Thread: Company News by ForexMart

Better Global Economic Standing Despite Rise in Unemployment Rate


Recent data showed a 3% growth but this was because of short-term fleeting factors. The unemployment rate stayed low while the underemployment and long-term unemployment has increased with weakened nominal wage and inflation. This is in contrast of unemployment rates released by IMF saying that it increased were majority part-time.


Australia's economic status is performing better than other countries and it would get stronger if there will be more investments and invigorate business confidence. However if the investments remained subtle, company earnings would be affected and be in tension. Also, the consumer consumption would stay low if the job earnings would not increase.


The RBA should keep interest rate slow and maximize infrastructure spending to increase in employment rates in current global economic environment.

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Chinese Industrial Production Rose But Retail Sales Slowed Down


The economic activity of China was presumed to stabilize last month, however, retail sales fall off due to worries about the outlook of the US-China trade frictions under the administration of President Donald Trump. Moreover, the industrial sector performed a better-than-expected 6.1% growth in the month of October while the retail industry dropped an estimated 10% sales.


China’s fixed-asset investment further acquire 8.3% increase for the past 10 months of the present year, this result exceeded the expectation from January to October seeing the government allocated infrastructure expenditures in order to reinforce growth as shown in the official data on Monday.

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Morgan Stanley Bank Gained $10m After Stocks Rallied


Morgan Stanley acquired more than 10 million U.S. dollars equivalent to 8 million pounds of shares after Trump’s victory in U.S. presidential election. Stocks rallied in effect of post election and the bank, Morgan Stanley collected as much as a fifth of their collated earnings as their highest for more than a year.


After the election, this has been the best performance as stocks recovered from 2008 to 2009 financial crisis. The market sees Trump’s campaign to elevate inflation of infrastructures and Federal Reserve’s fiscal policies that further boost banks turnover.


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The Highest-Ranking Russian Official Accused for Receiving $2M Bribe


The Economy Minister of Russia, Ulyukayev were accused for accepting payments after he approved the takeover of 50% stake of Bashneft to a giant oil company, Rosneft. According to the investigators, the Russian minister collected $2m (£1.6m) worth of bribe, however, Ulyukayev pleaded not guilty on the allegation.


Alexei Ulyukayev is considered to be the highest-ranking Russian official to be dismissed and arrested since the failed coup in 1991.


The minister was arrested Tuesday morning and expected to face eight to 15 years of imprisonment but he continued to denied the blame and described it as “an act of provocation against a state official”. Moreover, the court allowed him to take a house arrest until January 15.
President Vladimir Putin take an immediate action and impeached Mr. Ulyukayev since the 60-year-old minister broke the trust of Putin. The acting economy minister recently appointed was Yevgeny Yelin.

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US Dollar Drops, Asian Stocks Bounce Back as Trump Victory Shock Fades


For the first time in nearly four days, Asian stocks increased in value while the USD dropped from its five-month high against the Japanese yen due to investors questioning the possible overreaction of the financial market to Donald Trump’s recent win during the US elections. The MSCI Asia Pacific Index increased due to energy shares after crude oil prices rose to its highest levels in seven months after the OPEC finally agreed on proposed output cutbacks. For the major currencies, the KRW had the most gains after rebounding from its near-record lows since June 2016. The Japanese 10-year bond yields were also able to maintain its zero value after staying within negative territory for a total of eight weeks.

Dollar Falls, Bonds Increase, Asian Stocks Fluctuate Prior to Yellen Statement


The USD lost a significant amount of its value as compared to other major currency pairs while Treasury yields surged and Asian stocks experienced fluctuations prior to the release of the US inflation data, as well as a testimonial from Fed Chairwoman Janet Yellen which is expected to determine market expectations on the US interest rate. Meanwhile, the EUR edged higher after a nine-day slump as the dollar index reverted back from its highest level reached in nine months. New Zealand and Australian stocks extended its gains, while benchmark Treasuries also inched higher. Crude oil prices fell as American stockpiles incurred more gains in the market.


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Asian Stock Market Traded Mixed Due to Dollar Easing


The Asian market were trading mixed yesterday morning as the U.S Dollar strengthen along with the bond yields that increased as well, consequent to the victory of Donald Trump that further stimulated fund flows from various developing markets.


Despite of the softening of the yen, the Japan's Nikkei 225 rose up to 0.51% on the back of the broad based strengthening of the greenbacks after the election. While the benchmark Kospi Index of South Korea were able to bounce back and gain 0.05% following the prosecutor’s affirmation that President Park Geun-hye is associated in the political scandal.


On the other hand, the Chinese shares is in an upbeat as its global benchmark, Shanghai composite expand to 0.65%. The Hang Seng Index of Hong Kong moved higher up to 0.46%.
While Major economic news were released on Monday morning as the trade data of Japan for the month of October had dipped, the exports declined and the imports dropped 16.5%. The South Korea’s exports for the first 20 days of November had decreased with 0.25, imports plunged to 3.1%


While the petroleum products and other commodities made an upward momentum, the crude add up 0.83% and the Brent grew by 0.9%.


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U.S. Treasury Yields Soar with Strong Dollar


The U.S. Dollar reached a six-month record high on Monday's Asian trading session because of Trump's planned fiscal policies and goals to drive growth. The uncertainty brought by the so called “Trumponomics” has made the financial market to buy dollars and sell U.S.


Treasuries which is expected to persist for some time. Although there might be correction near Thanksgiving.


For five years, the U.S. Treasury yields have reached a highest two-week gains. This includes all types of maturities which is an after-effect of U.S. Presidential election. People waiting what will happen next after Trump's victory has further boosted the greenback to thirteen and half year highs compare to basket of currencies.


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Thai Economy Slows Down as International Risks Increase, Investments Weaken


The economic growth of Thailand slowed down during the previous quarter due to a relative weakness in the performance of private investments which is now compelling the Thai government to increase spending in order to shield the economy from an increase in international risks as well as burgeoning political uncertainties in the region following the death of King Bhumibol. Thailand is now expected to deal with added volatility in the financial market due to the unexpected results of the US elections as well as the death of the Thai king. On the other hand, the military junta has already guaranteed assistance with regards to infrastructure as well as financial support for farmers.


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Australia’s Mining Investments Fosters growth to Economy


Mining improves the economy of Australia with recovery of investments and increase in commodity prices. Furthermore, the high demand for Aussie boosts the economy specifically in Queensland and Western Australia since the inflation rates are going back to normal levels.


The unemployment rate has decreased since the peak in 2015 which also slowed down the population growth where the past reports saying it has improved were overstated . Nevertheless, this slow growth is not as bad as it shown a less than expected results.


On the bright side, it is the progress of trades mainly the pricing between imports and exports that gives a promising outlook for the mining investment and the increasing demand for money gives buoyancy in the economy.


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