“Snap Election in the UK…”

Inflation Outlook in the US

According to the US government reports inflation fell in March while retail sales dropped for a second month. The Labour Department showed that consumer-price index fell by 0.3 percent which is more than the forecast while a measure that excludes food and energy fell by the most since 1982. The decline in the CPI was the first in 13 months and was broad, reflecting cheaper goods such as motor vehicles and gasoline. The cost of services has also declined including mobile-phone communications. The prices of services fell by 0.1 percent, which is the most since 2010, while overall housing costs rose just 0.1 percent, the smallest advance in a year. The prices of mobile phone service slumped a record 7 percent.

Snap Election in the UK

An early election has been called for the 8th June by UK Prime Minister Theresa May. According to May, the election which was scheduled in 2020, just after the deadline for the exit of the UK from the EU poses a threat to a successful Brexit. The pound extended gains to a six-month high after the call of the early election at $1.2905 Lawmakers in the House of Commons voted 522 to 13 on Wednesday favouring her plan to hold an election three years earlier than that scheduled. By extending her parliamentary majority it would mean that she is no longer a prime minister by default after replacing David Cameron in July and would strengthen her position as the UK enters into Brexit negotiations with the EU.

Referendum in Turkey

A referendum was held in Turkey on whether to amend the constitution to give President Recep Tayyip Erdogan sweeping new powers. The referendum won approval of 51.3 percent of Turks. Once implemented, Erdogan will have authority to appoint ministers and top judges at his discretion and call elections at any time. It will also give him much greater control over fiscal policy and can deepen investors’ concern about the independence of the central bank. People voted in favour on the expectations that he will safeguard security amid regional wars and to boost the economy. The currency slumped by half in the past four years with President Erdogan intervening in the central bank policy whereby he pushed for lower borrowing costs. Turkey lost its investment grade standing last year and growth rates are among the slowest as tourism is suffering from terrorist attacks. His win is more of an authoritarian style of politics, where power is centered around one person similar to that of Putin in Russia and Xi Jinping in China.

China’s Economy

China’s economy has accelerated for a second quarter due to a rebound in retail sales, a pickup in investment, factory output strengthened, strong credit growth and further strength in property markets. Gross Domestic Product increased 6.9 percent in the first quarter 2017 from a year earlier. According to the National Bureau Statistics fixed – asset investment excluding rural areas expanded 9.2 percent for the first three months, while retail sales increased 10.9 percent from a year earlier in March and industrial output rose 7.6 percent in March from a year earlier. In the first quarter China added 3.34 million new jobs.

‘Disclaimer: The information provided on this website is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning investments or investment decisions, or tax or legal advice. Similarly, any views or options expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website. Timberland Finance has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Timberland Finance does not accept liability for losses suffered by persons as a result of information, views of opinions appearing on this website. This website is owned and operated by Timberland Invest Ltd.’