Company News by ForexMart

[Andrea ForexMart]

Calgary Council to Create a $10-million Economic Development Fund

The council of Calgary asked to produce an economic development investment fund (EDIF) that accounts to $10 million during on its meeting scheduled on Monday. Based on the Statistics Canada, there were almost 53, 000 jobs lost in Calgary, a region in Alberta, Canada.
In other countries like North America, the purpose of EDIF is to create diversification and to work out with the economic downswing.

Moreover, the city council released a report regarding the objectives of the said project: (1)Help create the right conditions for growth in the local economy, through efforts to strengthen industries and create new ones; (2) Diversify the local economy; (3) Leverage municipal funds for additional private and public sector investments into the community; (4) Create employment lands and stimulate employment; and (5) Create a return on investment (both direct and indirect).
Councillor Richard Pootmans approves the deal for he believes that investments should be administered within the community because no one else will do this favor for the Calgary.
Pootmans was recognized having a background in economic development prior entering politics.

The 20 percent of the $10-million worth EDIF will be allotted to the 10 cornerstone arts organizations that include the Calgary Folk Music Festival, Theatre Calgary, and The Calgary Philharmonic Orchestra. While the municipal politician would likely consider this idea as he said that, arts is one of the primary factors why people visit their art galleries.

The City administrators further stated that art organizations support the high quality of life in the region with an active metro and the economy is well-diversified.

[Andrea ForexMart]

Aussie Economy Can Grow Further, says Philip Lowe

RBA Governor Philip Lowe thinks that the Australian economy will still be able to grow further if the country’s officials will be able to overcome several political hurdles, although he also warned that disappointing wage gains data will most likely to continue plaguing developed countries. Lowe also stated that the central bank believes that the country’s economic growth will continue advancing during the next two years due to an overall surge in the status of the international economy. The political environment within Australia has become more and more polarized over the years, as parties attempted to gain an unfair electoral advantage from losing reform proposals. This has prevented the Australian economy to properly implement any kind of economic reform since 2000’s goods and services tax.

[Andrea ForexMart]

Positive Economic Feelings of Americans, No Help For Trump, CNBC says

The American economy remains optimistic as shown in the All-America Economic Survey by CNBC, along with some leading components reaching its highest level, however, this optimism does not help the president.

The poll shows that 800 U.S. citizens or 30 percent of the populace believe that the economy is in upbeat as of this moment until the future. It's the highest percentage recorded in the past two successive quarters amid survey's 10-year history.

There are 54 percent who think that house price will surge in 2018 and 44 percent who deems that their earnings will further rose for the following year. The stocks as well demonstrated a positive stance as there were 44 percent assumed that this period is a time for good investment

However, the positive tone of Trump’s economy does not contribute much help towards the approval rating of the state’s leader which showed a 37 percent decline based on the recent survey versus 39 percent result in April. President D. Trump’s approval on the economy is down to 41 percent and 44 percent in April. Moreover, negative factors may arise driven by various groups particularly laborers such as blue collar, independents, and retirees.

As the public has split belief, the poll found that quarter of the United States economy is becoming better due to policies adopted by the president. On one side, there are 22 percent who said that his plans worsen the country.

[Andrea ForexMart]

US Senate to Release Draft of Healthcare Bill

The Republican bloc of the US Senate will be releasing their draft of the healthcare bill this Thursday as the country’s senators attempt to iron out several issues within the country’s economy, such as the Medicaid program and the daunting task of decreasing insurance costs. Republicans have been struggling for several weeks as they attempt to revise major chunks of Barack Obama’s Affordable Care Act. Meanwhile, members of the Democratic bloc have staged a protest last Monday as part of their collective dissent towards these closed-door meetings of the Republican bloc.

[Andrea ForexMart]

Economists Predicted Optimistic Outlook for China’s Economy

According to the most recent poll, Chinese economists have a positive outlook regarding the future of the country’s economy. Forecasts say that the economic growth of China will gain 6.6 percent, this means that aggregate needs of China is extended up to 2034 only in order to take after the United States.

The survey was released by the bi-monthly journal, China Economist last June 14 which shows 131 analysis questionnaires. The study is done quarterly conducted by investment banks, research institutions, and widely-known economists.

Financial experts that came from the western and central regions of China estimated that the country will expand from 6.63 to 6.6 percent which is higher versus its rivals from the east. While the majority of the analyst believes that manufacturing in China will remain unchanged. The survey further indicates the upbeat tone of Chinese economist regarding the Republic’s better performance driven by the government confidence.

There are 35.2 percent of experts that the national debt of the country became much stable rather than of the U.S, considering its debt-to-GDP ratio is almost low and its growth rate in GDP is quite high.

Moreover, there are 91.2 percent economists who support the 100-day action plan designed by US President, Donald Trump as they deemed that the American economy can fully recover along with potential revitalization of the manufacturing sector of the state.

[Andrea ForexMart]

U.S. Bond Market Flat Yield Curve Warns the Economy

Federal Reserve authorities are applying more on a hawkish side on the next rate hike signifying less confident prediction for long-term economic growth. The U.S. Treasury yield curve giving a flat yield curve forebodes warning signals on the economy. Buyers will look out for higher yields especially for long-term debts when costs increase.

Dallas Fed president said that the cause of the yield curve is the weakened market growth while the New York Fed president described the reason to be the low offshore inflation and borrowing rates instead of a sluggish economic growth.

However, the flat yield curve could further ease the current financial condition amid the efforts of Fed to tighten its monetary policies but would benefit riskier assets such as stocks that are not easily affected by the strength of the economy. Nevertheless, the Fed cannot manage the whole monetary base since there are still parts under shadow banking which are larger than what the Fed controls in the present as described by a market strategist.

[Andrea ForexMart]

The current Money Fall contest has already started on June 26, 2017 and will end on June 30, 2017.

You can register for the next competition which will take place from July 3, 2017 to July 7, 2017

Note:
Registration for the next competition finishes 1 hour before the contest starts.

[Andrea ForexMart]

Corporate Sectors Face Risks Despite Economic Advancement in Q2

The economy of China has progress in the second quarter as the corporate profits rose and employed more workers in the recent surveyed but the country still yet to face difficulties. Nevertheless, corporates were able to endure a tighter financing condition amid signs of problems regards to negative cash flow and inventory levels. Commodities sector is strengthening in spite of weak price in the second quarter

This is in line with the latest data and rhetorics of policy makers who tried to control financial risks to prevent the collapse of the economy which would be discussed on the significant political meeting.

The government intervenes with its campaign to control debt risks and steady the financial market since the cash supply was sluggish in the past two decades in May. Notwithstanding, the bank lending remained strong. Companies are starting to sense tighter credit while they presume the deleveraging to be transitory.

[Andrea ForexMart]

Retail Sales in Japan Fell Off in May

The retail sales growth in Japan had slowed down in May versus the previous year, which means that consumers remain uncertain on their expenses. Last year, retail sales were able to gain 2 percent in May on the back of 3.2 percent increase in April.

The surge was mainly driven by motor vehicles, fuel, medicine and toiletries based on the economy ministry of Japan. Compared with the previous month, sales dropped by 1.6 percent from April after a 1.4 percent increase.

The Japanese economy sustained a five-quarter growth period, influenced by increasing exports and stronger domestic demand. However, the private expenditure weakened due to stagnant wages and without rebound salary as consumers are unlikely to spend a lot more.

The latest consumption index accelerated by 3.7 percent in May 2016 and decline from April. The statistics were based on JCB Consumption Now index that utilizes credit card data. Yasutoshi Nagai, chief economist at Daiwa Securities based in Tokyo, said: "It's hard to expect consumption to be a driver of growth,". He added that "You see many stores are cutting prices because they can't sell their goods."

[Andrea ForexMart]

CBO Speculates US Budget Deficit Could Surge to $693B

The Congressional Budget Office stated via its analysis report last Thursday that the US government is in danger of fully depleting its cash reserves as it scrambles to pay all of its bills before October 2017, particularly if the Congress heightens its federal borrowing price ceiling. The CBO also warned that the country’s deficit could balloon up to $693 billion if not addressed properly. Treasury Secretary Mnuchin has long since been appealing to US policymakers to increase the debt limit without any kind of conditions whatsoever before Congress postpones itself for a summer recession starting this coming July 28. Conversely, the US Treasury Department has been utilizing cash conservation procedures in order to cope with the US government’s accountabilities since last March 2017.