Daily Company News from ForexMart

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Trump Proposes Corporate Tax Cuts by Up to 15%
White House aides have been ordered by President Donald Trump to draft a corporate tax plan which will cut down the corporate tax rate by up to 15% in spite of the fact that this will be translating to significant profit losses. Trump has told his staff at an Oval Office meeting last week that he is looking for a large-scale tax cut which could be sold to American citizens, with the possibility of a federal budget deficit notwithstanding. Trump had also reportedly told his officials to finish it in time in order to release a comprehensive tax plan this coming Wednesday.

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Trade Disparity Between US and Mexico Expands
The MXN experienced downward pressure after trade war anxieties stemming from Trump’s tough take on trade negotiations with Mexico caused a surge in the US demand for cheaper and more affordable Mexico-sourced goods, thereby increasing the trade disparity between the two countries. Mexican trade deficits jumped by up to 14% just in the first quarter of 2017, a stark contrast to the trade deficit recorded last 2016 in the same period. In addition, the Mexican Peso is also down by 8% against the USD as far as 2017 is concerned. Prior to this development, Trump has repeatedly threatened to build a border wall between the two countries and is now even considering a cancellation of the NAFTA agreement as part of the president’s plan to give new life to US-based factories. The NAFTA trade agreement involves Mexico, Canada, and the US and has enabled lower tariff levels, among others.

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Malaysia Exports Exceeded Expectations in March
The Growth of annual exports in March has been sluggish as shown in the government data released on Friday. Although the pace of advancement is vigorous on higher shipments including mining and agricultural goods. Exports of manufactured products rose 22.1 percent while mining goods climbed 36.1 percent. Agricultural goods accelerated to 39.4 percent from 27.7 percent a month before and the highest yearly increase over the past seven years.
Exports climbed to 24.1 percent climbed, much higher from the forecast of 19.2 percent from the previous year but lesser from the 26.5 percent rise in February which is the fastest yearly rate in almost seven years. On the other hand, imports rose to 25.4 percent with higher palm oil products and natural rubber trades. Overall, the trade surplus lessened to 5.4 billion ringgit or $1.25 billion), from 8.7 billion ringgit in February.

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Economy of Australia Remained Steady, says RBA
The central bank of Australia made some slight changes in its GDP rate and inflation projection according to its Quarterly Monetary Policy Statement. It further suggests that the rates will keep steady in the near future.
There are expectations from the officials that the GDP growth will reach an average of 2.5% to 3.5% after two years which is the same as in the forecast during the month of February.
While CPI inflation would likely return on its target within the same period.
The economy expanded at a solid pace as 2016 ends causing the broad measures of economic progress became healthy again.
The Gross Domestic Product of Australia had a sudden decline during the quarter of September which triggered concerns in the immediate recession.
The annual rate of inflation further increased along the consumer price index that expanded by 2.1% in Q1.
The Reserve Bank of Australia had decided to maintain the interest rates, the vote was in line towards the consensus.The policy is unaltered because the officials attempt to refresh the economic growth and inflation. Moreover, the officials nearly preserved a positive outlook for the economy, fueled by the rallying commodity costs and accelerating demands in the world markets. The next meeting of the policy board is scheduled on June 6.

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As Unemployment Rate Drops, US Economy on its Way to Recovery
The US Labor Department has released its US job report for April, wherein it indicated that business had topped up a total of 211,000 jobs last month, a far cry from March’s reading of only 79,000 jobs. This upward trend in hires has confirmed market projections that the country’s overall economic growth is well on its way towards a significant recovery. Economists are now saying that this evidently very strong economic data for the country signals that consumers might soon have the power to amplify their spending habits during the second quarter of 2017.

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As Unemployment Rate Drops, US Economy on its Way to Recovery
The US Labor Department has released its US job report for April, wherein it indicated that business had topped up a total of 211,000 jobs last month, a far cry from March’s reading of only 79,000 jobs. This upward trend in hires has confirmed market projections that the country’s overall economic growth is well on its way towards a significant recovery. Economists are now saying that this evidently very strong economic data for the country signals that consumers might soon have the power to amplify their spending habits during the second quarter of 2017.

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Oil Cut Production May Extend Beyond 2017, Says Minister of Saudi
Khalid Al-Falih, oil minister of Saudi Arabia showed confidence with regards to the deal to limit output for crude oil and the oversupply reduction is going to be extended within 6 months or more.
Al-Falih further discussed during the Asia Oil and Gas Conference held in Kuala Lumpur last Monday that the growth of U.S shale production together with the closure of refinery maintenance have lessened the effect of cutback led by the Organization of Petroleum Exporting Countries along its associates. Moreover, manufacturers are driven enough to achieve their target to drop in their bloated gasoline supplies. Nevertheless, he believes the world oil supply could still realign and revive its former healthy state.
The increasing U.S production place worries towards OPEC and its allies as it fails to minimize the market glut and expansion of prices.
The gains of oil were erased since the agreement made in the previous year to curb output. The OPEC meeting held in Vienna attended by various nations further supported the 6-month deal for the extension which will start in January. It would be the first time that the minister of Saudi to propose the extension beyond 2017.

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China Trades Rose Less than expected; Large Trade Surplus

Both imports and exports of China soared in April but was below expectations of analysts since domestic and foreign demand as well as the commodity market slumped. Exports climbed by 8.0 percent compared to the previous year, lower the expected 10.4 percent while imports rose 11.9 percent. The overall trade surplus totaled to $38.05 billion for the month, higher than the anticipated $35.50 billion of analysts.
According to the Ministry of Commerce of China quarterly report last week, imports and exports will get better this year compared over the past two years. This excessive trade surplus of CHina has got the attention of the U.S. president Donald Trump who is pushing to lessen the trade gap between both nations.

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White House Fiscal Policies, Fed Asset Shrink could Trigger Rate Surge
The US economy’s long-term interest rates could be in for an upward pressure in the long haul as the country’s two most powerful economic bodies could possibly implement policies that could complement each other and raise interest rates in the future. As Trump is toying with the idea of spending and tax policies which could increase the country’s budget deficit, the Fed is now considering to cut down its holdings and bonds portfolio worth $4.5 trillion. This possible cut back in bonds could ultimately mean higher interest rates and higher yields for the US economy.

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Euro Fell Against the Dollar in the Post-French Election
The common European currency tumbled on Monday from its highs due to the triumph of centrist wing Emmanuel Macron. As investor received an estimate of 3% of profit after Macron won a couple of weeks ago.
The loss of the populist candidate, Marine Le Pen ended the worries of investors about the radical change subsequent to Brexit and Trump’s election last year in case that Le Pen won.
Based on opinion polls, Macron had a consistent point which is roughly 20 percent and his triumph on Sunday was a great surprise.
During the early trades of Asia, the euro surge reaching $1.1024 which is its highest rate since November 9. It further increased on its one-year high touching 124.58 yen versus its Japanese peer while hitting a five-month high jumping to 1.0886 against the Swiss franc.
However, amid morning session of Europe, it declined by 0.4 percent to $1.0953 vs the greens and 0.6 percent to 123.26 against the yen.
The political risk linked with Le Pen were already removed, the risk involves the pledge that France will be taken out from the European region. As the risk was eliminated, the focus turned to the economic fundamentals along with the monetary policy normalization of EU and U.S.

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New Economic Development Project Proposed by Owasso City
During the council held in early May, the staffs of Owasso City made a project proposal for a new Economic Development Strategic Planning intended for the community itself.
The proposal highlighted an agreement with the TadZo Consulting, known to be a consulting firm specializes in the economic development and site selection, they are part of the project in order to administer strategic services towards the city.
This is because the town has seen growing rapidly over the past few years and presumed further responsibility in developing its own economy. They gave importance on establishing defined objectives as well as devising policies effective for achieving their economic goals.
With the involvement of TadZo, it ensures that the town is able to execute such task through engaging, educating and empowering everyone concerned in the project through a definite method.
The economic developer would offer further assistance for the Owasso to catch the eye of its target audience through conducting comprehensive researches in identifying new community offerings.
The range of work is divided into three phases which include the current situation, strategic priorities, and strategic plan. This is done in order to have an efficient task in customizing the challenges, necessities, and opportunities for
The plan will undergo for a vote scheduled on Wednesday, July 5. In case the economic project will be approved, the cost will not exceed at $60,000 and would take six to eight working months which will start in July.

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Japan Exports Rallied for 5 Months
Exports from Japan notably increased for five consecutive months indicating a strong offshore demand and increased shipments of semiconductors and steels that boost economic growth. In April, exports climbed up to 7.5 percent compared with the previous year and lower than the median estimate of 7.8 percent yearly growth.
On the other hand, its trade surplus with the U.S. also decreased by 4.2 percent from a year ago while the exports jumped by 2.6 percent and continuously grows in the past three months because of high volume of car and auto parts shipments. An economist predicts that this upsurge will continue including domestic imports but the protectionist trade policies of Donald Trump raises concerns with Japan being an export-reliant country.

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Food Stamp Program in Peril from Trump’s Tax Cuts
The Supplemental Nutritional Assistance Program or SNAP is currently in peril as Trump’s budget plan could possibly slash over $190 billion from the said food stamp program. These cuts on SNAP will be representing a funding cut of over 29%, since the US government spent over $70 billion on the food stamp program last year. Prior to this particular cut, the Trump administration had recently proclaimed that it will be able to strike a budget balance within a decade without altering the US government’s biggest spending drivers, namely social security and medical assistance. Trump had previously stated that there will be no changes made to these factors during his campaign period.

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Debt Relief for Greece Still in Progress, No Deal Yet

Intercontinental lenders in Greece has a comprehensive meeting discussing debt sustainability on Monday. The meeting ended failing to reach an agreement about additional debt relief for Greece. Ministers disagreed to grant new loans to Athens but the head of Eurogroup, Jeroen Dijsselbloem says otherwise. He said that they are deliberating and making progress on the next disbursement targeting before summer to be able to pay due debts in July.

In their next meeting, they are optimistic that they will settle a deal in doling out bailout funds to the country on June 15. They are aiming for a more sustainable agreement which the International Monetary Fund commended and hoping that E.U. governments will support this deal. Although, the deal is not yet ready and will most likely be implemented once the current bailout program has ended next year.

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Canada And Brazil Set to Increase Oil Production
The Organization of the Petroleum Exporting Countries together with its partners are about to unveil further details regarding the extension of output cuts while the main focus of the oil markets is on the production growth of U.S. shale oil.
While experts are analyzing the statistics and predictions concerning the level of increase in U.S. manufacturing and its ability to disrupt the OPEC’s effort in correcting the market’s supply side.
Aside from the United States, another two major oil producers in the country are preparing to make an increase within this year namely Brazil and Canada. This rise in production was already anticipated by the intergovernmental organization, which would likely boost the US supply.
Based on the projections of IEA, the product volume will gain 5.6 million BPD in the year 2022. While the combined global growth estimates for the three countries will account for 60 percent.
The light tight oil (LTO) of US manufacturing is expected to have continuous expansion until 2022, acquiring 1.4 million BPD throughout the period, even when the oil cost did not break the US$60/barrel, according to 2017 oil report of IEA.
As stated to the predictions of the Paris-based agency, Canada would likely obtain a 900,000 bpd of output and on the other hand, the production in Brazil will get 1.1 million bpd in the next five years.