• MTS Economic News_20170623

    23 Jun 2017 | Economic News


• The dollar dipped to a four-day low against major currencies on Friday and the euro rose on the recent raft of robust data.

Traders were looking to U.S. inflation data due next week to provide clues on the U.S. Federal Reserve's likely interest rate policy.

The dollar index - which measures the greenback against a basket of six major currencies <.DXY>, the euro the heaviest weighted among them - inched down by a quarter of a percent as the euro hit $1.1180, its highest since Monday <EUR=>.

• The closely guarded Senate health care bill written entirely behind closed doors finally became public Thursday in a do-or-die moment for the Republican Party's winding efforts to repeal Obamacare.

The unveiling of the 142-page bill marks the first time that the majority of senators get a look at the plan to overhaul America's health care system. With Majority Leader Mitch McConnell pressing ahead for a vote next week, senators now only have a handful of days to decide whether to support or vote against the bill.

Four conservative Republican senators -- Rand Paul, Ted Cruz, Ron Johnson and Mike Lee -- said they opposed the current version. And key votes such as Sens. Dean Heller and Susan Collins have also withheld support.

• Britain's opposition Labour leader Jeremy Corbyn has overtaken Theresa May for the first time as voters' choice for who would make the best prime minister, a YouGov poll for The Times newspaper showed.

When asked who make the best prime minister, the YouGov poll for The Times showed 35 percent of voters would prefer Corbyn, while 34 percent favoured May. The poll showed 30 percent were unsure.

• Turkish exports to Qatar have tripled from their normal levels to $32.5 million since four Arab countries began boycotting the Gulf state on June 5, Turkey's Customs and Trade Minister Bulent Tufenkci said late on Thursday.

• North Korea has carried out another test of a rocket engine that the United States believes could be part of its program to develop an intercontinental ballistic missile, a U.S. official told Reuters on Thursday.

• British Prime Minister Theresa May said on Friday the offer she had made on the rights of EU citizens to live in Britain after Brexit was very fair and very serious and that her government would set out more detailed proposals on Monday.

German Chancellor Angela Merkel described British Prime Minister Theresa May's offer on the rights of EU citizens after Brexit as "a good start" but said many other issues related to Britain's departure from the bloc still need to be resolved.

• Oil edged up on Friday, recovering some of its steep falls earlier in the week, but crude is still set for its worst first-half decline in two decades despite ongoing production cuts.

Brent crude futures LCOc1 were at $45.33 per barrel at 0647 GMT, up 11 cents, or 0.2 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 9 cents, or 0.2 percent, at $42.83 per barrel.

• In an interview on CNBC's "Power Lunch," Mike Kelly, managing director and head of E&P Research at Seaport, came out to explain the firm's new expectation and why they downgraded 31 E&P companies.

Kelly predicts next year's oil production will be more explosive than people expect, at 1.8 million barrels per day growth in the U.S., almost twice what the International Energy Agency's expectation is. He also doesn't see non-U.S. oil production slowing, expecting a 2.2 million-barrel-a-day oversupplied market in 2018.

The break-even point could head toward $40 per barrel in the long term, according to Kelly, but that won't scare off investors quite yet.

"The feedback from investors after meeting with companies was, they're not going to change their aggressiveness with their rig count adds until you get below $40," said Kelly.


Reference: Reuters

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