Daily Company News from ForexMart

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Bundesbank posts two percent Inflation rate for Germany
Based on the report of Deutsche Bundesbank, inflation is predicted to surge for this month. Earlier in December, the consumer price index rose together with the high energy cost which began 5 years ago. The German inflation marks two percent according to the report of Bundesbank published on Monday. The recent steep increase in the average prices of the oil products caused for the inflation to escalate to two percent for January.
However, the European Central Bank targets with an inflation rate below 2% because it is the most suitable percentage in order for the euro economy to further develop.
On the previous month, the price level of consumer expenditure grew by 1.7% after three and a half years which resulted for high-priced petroleum products. This also made oil companies including the OPEC to imply for production cuts in order to improve the price of the basic material for oil.
On the other hand, analysts predicted for 1.8% inflation in 2021. The German economy continued to improved according to Bundesbank as the country’s industry remained “favorable”. The 2016 GDP expanded to 1.9% after five years and for this year, the bank expects for the same result.

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USD Drops as Trump Begins Pulling Out US from Trade Agreements
The US dollar continued its losing streak after President Trump signed an Executive Order which will pull out US from the Trans-Pacific Partnership. Next in line could possibly be NAFTA, which Trump stated is now undergoing renegotiations in addition to implementing a high-rate border tax in spite of losses incurred after a Fed official stated his preference for high-frequency rate hikes in order to prevent the Fed from lagging behind in terms of economic movement.

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Mexico Faces New Probable Risks From New U.S. Policy
Mexico cautions that changes in policies under the new U.S. administration increases risks obstructing production chains between the two countries. This could lead to a drop in exports and direct foreign investments according to the Mexican Central Bank Governor Agustin Carsten.

Although it is not expected to have higher risks for an inflation due to racked up demand curbing the convergence of the headline inflation rate with the Central bank’s target in 2018. At the same time, the easing in fuel prices could have a transient effect to the economy but it could be worse and drastic impact on inflation.

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US Stocks Deliver Mixed Signals as Dollar Strength Returns

US stocks stopped its rallying trend during Thursday’s trading session after investors gathered a string of corporate data which created ambiguities with regards to the overall state of the US economy. Meanwhile, the Mexican Peso dropped in value after arguments regarding the building of a Mexican border heated up during the past few days. Meanwhile, US Treasuries managed to recover from its slump during the previous session. The recent bullish tones exhibited by the financial market had somewhat eased following the rising dangers of the economic tension between US and Mexico, which is currently threatening to damage one of the biggest trade relationships in the world.

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Japan’s December Retail Sales Fell Short from Expectations
The Bank of Japan is scheduled to set its monetary policy after a two-day meeting, ending the speculation of its reduction of rates and its economic stimulus after its years of policy changes.
The results of Japanese retail sales did not meet the expectations released on Monday. It climbed 0.6 percent last month which is lower than the median market forecast increase of 1.3 percent.
Tenuous consumer spending continues to beleaguer Japan’s economy although for the past third quarter for the whole July to September driven by high demand for exports despite low domestic activity. Japan’s Core Consumer prices declined to its slowest pace for almost a year signaling possibility for inflation and domestic demand to recover in the succeeding months.

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BB to keep rates on hold, Kabir Said
The central bank of Bangladesh maintained its key policy rates on January 29, Sunday according to Governor Fazle Kabir, noting the comprehensive Macro stability coupled with a stable inflation forecast. As mentioned by the bank’s governor, the predicted average inflation was estimated from 5.3 to 5.6 percent in June which is lower than the 5.8 percent goal for the fiscal year of 2016-17.
Kabir also added that the increasing value of the global commodities for this year would probably weigh an upward pressure on the domestic prices, he said in a press conference, marking the quantitative measure of the monetary policy from the month of January to June. Moreover, the Bangladesh Bank (BB) have trimmed its interest rates with a half percentage point in January 2016.
The average rate of inflation reached 5.92 percent during the fiscal year 2015-2016 which is the lowest recorded in 12 years. It is because of the steep decline in the commodity prices and the output in agriculture from South Asian countries, approximately 160 million individual.

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EU Stocks Slide, Ends 19-Month Rally
European stocks finally ended its rallying streak and dropped significantly for the first time in eight days after a drop in miners and banks, ending a streak which lasted for over more than a year. The Stoxx Europe 600 Index fell down by over 0.4% at the end of the previous session, while the equity benchmark extended its one-year rally due to increased expectations of additional borrowing costs in the US paired with burgeoning inflation rates across the globe.

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Fast Progress of Singapore’s Economy Threatened by Trump’s Protectionism

Singapore’s economy advanced at a quicker rate in the past three months of 2016 which is more than expected. A sudden spike in factory production by 12.3 percent in the last quarter year compare to the average annual and seasonally adjusted reference as reported by the Ministry of Trade and Industry.


However, another concern has risen with the uncertainty brought by President Donald Trump. Analysts and government maintained its heedful stance due to foreign events as increasing worries regarding Trump's protectionism over the United States. Moreover, the country is facing a weak service sector and low banking returns where the two largest lenders, DBS Group Holdings (DBSM.SI) and OCBC (OCBC.SI) accounted declined in their quarterly profit and increased data for bad loans influenced by the city-state oil service sector.

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Alcohol and Tobacco Expenditures Fell in UK

Based on the Family Spending Survey led by the Office for National Statistics (ONS), the households in the United Kingdom have practiced much healthier lifestyle since the expenditure for alcohol and cigarettes lessened and most of the families tend to go on restaurants with an average spending of £528.90 per week recorded from the year up to the end of March 2016. According to ONS, the surge in consumer confidence was stabilized from 2015-2016. Included in the said report are the falling figures regarding the cigarette and alcohol spending with an amount of £11.40 each week.

On the other hand, the household consumption intended for cafes, hotels, and restaurants reaches £45 through a week. While the budget for transport and dwellings remained to be at a high-priced level.

Expenses on tobaccos vary across UK nation on a weekly basis. In England, they consumed £2.90, Northern Ireland fork over £6.60, Scotland dole out £4.90 and in Wales expends £3.

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Thai Economy Records Slowest Annual Growth as Consumption Wanes
Thailand’s economy recorded its slowest growth rate in over a year during the previous quarter as the country’s private consumption waned. Thailand’s GDP data showed an expansion by 3% during the past quarter, its slowest annual recorded move. Thailand’s economy surged by 3.2% in 2016 as compared to 2.5% two years ago. This slow GDP growth was mainly attributed to the death of the Thai king followed by a major crackdown on illegitimate Chinese tourists, which also caused the country’s private consumption to drop. However, the Thai baht was among the best-performing currencies in Asia after it grew by over 2% against the USD.

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Greece Fears Economic Collapse amid Debt Crisis
Greek people have withdrawn money from their accounts which exceed to £2billion as they fear the news regarding economic crash which will take place within 45 days. The Hellenic republic was alarmed about the possible scarcity of money in a period of five months because the country is affronted with repayments with an estimate of more than £5.1bn (€6bn), thus the country is unable to pay the total amount without any aid or restructuring.
Greece citizens were forbidden to take more than £1,540 (€1,800) every month from their accounts, however, the currency had continuously depleted at a very fast rate. There are speculations that the Government will fail to pay for the next settlement due in July.
Individuals which involves tourists were strained to wait in line in order to obtain cash from their respective banking machines.

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Brexit Dissenter Kristin Forbes to Resign from BoE Post
Kristin Forbes, one of the most vocal dissenters in the Bank of England’s nine-member Monetary Policy Committee, has decided to leave the UK central bank for good. Prior to this particular announcement, Forbes was constantly being tagged as a possible candidate for positions in the Federal Reserve since the UK-based financial analyst is an American citizen. Forbes has been known in the financial industry for her “dives” into obscure topics which have caused the central bank to rethink its stances on various situations. Just recently, Forbes has again made headlines by blatantly opposing the Brexit referendum last year.

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Canada’s Partnership with Ivanhoe Cambridge and LOGOS to Invest in Indonesia and Singapore
The biggest pension fund managers in Canada settled an agreement with a real estate logistics operator, LOGOS and Ivanhoé Cambridge to have a venture with Asian countries Singapore and Indonesia.
This investment was constituted due to the increase of e-commerce together with the development of the middle-classes around the Southeast Asian market.
Based on the Reuters’ report, the Canada Pension Plan Investment Board (CPPIB) have its initial commitment worth US$200 million intended to achieve the 48% of LOGOS Singapore Logistics Venture (LSLV). Moreover, the Board is assumed to cater US$100 million for the LOGOS Indonesia Logistics Venture (LILV) for reaching 48% stake. The Canadian corporation mentioned that this partnership is considered as the primary step towards direct real estate investments within the two nations. Aside from the two aforementioned countries, LOGOS also have business in China and Australia.

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Ford’s Lincoln Aims to Manufacture SUVs in China
Lincoln automobiles under Ford Motors Co’s plans to advance its entry to China and was doing some analysis on whether to manufacture cars locally. It aims to produce luxury SUVs in China by late 2019 with a bigger target of 80 stores by the end of the year from the former figure of 60 compared to the previous year of 65 Lincoln chain stores.

This move is aligned with the goals of competing with U.S. and German rivals as part of the world’s biggest auto market hereby prompted to design a car models particularly SUVs, to match the Chinese preference. Currently, the Lincoln automobiles are imported to China which a boost in sales as high as 180 percent in the previous year.

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British Parliament Gives Theresa May Brexit Go Signal
British Prime Minister Theresa May is now preparing to jumpstart the actual Brexit process this coming last week of March after finally getting the approval from policymakers to begin two years’ worth of negotiations with the European Union. The British Parliament has finally passed the legislation which will enable the UK government to invoke the Lisbon Treaty’s Article 50, with the formal announcement for the Brexit expected to be announced before this month ends.