Market Information Tuesday 16 October 2018

Market Information Tuesday 16 October 2018

Yesterday, the Dutch government definitively decided not to abolish the dividend tax. Last week, prime minister Rutte already stated that the government would reconsider the measure after Unilever announced that it would not move its head office to Rotterdam. The EUR 1.9 billion that is saved by not abolishing the dividend tax is invested in the further reduction of corporate taxes for large companies (to 20.5% instead of 22.25%) and SMEs (to 15% instead of 16%). Futhermore, there will be a transitional arrangement for expats who would be affected in 2019 and 2020 by the reduction of the tax benefits for this particular group. Also, EUR 200 million is structurally allocated to reducing employers’ costs on labor.

Figures published today by the Chinese statistical office show that producer prices in China increased by 3.6% on an annual basis in September 2018. This is a smaller increase than in August 2018, when producer prices rose by 4.1%. Economists expected an increase of producer prices by 3.5%. Consumer prices in China rose by 2.5% on an annual basis in September 2018.

Yesterday, the US Department of Commerce published figures showing that in September 2018 retail sales in the US have increased slightly compared to the previous month. Retail sales increased by 0.1% in September 2018 compared to August 2018. Economists expected an increase of 0.6%.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap increased with 2 basis points to 1.05% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: marktinformatie@zanders.eu.

Market Information Monday 15 October 2018

Market Information Monday 15 October 2018

The Central Bureau of Statistics (CBS) today announced that the turnover of retail trade in the Netherlands in August 2018 was 3.4% higher than in August last year. Sales volumes increased by 3.2%. Online sales increased with almost 20%.

Negotiations between the European Union and the United Kingdom on a Brexit agreement have been postponed on Sunday. Both parties argued that there was no agreement on important issues. This also applies to a solution to the Irish border issue, which is a main problem. Until the EU summit of government leaders, which starts on Wednesday evening, there will be no new negotiations.

School boards in the Netherlands must provide better accounts on what they spend their money on and why. From now on, boards will be obliged to report how much money goes to individual schools, what they add to their reserves and how much money goes to management board. The management costs and reserves must also be recorded in the benchmark. In addition to this amendment to the law, there will shortly come a legislative proposal that should strengthen the position of the participation bodies in primary and secondary education. Their agreement will soon be required when establishing the budget.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 2 basis points to 1.03% compared to previous business day.

This weeks expected macroeconomic publications:
– Gross Domestic Product (GDP) Eurozone

In the attachment, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: marktinformatie@zanders.eu.

Market Information Friday 12 October 2018

Market Information Friday 12 October 2018

Due to insecurities, such as capital outflows for Latin America, the trade war and interest rates announced by the Fed Colombia is preparing for difficult economic times. Colombia’s central bank Governor Echavarria announced his nation has a reserve accumulation program which via sale of put options is “designed to buy reserves cheaply”.

European exchanges seem to be recovering cautiously after the substantial losses in the past few days. Asian exchanges are also recovering after days of losses, except for the Japanese main indices.

ABN AMRO has decided not to sell its mortgage subsidiary Stater. The sale was supposed to generate approximately EUR 225 million. However, Stater has not a lot of growth possibilities and another large company should gain benefits through synergies. Therefore, no buyer is willing to pay EUR 225 million.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap decreased with 2 basis points to 1.05% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: marktinformatie@zanders.eu.

Market Information Thursday 11 October 2018

Market Information Thursday 11 October 2018

Figures from the Export Radar of Statistics Netherlands (CBS) show that the export of goods from the Netherlands grew by 3.2% in August 2018 compared to August 2017. The growth was partly explained by a larger export of transport equipment, machines and devices. Imports grew by 3.8% in the same period compared to a year earlier.

Press agency Reuters has reported that the German government is lowering its expectations for economic growth. For 2018, the growth forecast is lowered from 2.3% on an annual basis to 1.8%, and for 2019 from 2.1% to 1.8%. The German government indicates that increasing tensions with regards to global trade is one of the biggest risks for German economic growth.

Figures published by the US government show that producer prices in the United States increased by 0.2% in September 2018 compared to the previous month. The figure is in line with expectations of economists. In August, prices charged by American manufacturers for their products fell by 0.1%.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap increased with 1 basis point to 1.07% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: marktinformatie@zanders.eu.

Market Information Wednesday 10 October 2018

Market Information Wednesday 10 October 2018

IMF warns that market participants appear to underestimate the risk of a financial shock. Asset valuations appears to be relatively high in some markets, while potential shocks to the system have increased; a ‘disorderly’ Brexit, growing non-financial debt levels exceeding 250% of GDP and a higher-than expected inflation which might trigger a sharp jump interest rates. The interaction between a decline in asset prices and the buildup of insecurities can generate adverse implications for macroeconomic activity.

China’s economy is showing signs of moderating and that could be aggravated by its trade disputes with the United States (U.S.), which has imposed tariffs on USD 250 billion worth of imports from Beijing and is threatening duties on USD 267 billion more. The IMF on Tuesday decreased its global growth forecasts due to an escalating U.S.- China trade war and growing financial strains on emerging markets.

Investors are losing interest in the dollar and US government bonds. Analysts expect a price increase for gold, but also for silver, platinum and palladium. In August, India doubled its gold imports. In addition, Zimbabwe has increased its production and both Canada and Australia are retrieving gold.

The 6M Euribor is unchanged at -0.27% compared to previous business day. The 10Y Swap is unchanged at 1.06% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented. For more history of these rates or other rates feel free to ask: marktinformatie@zanders.eu.