EconomyVN - Prosecutors are to clarify the allegations of shady funds, tax evasion and abuse of trust involving some leaders of the Lotte Group.
Information about the death of Mr. Lee In-won appeared in just hours before the prosecutors expected to interrogate him at 9:30 in the same day, for alleging corruption scandal at Lotte Group. Under the plan, Mr. Lee will be convened to investigate the alleged establishment of the slush fund and many other illegal activities related to Lotte Group.
Mr. Lee is suspected to play an important role in the operation of large-scale tax evasion, slush fund worth billions of Won and allegedly involving many supposedly shady deals between subsidiaries of corporations .
Prosecutors are also clarifying allegations of shady funds, tax evasion and abuse of trust involving some leaders of Lotte Group.
In June, prosecutors raided the headquarters and branches of Lotte in Korea to search for evidence in the investigation.
The UK’s high streets are heaving with shoppers notwithstanding June's shock vote to abandon the European Union. Moreover, big businesses have already reported few signs of distress, while some tabloid newspapers are discussing a post-Brexit economic boom.
The overwhelming view from financial experts is that it’s too early to know how the United Kingdom will cope with years of Brexit uncertainty, though there’s a soaring belief that the country can avert a recession, which just weeks ago was regarded as probable.
On the face of it, the early upbeat mood contrasts with the pre-referendum warning from ex-Prime Minister David Cameron that Brexit would put a bomb under the British economy.
In August, retail sales reversed much of an immediate post-Brexit vote dip, with retailers posting their strongest sales for six months as industry data revealed on Thursday, mostly due to a weaker sterling attracting overseas buyers.
Japan July consumer prices show the biggest annual fall for three years
In July, Japan's core consumer prices edged down for a fifth straight month and demonstrated the most enormous annual sag for more than three years, as more companies had to hold back price lifts due to poor consumption, thus keeping the major bank under pressure in order to expand an already massive stimulus program.
The gloomy data backs a dominant market view that Japanese premier Shinzo Abe's stimulus programs have turned unable to dislodge the deflationary mindset prevailing among consumers and businesses.
In July, the nationwide core consumer price index, excluding volatile fresh food prices, but including oil products, sagged 0.5% from a year earlier, as government data revealed on Friday. In fact, it exceeded a median market forecast for a 0.4% drop and it turned a bit bigger than a 0.4% tumble in June.
While dropping energy costs were mostly behind the dip in consumer prices, ascends in imported food prices as well as hotel room rates moderated in a clue that poor consumption is discouraging firms from passing on soaring costs.
EconomyVN - The latest report from the Japanese government said the Japanese economy in the 2nd quarter of 2016 equals to the previous quarter and rise only 0.2% compared to the same period of 2015.
Accordingly, contrary to the forecasts of economists, growth in the Japanese economy in the second quarter of this year is only at 0%, due to weaker exports and reduced business spending. This result creates tremendous pressure on Japanese officials to revive the country's economy, while there are also more skeptics about the effectiveness of the economic program "Abenomics" lasted many years by Prime Minister Shinzo Abe.
The above figure is lower than the market's forecast and raises concerns about the stalemate of the Japanese Government in their efforts to recover the 3rd largest economy in the world.
Last week, Tokyo announced a new economic stimulus package worth up to 28.000 billion yen to support the economy, after the results of Brexit have made the global financial markets wobble.
EconomyVN - Walmart spent $3 billion to buy Jet.com - a name known in the US market over the past year - whether it is dear for Walmart?
According to Business Insider, business circles were not surprised with the movements of Walmart. Right from the beginning of the year, they showed a strong transition plan. The closing of about 270 worldwide stores is "painful" decision, but is not impossible to do. They no longer want to bear the name of the largest retailers in the world, in the era of digital technology.
Forbes site also provides illustrative diagrams explaining why Walmart buys Jet.com. In Amazon's total revenue, they have nearly 93% of revenue from online sales. Meanwhile, Walmart always remains at 3%. Unless escaping the retailer shadow, Walmart also takes more costs for premises, labor, and transportation of goods.
While online shopping needs of customer grow, but its online volume is too small: 10 million items compared to 200 million items of Amazon. Jet.com will reduce the "thirst" of Walmart with another 12 million items. For this, the company has spent a lot of money and effort but still limping.
CNNMoney page citing from Walmart sources said the company intends to remain Jet brand because it was so familiar to young customers. Walmart will use only the Jet technology platform to digitize its inventory gradually and thereby reduce warehousing costs. This page also provides alerts with the title: Amazon beware!
By ending the regular meeting lasted two days 26-27th of July, almost all Fed officials agreed to postpone raising interest rates to keep track of economic indicators before deciding on policy adjustments in the next session. Up to 9/10 of votes cast in favor of unchanged interest rates at 0.25%-0.5%.
Some bright views in the FOMC statement issued after the meeting, are that the labor market has returned to strong growth, consumer increases sharply. The agency claims that short-term risks threatening the US economic outlook have disappeared. In the opposite direction, a statement said inflation is still low and this situation may continue for the short term. However, inflation will rise again when the energy prices recover and the labor market continues to improve.
Dollar Index, measuring the strength of Dollar against a basket of currencies rose 0.4% immediately after the Fed announced the results of the meeting. However, the greenback was bearish back against most of the major currencies as investors disappointed with the absence of specific signals on raising interest rates, especially plan of adjusting interest rates at the next meeting in September.
In spite of not raising interest rates in this meeting, however, Fed's assessment on the US economic situation has increased expectations of interest rate hikes in the coming months. Wall Street investors bet 20.9% chance of rate hike in September and 49.5% in December. US dollar is expected to continue to show strength in the future.
The yen yesterday witnessed volatility with the soared USD / JPY after Reuters reported Japanese government is expected to issue 50-year bonds to support big fiscal stimulus programs. However, the yen then rebounded when the Japanese Finance Ministry denies rumors related to 50-year bonds.
After the Fed meeting, the market's attention focused on the results of the meeting of the Central Bank of Japan (BOJ) to be announced tomorrow. This session will be closely monitored in the context of that the Japanese government determines to implement a huge stimulus package to revive the economy of the country. Analysts predict BOJ will ease monetary policy further and most likely the agency will increase the size of the bond purchase program from 80 trillion yen per year to 100 trillion yen while reducing interest rates on deposits from minus 0.1% to minus 0.3%.
Contrary to forecasts of economic analysts and investors, Bank of England (BOE) on 14th of July ended policy meeting by deciding to keep the interest rate at record low 0.5% maintained for more than 7 years, and have not made any changes to the program of 375 billion pound quantitative easing (QE) made from November, 2012.
BOE's decision surprised a lot because before the meeting, participants of market forecasted with probability 70%, BoE will cut rates from 0.5% to 0.25% to support economy deal with risk of depression after the voters of this country voted to leave EU. Even BoE Governor Mark Carney has issued clear signals about the possibility of lower interest rates in the context of deteriorating economic outlook.
In the minutes of the meetings published immediately afterwards, BOE said the agency did not change monetary policy until there is a more complete assessment of impact of Brexit for UK economy. Besides, most members of Monetary Policy Committee (MPC) of BOE have endorsed the easing monetary policy in August, if the economic outlook does not improve.
Shortly after BOE announced this decision, GBP / USD soared nearly 2% to 1.3470, the highest level of 3 weeks before falling partially. Although the recovery of British pound is likely to continue, but this currency is expected to drop again in the near future.
Japanese yen continued strong downtrend since the beginning of the week and in this morning USD / JPY exceeded 106 level, 3-week high as the market continues to expect Bank of Japan (BOJ) will strengthen the easing monetary policy by expanding bond purchase program at a meeting of the agency on July 27-28th. After the landslide victory of the ruling coalition of Prime Minister Shinzo Abe at the Japanese Senate elections, observers are expecting a fiscal stimulus package will be announced in future.
GBP: BUY 1.335 TARGET: 1.3520 STOP-LOSS: 1.3260
International Monetary Fund (IMF) on 8th of July has cut economic growth prospects of the region using Euro currency (Eurozone) within the next 2 years due to uncertainty from that the British voters chose to leave European Union (EU). IMF also warned that the situation could turn worse if the insecure psychology continues to reign in the financial markets.
Reuters said IMF forecast growth rate of total gross domestic product (GDP) of the 19 eurozone members will only reach 1.6% this year, compared with 1.7% given in once predicted. Growth forecast of this institution for the Eurozone in 2017 fell to 1.4% from 1.7%.
IMF said, the global economy continues to decelerate could derail the growth based on Eurozone domestic demand. In addition, Brexit effect, the wave of migrants, the increased security concerns, and the weakness of the banking system can adversely affect the regional economy.
Mr. Mahmood Pradhan, deputy director of the IMF's European region, also warned that if Brexit talks between EU and UK extended and increased risk aversion in global financial markets, the Eurozone growth will be even further reduced.
"If risk aversion sentiment lasts, we believe that its impact on growth could be larger. At this time, it is difficult to predict how long it will last," Pradhan told reporters.
Mr Pradhan also said that Eurozone growth is 1.4% in 2017 based on the assumption that EU-UK between negotiations take place relatively quickly with the result that Britain have still access of full tariff market of EU. Even this optimistic scenario also leads to slow investment and pressure on consumer confidence and the market, Mr Pradhan said.
IMF has not yet calculated the full extent of impact on growth in the case of that UK have access to the EU market under the basic rules of the World Trade Organization (WTO). Mr Pradhan said that would be a "significant change" for Britain, which EU countries account for about 40% of exports.
"If they go to the WTO option, then reaching agreement would also take a lot of time, and just this will cause big losses," Mr Pradhan said.
The report of IMF said the medium-term prospects of the Eurozone economy is not bright due to the impact of the problems due to the crisis, the high unemployment rate, public debt and private sector debt increases , to deep weaknesses in the structure.
"As a result, growth in the next 5 years will probably only reach about 1.5%, while inflation was only 1.7%," IMF identified.
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