Economic and company news by ForexMart

March 10, 2017

South Korean President Park Geun-hye Impeached amid Corruption Probe

A South Korean court has unanimously ruled for South Korean president Park Geun-hye’s impeachment following a corruption probe which has led to possibly one of the largest political scandals in the country’s history. The ruling states that the now former president must immediately vacate her luxurious Blue House residence in Seoul and has rendered the former president literally powerless. The impeachment must also immediately be followed by a presidential election within 60 days, and as of the moment, key opposition figures are leading in the country’s polls.

March 13, 2017

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.

March 13, 2017

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.

March 13, 2017

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.

March 14, 2017

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.

March 14, 2017

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.

March 14, 2017
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.

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EUR/USD Fundamental Analysis: March 15, 2017

The USD increased in value as the market anticipates the release of the FOMC rate announcement later today. As a result, the EUR/USD consistently weakened yesterday and has managed to break through 1.0650 points and is currently situated at just above 1.0600 points. A lot of analysts have been saying that the currency pair could possibly consolidate within the 1.0600-1.0700 barrier during the week of the FOMC statement and could possibly maintain its place within the region up until the end of this week.

The expected rate hike this coming March is pretty much secured and what the market will be focusing now is the amount of hawkishness of this particular announcement, and this is where the uncertainty lies. The majority of market players have no idea on just how hawkish the statement should be in order to push the value of the dollar further. Nonetheless, the market expects that there would be some sort of clue on the Federal Reserve’s next move and if possible, hints on the next scheduled interest rate hike from the central bank. Of course, it would definitely be good news for the market if the statement outwardly gives out clues of the next rate hike, but then again the central bank is not known for such moves and could possibly state that the schedule of the subsequent rate hikes would depend on the status of various economic data in the future.

The volatility of the EUR/USD pair could possibly be increased by the release of the CPI index data and the retail sales data. The currency pair could possibly drop to 1.0600 points and could even reach 1.0580 for a short period if the data comes out as positive.

GBP/USD Fundamental Analysis: March 15, 2017

The sterling pound has been widely expected by analysts to undergo a lot of pressure both in the short term and medium term, with bounces in the GBP/USD pair translating into selloffs and this was what the market has been seeing in the past few days as far as the GBP/USD pair is concerned. The currency pair briefly bounced at the 1.2250 region but eventually fizzled out as the pair was met with massive selloffs at this region. As of the moment, the currency pair looks very fragile and is currently situated at the 1.2150 barrier, Brexit process notwithstanding.

The invocation of the Article 50 is getting closer but as far as the UK government is concerned, there are no hints yet as to the exact date of the said invocation. The government has already decided to invoke the article this month but has refused to announce the specific date for the event. It is only a matter of time before the invocation but none of them has asked the EU leaders with regards to the timeline of the said process. It appears that there has been no consultation whatsoever between the eurozone and UK leaders with regards to the date of the invocation, and some EU officials are even saying that the actual negotiations might have to wait until June even if the invocation happens this month. Due to this confusion, the sterling pound has been consistently kept under pressure, with the GBP/USD pair in the midst of suffering.

In addition to the mentioned uncertainties, the UK Deputy Governor has also announced his resignation, adding up to the already heightened concerns within the economy. The FOMC rate announcement will be happening later today, and a couple of economic data such as the CPI index and retail sales data are also due to be released today. These are all expected to further induce the GBP/USD pair to plummet towards 1.2000 in the short term basis.

March 21, 2017

Reshuffle of China’s Central Bank's Monetary Policy Committee

China has reshuffled its cabinet officials. Guo Shuqing has been appointed as China's banking regulator of the central bank's monetary policy committee. He was positioned as the chairman of the China Banking Regulatory Commission. On the other hand, Ding Xuedong replacing the Xiao Jie, was appointed as the finance minister who is the former deputy secretary-general of the committee.

The policy meeting is scheduled to gather every quarter of the year to talk about the current economic and policy concerns and have their suggestions. Although, the final decision of main primary currency rate and borrowing rates should be approved by the senior cabinet as well as the party leaders.

March 21, 2017

Iranian Year is a Year of “Economy of Resistance”, Khamenei Says

The supreme Leader of Iran, Ayatollah Ali Khamenei have reiterated on Monday for a call of a “resistance economy” which underlines the domestic production. Khamenei further mentioned that officials should also prioritize major concerns in relation to jobs and youth employment. He added that economic problems, inclusive of discrimination, inflation, social imparity and unemployment, causes people to feel bitterness particularly those in the working class.

The 77-year old leader addresses May elections which involve the possible second term of President Hassan Rouhani, even though he currently faces extensive criticism from conservatives due to the stagnant economic condition.

Rouhani administration was able to sustain the economy from the time he was in the position in 2013. The inflation was trimmed by 40 percent and lower than 10 percent while global sanctions were depleted by means of a nuclear agreement with the world powers. However, members of Iran Conservatives doubt the benefits of the nuclear deal concessions.

On the other hand, Rouhani attempt to justify his accomplishments after the broadcast made by Khamenei.

March 21, 2017

Iranian Year is a Year of “Economy of Resistance”, Khamenei Says

The supreme Leader of Iran, Ayatollah Ali Khamenei have reiterated on Monday for a call of a “resistance economy” which underlines the domestic production. Khamenei further mentioned that officials should also prioritize major concerns in relation to jobs and youth employment. He added that economic problems, inclusive of discrimination, inflation, social imparity and unemployment, causes people to feel bitterness particularly those in the working class.

The 77-year old leader addresses May elections which involve the possible second term of President Hassan Rouhani, even though he currently faces extensive criticism from conservatives due to the stagnant economic condition.

Rouhani administration was able to sustain the economy from the time he was in the position in 2013. The inflation was trimmed by 40 percent and lower than 10 percent while global sanctions were depleted by means of a nuclear agreement with the world powers. However, members of Iran Conservatives doubt the benefits of the nuclear deal concessions.

On the other hand, Rouhani attempt to justify his accomplishments after the broadcast made by Khamenei.

March 22, 2017

Cuban Citizens in Favor of American Ally

A rare poll conducted over the Cuban populace showed results that nearly all of the citizens of Cuba were in favor of having relations with U.S since a large number of respondents desire for more tourists to come and visit the island and further development of privately-owned businesses.

The survey involves 840 individuals polled late 2016 and led by NORC at the University of Chicago, an independent social research organization, presenting 55 percent of the answer says that normal relations with the United States would be great for the Caribbean nation.

Moreover, participants from ages 18-29 expressed their approval for closer economic relations with the USA reaching 70 percent or 8 out of 10 of the respondents believed for the tourism expansion for the republic.

The poll conducted by NORC was done through face-to-face interviews during October and November of the previous year. The margin of sampling error of the survey is plus or minus 3.8 percentage points.

Withal, there are 77 percent who had an optimistic outlook for the America and others have said that they would leave Cuba if would be given an opportunity. Some people who answered the survey deemed to be more cautious when expressing their opinions.

March 22, 2017

Japan Exports Rose in February After Two Years

Japan exports rose for more than two years in February after a decline in January. It has exceeded the expected 10.6 percent as the annual export grew by 11.3 percent. It reached by1.3 percent in the month of January, as the highest gain since 2 years ago according to the data from the Ministry of Finance.This has caused the trade surplus gap to widen with raising concerns of U.S. protectionism.

The increase in Japan’s trade surplus becomes a problem for the Japanese policymakers after it has been secluded by President Trump, against the competitors from China and Germany. Although the head of Mizuho Research Institute Research Department said that the trade surplus may not have reached dangerous levels but it has been in the lows for a long time.

An economic talk between the U.S. and Japan is scheduled in the middle of April with Tokyo aiming to elude trade arguments concerning car exports concentrating on U.S. infrastructure investment

March 22, 2017

Japanese Exports Surge to Highest Value in Two Years as China Becomes Top Customer

Japanese exports surged for the third consecutive time last month as the country’s economic recovery has been further augmented by an increase in the international demand for the country’s products. This recent increase in the country’s exports is reportedly Japan’s biggest within a two-year period, and is reflective of the Asian Lunar New Year holidays. In addition, Japanese PM Shinzo Abe has also become increasingly outspoken with regards to free trade, which could pave the way towards protectionism within the country.

March 27, 2017

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.

March 27, 2017

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.

March 30, 2017

Asian Stocks Mix Up as Oil Maintains Gains, JPY Drops

Asian stocks started off on a mixed note as global equities stayed within its record highs as the Trump administration attempts to enliven its legislative agendas.On the other hand, the Japanese yen and crude oil prices were able to maintain its hold on the price surge last Wednesday. Oil prices traded within the $49.50 range as oil stockpiles increased minutely as compared to its initial projections. Meanwhile, Treasury yields plummeted as a reaction to the said surge last Wednesday.

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April 4, 2017

Brazil Trade Surplus Exceeded Expectations at $7.1B

The trade surplus for the month of March was recorded to reach $7.1 billion according to the government data of Brazil. It has exceeded the expected output with $6.8 billion surplus according to forecasted poll of Reuters. It was not that influenced even though the beef exports fell because of recent corruption scandal causing a non-permanent ban on imports of China and Hong Kong.

The aggregated exports reached $20.1 billion while imports figure was tallied to $12.9 billion. Beef exports declined by 6.1 percent while both poultry and pork exports increased up to 7 and 33.4 percent respectively in comparison with the statistics in the same month a year ago.

April 17, 2017

Chinese Economy Accelerated as High as 6.9 percent

In the first quarter of this year, the Chinese economy performed in a faster pace as it showed some expansion. As the government expenditure spearheaded the growth which is contrary to the expectations that it will slow down as 2017 starts.

Moreover, the National Bureau of Statistics showed an increase of the country’s gross domestic product (GDP) reaching 6.9% on year, particularly in the first quarter. The figure is quite higher versus 6.8% of the past three quarters as well as the projected result of the government ranging from 6.5% to 7%.

Based on the median forecast from analysts, there will have a quarterly increase of 6.8% in comparison to the GDP in Q4 reaching 1.3% only as presented in the official data.

China may appear to have a slower growth but it assured a consistent development due to government outlays and lower credit. It further relies on traditional economic drivers coupled with the smokestack industries. The policymakers of the world’s second largest economy already ruled out an extensive economic slowdown which was generally anticipated since the disappointing results way back 2015.

April 17, 2017

Turkish Lira Surges as Erdogan Win Rekindles Market Rally

The Turkish lira surged in value as Recep Tayyip Erdogan came out victorious in the Turkish Presidential elections, sparking renewed interest in the world’s most dismal emerging-market currency for 2017. The lira increased by over 2.5% to clock in at 3.6188 per dollar, the currency’s largest intraday gains since January 2017. The Turkish market is now expected to rally as an instantaneous reaction to this recent win from Erdogan and then step back later on to assess what this means for the country’s economic policies as well as relationships with allied nations such as US and the eurozone.

April 19, 2017

IMF Increases International Growth Outlook by 3.5%

The International Monetary Fund has recently increased its outlook for international growth by up to 3.5%, the IMF’s fastest rate prediction within a five-year period. Although the said organization retained its outlook for US growth at 2.3% as compared to last year’s 1.6%, it increased the forecasts for the EU’s biggest economies, with the UK economy getting the highest nudge with a 0.5% point increase to clock in at a 2% growth forecast for this year. IMF Chief Economist Maurice Obstfeld stated that growth for this year will be mostly based on gains which will be manifested in the fields of both trade and manufacturing.

April 19, 2017

Sterling Skyrocketed while Stocks Crumbled

Sterling was on a spotlight during the Asian trading on Wednesday after Theresa May called for a snap election on June 8 that could give a positive outcome after Brexit. The currency surged more than a six-month highs against the greenback while the U.S. dollar recovered a little in the Asian session with a rise of 0.15 percent against other currencies.

Safe-haven bonds continued to strengthen prior to the French presidential election despite raising tension between the U.S. and the North Korea. The dollar has weakened following a drop in U.S. bond yields to a five-month low as much as 2.17 percent ,

Equities were pushed to the sidelines as futures are welcomed with losses upon the opening of German and U.K. stock market.

Japan’s nikkei steadied for quite some time but Shanghai.SSEC extended its losses with 1% drop. The Chinese market declined for four consecutive sessions because of tighter policies.

In commodity market, gold was pulled down up to 0.4 percent to XAU=$1,287.10 an ounce while U.S. Brent crude oil prices dwindled by 16 cents at $54.73 a barrel.

April 20, 2017
New Zealand Inflation Came in Strong in the First Quarter
The inflation rate of New Zealand soared unexpectedly as much as 2.2 percent in the first quarter which is the top-level over five years. Yet, the central is still committed keeping the interest rates low. Hence, the consumer price index (CPI) hovered in the middle range of the Reserve Bank of New Zealand's (RBNZ) within the 1 to 3 percent target range which they have attempted to lift higher for more than a year. The CPI ascended to 1 percent in the first quarter exceeding the expected 0.8 percent which also transposes the annual growth of 2 percent by analysts.

This hike in inflation was influenced by short-term gains because of high oil and food prices, a tax hike on alcohol and tobacco and the increasing costs of housing construction. The inflation is ascending although at a sluggish pace which keeps the RBNZ heedful according to the senior economist of the Australia and New Zealand (ANZ) bank.