Five most important news to start your day. These events are very likely to influence the market and trigger exchange rate fluctuations. Read to stay informed.
Brexit Talks Begin
Great Britain and the EU are to begin Brexit talks this Monday. UK voters may have said ‘Yes!’ to Brexit but the terms on which the island nation is supposed to leave are yet to be defined. The European Union is not expected to go easy on separatist sentiments, making the separation process hard and painful for the British economy. The negotiation process is supposed to take less than two years — a limited timeframe considering hundreds of treaties the UK will have to reestablish. Negotiations between Brexit Secretary David Davis and Brussels will most certainly cause GBP volatility spikes.
Macron Secures Parliamentary Majority
The political map of France now seems to be radically redrawn. Emmanuel Macron’s political party Republic on the Move is projected to win 355 to 365 out of 577 seats. Conservatives and socialists, two traditional powers of the Fifth Republic, are projected to receive only 125 to 131 and 41 to 49. The distribution of votes illustrates the desire for long-awaited change among the French public. A political renewal of unprecedented proportions can have a variety of effects on the national and regional market. Political reshuffle in France can cause fluctuations in the valuation of Euro.
Amazon VS Wal-Mart
The competition in the retail industry is tough. Traditional and online retailers are no longer operating in two separate fields. Two modes of one business now intersect more often than ever before. Wal-Mart declared its interest in the online segment last year when the world’s largest brick-and-mortar retail store acquired Jet.com for $3 billion. Amazon.com returned the favor by investing $14 billion in a brick-and-mortar retailer Whole Foods Market Inc. The whole sector is witnessing an unprecedented restructuring. Over a quarter of all retail stores in the United States are expected to be closed over the next five years. It is no longer online versus offline, it is a combination of both.
Oil Prices Fall
An ongoing expansion in the US shale industry caused oil prices to dip once again. OPEC-initiated extraction cuts did not yield any results due to the diversified nature of the supply. Decreasing demand is also responsible for downward price dynamics. On Monday morning Brent crude futures LCOc1 traded at $47.19 per barrel, WTI crude futures CLc1 at $44.54, both losing more than 0.4%. Oil prices are expected to go even lower should the surplus of oil reserves increase.
IMF to Japan: Stimulus Needed
The International Monetary Fund urged Japan to stick to fiscal and monetary stimulus. The economy of the Land of the Rising Sun, which has been lagging behind since the Asian financial crisis, needs a boost according to IMF officials. Consumption, an integral part of the national GDP, can be negatively affected by external factors. David Lipton, Deputy Managing Director of IMF in Tokyo, highly praised Shinzo Abe’s efforts to sustain economic growth.