80 percent probability for a second rate hike by the end of the year.


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Argentina’s National Index Rose 1.2 percent in June

In Argentina, consumer prices climbed to 1.2 percent for the month of June according to the national statistics agency NDEC on Tuesday, which is the first time the country has published a national index since the start of President’s Macri office. This is regarded as a “milestone” to rebuild the credibility of the country’s official statistics following the accusation of statistical manipulation. The IMF has lifted its disapproval to the statistics agency.

Previously, the inflation in the greater Buenos Aires area was 1.4 percent in June and 21.9 percent in the past year. Come the first six months of the year, the consumer price increase by 11.8 percent countywide and 12 percent in the area.

The central bank stated that the national index will now be the basis for monetary policy and kept its benchmark interest rate at 26.25 percent on Tuesday but still maintain the inflation target within the 12 to 17 percent. Economists forecast of national inflation will be at 21.5 percent this year.


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Yellen Assessed US Economy Growth Target

Fed Chair Janet Yellen said on Thursday that the 3 percent target of the current administration of Trump is “quite challenging” to cope with.

US President Donald Trump pledged during his campaign in 2016 to improve the economic growth by 4 percent, however, the officials trimmed it down to 3 percent and claimed that it might take some time to complete.

Moreover, Yellen mentioned that is "very disappointing," and gave a forewarning that the potential growth of the American economy is now lowered to 2 percent. The chairwoman was asked if it's still possible for the country to gain its three percent goal in the next five years and she answered, "I think it would be quite challenging."

She further stated that higher growth rate requires a great increase in productivity growth which is currently at 0.5 percent, hence, an extreme surge is needed to accelerate and at least few points are regarded as significant.

During the second day of her semi-annual testimony, she said to the Senate Banking Committee that the 3 percent expansion would be wonderful and she’d love to witness it.

The incumbent Chair of the Board is scheduled to end her term on February 3, 2018, if President Trump did not reappoint her for another 4-year term.

Yellen also underlined the things that hamper productivity growth which is related to the dilemma of company reports about looking for qualified laborer, emphasizing the urgency to focus on training worker and further education.


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You can register for the next competition which will take place from July 24, 2017 to July 28, 2017
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UK Economy Slowed Down As Consumer Spending Decline

The British economy is expected to slow down this year, following its slowest pace since 2012 considering the fact that the citizens of Britain had cut back due to increasing inflation, based on the latest predictions that could wreak an impact towards consumer spending.
The annual GDP growth is projected to decline by 1.5 percent this year and 1.4 percent next year because of the stumbling demand shown on the forecasts of accountants PwC.

The growing cost of day-to-day products dropped as 2017 started on the back of strong expenditure that mold the economy into a much better shape during the end of 2016 compared with the outlook of well-known economist for the aftermath of the Brexit referendum.

Nevertheless, the effects of the sharp downturn in the pound value after the EU exit triggered for the inflation surge which is 0.5 percent only in June 2016 through 2.9 percent in May. The most recent inflation data will be issued this morning as the PwC projected that it will keep on the average of 2.9 percent up to 2018.

According to the new forecast, the growth for private expenditure fell to 1.5 percent which is a significant downward revision made by PwC during earlier estimates on March that expects 2 percent consumption growth.

The Office for National Statistics said that the consumption expenditure gained 1.7 percent growth in 2016.


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ECB Expected to Hold Interest Rates on Thursday

The head of European Central Bank (ECB), Mario Draghi is possible to make a soft step since the ECB give way for stopping the monetary stimulus efforts on Thursday.

Experts assumed it will almost certainly happen that the bank will begin to trim down its €60 billion (US$69 billion) worth of monthly bond purchases, following the initial termination schedule in December. However, they are not expectant that Draghi will provide the blueprint for the exit during the news conference on Thursday.

The central bank is predicted to maintain its interest benchmark at zero and further clarification on the timeline for stimulus withdrawal is anticipated at the meeting on September 7.

Moreover, the markets had an intense reaction, sending support for the single European currency to move higher and reached US$1.15 initially since May last year while the bond prices decline. This quick decision reflects that there are still some market players that remains not yet ready for the stimulus to end. For this played a major role in buoying the economy of the eurozone through controlling the interest rates.

The market reaction triggered the “taper tantrum” which is accompanied by a speech from Ben Bernanke, head of US Federal Reserve, in May 2013.


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Major Central Banks Policies Turn Hawkish Forecast


There is a big expectation for major central banks not to implement easing of monetary policy despite of small hints in the momentum of inflation as shown in the poll from Reuters. At the same time, it implies that there is a momentum on analysts particularly to Europe, India, and China that represents about 40 percent of the total population worldwide. They predicted that the global economy will get improve rather than “worse” next year.


Although, there is still economic risks amid a decade of monetary stimulus has passed and
aggregated asset purchases for a total of $15 trillion. Growth forecast has improved to 3.6 percent in 2018 from the current 3.5 percent for 2017. Yet, inflation prediction is declined than last year were greater than half of the central banks polled are foreseen to cut rates or tighten it.


In September, the Fed is presumed to curtail its $4 trillion worth of portfolio bonds and rate hike for the third time by the last quarter of the year while the European Central Bank plans to tighten its monetary policy after an “ultra-easy” policy actions rooted on the progress of the economic growth.


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