The current Money Fall contest has already started on October 2, 2017 and will end on October 6, 2017. You can register for the next competition which will take place from October 9, 2017 to October 13, 2017. Note: Registration for the next competition finishes 1 hour before the contest starts.
Asian Factories Improved Activity Before Shopping Season Begins Large factories in Asia has been more active in September along with the rise in global growth with signs if a strong demand for manufactured goods which end the shopping season very well. Yet, some regional economies who are experiencing economic struggles keep the direction slightly bent as they need to implement softer monetary policy despite western countries have pushed back their stimulus. The central bank of China has reduced the number of cash reserves for the first time since February 2016 which aims to make it more appealing for smaller lending companies and boost the stagnant private sector. The slowdown of their economy did not meet expectations even if they started the first half strongly. Although, they have plans of easing as they prepare ahead of the shopping season. This was supported by the official Purchasing Managers’ Index from China’s vast manufacturing sector whereby data shows a high demand in the previous month which have been the fastest rate since 2012. However, the higher cost of raw materials has affected the performance of smaller companies which was exemplified in the separate private survey of factories indicating slowed growth for the month of September. In Japan, the factory performance also accelerated at a quicker rate in four months because of strong demand in exports that affects the economic momentum despite the unchanged inflation rate. Moreover, the Bank of Japan reported that large manufacturers have gained more confidence in business situation over a decade, driven by the low value of yen and a strong global demand. Nevertheless, the BOJ plans to maintain their rates low. Also, the Manufacturing business in South Korea grew at the fastest rate in less than two years. Indonesia also demonstrated a rise in factory growth although at a slower rate and the production also declined. The country eased their interest rate twice this year hoping to improve the weak domestic consumption. Yet, India cut its rates in August to stimulate growth and inflation. Overall, it seems that these easing of the Asian nations is not really a major move but rather mere adjustments in policies compared to the Western countries as described by Rob Carnell, Asia’s head of research of ING.
Australia’s Consumer Confidence Slightly Declined The consumer confidence in Australia declined last week due to the current and future finances sentiment and risks on longer-term outlook remains. The ANZ-Roy Morgan Consumer Confidence Index slipped by 0.6 percent to 113.4 during the week until October 1st, showing a positive sentiment to the economic situation offset by the decline in the prospect of households based on personal finances. Moreover, consumers are confident regarding the current and future conditions of the economy and came in at 2.5 percent last and 2.0 percent accordingly. However, the household’s outlook is down to 1.6 percent. Felicity Emmett, ANZ Senior Economist, stated that the financial condition remains above average in the longer-term even though its stability became shaky. The index for buying household goods lowered down by 3.3 percent, as the increased last week eased off and keep below the long-term average. This coincided with the forecast on retail sales for the month of August which has the tendency to decline due to the recovery period. Furthermore, expectations for inflation revised upward from 0.1 percent to 4.5 percent based on the four-week moving average.
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Politically Impelled Depreciation of New Zealand Dollar A decline in the local dollar is anticipated as warned by the leader of the small nationalist party which will determine the next government of the country following the uncertain outcome of the general election. The New Zealand dollar dropped to its lowest value since the latter part of May on Monday after the final counting of votes at the weekend which exhibits the opposition of the Labour-Green bloc leading paired against the ruling National party. Although, the National party occupies a greater number of seats. After the final counting of numbers, there is a market speculation that the New Zealand first leader , WInston Peters, has to receive support from both parties to reach sufficient supporters to oversee the proportional representation system of the country and would be easier to work together along with the center-left Labour-Green bloc, inducing investors to sell their assets in New Zealand. Peters negotiated with both Labour and National parties on Tuesday. He has previously served the ruling party headed by both political bodies. Once the election has ended, he was anticipated to publicize with the party would he be associated with on October 12. Yet, reports from media say that he was not ready to announce his preferred coalition by Thursday and cannot decide if there will be an announcement on Friday. The New Zealand currency plunged by 3.7 percent since the election on September 23rd. It reached a four-month low of $0.7052 on Monday then rose the following day traded at $0.7063. Consequently, exporters will find this news a good event being an export-reliant nation as said by Winston Peters after its meeting with Labour when he was being interrogated about the depreciation of the currency. The nationalist party supports the arbitration of the Reserve Bank of New Zealand in the foreign exchange market and the kiwi is ranked as 11th eleventh in the currency market in 2016. On the other hand, the Labour party supports some revisions in the mandate of the central bank related with inflation. The Labour party has more commonality with the protocols of NZ First and putting more pressure in the market regarding the changes in policies since the National has more control over 10 years. At the same time, both parties also favor the adjustments in immigration, foreign proprietorship, and renegotiation of some trade deals. Peters has not given any decisions but he mentioned that control in foreign ownership will be his focus on most of the talks.
World Bank Cuts Growth Projections in India The Gross Domestic Product (GDP) of India may decline to 7.0 percent for this year versus 8.6 percent in 2015 due to concerns in demonetization and the Goods and Services Tax (GST). As per the forecast from the World Bank, controlled private investment brought by internal bottlenecks could impose downside pressure towards India’s potential growth. On Wednesday, The International Monetary Fund (IMF) had revised lower the country's growth outlook at 6.7 percent in the current, this shows 0.5 percentage point lower than the two previous forecast and weaker than the 6.8 percent by China. As indicated in the biannual economic update from South Asia Economic Focus, the economic development of India was greatly affected by the issues regarding the withdrawn banknotes and risks involving the GST. Therefore, resulting to an expected slow growth. The growth could increase by 7.3 percent next year through implementing fair policies in balancing public expenditure with private investment. It is projected that sustained growth could lead to further poverty alleviation and more attention is necessary to help the informal economy gain benefits, according to a report issued prior the annual meeting of the World Bank and the IMF. Moreover, the reduction on India’s economic growth also weighed down to South Asia, which resulted to a tip over the second rank followed by the East Asia and the Pacific. On the other hand, both public and private expenditure have faster pace after the approval of the Seventh Central Pay Commission (7th CPC). And also because of the recovery in the rural demand subsequent to the agricultural impetus and normal monsoon. Meanwhile, the aggregate demand decline as public investment begin to weaken. The bank mentioned that GST is forecasted to stall economic progress earlier next year, however, there is a tendency that momentum may raise. There are indications that shows manufacturing, post-GST and services could possibly decrease sharply. The economic activity could sustain within a quarter in stabilizing the GDP rate at 7.0 percent in 2018.
Finance Minister Le Maire Confident for Optimistic French Economy Finance Minister Bruno Le Maire is present in the conference with central bankers and Group of 20 finance ministers led by the International Monetary Fund. He met with JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon and U.S. Treasury Secretary Steven Mnuchin on Thursday. During the meeting held in Washington, Le Maire told officials his confidence towards the expected economic performance of France. Considering the determined behavior of Macron administration in implementing reforms. According to Le Maire, the main purpose of President Emmanuel Macron’s leadership is to give France a new and improved economy. There are different projections about French GDP but currently predicted to increase by 1.7 percent in 2017, which indicates the country’s strongest development after six years. The French Ministry of the Economy and Finance reported the continuous expansion with the same pace in 2018, however, the Finance Minister stated that it could possibly jump beyond official outlook. After Macron’s five months in the position, he successfully put into effect complex labor laws reform which enables companies to have more flexible environment working period and implementation of job cuts. Moreover, the French leader began to discuss with associations and corporate groups the intention to revamp employee training and unemployment-insurance system. The government also prepared the national budget for 2018 that will reduce taxes and public expenditures, Le Maire said.
This week’s most popular deal: Risk Warning: Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result to substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge and understand the risks relative to forex trading. Seek financial advice, if necessary.
ECB Asset Purchases Refused by the Court of Germany The appeal for an injunction to prevent the Bundesbank in participation to the asset purchase program of the European Central Bank has been turned down by the Constitutional court of Germany, according to the recent statement of the court. The program is worth 2.3 trillion euro or $2.7 trillion. As observed previously, the German court was reticent when it comes to the asset purchases in the past. The ruling is now left in the hands of the European Court of Justice which has sided with the ECB when bond buying was put into question.
