New Investment Fund Between Softbank and Saudi Arabia
Softbank announced to form a new investment fund with Saudi Arabia. This company is a Japanese multinational telecommunication company who has been successful with their past investments with company acquisitions such as Alibaba. Softbank plans to invest amounting to a minimum of $25 billion which is part of their Softbank Vision Fund while Saudi Arabia put in not less than $45 billion. This investment fund hopes for a long-term financial returns for both sides. At any rate, this partnership may grow bigger and take into consideration other companies to join.
Fed's minutes were released, increase of rates reaffirmed
Ten out seventeen committee officials who are present in the US Federal Reserve meeting had approved the raise of rates. They gave a “close call” because inflation were seen falling at 2% and indication for the build up of impetus for expanding the rising wages is not yet visible.
Rates swings between 0.25% and 0.5% According to the meeting, "several members judged that it would be appropriate to increase the target range for the federal funds rate relatively soon if economic developments unfolded about as expected."
Asian Stocks and USD Inch Higher amid Relief on Chinese Inflation Data
The US dollar as well as Asian stocks experienced a significant increase on Friday which cancelled out the previous losses from Thursday due to a highly positive Chinese inflation data, which erased certain doubts with regards to the current state of the Chinese economy. The MSCI index of Asia-Pacific shares, particularly the MIAPJ0000PUS increased by 0.4% following a drop of 1.1% last Thursday which was caused by a decrease in China’s export numbers that led to a surge in US yields and interrupted the movement of the USD.
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Chinese GDP for Third Quarter Released, Maintains Economic Growth at 6.7%
China’s GDP data for the third quarter was released today, and the country was able to maintain its economic stability. This has already ensured that the country’s full economic target will be hit before the year ends and will lead to a possible policy change with regards to minimizing financial risks. The nation’s GDP increased by 6.7% for the third quarter of the year, a stark comparison from last year’s third quarter GDP data. China was able to attain its initial 2016 goal of a GDP growth by 6.5-7%. Meanwhile, the services industry data clocked in at 7.6%, which expanded during the first nine months of 2016.
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Yahoo Inc. profits made an increase over Verizon hacking review .
In the past three months, the search engine company multiplied its revenues. Provided by the figures during the Q1 until September 30, the corporation's earnings reached $163m compared to last year result of $76.3m. While the income from mobile negotiations attained $396m versus $271 of previous year.
The Verizon Communications made an agreement with Yahoo to buy the corporation worth $4.8bn (£4bn) despite the breach data issues. Furthermore, Yahoo announced to the public that there are 500 million user accounts who's been allegedly hacked last month. The Verizon reacted on this concern since they believe that it would cause some impact on their plan in buying the company. On the other hand, the CEO of Yahoo, Marissa Mayer affirmed on Tuesday, "We're working hard to retain [users'] trust and are heartened by their continued loyalty as seen in our user engagement trends."
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The Import prices increased by 0.1% last September which is lower than the forecasted 0.2%. This is brought by the rise in cost of petroleum and other goods. The dollar appreciated that caused the deflation of imports and inflation to be restricted lower than the 2% target of Federal Reserve. However, this will be reversed soon because the dollar’s rally slowly fading with the petroleum is about to stabilize and inflation would eventually meet its target.
The exports increased by 0.3% last month after a decline of 0.8% last August. The results was lower by 0.5% compared to last year performance which has been the smallest about 12 months from October 2014.
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Six Billion Bilateral Fund Needed Before IMF Agreed to Loan Egypt.
The International Monetary Fund has acceded on a $12 billion loan for three years with Egypt. They agreement is the need to secure a $6 billion bilateral funds before the approval of IMF. This is part of government’s reform program to curb budget gap and stabilitate the currency market. The government is also planning for a new investment law and the awaited 13% Value Added Tax while IMF hopes for Egypt to focus on easing monetary policies and lessen inflation.
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Earnings of self-employed workers had fallen
According to the Resolution Foundation, the labor force of self-employed individuals in the United Kingdom expanded by 45 percent, however their remuneration depreciated by £60 ($73.37).
Due to the continuous lowering salary for all kinds of jobs including also the unsustainable financial system of the country.
Economic analyst, Adam Corlett who works on the same foundation stated that there are 5 million wage earners categorized as self-employed or about one out of seven laborers are independent or non-staff. This consists of hairdressers, taxi drivers and tutors. It is estimated that an average self-employed workers earns for about £240 (293.53 US Dollar) per week during the fiscal year 2014-15.
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Fed Vice Chairman Stanley Fischer Warns of High-Pressure Economy Risks
Vice Chairman Stanley Fischer of the Federal Reserve has recently warned of the risks brought about by a high-pressure economy, after the Fed has recently outlined its plans to further decrease unemployment rates, which is characterized by an increased economic pressure. Fischer also cited cases in the past wherein central banks reduced its unemployment rates way beyond its sustainable level, which has more often than not resulted to increased inflation. Economists are saying that this difference of statements between the two Fed officials are pursuant of an ongoing opinion divergence between the bank’s officials.
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UK PM Theresa May Faces Pressure to Explain Strategies for Brexit amid Possible Vote from Legislators
UK Prime Minister Theresa May is currently facing renewed pressure to divulge her Brexit strategies before the Prime Minister starts taking formal steps for the UK to be able to leave the European Union. A group of legislators has demanded over the weekend that UK government should first submit a proper outline of its Brexit plans to the Parliament before formally withdrawing from the European Union. The said group has initially argued that the Brexit referendum only asked its voters whether they wanted to leave the eurozone and failed to indicate the terms and conditions of this particular referendum. It can be recalled that Theresa May was forced to backup a Labour motion last week after legislators called for a thorough review of her supposed strategy.
