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The Fed: Uncertainty Created by Trump’s Election

15

Dec

The Fed: Uncertainty Created by Trump’s Election

The Fed’s pun has signaled more rapid rate hikes in 2017. The increase in the Fed Fund Rate, which now ranges from 0.50 to 0.75 percent, has been [...]

The Fed: Uncertainty Created by Trump’s Election. The Fed’s pun has signaled more rapid rate hikes in 2017. The increase in the Fed Fund Rate, which now ranges from 0.50 to 0.75 percent, has been anticipated by the market.
However, the prospect of tighter monetary constraints have contributed to a sell-off on shares and short-term U.S. bonds.
Citing Reuters, Thursday (15/12/2016), Fed Governor Janet Yellen has stated that the U.S. presidential election victory of Donald Trump has cast a cloud of uncertainty on the central bank.
Furthermore, the election of Trump has also caused policymakers to shift their views on what will happen.
`All participants (in the Federal Open Market Committee meeting) recognize that there is uncertainty in how economic policies will change, and what that will mean for the economy,` said Yellen.
Even though Trump will not be sworn in until January 2017, Yellen admitted that several FOMC participants have changed their fiscal assumptions.
At least 17 FOMC members have increased the outlook for interest rate hikes since last September.
In a media briefing, Yellen was also barraged with questions about President-elect Trump. However, Yellen was reluctant to comment on Trump’s Twitter practices related to corporations or give advice on how fiscal, tax, or trade policies should be regulated.
`I will not give advice to the president-elect on how to conduct himself,` said Yellen.
During the presidential campaign, Trump often criticized Yellen and has considered replacing Yellen when her term ends in 2018.

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Author
: Sakina Rakhma Diah Setiawan

Editor
: M Fajar Marta

Source
: REUTERS.com,

http://bisniskeuangan.kompas.com/read/2016/12/15/101811026/the.fed.terpilihnya.trump.menimbulkan.ketidakpastian

Fed Raises Interest Rate, Oil Prices Slip

15

Dec

Fed Raises Interest Rate, Oil Prices Slip

Brent crude futures settled down $1.82, or 3.27 percent, at $53.90 a barrel. U.S. crude fell $1.94, or 3.66 percent, to settle at $51.04 a [...]

Fed Raises Interest Rate, Oil Prices Slip. Brent crude futures settled down $1.82, or 3.27 percent, at $53.90 a barrel. U.S. crude fell $1.94, or 3.66 percent, to settle at $51.04 a barrel.
Crude prices hit session lows after the Fed raised interest rates by a quarter point and signaled a faster pace of increases in 2017.
A stronger dollar makes oil more expensive for countries using other currencies.
The U.S. Energy Information Administration (EIA) earlier reported that oil stocks at the Cushing, Oklahoma, delivery hub rose for the sixth time in seven weeks.
The Organization of the Petroleum Exporting Countries (OPEC) has warned that oil supply will grow next year unless members implement their deal to cut output.
Without the cuts, the surplus next year could reach 1.24 million barrels per day (bpd), 300,000 bpd higher than previously forecast, OPEC said in a monthly report.
OPEC and 11 other oil producers agreed to cut output by almost 1.8 million bpd.
`But history shows that Russia has a very poor track record of following through on promises it has made when it comes to cooperating with OPEC to cut production. They have really never delivered in the past,` said Michael Wittner, global head of oil research at Societe Generale.

Writer
: Estu Suryowati

Editor
: M Fajar Marta

Source
: Reuters,

CPO Prices on December 9 Move Negatively Following a Depreciation in China

09

Dec

CPO Prices on December 9 Move Negatively Following a Depreciation in China

CPO futures on Bursa Malaysia weakened by noon on Friday (09/12). The decline in CPO prices follows a similar decline in competing palm oil in [...]

CPO Prices on December 9 Move Negatively Following a Depreciation in China. CPO futures on Bursa Malaysia weakened by noon on Friday (09/12). The decline in CPO prices follows a similar decline in competing palm oil in China.
Palm Oleins contracts for May 2017 on the Dalian Commodity Exchange slumped -1.37 percent to 6,332.
The most active CPO contract price on the Malaysian exchange today showed weakness. The February 2017 contract, which is the most active, fell by -27 ringgits or -0.9 percent, trading at 3,086 ringgits per tonne.
Vibiz Research Center analyst estimate that the price of CPO futures contracts for future trading will likely weaken, with a potential for further palm oil weakness on the Dalian Commodity Exchange. However, it is worth looking at how rising crude oil prices and a weaker ringgit may strengthen CPO prices.
The CPO futures contract price for February 2017 on the Malaysian exchange is likely to test support at 3,040 ringgits and 2,990 ringgits. Resistance is expected at 3,140 ringgits and 3,190 ringgits.
Freddy/VMN/VBN/Analyst-Vibiz Research Center
Editor: Asido Situmoranghttp://vibizmedia.com/2016/12/09/harga-cpo-9-desember-bergerak-negatif-mengikuti-pelemahan-di-tiongkok/

Tocom Rubber Prices Rise 2 Percent on December 9, Boosted by Weaker Yen and Rise in Oil

09

Dec

Tocom Rubber Prices Rise 2 Percent on December 9, Boosted by Weaker Yen and Rise in Oil

The Japanese yen currency weakened. The USDJPY currency pair traded 0.3 percent stronger at 114.40. The weakening of the yen raised the price of [...]

Tocom Rubber Prices Rise 2 Percent on December 9, Boosted by Weaker Yen and Rise in Oil. The Japanese yen currency weakened. The USDJPY currency pair traded 0.3 percent stronger at 114.40.
The weakening of the yen raised the price of Tocom natural rubber futures. For foreign buyers, the weakening of the yen exchange rate made commodity prices traded in the currency relatively less expensive so that demand increased.
Tocom rubber prices were also supported by the increase in crude oil prices in Asian trading sessions.  
Crude oil prices extended their increase on Friday (December 09) during the Asian session, supported by increasing optimism that non-OPEC producers agreed to cut production following the OPEC group's agreement to limit production.
US crude oil futures for January delivery increased by 16 cents or 0.31 percent to $51.00 per barrel.
Brent crude oil for February delivery remained stable at $53.89 per barrel.
See: Crude Oil Prices During Asian Session Increase Reaching $51
The increase in crude oil prices made the cost of synthetic rubber production more expensive. As a result, demand for natural rubber commodities such as those traded on Tocom increased quite significantly.
The price of natural rubber on Tocom for the most active contract, which is the May 2017 contract, ended at a jump of 5.0 yen or 2.1 percent this afternoon at 245.40 yen per kilogram, up compared to the previous closing position of 240.40 yen per kilogram.
Vibiz Research Center analysts predict that the movement of Tocom rubber prices in subsequent trading today still has the potential to increase with the weakening of the yen and the increase in crude oil prices.
For the subsequent trading session, it is predicted that prices will encounter a resistance level at 250.00 yen. The next resistance is at 255.00 yen. Meanwhile, if prices weaken, they will encounter support at 240.00 yen and 235.00 yen.
Freddy/VMN/VBN/Analyst-Vibiz Research Center Editor: Asido Situmoranghttp://vibizmedia.com/2016/12/09/harga-karet-tocom-9-desember-naik-2-persen-terbantu-pelemahan-yen-dan-kenaikan-minyak/

KPBN – Bank Woori Saudara Sign Cooperation MoU for Financing

06

Dec

KPBN – Bank Woori Saudara Sign Cooperation MoU for Financing

The signing was conducted between Director of SME and Consumer Business Bank Woori Saudara Denny Novisar Mahmuradi and President Director of [...]

KPBN – Bank Woori Saudara Sign Cooperation MoU for Financing. The signing was conducted between Director of SME and Consumer Business Bank Woori Saudara Denny Novisar Mahmuradi and President Director  of PT. KPBN Iriana Ekasari in Jakarta.
The cooperation in the field of use and utilization of Bank Woori Saudara's products by purchasers at PT. KPBN both for cash financing products and non-cash facility as well as funding, especially for Tea commodity purchasers. PT. KPBN's position which has long been known as a world-class plantation commodity sales center has become an attraction for banks to establish cooperation. The transaction value that occurs at PT. KPBN which reaches Rp30 Trillion annually is a delicious cake itself.
`We see that commodity is a very large market. Incidentally, our focus is on SMEs,` said Head of SME & Commercial Division Bank Woori Saudara Dendy Priyanto.
Dendy added, BWS's choice to cooperate with PT. KPBN in this cooperation was because PT. KPBN has good experience and infrastructure in this industry.
Meanwhile, in his speech, Director of SME and Consumer Business Bank Woori Saudara Denny Novisar Mahmuradi said, `with the support of BWS's parent company, Woori Bank Korea which is the second largest bank in South Korea, and the insurance guarantor company, we are ready to support this cooperation.
PT. KPBN is confident that this cooperation will develop positively because PT. KPBN has experience, network, infrastructure, and  strong reputation in the commodity sales industry, especially tea.
`PT.KPBN's basic service is as an agent to sell 7 main state plantation commodities, namely Palm Oil, Rubber, Tea, Coffee, Cocoa, Sugar, and Molasses. The sales value of tea commodities reaches hundreds of billions per year, it is the third largest commodity after CPO and rubber commodities”.
In the future, Iriana sees that the revitalization steps of the tea industry both upstream (bulk) and downstream will run well with support from supply chain financing (SCF).
Iriana emphasized, this financing cooperation is important to accelerate the revitalization and growth of the tea industry and outside PTPN, PT.KPBN has also scheduled cooperation with private plantation farmers  and large private companies, realizing the role  of BUMN as a development agent. `Let us work together to revitalize this industry for the welfare of this nation together,` Iriana concluded. [AF]

Dec. 6 CPO Prices: Malaysia Inventory to Rise to Record, Palm Oil Declines

06

Dec

Dec. 6 CPO Prices: Malaysia Inventory to Rise to Record, Palm Oil Declines

Crude palm oil (CPO) futures for February 2017, the most active contract on Bursa Malaysia, opened 0.54% or 17 points lower at RM3,118 a tonne [...]

Dec. 6 CPO Prices: Malaysia Inventory to Rise to Record, Palm Oil Declines. Crude palm oil (CPO) futures for February 2017, the most active contract on Bursa Malaysia, opened 0.54% or 17 points lower at RM3,118 a tonne today.
It further eased 0.67% or 21 points to RM3,114 a tonne at 10.11am.
Traders and analysts polled by Bloomberg project Malaysia’s palm oil inventories rose 8.3% to 1.7 million metric tonnes in November from a month earlier.
Malaysia’s palm oil stockpiles are set to expand to a four-month high as a slump in exports outweighed the effect of smaller output in the world’s second-largest producer.
Production of crude palm oil fell 3% to 1.63 million tonnes, while exports dropped 10% to 1.28 million tonnes, the weakest since June. Official Malaysian palm oil data is due to be released on Dec 14.
Yesterday (Dec 5, 2016), the CPO price closed up 1.92% or 59 points to RM3,135 per tonne on Bursa Malaysia despite the stronger ringgit against the US dollar.
The ringgit was quoted 0.10% higher at 4.4440 to the US dollar at 9.59am today.
CPO Futures Contract for February 2017

Date

Level

Change

Dec 6, 2016(10.11am)
3,114
-0.67%

Dec 5, 2016

3,135

+1.92%

Dec 2, 2016

3,076

-0.10%

Dec 1, 2016

3,079

+0.20%

Nov 30, 2016

3,073

+0.75%

Source: Bloomberg

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