Thread: Company News by ForexMart

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This week’s most popular deal:


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IMF Cut Growth Forecast for US Economy

The International Monetary Fund downgraded its growth outlook for the United States due to concerns regarding Trump’s capacity to carry out his promises to the economy to stir the American economy.

Although the Washington-based organization provided a positive forecast in April, they had trim it down to 2.1 percent for this year and based on earlier projections for 2018, the US economy will gain 2.3 and 2.5 percent growth.

While the global growth was held at 3.5 percent in 2017 and 3.6 percent for the next year according to the prediction of IMF managing director Christine Lagarde and described it as "quite well anchored".

However, based on the World Economic Update, the IMF mentioned about the uncertainty towards the policies of President Donald Trump since it is a major factor in the leery growth projections for the US.

Pres. Donald Trump got the presidential position six months ago, citing his plans about tax reductions, looser regulation and major infrastructure spending which triggered a rally on Wall Street. But the policies were stalled in the US Congress as the government continues to battle over other issues, like health care reform.


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Growth in UK Film Industry Lift Economy in Q2

The British economy was able to accelerate slightly during the second quarter after a lackluster growth at the beginning of 2017. The little speed of Britain is driven by the services sector and the breakthrough in the film industry, as indicated in the official data showed on Wednesday.

This quarter gained 0.3 percent growth compared with the 0.2 percent recorded in the Q1, the results could possibly trigger expectations that the Bank of England will maintain the interest rates steady next week with a record low level.

In 2016, the economy of Britain increased by 1.8 percent which is the fastest, compared with other seven largest major advanced economies in the world, regardless of the rampant projections about recession after the Brexit vote. However, the referendum caused an extensive decline towards the value of the pound and moved the inflation up, gnawed at the disposable income of consumer this year.

The services sector alone is the economic growth driver for the Q2 and supported the retailers, motion picture activities and hotels and restaurants.

According to the Office for National Statistics (ONS), the fast-growing film industry of UK rose by 72 percent on 2014, which likely raise tax credits proposed by the former finance minister George Osborne. Moreover, the movies released from April to June also helped.

On Monday, the International Monetary Fund cut its 2017 economic forecast for the United Kingdom, showing predictions of 1.7 percent expansion versus with the 2.0 percent earlier estimate. But foresees a decline to 1.5 percent next year.



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Japan Household Spending Grew 2.3% in June

Japan’s household expenditure in the previous month accelerated most in 2015 since the available jobs heightened to its fresh 43-year highs. This shows that as the labour market tightens, it helps push wages and consumer spending up in a gradual pace.

Last week, the BOJ retained its monetary policy, however, pushed back again to reach its price goal, underlining the gap between the weak inflation and steady growth. And further emphasized that it may take some time to scale down its massive stimulus.

The Japanese economy grew at an annualized 1.0 percent earlier this year, indicating a consecutive growth for the fifth time on strong exports and expansion in personal consumption.
According to analysts, the domestic demand is the main driver for a sustained growth in net exports but would probably reduce growth in GDP for the second quarter.

The positive signs for household consumption consist of 60 percent of the economy and gained 2.3 percent in the year until June, that jumped for the first time after 16 months and acquired the largest annual gain in August 2015. While the median estimate of the economists is 0.6 percent which is further based on the polled data of Reuters by the Ministry of Internal Affairs and Communications issued on Friday.

Moreover, the retail sales gained 2.1 percent in the year to June as shown in another set of data.


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This week’s most popular deal:


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Winners for the week July 10 to July 14, 2017.
Contest Prizes:


1st Place - 300 USD
2nd Place - 90 USD
3rd Place - 75 USD
4th Place - 70 USD
5th Place - 65 USD
6th Place - 60 USD
7th Place - 55 USD
8th Place - 50 USD
9th Place - 45 USD
10th Place - 40 USD


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GST Weighed on the Economy of India

The status of businesses in India has suffered the worst scenario during the 2008 financial crisis, considering the rise in sales tax extensively that rattled the supply and distribution chains after months of implementing the cash ban on roiled markets by Prime Minister Narendra Modi.

Based on the report issued on Thursday, the Nikkei India Composite PMI Output Index shrink from 52.7 in June to 46 in July while the sharpest fall was March 2009. Activities in the services industry also decline to 45.9 from 53.1, which is the lowest since September 2013, after the data revealed the manufacturing had extremely dropped since 2009. A reading that is less than 50 reflects contraction.

According to a report, the principal economist at IHS Markit, Pollyanna De Lima said, "Private sector activity dipped for the first time since the demonetization shock" and "most of the contraction was attributed to the implementation of the goods and services tax and the confusion it caused"

The mentioned data served as an indication of the underlying weakness in the country. On Wednesday, the Indian central bank decreased its interest rates to the lowest since 2010 and appeal to the government to boost projects due to "an urgent need" to improve private investment.

Most likely, companies are convinced that the outlook will become positive as the ruling of GST (Good and Services Tax) are being clarified, De Lima said.



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Oil Price Up Amid High U.S. Demand and OPEC Supplies

Oil prices increased on Thursday because of the narrowing of the U.S. market as well as the large supply from OPEC producers that have a greater impact in the overall sentiment. The benchmark for Brent crude increased by 20 cents per barrel at $52.56 while the U.S. light crude up by 20 cents at $49.79. A high demand in the U.S. has pushed the price higher. Statistically, the recorded gasoline demand was 9.84 million barrels per day (bpd) for last week and a decline in commercial crude inventories worth 1.5 million barrels to 481.9 million barrels which is much lower than the barrels recorded last year.

Members of OPEC and other producers such as Russia pledged to limit the output by 1.8 million bpd until March next year to support price and lower inventories. Yet the organization reached a record high of 33 million since July which is higher by 90,000 bpd from the previous month according to the Reuters survey.

It seems that the oil industry in this era has become accustomed to low prices and function in levels that would have been impossible before as reflected in the field.


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