Daily Company News from ForexMart

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Turkey’s Dispute with Netherlands Called Off its Diplomatic Ties
Turkey plans to put off diplomatic ties with the Netherlands as announced by the Dutch ambassador on Monday, escalating dispute between both countries. This was triggered after the Netherlands refused to permit Turkish Foreign Minister, Mevlüt Çavuşoğlu, to participate in the political rallies of emigrants.

Moreover, there is a tendency for the Deputy Prime Minister, Numan Kurtulmuş, to re-assess its agreement with the European Union and put on hold the migrants from Turkish territory to Europe. Kurtulmuş noted that their actions are in response to how they were treated. The Dutch government was compared to the Nazis by the Turkish President, Recep Tayyip Erdoğan, which was responded by the Dutch Prime Minister Mark Rutte to be offensive and demands an apology.

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Argentine Labor Unions Protested Government Job Cuts
The Argentine Interior Minister, Rogelio Frigerio announced that the labor unions in Argentina put pressure on its government by initiating strikes and marches in advance of the mid-term elections of the country.
Mauricio Macri, 58, have been the country’s President for 15 months who pronounced its commitment to enliven the economy by taking back investor’s trust after 10 years of practicing
free-spending populist policies.
A hoard of laborers protested on March 7 expressing objection regarding job cuts and wages not adjusted for inflation which attained approximately 40 percent last year. Major labor organization has demonstrated its strikes over the previous weeks.

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Republicans Get Trump’s Ire as Health Bill Loses
Republican leaders and groups bore the brunt of President Donald Trump’s ire on Sunday as the administration’s health care bill suffered two straight postponements and eventually lost, putting a stopper to Trump’s attempts to repeal and replace former President Obama’s healthcare law. Trump had previously put the blame on Democrats last Friday after going to Twitter to criticize several Democratic bodies such as the House Freedom Caucus, the Heritage Foundation, and the advocacy group Club for Growth. These groups had vehemently opposed the passing of the said bill and has caused Trump’s bill to fall short of totally erasing Obamacare.

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Vulnerable Regions in Britain Agreed to Leave EU
Further countries of the Great Britain agreed to withdraw from the European Union despite its high susceptibility from the impact brought by Brexit towards the economy, the analysis was based on the recently conducted research following the preparation of the government to set the Article 50 in motion.
According to Demos (Think tank) researchers, the regions that were studied includes Wales, north-east and east Midlands reviewing each state’s reliance on EU exports, utilization of European laborers as well as receipts of grants. The mentioned countries greatly depend on the European market in spite of the fact that majority of the leave voters came from these regions. Moreover, Wales issued 67% of exports, while 62% from the north-east and about 55% from Yorkshire and Humberside.
In addition to it, the government is hoping to minimize the effect by means of a renewed free trade agreement, however, EU negotiators insist that the UK must resolve its divorce settlement terms in the first place.

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China and New Zealand Expanded FTA to Strengthen Ties
Chinese Premier Li Kequiang and New Zealand’s Prime Minister Bill English have agreed to expand the current Free Trade Agreement (FTA) to strengthen cooperation between both nations. Li agreed with the changes in FTA started since 2008 after signing nine pacts with English that would implement the renewed FTA on April 25. Both governments also pledged to work hand -in-hand with the expansion strategy of China called as “One Belt, One Road”.
New Zealand is the first Western country to approve an FTA with China as they are the second largest trading partner of New Zealand. They were also the primary country to join the Asian Infrastructure Investment Bank (AIIB) of China that assisted both the United Kingdom and Australia.
China also intends to cut steel production and exports to a minimal amount with New Zealand while the accusation of steel dumping was toned down by English.The South China Sea issue was also raised but was deemed to be sensitive but concluded that this would not have an impact on the relationship.

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Asian Stocks Surge as Dollar Cools Down
High-risk assets experienced an easing in its selloff after US stocks managed to make a slim recovery, with the USD finally cooling down and the majority of Asian equity markets surging across the board. Meanwhile, investors are evaluating the possibility of a slower inflation rate which will then translate to lesser need for high-frequency interest rates from the Federal Reserve. The USD finally steadied after overshadowing its previous rallies caused by Trump’s election victory.

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Economic Growth of South Korea Rose to 2.8%
As stated by the Central Bank of Korea on Tuesday, their economy gained 2.8 percent from a year earlier in 2016 due to improvement on private and government expenditures.
The revised growth is relatively higher compared with the 2.7 percent estimate made by the Bank of Korea (BOK) during the month of January. The Asia's fourth-largest growing economy boosted in 2015 acquiring 2.8 percent growth. The increase in spending on private and public sectors provided support for Korea.
Private sector and government consumptions surged to 2.5 and 4.3 percent last year, accordingly.
The BOK also mentioned the construction investment expanded by 10.7 percent mainly because the building construction for family dwelling increased as well. On one side, the investment for facilities was driven down by 2.3 percent due to investment in machinery and equipment.
The country’s gross national income (GNI) reached US$27,561 in 2016 which is greater by 1.4 percent in the previous year obtaining $27,171.

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Australia Rescinded Extradition Treaty with China
Australia withdrew its vote to ratify the extradition treaty with China on Tuesday. This is a setback for the Asian country with one of their agenda in pursuit of corrupt officials and corporate personnel who have escaped abroad with their assets referred to as “Operation Fox Hunt”. If this is approved, Australia will become one of other countries that agreed for an extradition treaty besides France and Spain.
Ten years have passed after this was signed which was mainly because of Australia’s opposition with humanitarian issue with China where there are accusation of inappropriate method to obtain a confession.
Chinese Foreign Ministry spokeswoman Hua Chunying explained that this treaty would open as a middle ground for both countries to catch cross-border criminals as a common interest reminding that there is a bigger scope with the treaty considering the bilateral relations and important domestic processes.

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Asian Stocks Decline After US-led Airstrike on Syria
Asian stocks dropped after the US government led an airstrike against Syria as an apparent retaliation to the recent chemical attack on the same country which is allegedly spearheaded by members of Bashar al-Assad’s regime. The said gas attack killed several civilians as well as several children while more people sustained serious injuries. Meanwhile, gold and oil prices shot through the roof as a result of the said occurrence. The market is now in a risk-off mode since the entirety of the market was surprised by this blitzkrieg coming from the US. However, this is not expected to have a long-term effect on the market unless this means more US involvement in the Syrian war.

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U.S. Unemployment Claims Fell to a Record Low in Almost Two Years
The number of applicants for U.S. unemployment benefits has declined to a record low in almost two years last week, implying tightening in the labor market. Claims have reached less than 300,000 for 109 consecutive weeks which indicates a good condition of the labor market and it is close to full employment.
Another survey by Reuters the nonfarm payrolls exhibited a rise in jobs as high as 180,000 in March following an increment of 235,000 in February while U.S. private payrolls surged by 263,000 jobs in March. This supported the reports of claim as it demonstrated that aid received by people decreased as much as 24,000 to 2.03 million until March 25 as reported in claims data on Thursday. The 4-week MA showed a drop in by 7,750 to 2.02 million average reaching the lowest level over the past 16 years.

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Indian Economy to Accelerate by 7.4%, says ADB
The Indian economy is projected to increase by 7.4% amid the fiscal year 2017-2018 versus its previous growth of 7.1%. The boost occurred due to lift in public investment and demand in consumption goods based on the statement of Asian Development Bank (ADB) on Thursday.
According to the latest 2017 report of Asian Development Outlook (ADO), 2016-17 GDP data failed to obtain the demonetization effects and the decline influenced the continuous slide of investments.
Moreover, ADO anticipates for the consumption to climb higher since there are additional bank notes set in the circulation following the shock withdrawal on highest-valued currencies happened on the 8th of November. The plan for an increase in salary and state employees pension were already implemented.
The ADB further expected the acceleration to 5.2% in the current year till 2018 while 5.4% in the coming 2018-19 considering the economic recovery along with the rebound of commodity prices.

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Barclays Plc CEO Under Investigation in Whistleblower Probe
Barclays CEO James Staley is now under investigation by US and London-based regulators following claims that Staley apparently responded to a complaint regarding attempts to identify a whistleblower. Staley had apparently tried uncovering the identity of an anonymous tipper after the said tipster alerted authorities regarding personal matters. The FCA is now investigating the issue, which is also supervised by New York’s Financial Services Department.

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ECB Reassures EU Citizens amid French Election Concerns
An official from the European Central Bank has offered his reassurances to a very worried EU audience amid pre-election anxieties stemming from the French national elections by saying that the ECB has enough reinforcements should the said elections result to an eventual fallout. Austrian central bank governor Ewald Nowotny has stated that the ECB has several instruments on hand if ever liquidity becomes a problem for French banks after the conclusion of the said elections. Nowotny is currently part of the ECB’s rate-setting governing council.

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China’s Bullish GDP Growth Stabilizes Yuan
The first quarter data of China has come out after a solid positive gain causing a slowdown in capital outflows to stabilize the currency following a selloff last year. They are optimistic to attain the 6.5 percent GDP growth for this year as mentioned by the Finance minister Xiao Jie. This is a good signal indicating the strengthening of yuan and capital flows are gaining back by the country.
The interest rates are moving in an upward direction despite tighter policies to curb the fast growth of credit hampering the economic progress. Yet, economic growth advanced faster-than-expected 6.9 percent in the first quarter, weakening capital outflows and more stable cross-border flows have strengthened yuan substantially. This has then eased the pressure regards to Foreign exchange reserves as it retreated with the surge of the greenback.
However, further tightening cannot be ruled out as it may change again abruptly especially when the currency come again under pressure with the global appreciation of the U.S. dollar.

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Inflation Weighed on the Economy of Britain
The British economy has cooled significantly in the months of January to March this year because higher inflation put pressure on disposable incomes. The Office for National Statistics is scheduled to publish the estimated GDP data for the first quarter this Friday.
Great Britain almost forgot the impact of the Brexit referendum on June and had an unexpectedly quick recovery. The growth rates in the third quarter of 2016 reached 0.5% while 0.7 for the last quarter.
Based on the forecast of city economists, the country will experience an arduous year ahead linked with a 0.4$ steep decline on growth during the first three months of 2017.
The country previously earned 0.2% which is considered as the weakest performance in the Q1 of 2016.
Moreover, the sterling became weaker which increased the price for imports and drove the inflation towards its three-year high obtaining 2.3%.