Daily Company News from ForexMart

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US Health Bill Cuts Business Taxes, Lessens Coverage
The US Senate’s health-care bill has cut billions of dollars worth of taxes from large businesses and high-net worth households in addition to repealing taxes for capital gains. These tax-related provisions in the said bill are highly similar to the House version which was passed last May, with the bill implementing tax repeals and lessening health coverage instead of the other way around. Republican Senator Pat Toomey stressed the importance of cutting down these tax as soon as possible, as these taxes are allegedly doing damage to the country’s economy. These tax cuts are exclusively applicable for households with more than $200,000 of income per annum, as well as married couples making more than $250,000 per annum.

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Theresa May Offered “Fair and Serious” Rights on EU Citizens
Theresa May, British Prime Minister of Britain, said to the leaders of European Union that EU citizens who came legally prior Brexit happenings are authorized to stay in Britain giving them a new ‘settled status provided that they have spent five years living in the UK.
PM May had spoke concurrently as the dinners end during the EU leaders' summit held in Brussels, stating that the United Kingdom agreed to deal with the “cutoff point” between March 29 of the current year, the date when she formally invoke Article 50, until the preferred period of the European Commission until March 2019.
This is the opening offer of May for the future citizen rights. Both nations, UK and EU wants to iron out the issue during earlier negotiations
European citizens who are part of this special status can acquire the same rights when it comes to NHS care, pensions and work along with other public services that British people have.
May mentioned in an interview with The Guardian that "The UK's position represents a fair and serious offer, and one aimed at giving as much certainty as possible to citizens who have settled in the UK, building careers and lives and contributing so much to our society,"
According to the report, the offer is dependent on the reciprocal pledge regarding the privilege of 1.5 million UK citizens who are presently residing somewhere in Europe had failed to reach its target with the EU’s demand in maintaining the continuity of the entire EU rights. But, the British country did not accept the demand of EU to grant the European Court of Justice to take the role as the guarantor.

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Sluggish Growth of Eurozone’s Business Sector in Q2
Business growth in the eurozone did not meet expectations as it approaches the end of the first half this year after the unexpected sluggish growth of the service enterprises, according to the survey on Friday. Nevertheless, the inflation and the overall remains considerably strong which will most likely be sustained by policymakers of the central bank of Europe to balance out and return to its dovish stance.
The PMI data showed a 0.7 percent GDP growth for the second quarter that has exceeded the 0.5 percent forecast of Reuters earlier this June. In the previous quarter, it grew a corrected figure of 0.6 percent growth.
However, companies focused on the service industry has weakened. The services PMI dropped to 54.7 from 56.3, significantly lower than the predictions of economists surveyed. On the other hand, the manufacturing sector PMI rose to 57.3 from 57.0 reaching more than six-year high.

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ECB Helped Taper Off Inequality, Says Draghi
ECB President Mario Draghi argued in a statement last Monday that the central bank’s efforts to maintain the union’s low interest rates has actually helped to taper off inequality rates within the eurozone and minimize unemployment rates. In a conference at a Lisbon university, Draghi stressed that the easy-money stance of the central bank has helped to curb the “highly-destabilizing” inequality levels in the EU, although several German officials in the past have repeatedly questioned this easy-money stance, as this apparently endangers pensioners and savers. This statement from Draghi comes at a very delicate time for the central bank as the ECB is now in the process of halting certain policies, including its negative interest rate program and its €2.3 trillion or $2.6 trillion bond-buying scheme.

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Indo-US Deepen Economic Relations
US President Donald Trump and India’s Prime Minister Narendra Modi had clinched the deal in intensifying the economic partnership between the two countries, India and United States. The agreement resulted in a win-win scenario for the two economies and resolving the diverging opinions in a peaceful approach.
Following the maiden meeting between Trump and Modi held at the White House, the Foreign Secretary of Indian Dr. S Jaishankar, told the reporters that the two parties had productive talks. Both countries are having changes in its economy that generates further demands and reaching the high-level comfort among the two nations, the other partner is suitable to satisfy such demands.
Jaishankar mentioned that the civil aviation market along with natural gas cooperations have said that Liquefied Natural Gas (LNG) coming from the US will begin to run to the Republic of India
It is anticipated that after many years, the LNG trade between Ind-US will exceed its amount of USD 40 billion, he added.
According to a joint statement of India and US, they are committed to strengthening their economic ties in order to build a stronger nation and successful citizens.

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Sluggish Growth Prediction for Developed Countries
A U.S. central banker forewarned that advanced economies and financial institutions in the United States will face a slower economic growth for long-term unless fiscal officials do something to counter this. Although, this comes surprisingly since the Federal Reserve just increased its interest rates earlier this month and intend to do more rate hikes gradually to prevent overheating of the economy. This also indicates positive growth of the economic outlook.
Federal Reserve president John Williams said that this optimism will only last for short-term and will change over time. With the sluggish growth, this gives a hard time for monetary policymakers to curb inflation and sustain full employment. This leaves the central bank with no choice but to rate hike since low growth trims the demand for investment and further push down the interest rates.