Forex News from InstaForex

**InstaForex Gertrude** · 06-10-16, 06:58

Replacement Samsung Note 7 Unit Catches Fire on U.S. Plane

A replacement Samsung Galaxy Note 7 device, which has been declared safe from overheating by Samsung Electronics Co., reportedly started emitting smoke and caught fire on a Southwest Airlines Plane on Wednesday. The airline confirmed that its flight scheduled to travel from Kentucky to Maryland was evacuated before its take-off due to the incident.

Passenger Brian Green, the owner of the phone, said the Note 7 was a replacement unit issued on September 21. He also said the device was powered down and not charging when it started overheating inside his pocket and started emitting a thick smoke after he tossed it on the floor of the aircraft.

The smartphone maker announced a worldwide recall of about 2.5 million units of its Note 7 smartphones last month due to battery problems that caused some handsets to catch fire, but Samsung said it has identified and fixed the issues.

Samsung Electronics said it was working to retrieve the device and determine the cause. Meanwhile, Federal Aviation Administration confirmed in a statement that a Samsung phone had caused the smoke on the U.S. flight and that it was looking into the incident. The U.S. Consumer Product Safety Commission is also currently investigating the report.

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**InstaForex Gertrude** · 07-10-16, 06:26

Verizon seeks $1 billion reduction on Yahoo sale amid privacy scandal

In the advent of hacking and spying reports, Verizon Communications Inc. is asking Yahoo Inc. to reduce the acquisition price by $1 billion, based on a New York Post report, mentioning unknown sources.

A person knowledgeable about the matter divulged Verizon Chief Executive Tim Armstrong is somewhat distressed about Yahoo's insufficient disclosure and contemplating whether to lower the price or withdraw from the deal.

Yahoo, however, is averting any endeavors to negotiate the price lower.

Both firms refused to comment.

Earlier, Yahoo admitted the interception of 500 million accounts in 2014. Then, people privy to the matter said the US government requested the technology company to search emails for any trace of terrorism.

American lawmakers lambasted Yahoo for unacceptable delay in uncovering the hack, pressuring the Securities and Exchange Commission to probe whether Yahoo failed to disclose the incident to investors and the general public.

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**InstaForex Gertrude** · 10-10-16, 06:34

Iraq’s Minister Urges Country’s Producers Raise Output in 2017

Iraq oil minister Jabar al-Luaibi has called for oil and natural gas producers in the nation to keep on increasing output next year, the oil ministry communicated in a statement on Sunday.

The ministry's statement reiterated comments Luabi made to an assembly of Iraq oil industry executives in the city of Basra to assess the ministry's development plans for the oilfields.

The oil minister's comments came as OPEC members are attempting to put into action an agreement to reduce oil output in order to prop-up oil prices. The oil minister also did not refer to the cartel's decision on September 28 to curb oil output to a lower range.

According to the statement, Luaibi affirmed the need to continue increasing oil and gas yields by improving the effort of licensed firms operating in the nation for the rest of 2016 and through 2017.

The oil minister added that foreign firms' oil output targets should be attained within the given timetable and that the ministry is looking to raise associated gas output by adding 350 to 450 million cubic feet a day to the country's production next year.

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**InstaForex Gertrude** · 12-10-16, 06:26

Samsung Announces Total Discontinuation of Galaxy Note 7 Production Over Safety Concerns

Crisis-hit Samsung Electronics Co. announced on Tuesday that it is permanently halting the production and sale of its flagship Note 7 smartphone, less than two months after its launch over persisting battery safety issues.

The tech giant stated in a filing with South Korean regulators that has decided to scrap the Note 7 after a new wave of reports of replacement devices overheating and catching fire, which were supposedly safe and free from battery defects. The move caused Samsung's share to tumble 8%, clearing almost $20 billion off the smartphone maker's market value and recording its biggest one-day decline since 2008.

The decision to stop Note 7 production comes after the South Korean conglomerate had halted sales and exchanged of the device earlier on Tuesday and called on customers to stop using the smartphone due to the reported safety issues.

Analysts state that permanently pulling note 7 off the shelves could cost the company up to $17 billion and could raise doubts about Samsung's quality control.

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**InstaForex Gertrude** · 13-10-16, 06:00

U.S. Stocks Flat After Fed Minutes

The majority of the U.S. stocks were flat while the Federal Reserve minutes gave investors some indication as to when the next-rate increase would be. The minutes from the Fed's September meeting has shown that several of the policy makers called for the rate hike as “relatively soon”, however members disagreed on the timing of the move.

The Dow Jones Industrial Average was up 0.1 percent to 18144.20. The S&P inched up 0.1 percent to 2139.18 and the Nasdaq Composite fell 0.1 percent to 5239.02. Real-estate stocks in the S&P 500 climbed 1.3 percent as utility stocks advanced by one percent. Investors are currently turning their attention to the earnings.

Alcoa declined by 2.9 percent to $27.11 a day. Illumina was down two percent to 136.18. Health-care stocks in the S&P 500 drove declines for the second consecutive session as the Nasdaq Biotechnology Index retreated by 2.5 percent. The yield on the 10-year U.S. Treasury note increased to 1.778 percent after investors found meager hints in the Fed minutes to confirm expectations of a rate hike in December.

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**InstaForex Gertrude** · 14-10-16, 06:32

Verizon Says Yahoo Email Data Breach Could Sink Deal

Verizon Communications Inc.'s attorney Craig Silliman told reporters that the U.S. wireless company has a rational basis to think Yahoo Inc.'s recent disclosure of a massive data breach of more than 500 million of its email accounts represented a material impact that could allow Verizon to pull out of its $4.38 billion deal to acquire the tech firm.

General Counsel Silliman told press people during a roundtable in Washington that the email breach could activate a clause within the agreement that would allow the Verizon to change the terms of the takeover or not press on with it. The counsel, who has been leading Verizon's review of the situation, refused to comment whether discussions are being held to renegotiate the acquisition price.

The takeover deal has a clause that states Verizon can withdraw from the agreement if a new development which could have a tangible and adverse effect on the business surfaces.

A Yahoo spokesperson expressed the company's confidence in Yahoo's value and that they will continue to make progress towards integration with Verizon.

Yahoo's shares closed down 1.75% at $41.62 while Verizon's shares were flat at $50.29, inching down 0.02%.

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**InstaForex Gertrude** · 18-10-16, 06:40

Oil Prices Fall as Market Awaits OPEC Intervention

Oil prices edged down on Monday amid growing indications of noncooperation among OPEC members after the group's deal to reduce supply and market speculation that any benefit the oil market has gained from the agreement has already been priced in.

U.S. crude futures lost 41 cents or 0.81%, settling down at $49.94 a barrel while Brent crude futures shed 43 cents or 0.83% down to $51.52 a barrel. Gasoline futures posted a smaller decline, inching down 0.08% at $1.4924 a gallon. Diesel futures also settled down 1.12 cents or 0.71% to $1.15561 a gallon.

While OPEC's plan to cut production last month has lifted oil markets in the recent weeks, its lack of details on how much each participating nation will be required to cut and conflicts over how the cartel computes countries' production is seen to hamper the deal.

On Monday, Ali Kardor, managing director of National Iranian Oil Co. deemed output estimates compiled by OPEC to be unacceptable, adding that Iran has produced than what the cartel has reported in the previous month.

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**InstaForex Gertrude** · 27-10-16, 06:30

Galaxy Note 7 Failure Weighs on Samsung’s Third-Quarter Profit

Samsung Electronics Co. Ltd. reported a net profit drop of 16.8% to 4.54 trillion Korean won or $4.0 billion during the third quarter, as the problematic recall and discontinuation of its Galaxy Note 7 smartphone trimmed the tech firm's mobile earnings to its lowest level in almost eight years.

Samsung's mobile operating profit sank 96% from a year prior to 100 billion won after the Galaxy Note 7 was pulled from the market due to reported incidents of overheating. The company initiated a global recall on September 2 to replace the units, but decided to scrap the smartphone altogether on October 11 as reports that Note 7 are still fire-prone surfaced.

Total operating profit for the third quarter plunged 30% to 5.2 trillion won, a steep decline from almost 7.4 trillion won a year prior. Meanwhile, revenue declined 7.5% to 47.82 trillion won. The South-Korean company had initially projected a 7.8 trillion won profit but trimmed its guidance, adjusting the figures to reflect the losses sustained from the withdrawal of the Note 7.

Still, the company had an optimistic outlook for the fourth quarter and expects the earnings to regain ground and to reach the same level seen during the fourth quarter of 2015.

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**InstaForex Gertrude** · 04-11-16, 05:19

Starbucks Shares Advance After Posting Higher Quarterly Revenue

Shares of Starbucks rose as much as 6%, before trading 0.9% higher at $52.30 in extended trading after posting quarterly results that beat estimates, easing concerns that the world's biggest coffee chain had fallen into a widespread restaurant slump.

The company reported adjusted earnings of 56 cents per share on $5.71 billion total revenue. Topped expectations of $5.68 billion revenue with 55 cents per-share earnings. In the same period during the previous year, Starbucks saw a $4.91 billion revenue and earned 43 cents per share.

Net income during the fourth quarter rose to $801 million or 54 cents per share, compared to the $625.5 million or 43 cents per share a year prior.

Despite the upbeat quarterly report, the coffee seller issued a cautious revenue guidance for the financial year of 2017. Starbucks projected net earnings of 50-51 cents per share during the first quarter which covers the holiday season, lower than expected profit of 55 cents per share.

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**InstaForex Gertrude** · 07-11-16, 05:27

Japan September Real Wages Edge Up as Consumer Prices Fall

Japan's real wages climbed for the eighth month in a row in September according to official data, propped-up by declining consumer prices as the economy exhibit meager signs of rising inflation.
Real wages, which are revised for inflation, climbed 0.9% year-on-year in September, growing faster than a revised 0.6% increase in the prior month. Meanwhile, nominal cash earnings climbed 0.2 in September from a year prior. Revised figures indicated that last month, nominal wages were flat year-on-year.

Separate data showed core consumer prices extended its seventh month of decline while spending among Japanese households slumped in September.

Special payments, including bonuses, dropped at an annual rate of 2.9% in September, compared to a 0.5% annual decline in the previous month. Overtime pay dropped 1.3% year-on-year in September. Regular pay, on the other hand, rose an annual 0.4%.

BOJ policymakers initially anticipated its bold monetary easing and massive fiscal spending to jumpstart economic growth, which would drive up real wages and stimulate inflation. On the contrary, consumer prices slowed down due to tepid growth, which consequentially drove up real wages but will not be beneficial to the economy.

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**InstaForex Gertrude** · 08-11-16, 04:59

Canadian Ford workers approve new contract –union

Canadian workers at Ford Motor Co agreed on a new four-year contract with the carmaker, the president of the Oakville, Ontario, local said on Sunday.

The workers approved the new contract despite some members' criticisms at Ford's Oakville assembly, stopping a strike, and after months of talks between the Unifor union and General Motors Co, Fiat Chrysler Automobiles and Ford.

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**InstaForex Gertrude** · 09-11-16, 05:28

Gold Lower Ahead of U.S. Presidential Vote Results

Gold prices edged down as the dollar and global equity markets strengthened while investors await the results of the contentious U.S. presidential election. Gold for December delivery was down 0.3 percent at $1,275.90 per troy ounce on the Comex division of the New York Mercantile Exchange.

Investors are broadly expecting a victory for Mrs. Clinton and also indicated that a market shock is expected if Donald Trump becomes president. Spot gold declined 0.3 percent to $1,277.16 per ounce. Analysts claim that a victory for Trump would produce more uncertainty in the market and could raise the appeal of gold as a hedge against risk. David Govett, the head of precious metals at Marex Spectron says that a Clinton victory means that gold may decline around $30 to the $1,250 per troy ounce area. However, if Trump wins it could prompt a raise in prices of nearly $100 per troy ounce.

In other precious metals, Silver climbed 0.8 percent to $18.35 per ounce. Platinum rose 0.1 percent at $1,001.75 and palladium was up 1.8 percent to $663.50.

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**InstaForex Gertrude** · 10-11-16, 05:42

Clinton Delivers Concession Speech, Pledges to Work with Trump

Defeated candidate for U.S. president Hillary Clinton made her first appearance to the public after reportedly conceding to president-elect Donald Trump over the phone on Wednesday.

Speaking in New York, the Democrat candidate said she hoped Mr. Trump would be a triumphant president for all Americans, adding that Trump must be given an opportunity to lead. Clinton stated that the country was more deeply fractured than initially estimated and urged her supporters to respect the outcome of the election.

Despite telling her supporters that the loss was painful, she said that she has offered to work with Trump as he gets ready to start his four-year term on January 20.

The Republican is set to become the 45th U.S. president follows his stunning win over the highly-favoured Clinton. New Jersey Governor will lead Trump's transition team during the 10-week period until his inauguration.

In his conciliatory victory speech, Trump said his first priorities entails restoring the nation's infrastructure and stimulating its economic growth.

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**InstaForex Gertrude** · 11-11-16, 05:19

Bitcoin ascends on Trump election win

Bitcoin leaped as investors sought refuge in the virtual currency following Donald Trump's monumental victory in the recent US presidential election.

Bitcoin prices climbed to $742.96 on Wednesday, up 4.6%, within striking distance of the $777 it touched before Brexit. The digital currency reached near its 35-month high against the British pound despite a global sell-off.

Bitcoin, often considered as one of the most perilous and volatile assets in the world, has been shaped by its erratic movement. In 2013, the cryptocurrency's price surged from less than $10 to more than $1,000. However, its value plummeted prior to a downfall of Mt. Gox after a cyber attack where several users lose thousands.

But growing confidence in bitcoin and global skepticism about other assets have seen its value almost double since the beginning of the year.

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**InstaForex Gertrude** · 15-11-16, 05:24

Apple Extends Recent Losses After iPhone Sales Warning

Apple's stocks continued its losing streak on Monday after issuing a warning to investors that sales of its iPhones could decline if President-Elect Trump enacts his campaign threat to slap new tariffs on China-imported goods.

The tech giant's stock lost 2.5% in the latest session, bringing its losses since last week's election to around 5%.

An editorial article published in the Chinese government-supported Global Times cautioned of eye-for-eye reprisal should Trump push through his promise to impose 45% tariffs on all products and goods imported from China, adding to the growing concerns of Apple investors.

The op-ed stated threatened that Boeing orders will be substituted by Europe's Airbus, U.S. automobile and iPhones sales in the Chinese market will decline and imports of U.S. soybean and corn imports will be suspended.

The smartphone maker is one of the several major tech stocks such as Amazon, Facebook, and Alphabet that has suffered losses since Tuesday's elections as investor relocate their funds into financial and public works firms that are speculated to highly benefit from deregulation and infrastructure spending under President-elect Trump's administration.

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**IFX Yvonne** · 16-11-16, 05:48

Gold Prices Fluctuate, Jolted by Dollar

Gold prices fluctuated between gains and losses due to the weaker U.S. dollar and climbing stock markets. Spot gold fell 0.02 percent at $1,225.08 per troy ounce.

The precious metal was near above a five-month low with gold declining sharply as equity markets and other commodities gained after the election of Donald Trump last week. Gold prices await the timing of the next rate hike by the Federal Reserve. Fed fund futures implied an 86 percent likelihood of a rate hike in December, according to the CME. Bullion for immediate delivery was up 0.1 percent to $1,223.08 per ounce, according to Bloomberg generic pricing. Holdings in gold-backed exchange-traded funds was down 4.88 metric tons to 1,966.3 tons, as stated in data compiled by Bloomberg.

Other precious metals were mixed. Silver was slightly unchanged at $17.04 per troy ounce. Platinum fell 0.24 percent at $942.24 per troy ounce while palladium rose 0.79 percent at $704.75 per troy ounce.

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**InstaForex Gertrude** · 17-11-16, 05:22

Cisco’s Disappointing Profit Guidance Sends Shares Lower

Cisco Systems Inc.'s adjusted profit estimate for the present quarter missed analysts' projections as the company's core business continues to struggle with weak demand, sending its shares tumbling by more than 4% in late hours trading.

The company said expects adjusted profit of 55-57 cents per share during the second quarter, falling under analysts' median estimate of 59 cents per share earnings on a $12.33 billion revenue.

The world's biggest networking gear maker has been stepping up its wireless and security divisions to counter the softness in its core switch and routers business, which is also struggling with strong competition from rival companies. Still, the newer business units are not expanding fast enough to offset the declines in its main networking division.

Revenue from the firm's switching business declined by 7% to $3.72 billion during the August-October period.Security business evenue climbed 11% to $540 million while revenue in the wireless unit dropped 2% to $632 million.

Net profit dropped 4.4% to $2.32 billion as revenue declined 2.6% to $12.35 billion, with earnings of 61 cents per share.

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**InstaForex Gertrude** · 22-11-16, 05:22

Dollar Retreats From 10-Day Rally

The dollar declined as investors gained profits on its longest rally in four years. The WSJ Dollar index fell 0.5 percent to 91.21.

The dollar rose for 10-straight sessions, its longest winning streak since May 2012. The greenback has jumped since the presidential election, with investors betting that President-elect Donald Trump's plans to raise fiscal spending and reduce taxes will bolster U.S. growth. Investors are growing more confident that the U.S. Federal Reserve will increase interest-rates in December. Fed-funds futures has shown a 95 percent likelihood of an interest-rate hike next month, according to CME Group data.

Emerging-market currencies rebounded against the dollar following a sharp sell off. The dollar fell 0.9 percent versus the Brazilian real, one percent versus the Mexican peso and 0.2 percent versus the Singapore dollar.

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**InstaForex Gertrude** · 23-11-16, 05:04

Dollar Borders on 13 ½-year peak, Lifted by Rate Hike Outlook

The dollar nears a 13 ½-year high, boosted by upbeat U.S. housing data which further sealed expectations for a Federal Reserve raise in rates by year-end as well as more tightening in 2017. The greenback was at 100.98 against a basket of six major currencies.

Latest U.S. data has shown that home resales in the previous month climbed to its highest level in over 9 ½ years. The dollar has increased broadly in the past couple of weeks, buoyed by expectations that Donald Trump's administration will raise fiscal spending. The greenback was flat against the Japanese yen at 111.07. The euro last traded at $1.0631, having reached a near one-year low of $1.0569 during the previous week.

Fed funds futures have shown a 94 percent likelihood that the Fed will increase rates in December, according to CME Group data.

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**InstaForex Gertrude** · 24-11-16, 05:15

Dollar Strengthens after Positive U.S. Data

The dollar strengthened following the latest U.S. upbeat data that has shown economic growth early in the fourth quarter, raising the chances of the Federal Reserve tightening monetary policy. The dollar index climbed 0.1 percent to 101.79.

Investors are implying in almost a 100 percent likelihood of a December Fed rate hike, according to CME FedWatch. Latest U.S. data has shown new orders for U.S. manufactured capital goods rebounded in October due to increasing demand for equipment and machinery. The dollar rose 0.1 percent at 112.56 against the Japanese yen.

The euro brushed off the positive reading on business activity and fell 0.1 percent to $1.0540.

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