SheldonThinks Forum

February 28, 2017


Consumer Confidence of the Eurozone Plummeted

The consumer confidence of UK for this month declined while the British currency weakened. The prices rose and wage growth dwindled which influenced the Britains economic powerhouse.

The monthly household sentiment of GfK had a dipped and stayed below zero for the 10th month. The level for major purchases also decreased which implied that British citizens probably controlled their expenditures.

Another assessment by YouGov coupled with the Centre for Economics and Business Research is the job security index which further decline reaching its lowest result three years ago.

After the Brexit referendum, the private consumption as well as the services industry have compelled the economy, however, it set out some signs of economic strain. During the EU exit, the inflation increased as the energy cost climb higher together with the 16 percent cut in the sterling pound.

Furthermore, the growth of credit had a steep decline in December whilst retail sales inched up at its slowest pace since January 2014.

March 7, 2017

Brexit Supporters Push May to Examine EFTA Comeback

UK Prime Minister Theresa May is recently being urged by a panel of Brexit-supporting lawmakers to consider bringing the country back into the European Free Trade Association, a four-country organization which UK left way back in 1972 as a means of a starter to its trade negotiations which immediately follows the Brexit process. UK was one of the founding members of the said organization in 1960 but eventually left the EFTA in order for the country to become part of the European Union. Rejoining the EFTA could mean that the UK would be able to make use of the several free trade agreements created within the said organization.

March 7, 2017

European stocks pulled down by German data

The European stocks dropped for three days in a row on Tuesday pulled by the decline in shares of Deutsche bank after asking for as much as $8.5 billion cash call. Its shares declined close to 3 percent as a fresh low for the year.

Worsen by low corporate earnings report and industrial demand in Germany feel by 7.4 percent, the highest fall over the past 8 years, amid the global financial crisis that caused the investors to lose confidence setting the market in a lacklustre environment.

The U.S. futures began to fall slightly during the Wall Street ESc1 DJc1 as investors await for the possible next rate hike that is still uncertain but they are getting ready for it.

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March 8, 2017


Dollar Trimmed Down after a Two-month High

The surge of U.S. dollar decelerated minimally on Wednesday session after reaching a two-month high against a basket of currencies last week. Investors are cautiously waiting on the sidelines as the Fridays U.S. jobs report is about to be released soon. Moreover, there is a higher chance for a rate hike as the greenback sets in a tight range.

The appreciation of dollar seems like it achieved its limit with the rate hike in March in investors mind. Fed deliberating whether there will be a rate hike thrice for this year, this would prompt the central bank to provide hints as the workers salaries rise that could bring about inflation.

March 10, 2017

Nigeria Launched Recovery Plan for Economic Growth

The government of Nigeria has introduced its master plan to take off the recession with hopes of reaching 7.0% increase after three years, however, experts deemed that the target seems high to hit. The detailed outline of the plan was released on Monday including the possible programme of the oil giant in Western Africa to recover from the worst economic depression in 25 years.

John Ashbourne, an economist at the consultancy Capital Economics, said that one of the main considerations written in the document is the African Development Bank and World Bank to lend some money to the country since these banks provide borrowing plans.

The objective of the recovery plan is to diversify the economy by utilizing major industries inclusive of agriculture and energy as well as expanding production for oil up to 2.5 million barrels a day (BPD). As of this writing, the production arrives at 1.9 million bpd. The administration further initiated extensive projects for infrastructure aiming to improve transport system throughout the entire nation. Part of the goal is to improve the Gross Domestic Product with a 4.6% average until the year 2020 as the forecasted growth is at 7.0%.

Moreover, the global prices for oil have seen declined following the cut in revenue due to the Nigerian economy dependence from crude products. The naira established a weaker position and triggered inflation to beef up by 20%.

March 10, 2017

South Korean President Park Geun-hye Impeached amid Corruption Probe

A South Korean court has unanimously ruled for South Korean president Park Geun-hyes impeachment following a corruption probe which has led to possibly one of the largest political scandals in the countrys history. The ruling states that the now former president must immediately vacate her luxurious Blue House residence in Seoul and has rendered the former president literally powerless. The impeachment must also immediately be followed by a presidential election within 60 days, and as of the moment, key opposition figures are leading in the countrys polls.

March 13, 2017

Canadas Partnership with Ivanhoe Cambridge and LOGOS to Invest in Indonesia and Singapore

The biggest pension fund managers in Canada settled an agreement with a real estate logistics operator, LOGOS and Ivanhoé Cambridge to have a venture with Asian countries Singapore and Indonesia.

This investment was constituted due to the increase of e-commerce together with the development of the middle-classes around the Southeast Asian market.

Based on the Reuters report, the Canada Pension Plan Investment Board (CPPIB) have its initial commitment worth US$200 million intended to achieve the 48% of LOGOS Singapore Logistics Venture (LSLV). Moreover, the Board is assumed to cater US$100 million for the LOGOS Indonesia Logistics Venture (LILV) for reaching 48% stake. The Canadian corporation mentioned that this partnership is considered as the primary step towards direct real estate investments within the two nations. Aside from the two aforementioned countries, LOGOS also have business in China and Australia.

March 14, 2017

Argentine Labor Unions Protested Government Job Cuts

The Argentine Interior Minister, Rogelio Frigerio announced that the labor unions in Argentina put pressure on its government by initiating strikes and marches in advance of the mid-term elections of the country.

Mauricio Macri, 58, have been the countrys President for 15 months who pronounced its commitment to enliven the economy by taking back investors trust after 10 years of practicing

free-spending populist policies.

A hoard of laborers protested on March 7 expressing objection regarding job cuts and wages not adjusted for inflation which attained approximately 40 percent last year. Major labor organization has demonstrated its strikes over the previous weeks.

March 14, 2017
British Parliament Gives Theresa May Brexit Go Signal
British Prime Minister Theresa May is now preparing to jumpstart the actual Brexit process this coming last week of March after finally getting the approval from policymakers to begin two years worth of negotiations with the European Union. The British Parliament has finally passed the legislation which will enable the UK government to invoke the Lisbon Treatys Article 50, with the formal announcement for the Brexit expected to be announced before this month ends.

March 21, 2017

Iranian Year is a Year of Economy of Resistance, Khamenei Says

The supreme Leader of Iran, Ayatollah Ali Khamenei have reiterated on Monday for a call of a resistance economy which underlines the domestic production. Khamenei further mentioned that officials should also prioritize major concerns in relation to jobs and youth employment. He added that economic problems, inclusive of discrimination, inflation, social imparity and unemployment, causes people to feel bitterness particularly those in the working class.

The 77-year old leader addresses May elections which involve the possible second term of President Hassan Rouhani, even though he currently faces extensive criticism from conservatives due to the stagnant economic condition.

Rouhani administration was able to sustain the economy from the time he was in the position in 2013. The inflation was trimmed by 40 percent and lower than 10 percent while global sanctions were depleted by means of a nuclear agreement with the world powers. However, members of Iran Conservatives doubt the benefits of the nuclear deal concessions.

On the other hand, Rouhani attempt to justify his accomplishments after the broadcast made by Khamenei.

March 22, 2017

Cuban Citizens in Favor of American Ally

A rare poll conducted over the Cuban populace showed results that nearly all of the citizens of Cuba were in favor of having relations with U.S since a large number of respondents desire for more tourists to come and visit the island and further development of privately-owned businesses.

The survey involves 840 individuals polled late 2016 and led by NORC at the University of Chicago, an independent social research organization, presenting 55 percent of the answer says that normal relations with the United States would be great for the Caribbean nation.

Moreover, participants from ages 18-29 expressed their approval for closer economic relations with the USA reaching 70 percent or 8 out of 10 of the respondents believed for the tourism expansion for the republic.

The poll conducted by NORC was done through face-to-face interviews during October and November of the previous year. The margin of sampling error of the survey is plus or minus 3.8 percentage points.

Withal, there are 77 percent who had an optimistic outlook for the America and others have said that they would leave Cuba if would be given an opportunity. Some people who answered the survey deemed to be more cautious when expressing their opinions.

March 22, 2017

Japanese Exports Surge to Highest Value in Two Years as China Becomes Top Customer

Japanese exports surged for the third consecutive time last month as the countrys economic recovery has been further augmented by an increase in the international demand for the countrys products. This recent increase in the countrys exports is reportedly Japans biggest within a two-year period, and is reflective of the Asian Lunar New Year holidays. In addition, Japanese PM Shinzo Abe has also become increasingly outspoken with regards to free trade, which could pave the way towards protectionism within the country.

March 27, 2017

Vulnerable Regions in Britain Agreed to Leave EU

Further countries of the Great Britain agreed to withdraw from the European Union despite its high susceptibility from the impact brought by Brexit towards the economy, the analysis was based on the recently conducted research following the preparation of the government to set the Article 50 in motion.

According to Demos (Think tank) researchers, the regions that were studied includes Wales, north-east and east Midlands reviewing each states reliance on EU exports, utilization of European laborers as well as receipts of grants. The mentioned countries greatly depend on the European market in spite of the fact that majority of the leave voters came from these regions. Moreover, Wales issued 67% of exports, while 62% from the north-east and about 55% from Yorkshire and Humberside.

In addition to it, the government is hoping to minimize the effect by means of a renewed free trade agreement, however, EU negotiators insist that the UK must resolve its divorce settlement terms in the first place.

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April 17, 2017

Chinese Economy Accelerated as High as 6.9 percent

In the first quarter of this year, the Chinese economy performed in a faster pace as it showed some expansion. As the government expenditure spearheaded the growth which is contrary to the expectations that it will slow down as 2017 starts.

Moreover, the National Bureau of Statistics showed an increase of the countrys gross domestic product (GDP) reaching 6.9% on year, particularly in the first quarter. The figure is quite higher versus 6.8% of the past three quarters as well as the projected result of the government ranging from 6.5% to 7%.

Based on the median forecast from analysts, there will have a quarterly increase of 6.8% in comparison to the GDP in Q4 reaching 1.3% only as presented in the official data.

China may appear to have a slower growth but it assured a consistent development due to government outlays and lower credit. It further relies on traditional economic drivers coupled with the smokestack industries. The policymakers of the worlds second largest economy already ruled out an extensive economic slowdown which was generally anticipated since the disappointing results way back 2015.

April 19, 2017

IMF Increases International Growth Outlook by 3.5%

The International Monetary Fund has recently increased its outlook for international growth by up to 3.5%, the IMFs fastest rate prediction within a five-year period. Although the said organization retained its outlook for US growth at 2.3% as compared to last years 1.6%, it increased the forecasts for the EUs biggest economies, with the UK economy getting the highest nudge with a 0.5% point increase to clock in at a 2% growth forecast for this year. IMF Chief Economist Maurice Obstfeld stated that growth for this year will be mostly based on gains which will be manifested in the fields of both trade and manufacturing.

April 20, 2017
New Zealand Inflation Came in Strong in the First Quarter
The inflation rate of New Zealand soared unexpectedly as much as 2.2 percent in the first quarter which is the top-level over five years. Yet, the central is still committed keeping the interest rates low. Hence, the consumer price index (CPI) hovered in the middle range of the Reserve Bank of New Zealand's (RBNZ) within the 1 to 3 percent target range which they have attempted to lift higher for more than a year. The CPI ascended to 1 percent in the first quarter exceeding the expected 0.8 percent which also transposes the annual growth of 2 percent by analysts.

This hike in inflation was influenced by short-term gains because of high oil and food prices, a tax hike on alcohol and tobacco and the increasing costs of housing construction. The inflation is ascending although at a sluggish pace which keeps the RBNZ heedful according to the senior economist of the Australia and New Zealand (ANZ) bank.

April 24, 2017

Inflation Weighed on the Economy of Britain

The British economy has cooled significantly in the months of January to March this year because higher inflation put pressure on disposable incomes. The Office for National Statistics is scheduled to publish the estimated GDP data for the first quarter this Friday.

Great Britain almost forgot the impact of the Brexit referendum on June and had an unexpectedly quick recovery. The growth rates in the third quarter of 2016 reached 0.5% while 0.7 for the last quarter.

Based on the forecast of city economists, the country will experience an arduous year ahead linked with a 0.4$ steep decline on growth during the first three months of 2017.

The country previously earned 0.2% which is considered as the weakest performance in the Q1 of 2016.

Moreover, the sterling became weaker which increased the price for imports and drove the inflation towards its three-year high obtaining 2.3%.

April 24, 2017

ECB Reassures EU Citizens amid French Election Concerns

An official from the European Central Bank has offered his reassurances to a very worried EU audience amid pre-election anxieties stemming from the French national elections by saying that the ECB has enough reinforcements should the said elections result to an eventual fallout. Austrian central bank governor Ewald Nowotny has stated that the ECB has several instruments on hand if ever liquidity becomes a problem for French banks after the conclusion of the said elections. Nowotny is currently part of the ECBs rate-setting governing council.

May 22, 2017

New Economic Development Project Proposed by Owasso City

During the council held in early May, the staffs of Owasso City made a project proposal for a new Economic Development Strategic Planning intended for the community itself.

The proposal highlighted an agreement with the TadZo Consulting, known to be a consulting firm specializes in the economic development and site selection, they are part of the project in order to administer strategic services towards the city.

This is because the town has seen growing rapidly over the past few years and presumed further responsibility in developing its own economy. They gave importance on establishing defined objectives as well as devising policies effective for achieving their economic goals.

With the involvement of TadZo, it ensures that the town is able to execute such task through engaging, educating and empowering everyone concerned in the project through a definite method.

The economic developer would offer further assistance for the Owasso to catch the eye of its target audience through conducting comprehensive researches in identifying new community offerings.

The range of work is divided into three phases which include the current situation, strategic priorities, and strategic plan. This is done in order to have an efficient task in customizing the challenges, necessities, and opportunities for

The plan will undergo for a vote scheduled on Wednesday, July 5. In case the economic project will be approved, the cost will not exceed at $60,000 and would take six to eight working months which will start in July.

May 25, 2017

Chinas Debt-rating Downgraded by Moodys to A1 from Aa3

The credit rating of China was downgraded by Moodys Investors Service on Wednesday, the previous Aa3 (Double A-3) were down to A1 which means that the Chinese economy is going to grind lower for the next years as the country showed slow growth and its debt continuously increase. The downgrade is done due to the financial pressure that the government faces after years of credit-driven stimulus.

Craig Erlam, a Senior Market Analyst of Oanda, said in an interview, Because talk of Chinese debt and concerns about the size of Chinese debt has been going on for the last few years. They seem to be very reliant on these high levels of growth, which has been slowing. He further added that the credit downgrade does not surprise him at all.

The second largest economy in the world gained 6.7 percent last year and 6.9 in 2015, this pace is the slowest based on the records since 1990 by which Erlam believes that the following years appears to be challenging.

The bond credit rating company has expectations that the direct debt burden of Chinas government will climb higher reaching 40 percent of 2018s Gross Domestic Product which is close to the 45 percent as the decade ends. However, it remains lower to the 60 percent for the European Union.

The Finance Ministry of the republic claims that the downgrade is based on an improper approach that overestimated the risks on the increasing debt.

May 26, 2017

Trump Calls for Investigation Following Manchester Leaks

US President Donald Trump has already called for an investigation regarding the Manchester leaks in order for the US government to determine how top-secret information were able to make their way towards the headlines of news reports, when these sets of information were actually only divulged to the key allies of the British government. Several UK officials have already expressed their dismay and disappointment with regards to this particular matter, among them being UK Prime Minister Theresa May. The bombings in Manchester last Monday night had killed a total of 22 people and has left more than 100 people with injuries. The victims were attending a pop concert before the bombings occurred.

May 26, 2017

Reserve Bank of South Africa Left Rates on Hold

The South African Reserve Bank kept its interest rates unchanged on Thursday as it played down the thought of a lower cost of borrowing that further influenced the price pressures versus the projections regarding a much slower recovery of the economic struggle

Reuters polled 26 economists last week have forecasted that the benchmark repo rate will remain at 7 percent as Lesetja Kganyago, the Bank Governor stated that the constricting cycle is over.

He added that the yearly CPI inflation fell to 5.3 percent in April, however, there is still a possibility that risk might emerge again, especially the pressure relative to the rand currency due to uncertainties in domestic politics along with the downgrades in the debt ratings.

As the Fitch Ratings Ltd and S&P Global Ratings decided to cut South Africa into a junk status while Moodys reviewed the downgrade following the cabinet reorganization wherein Pravin Gordhan was dismissed from his job as the finance minister.

The central bank hopes that the inflation will hit 5.7 percent for 2017 and will acquire 5.3 percent in 2018, with its target that ranges from 3 to 6 percent.

The ZAR increased on the back of the rate decision reaching 12.8600 per USD to 0.5 percent stronger. The government bonds, on the other hand, lose its strength.