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Global Automakers Urge Trump Administration Not to Terminate NAFTA





Major automakers urged the Trump administration not to terminate the North American Free Trade Agreement and hopes that the United States, Canada and Mexico will be able to conclude a modernized and improved trade pact.


Trump has threatened to withdraw from NAFTA, which is heavily utilized by automakers that have production and supply chains spread across the three countries.


Fiat Chrysler Automobiles Chief Executive Sergio Marchionne said he hoped the Trump administration would “retune” some of its trade talk demands.


Marchionne said FCA's truck production shift in part “goes a long way I think in addressing some of President Trump's concerns about the dislocation of production capacity out of the United States.”


That decision reduces the risk those trucks would be hit with a 25 percent tariff if NAFTA unravels.


Ford Motor Co CEO Jim Hackett said NAFTA needs “to be modernized,” adding that of Detroit's Big Three automakers, Ford has the highest percentage of U.S.-built vehicles.


General Motors CEO Mary Barra expressed optimism NAFTA will survive with improvements. Other senior GM executives stood by the company's plans to continue building trucks in Mexico.


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Singapore NODX Rises Less Than Expected In December





Singapore's non-oil domestic exports increased at a slower-than-expected pace in December, data from the International Enterprise Singapore showed Wednesday.


NODX climbed 3.1 percent year-over-year in December, well below the 9.1 percent spike in November. Economists had expected a 8.6 percent rise for the month.


Exports of electronic products declined 5.3 percent annually in December, reversing a 5.1 percent growth in November.


At the same time, non-electronic NODX rose 6.8 percent after expanding 10.6 percent in the prior month.


On a monthly basis, NODX decreased a seasonally adjusted 5.0 percent in December, following a 8.6 percent gain in


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UK Inflation Rate Drops to 3%, the First Decline for 6 Months





UK inflation rate has dropped for the first time since June, mainly due to the impact of air fares. The rate fell to three percent in December, pulling back from November's rate of 3.1 percent, a six-year peak.


According to the Office for National Statistics, although airfares increased the previous month, it had a smaller impact than at the same point in 2016.


Inflation fell because the annual December rise in air fares was not as high as the previous year, the rate of price growth for recreational goods, including games and toys, also dropped. These categories are particularly sensitive to a fall in the exchange rate.


The ONS said it was too early to say whether this was the start of a longer-term reduction in the rate of inflation. It also notes that the slowing rate of growth was offset partially by higher tobacco prices, reflecting the duty increases that came into effect following the budget, as well as a rise in petrol and diesel prices.


The Bank of England has said it thinks inflation peaked at the end of 2017 and will fall back to its target of two percent in 2018.


Although the Bank may still look to raise interest rates from 0.5 percent, pushing the cost of borrowing to levels unseen since before the financial crisis, economists said there were still difficult patches ahead for the economy, which may be unsettled by the Brexit negotiations.


In November, the Bank's Monetary Policy Committee (MPC) raised its key interest rate for the first time in more than a decade from 0.25 percent to 0.5 percent.


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Australia Jobless Rate Climbs To 5.5% In December





The unemployment rate in Australia came in at a seasonally adjusted 5.5 percent in December, the Australian Bureau of Statistics said on Thursday.


That was above forecasts for 5.4 percent, which would have been unchanged from November.


The Australian economy added 34,700 jobs last month to 12,440,800, beating forecasts for an increase of 15,100 following the upwardly revised 63,600 gain in the previous month (originally 61,600).


Full-time employment increased 15,100 to 8,518,900 and part-time employment increased 19,500 to 3,921,800.


Unemployment increased 20,500 to 730,600. The number of unemployed persons looking for full-time work increased 9,900 to 501,800 and the number of unemployed persons only looking for part-time work increased 10,600 to 228,800.


The participation rate climbed to 65.7 percent, exceeding forecasts for 65.5 percent - which would have been unchanged.


Monthly hours worked in all jobs decreased 4.2 million hours (0.2 percent) to 1,736.4 million hours.


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Oil Prices Rally on Disruption Threats in Nigeria, declining U.S. Inventories





Oil prices edged up on a reported decline in U.S. crude stockpiles and as militant groups in Nigeria threatened to launch an assault on the nation's petroleum infrastructure.


But prices continued to be below the three-year highs as fuel stockpiles continue to be ample and as refineries reduce operations.


Brent crude futures stood at $69.56 per barrel, 18 cents or 0.3 percent higher from their last settlement. On Monday, the international benchmark hit their highest level since December-2015 high of $70.37 per barrel.


U.S. WTI crude futures traded at $64.25 per barrel, 28 cents or 0.4 percent higher from their last close. WTI hit their highest level since December, 2014 at $64.89 per barrel.


According to traders, prices have been lifted by reports that Nigeria's rebel group Niger Delta Avengers threaten to attack the nation's oil sector in the next few days.


Markets also received support from a decline in crude inventories. U.s. crude inventories declined by 5.1 million barrels in the latest week to 411.5 million, according to API.


Despite the overall upbeat sentiment in the markets, analysts warned that the recent rally, which has raised crude by around 14 percent since early December, may be on the verge of a correction.


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U.S. Inflation Expectations Jumps to Highest Level Since 2014





A significant market measure of inflation expectations has increased to its strongest level since 2014, as investors' deliver solid demand to purchase protection against the threat of rising interest rates and dropping bond prices.


The 10-year break-even rate, a market measure of inflation expectations derived from Treasury Inflation Protected Securities, has increased to 2.09 percent, it's highest level since September 2014 when oil prices were collapsing. The impact of oil prices on break-evens is strong, with analysts attributing at least part of the recent rise in inflation expectations to rising oil prices.


At a $13 billion auction of TIPS on Thursday, primary dealers — responsible for bidding on a pro rata share of the auction to ensure the sale of the debt — walked away with a smaller than average share of the securities, as other investors came in aggressively to buy.


The 10-year Treasury yield has increased 20 basis points so far this year to 2.6 percent on Thursday, closing in on its 2017 high of 2.63 percent.


The strong demand for TIPS showed a growing belief that price pressure is building from improving global demand and pushing domestic inflation to the Federal Reserve's 2 percent target.


Improving business activity around the world has supported oil and other commodity prices, reinforcing the view of rising inflation, analysts said.


The ratio of bids to the amount of 10-year TIPS offered was 2.69, which was the highest reading since May 2014.


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Gold Stable amid U.S. Government Shutdown Worries





Gold prices were on a steady footing on Monday amid a weaker dollar as the U.S. government shutdown due to a spending-bill impasse affected investor sentiment.


Spot fold was almost trading flat at $1, 331.57 per ounce. U.S. gold futures were up 0.1 percent at $1, 331.30. Holdings of SPDR Gold Trump increased 0.70 percent to 846.67 tonnes.


Meanwhile, the dollar index, which gauges to greenback versus a basket of currencies declined by as much as 0.5 percent to 90.155.


Funds for federal government agencies have run dry at midnight on Friday and was not replenished immediately amid a dispute between U.S. President Donald Trump and Democrats over the issue of immigration. Leaders of the Republican and Democratic senators held talks on Sunday as they look to break a deadlock that has kept the U.S. government shut down for two days. However, it was vague if an agreement could be reached to reopen federal agencies by the beginning of the workweek.


Another factor contributing to the bullishness of the gold was data from the U.S. Commodity Futures Trading Commission, which showed that hedged funds and money managers had increased their net long position in COMEX gold contracts in the week ending January 16.


Spot silver traded up 0.1 percent to$17.01. Platinum declined 0.1 percent to $1,011.65 after hitting its highest since September 8 at $1, 015.20 on Friday.

COLOMBIA: Colcap Trades 0.29% Higher Boosted By Ecopetrol





Colcap, the main index of the Colombian Stock Exchange, rose 0.29% near the end of Monday's trade, moving at 1,555.54 points, boosted by a rally in Ecopetrol's shares, amid higher oil prices, said Marcela Ram?rez, an analyst at Acciones & Valores.


The shares of Ecopetrol (+5.07%), ETB (+1.97%), and Davivienda (+0.98%) rose, while Preferencial Bancolombia (-1.35%) and Cemargos (-1.03%) fell.


The locally traded. U.S. dollar closed at 2,852.45 Colombian pesos, marking a 0.11% rise.


Wilson Tovar, an analyst at Acciones & Valores, noted that the greenback lost ground at the beginning of the week after investors evaluated the impact of the partial closure of the United States government.


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Canada Wholesale Trade Climbs in November





The value of Canadian wholesale trade increased for the second consecutive month in November on gains across sectors, which includes the food and vehicle industries, according to Statistics Canada data.


Wholesale transactions climbed 0.7 percent on a seasonally adjusted basis in November to 63.55 billion Canadian dollars ($51.01 billion), while volumes increased 0.5 percent. October's sales were revised slightly higher to 1.6 percent from the previously reported 1.5 percent.


On a 12-month basis, wholesale trade in Canada increased 10.8 percent on nominal terms.


Wholesale trade increased in six out of seven sectors in November, accounting for 99 percent of sales and led by a 1.9 percent rise in the food, beverage and tobacco industry.


The motor vehicle sector advanced for the fourth time in five months, climbing 0.7 percent, on higher sales of new vehicle parts and accessories. Canadian auto sales topped the 2 million mark last year for the first time as consumers bought light trucks.


Inventories dropped 1.2 percent, the first decline in eight months amid decreases in the machinery and equipment, and vehicle sectors.


Canada's annual inflation rate is expected to have fallen marginally in December but still remains near the Bank of Canada's 2 percent target. Analysts will watch the three measures of underlying core inflation to gauge how quickly the central bank may raise interest rates again.


The Canadian dollar was trading at C$1.2453 to the greenback, or 80.30 U.S. cents, up 0.3 percent.


The currency traded in a range of C$1.2435 to C$1.2520. Since the beginning of 2018, the range has been C$1.2355 to C$1.2590.


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Japan December Trade Surplus Y358.971 Billion





Japan posted a merchandise trade surplus of 358.971 billion yen in December, the Ministry of Finance said on Wednesday - down 43.5 percent on year.


The headline figure was shy of expectations for a surplus 520.0 billion yen following the 113.4 billion yen surplus in November.


Exports climbed 9.3 percent on year to 7.302 trillion yen, also missing forecasts for a gain or 9.8 percent and down from 16.2 percent in the previous month.


Exports to Asia advanced 9.9 percent on year to 4.111 trillion yen, while exports to China alone jumped an annual 15.8 percent to 1.507 trillion yen.


Exports to the United States gained 3.0 percent on year to 1.411 trillion yen and exports to the European Union jumped an annual 11.4 percent to 792.213 billion yen.


Imports advanced an annual 14.9 percent to 6.943 trillion yen versus expectations for a gain of 12.4 percent and down from 17.2 percent a month earlier.


Imports from Asia climbed 15.7 percent on year to 3.379 trillion yen, while imports from China alone gained an annual 14.8 percent to 1.704 trillion yen.


Imports from the United States were up 7.5 percent to 699.419 billion yen, while imports from the European Union gained 9.8 percent to 786.388 billion yen.


Also on Wednesday, the latest survey from Nikkei said that the manufacturing sector in Japan continued to expand in January, and at an accelerated rate, with a manufacturing PMI score of 54.4.


That's up from 54.0 in December, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.


Individually, output expanded at the quickest rate in 47 months, while new orders continued to rise sharply.


Inflationary pressures intensified.


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