• MTS Economic News_20170619

    19 Jun 2017 | Economic News



• Brexit Secretary David Davis will call for "a deal like no other in history" as he heads into talks with the EU.

The UK is set to leave the EU by the end of March 2019.

Day one of the negotiations will start at about 11:00 BST at European Commission buildings in Brussels.

• Britain should ensure that employers retain access to both skilled and unskilled workers from the European Union as it begins talks to leave the bloc or there is a risk of damaging UK businesses, a research report by two think tanks said on Monday.

With Britain's negotiations on the terms of its departure from the EU set to begin on Monday, the country risks skills shortages and losing business if it ends freedom of movement without a new plan for attracting workers, the report by the National Institute of Economic and Social Research and the Chartered Institute of Personnel and Development said.

• President Donald Trump and Republican leaders in Congress will soon confront a complex challenge for tax reform: how to limit U.S. corporate tax avoidance schemes that take advantage of low tax rates in foreign countries.

Congressional and administration staff have begun to examine options to address profit-shifting schemes that include so-called transfer pricing, earnings stripping and tax inversions.

• Japan's exports surged in May by the fastest in more than two years on higher shipments of cars and steel, an encouraging sign that robust global demand will help keep the country's modest economic recovery on track.

The 14.9 percent annual increase in exports in May was the biggest rise since January 2015 and nearly twice the pace seen in April, though it was below analysts' expectations of 16.1 percent.

• Home prices levelled off in China's biggest cities in May but continued to climb nationwide, indicating demand remains resilient despite a series of government measures to keep the market from overheating.

Average new home prices in China's 70 major cities rose 0.7 percent in May from the previous month, in line with April and remaining the quickest gain since October, Reuters calculated from an official survey out on Monday.

• A van ploughed into worshippers leaving a London mosque on Monday, killing at least one person and injuring 10 others in what witnesses said was a deliberate attack on Muslims.

The hired vehicle swerved into a group of people leaving prayers shortly after midnight at the Finsbury Park Mosque, one of the biggest in the country, witnesses said. The attack comes during the Muslim holy month of Ramadan.

British Prime Minister Theresa May said police had confirmed it was being treated as a potential terrorist attack and said she would chair an emergency response meeting later on Monday.

• Warships from Indonesia, the Philippines and Malaysia held manoeuvres on Monday near a naval base in northern Borneo to mark the launch of coordinated patrols to beef up security in waters plagued by insurgencies and banditry.

• Qatar hit out on Monday at four Arab nations for cutting diplomatic ties and transport links over Doha's alleged support for terrorism, accusing them of a "publicity stunt" aimed solely at attacking its image and reputation.

Kuwait's ruler called on Sunday for Gulf Arab states to overcome a diplomatic dispute with Qatar that has led to the worst regional split in years, saying all parties had a duty to preserve regional unity.

• Saudi Energy Minister Khalid al-Falih said the oil market is heading in the right direction, but still needs time to rebalance, the London-based newspaper Asharq al-Awsat reported on Monday.

· Oil prices dipped on Monday, weighed down by a continuing expansion in U.S. drilling that has helped to maintain high global supplies despite an OPEC-led initiative to cut production to tighten the market.

Signs of faltering demand have also prompted weakening sentiment, dropping prices to levels comparable to when the output cuts were first announced late last year.

Brent crude futures were down 18 cents, or 0.4 percent, at $47.19 per barrel at 0659 GMT.

U.S. West Texas Intermediate (WTI) crude futures were down 20 cents, or 0.5 percent, at $44.54 per barrel.


Reference: Reuters, Financial Time


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