BoJ Minutes: Recovery Remains On Track, Expected To Continue

Trading 25 juil 2017 Commentaire »

Members of the Bank of Japan's Monetary Policy Board said that the country's economic recovery continues to show progress, and figures to continue to do so, minutes from the bank's June 15-16 meeting revealed on Tuesday.

"Domestic demand is likely to follow an uptrend, with a virtuous cycle from income to spending being maintained in both the corporate and household sectors," the minutes said.

Among the downside risks to the recovery is the uncertainty now surrounding U.S. economic policies.

Exports have been on an increasing trend, the minutes showed, while inflation expectations remain in a weakening phase.

"Most members shared the view that the year-on-year rate of change in the CPI was likely to turn slightly positive and thereafter would continue on an uptrend and increase toward 2 percent, mainly on the back of an improvement in the output gap and a rise in medium- to long-term inflation expectations," the minutes said.

At the meeting, the central bank voted to retain its target of raising the amount of outstanding Japan government bond holdings at an annual pace of about JPY 80 trillion.

The BoJ board also voted to retain the -0.1 percent interest rate on current accounts that financial institutions maintain at the bank.

The central bank also will purchase government bonds so that the yield of 10-year JGBs will remain at around zero percent.

"The bank will make policy adjustments as appropriate, taking account of developments in economic activity and prices as well as financial conditions, with a view to maintaining the momentum toward achieving the price stability target," the minutes said.


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COLOMBIA: Colcap Reverses Initial Losses And Closes Higher

Trading 25 juil 2017 Commentaire »

Colcap, the main index of the Colombian Stock Exchange, rose 0.31% Monday, closing at 1,475.84 points, boosted by a 1.27% increase in Bancolombia's share price and tracking higher oil prices abroad.

Felipe Espitia, an analyst at Alianza Valores, said that the rebound in oil prices after the Saudi Arabia's statement to strengthen the Organization of Petroleum Exporting Countries (Opec) agreement to restrict output boosted asset prices in Colombia.

Beyond Bancolombia, shares of ?xito (+1.21%), Conconcreto (+1.21%) and Cemargos (+1.13%) also increased. Cayac Canacol (-3.14%), Cemex (-1.81%), ETB (-1.05%) and Avianca (-0.55%) posted losses.

Meanwhile, the locally traded US dollar closed at 3,031.00 Colombian pesos, up 0.59%, with investors waiting for the US Federal Reserve Board's meeting conclusion, expected for Wednesday afternoon.

Diego Velasquez, an analyst at Valoralta, said the dollar rose to a high in more than a year while investors are expecting an announcement by the Federal Reserve on US benchmark interest rate.


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ARGENTINA: Stocks Fall Amid Political Uncertainty

Trading 25 juil 2017 Commentaire »

Merval, the benchmark stock index in Argentina, opened higher Monday but reversed its course during the session to close at 21,326.36 points (-0.80%).

Most of the shares traded in Buenos Aires closed down, with investors turning more selective amid political uncertainty after polls showed support for opposition candidates in the legislative election scheduled for October. Markets viewed that as a potential threat to Mauricio Macri's economic reforms.

"The local market started the week with a clear selling trend," noted Oscar Campos, an analyst at Intervalores.

Petrobras Brasil's and YPF's shares closed higher due to the oil price rebound abroad, rising by 1.70% and 0.61%, respectively.

Meanwhile the largest falls were Transener (-5.56%), Agrometal (-5.23%), Autopistas del Sol (-5.22%). Cresud dropped by 0.47% after reporting the sale of the La Esmeralda division.

Meanwhile, Andes Energ?a's shares were suspended after reports on its merger with Petrolera El Trebol (PETSA) to explore Vaca Muerta's oil and gas reserves.

The locally traded US dollar rose slightly, closing at 17.43 Argentinean pesos (+0.05%), giving back early gains after an intervention by government-related banks.

ABC Mercado de Cambios analysts said that the government was away from the foreign exchange market since the beginning of March. "As it is logical to expect, at some point the central bank would put a limit to the uncontrolled dollar's rise against the peso," said Fernando Izzo, an analyst at ABC Mercado de Cambios.


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BRAZIL: Ibovespa Rises On Commodities

Trading 25 juil 2017 Commentaire »

Ibovespa, the benchmark stock market index in Brazil, rose by 0.64% Monday, closing at 65,099.55 points, driven by commodity-linked stocks and the consumer sector.

Investors await a significant volume of economic data in the days ahead, as well as corporate earnings and monetary policy decisions in Brazil and the United States.

Vale's shares (VALE3 +2.21%, VALE5 +2.50%) were up on higher iron ore prices abroad. Gerdau Metal?rgica's shares (GOAU4 +4.18%) tracked the movement and posted the largest increase for an Ibovespa constituent today. Steelmakers also performed well, such as CSN (CSNA3 +3.12%). In addition to iron ore, gains of more than 1% in future oil contracts abroad helped Petrobras' shares (PETR3 +1.05%, PETR4 +1.49%).

Stocks from retail companies, like Grupo P?o de A??car (+3.32%), rose amid expectation of another cut in the Brazilian benchmark interest rate this week.

The locally traded US dollar, meanwhile, sketched some reaction and grew 0.15% after heavy losses last week, closing at R$ 3.1480. There was no particular reason to justify the advance, and investors are cautiously waiting for monetary policy decisions in Brazil and the US.

In a report, analysts at Lerosa Investimentos said that Brazil's Copom and US' Fed meetings "could leave the scenario benign for a few days."

Analysts also stressed that the market should begin to re-watch the government's articulations in the week preceding the vote on the criminal complaint against President Michel Temer, scheduled for August 2.


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IMF: LatAm And Caribbean 2017 GDP Growth Projection Falls To 1.10%

Trading 25 juil 2017 Commentaire »

The International Monetary Fund (IMF) cut its Gross Domestic Product (GDP) growth forecast for the Latin America and the Caribbean to 1.0% in 2017 and 1.9% in 2018, from 1.1% and 2.0% respectively.

The IMF expects that after the 2016 contraction, economic activity in Latin America will gradually recover in 2017-2018, as countries like Argentina and Brazil emerge from recession.

According to the IMF's quarterly report, Brazil's growth forecast for 2017 is now higher due to a strong first quarter, but continued weakness in domestic demand and political uncertainty will lead to a moderate pace of recovery, and therefore to a lower projected growth in 2018.

Meanwhile, Mexico's growth forecast for 2017 was revised upwards, from 1.7% to 1.9%, due to stronger activity in the first quarter, while the 2018 forecast was kept unchanged.

Revisions for the rest of the region were mainly downward, including in Venezuela, where economic conditions deteriorated further, the IMF said.


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COLOMBIA: FARC Will Become Political Party From September

Trading 25 juil 2017 Commentaire »

The Revolutionary Armed Forces of Colombia (FARC) will become a political party starting September 1st, according to a decision taken by the guerrilla's joint staff command.

"On September 1 we will be publicly launching our new political movement," said Juli?n Gallo, alias Carlos Antonio Lozada, member of the FARC joint command, at a press conference in Bogot?.

Last year's peace agreement involving guerrillas and the Colombian government granted FARC five seats in the Senate and five in the House of Representatives as of the next legislature, which begins a year from now.

Lozada said that the guerrillas are outlining the guidelines to form their political party and to choose the candidates who will face future elections.

"We have a proposition for an economic model, a gender policy that our party will deploy, proposals we will make to the youth, as well as an environmental agenda, the party's policy towards the urban issue and also for the agrarian one," added Lozada.

He also stressed that the peace agreement guarantees the financing of the FARC political movement and that it will follow the same rules as that of other parties because "it is a commitment that the state must fulfill."

Lozada announced that from August 27 to 31 FARC leaders would hold a congress to constitute the party, decide its name and define its primary agenda.


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Why Jobs By Gender Harm Both Women And Men

Trading 25 juil 2017 Commentaire »
“I’m not bossy, I’m the boss.” So proclaims Beyoncé in a video in support of the #banbossy campaign. The campaign highlights how when little boys take charge, they’re often praised for being a “leader.” But when little girls do, they’re more likely to be scolded for being too “bossy.”

Grab, Uber’s Southeast Asia Rival, Gets $2.5 Billion In Funding

Trading 25 juil 2017 Commentaire »
Ride-hailing services are a strong sector for tech companies in the U.S. and the market is seeing similar performance overseas. Southeast Asia ride-hailing service Grab is in the process of raising $2.5 billion in funding to bolster its services to users, according to Reuters.

Chipotle Norovirus Is Back: 135 Sick After Eating At Fast Food Chain

Trading 25 juil 2017 Commentaire »
More than 135 people who reported falling sick between July 13 and July 16 after visiting a Chipotle restaurant in Sterling, Virginia have been identified by local authorities. The Loudoun County Health Department reported Monday that its investigation of the reports found two individuals tested positive for the same strain of norovirus following reports from earlier this month.

MEXICO: Economic Activity Annual Growth Slows To 2.2% In May

Trading 25 juil 2017 Commentaire »

The economic activity in Mexico rose 2.2% on year in May, slowing from the 2.9% increase in April, according to seasonally adjusted data from the country's statistics office.

The deceleration was prompted mainly by lower activity in the primary sector of the Mexican economy - agriculture, for example - which in May had its smallest annual increase this year, rising only 0.3%.

Industrial activity remained weak, rising 0.1% from a year before - its best performance in 2017 so far -, while the service sector posted a 3.5% annual increase in activity in May - the second largest increase this year, after a 4.5% rise in April.

On a monthly comparison, the economic activity in Mexico grew by 0.2 % in May from April, also in seasonally adjusted data. The primary sector had a 1.7% decrease, while industry and services sector both had increases in activity - 0.1% and 0.3%, respectively.


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