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UK Like-For-Like Sales Slide 0.5% In June - BRC





Like-for-like sales in the United Kingdom were down 0.5 percent on year in June, the British Retail Consortium said on Tuesday. That follows the 0.5 percent increase in May. Overall sales were up just 0.2 percent. For the second quarter of 2016, overall sales were up 0.5 percent on quarter and 1.2 percent on year.


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Citigroup’s Decline Worth 350 Million Dollars





Citigroup Inc. has lost almost $350 million since 2009 to provide for Chinese consumers. Started in April 2007 when they began acquiring deposits from Chinese households which used to be a form of triumph that they celebrated. However, despite overall profitable operations in China they have faced regulatory impediments among the way in a variety of sectors that also reflects commercial difficulties and have only held about 2% of total banking assets in the country.


The public interest of foreign banks in China are limited since Chinese banks have boasted that they are able to match them. Accelerated growth in customers and further build up of consumer deposits and loans continue since 2015. Despite the development, Citi executives are troubled that the payoff is taking longer than what they have initially expected. Concerns also arise with local competition since state-owned banks produce thousands of branches and are difficult to displace.


In an effort to contribute more clients, In 2012, Citi has decided to cut the minimum deposit by a third. Citi continues to aim for the groups of wealthy Chinese people that will demand Citi's advice and service.


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Yen Rises Against Majors





The Japanese yen strengthened against the other major currencies in the Asian session on Wednesday. The yen rose to 114.92 against the euro, 103.95 against the U.S. dollar and 105.16 against the Swiss franc, from yesterday's closing quotes of 115.78, 104.67 and 105.83, respectively. Against the pound, the yen edged up to 137.69 from an early near 3-week high of 139.48. If the yen extends its uptrend, it is likely to find resistance around 110.00 against the euro, 99.00 against the greenback, 101.50 against the franc and 128.00 against the pound.


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Oil Production Slump Adds To Inflation of Venezuela





Venezuela's oil production has severely dropped. In June it has barely produced 2.15 million barrels of crude oil per day which is recognized as the weakest since 2003. This crisis indicates that the nation is dealing with a financial situation since Venezuela's economy is dependent on oil as it accounts for 96% of exports. It is the only country aside from Iraq that has reduced production for the previous month. As reported by the International Energy Agency, Venezuela has managed to produce 2.4 million barrels per day last year. Analysts affirmed that the failure of Venezuela lies in the fact that they haven't invested enough money to the oil industry. The fact that the country is facing enormous inflation is a result of the country's currency decline. Companies have found it difficult to adjust with the higher costs. Even though prices have increased, the continuous decline of production will result in oil revenue dropping further than expected


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Bank Of Korea Keeps Lending Rate Unchanged At 1.25%





The Bank of Korea's monetary policy board on Thursday decided to hold the nation's benchmark interest rate steady at the record low 1.25 percent. That followed last month's surprise rate cut by 25 basis points from 1.50 percent after 10 straight meetings without a move. The bank noted that the global economy seems fairly stable, although the aftereffects of the UK's withdrawal from the European Union are unknown. "The board forecasts that, while the global economy will maintain its weak recovery going forward, it will be affected by factors including uncertainties related to Britain's exit from the European Union, changes in the monetary policies of major countries, and financial and economic conditions in emerging market countries," the bank said. Low inflation allowed the bank the flexibility to hold fire as consumer prices were up just 0.8 percent on year for the second straight month. On a monthly basis, inflation was flat. Core inflation, which excludes the volatile prices of fresh food, climbed an annual 1.7 percent on year and also was flat on month. "The board forecasts that consumer price inflation will remain at a low level for the time being, and then gradually rise as the effects of the low oil prices diminish," the bank said. In addition, the South Korean government said recently that it has planned fiscal stimulus as the economy is forecast to grow less than previously projected amid risks from corporate restructuring and external uncertainties caused by the UK's decision to leave the European Union. The ministry plans to introduce additional KRW 20 trillion funds into the economy, which includes an extra budget of around KRW 10 trillion. The stimulus will be financed by tax revenues and various state-run funds, the Ministry of Strategy and Finance said. No treasury bonds will be issued to raise funds. Gross domestic product is forecast to grow 2.8 percent this year instead of the 3.1 percent projected in December, the finance ministry said in its biannual report. "The board will conduct monetary policy so as to ensure that the recovery of economic growth continues and consumer price inflation approaches the target level over a medium-term horizon, while paying attention to financial stability," the bank said.


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China Pledges to Defend South China Sea Control





China pledged it would take all needed actions in order to uphold its authority over the South China Sea and declared its entitlement to impose an air defense zone over the area, after vehemently rejecting the Permanent Court of Arbitration in the Hague's decision rebuking its claims to the disputed waters. The Chinese state media called the international court a “puppet” of outside forces following its ruling that China had violated the Philippine's sovereign rights by threatening its ships and intervening in its fishing zones and oil projects. Beijing promised to undertake all the needed measures to secure its territorial control and maritime rights according to a front-page report on the state's official People's Daily. The Philippines responded carefully to the decision released late Tuesday, calling for 'restraint and sobriety'. Presidential spokesperson Ernesto Abella reported that the mood at President Rodrigo Duterte's cabinet meeting held on Wednesday was “upbeat.”


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China GDP +6.7% On Year In Q2





China's gross domestic product expanded 6.7 percent on year in the second quarter of 2016, the National Bureau of Statistics said on Friday. That was unchanged from the previous month, and it topped expectations for 6.6 percent. It was also the figure for the first half of the year. On a quarterly basis, GDP advanced 1.8 percent - exceeding forecasts for 1.6 percent following the upwardly revised 1.2 percent gain in the three months prior (originally 1.1 percent).


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Emerging company in Singapore is a potential digital landlord





A rising company in Singapore is gambling $1.7 billion on dominating Asia's digital services for technology hubs providing cloud services in the region.


AirTrunk Pte is currently working on building data centers in Sydney and Melbourne, along with the growing demand for cloud computing services. The company, who plans to compete by offering lower prices, is also set to close deals in Singapore and Hong Kong.


AirTrunk prides in its new cooling and electricity delivery system as an edge against bigger corporations. It will be investing $1.23 billion in Australia in the coming months and $350 million next year.


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Americas Roundup:euro slips Against US Dollar After Strong U.s. Data,safe-Havens Gain on attempted Turkish Coup-July 16th,2016





Market Roundup
• Key U.S. data shows strength, though U.Mich, Empire disappoint. • U.S. June industrial output +0.6% vs expected +0.2%.
• U.S. June retail sales beat f/c, +0.6% vs expected +0.1%.
• U.S. core CPI in line at +0.2% m/m, +2.3% y/y.
• Bank of England's chief economist says UK needs prompt, muscular stimulus.
• Lockhart: Fed debate is sooner vs later, not hawks against doves
• Fed's Bullard sees upside risks to call for one rate hike in 2016
• Aug. 2 "reasonable" for Spain confidence debate on government -Deputy PM
• Bank of Italy cuts Italy's growth outlook following Brexit
• U.S. 2016 budget deficit seen USD 600 billion, 16 billion less than earlier forecast-White House.
• Markets predict decades of inflation frustration. Looking Ahead - Economic Data (GMT) • New Zealand 22:45 CPI QQ Q2 forecast 0.5%, 0.20%-previous
• New Zealand 22:45 CPI YY Q2 forecast 0.5%, 0.40%- previous
• China 1:30 China House Prices YY Jun 6.90%- previous


Looking Ahead - Events, Other Releases (GMT)
• No significant events


Currency Summaries


EUR/USD is likely to find support at 1.1000 levels and currently trading at 1.1045 levels. The pair has made session high at 1.1090 and hit lows at 1.1023 levels. Euro declined sharply against the dollar on Friday as upbeat U.S. data and on mounting worries that Turkey's armed forces had taken power in the country boosted dollar demand across the board. Reports of the coup attempt also stoked safe-haven bids for U.S. Treasury bonds, paring their earlier losses. U.S. retail sales rose more than expected in June as Americans bought motor vehicles and a variety of other goods, bolstering views that economic growth picked up in the second quarter. The Commerce Department said retail sales rose 0.6 percent last month after gaining 0.2 percent in May. Industrial output increased 0.6 percent last month, reversing May's 0.3 percent drop. Manufacturing output rose 0.4 percent amid broad increases in production, including a 5.9 percent surge in auto assembly. It was the third straight month of increases and lifted sales 2.7 percent from a year ago. The bullish data and a rally on Wall Street could allow the Federal Reserve to raise interest rates later this year, but much will depend on policymakers' assessment of the impact on the U.S. economy of Britain's June 23 vote to leave the European Union.


GBP/USD is supported in the range of 1.3100 levels and currently trading at 1.3201 levels. It reached session high at 1.3247 and hit low at 1.3130 levels. Sterling edged lower against the U.S. dollar on Friday as the currency pair was weighted down as upbeat U.S. data boosted the greenback across the board, and the Bank of England's chief economist said Britain needed "muscular" stimulus to boost the economy. In his first speech since Britain voted last month to leave the European Union, the BoE's Andrew Haldane said the central bank needed to come up with a "package of mutually-complementary monetary policy easing measures" in time for a rate-setting meeting on Aug. 4. The pound fell almost 1 U.S. cent after the speech, and continued to weaken throughout the day, as data showed U.S. retail sales rose more than expected in June, reinforcing the view that U.S. economic growth picked up in the second quarter. For the week, though, sterling was on track for its best performance in more than four months, with a more than 2 percent rise against the dollar, boosted by the BoE's surprise decision to keep interest rates unchanged.


USD/CAD is supported at 1.2860 levels and is trading at 1.2951 levels. It has made session high at 1.2986 and lows at 1.2860 levels. The Canadian dollar weakened against its U.S. counterpart on Friday, retreating from an earlier 10-day high as firm U.S. data supported the greenback and domestic manufacturing data disappointed. Canadian factory sales fell more than expected in May, sliding 1.0 percent from April on weakness in motor vehicles and some energy products. The U.S. dollar rose against a basket of major currencies after stronger than expected retail sales added to evidence that growth in the U.S. economy has regained momentum after a first-quarter lull. Still, the Canadian dollar advanced 0.8 percent for the week as a somewhat optimistic update on Wednesday from the Bank of Canada lowered expectations for an interest rate cut.


AUD/USD is supported around 0.7530 levels and currently trading at 0.7560levels. It hit session high at 0.7608 and made session lows at 0.7560 levels. The Australian dollar declined against US dollar on Friday after US economic data beat expectations, helping dollar recover some lost ground against the Aussie dollar. Data on Friday showed that U.S. consumer prices gained for a fourth straight month in June, while retail sales also rose more than expected. Earlier in the Asian session, Australian dollar surged to a 10-week high after a swath of Chinese economic data beat expectations. China’s economy grew 6.7 percent in the second quarter from a year earlier, soothing worries about a slowdown. The Australian dollar declined to $0.7560, from $0.7650 after the US data and further declined down after Turkey's armed forces said they had taken power in the country. The Reserve Bank of Australia (RBA) could well cut its 1.75 percent cash rate next month if inflation data due on July 27 prove to be as soft as many analysts suspect.


Equities Recap


The shares of European travel and leisure companies fell on Friday, weighing on the region's stock markets, after an attack in the French city of Nice that killed more than 80 people.


UK's benchmark FTSE 100 closed up by 0.2 percent, the pan-European FTSEurofirst 300 ended the day down by 0.25 percent, Germany's Dax ended down by 0.1 percent, France’s CAC finished the day up by 0.4 percent.


The Dow industrials ended at a record high on Friday and major indexes closed a third consecutive week of gains as upbeat economic data and the start of earnings season gave investors confidence.


Dow Jones closed up by 0.04 percent, S&P 500 ended down by 0.11 percent, Nasdaq finished the day down by 0.11 percent.


Treasuries Recap U.S.


Treasury prices trimmed losses in late U.S. trading on Friday as the Turkish military said it had taken power in the country, kindling safe-haven demand for low-risk assets on worries about a large shift in power in the Middle East.


Benchmark 10-year Treasury notes were 8/32 lower in price for a yield of 1.558 percent, up 3 basis points from late on Thursday.


Commodities Recap


Gold fell on Friday and was set for its first weekly loss since May on improving global risk sentiment and a stronger dollar after better-than-expected U.S. data.


Spot gold was down 0.5 percent at $1,327.91 an ounce by 2:48 p.m EDT (1848 GMT), while U.S. gold settled down 0.4 percent at $1,327.40 per ounce.


Oil prices rose slightly on Friday, ending the week higher, after data from top energy consumers the United States and China boosted the oil demand outlook.


Brent crude futures closed up 24 cents, or 0.5 percent, at $47.61. It slipped as much as 1.5 percent earlier to a session low of $46.65 and rose as high as $48.05.


U.S. West Texas Intermediate (WTI) futures settled up 27 cents, or 0.6 percent, at $45.95 a barrel. The intraday low was $45.05 and it touched a high of $46.31 during the session.




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Fxwirepro: Nzd/usd Extends 4-Day Losing Streak, Bias Lower, Stay Short





New Zealand CPI undershot expectations in Q2, increasing the odds of RBNZ rate cut in August.
Data released today showed NZ consumer price index (CPI) rose at an annualized 0.4% pace in Q2, unchanged from Q1, but slightly lower than the estimate of 0.5%.
The pair extended downside for the the fourth-day, hit session lows of 0.7068 before paring some losses to currently trade around 0.7090 levels.
Our previous call (http://www.econotimes.com/FxWirePro-...rallies-236426) has achieved TP1 and is approaching TP2.
Recommend lowering trailing stop to 0.7170, and hold for targets. Techs are biased lower, bearish invalidation only above 0.72 levels.
Immediate support and resistance are now located at 0.7060 (trendline) and 0.7166 (20-DMA).




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