Being the president of the world’s largest economy, Donald Trump is considered to be the most influential person when it comes to financial markets. Whatever policy changes were taken by Trump Administration during the last two months has had substantial effects on the equity and Forex currency markets. Trump promised during his campaign to increase infrastructure spending, introduce tax reforms and to slash regulations that were killing jobs. He wants to boost production in the US through tax subsidies for local businesses and increase consumerism. Forex market analysts have argued that Trump’s pro-growth policies will be a key driver for volatility in global FX markets going forward.
Trump’s disruptive immigration policies like the temporary travel ban imposed on Seven Muslim majority nations and his controversial comments on social media have put global equity and FX markets in a tailspin. For example, his comments about the withdrawal of US from the Trans-Pacific Partnership caused a huge impact on many of the Asian currencies like CNY and JPY. Since US Dollar is considered the global reserve currency, any changes in Fed policy like interest rate hike or tax reforms will have a notable impact on major currencies like EUR, GBP, CNY, CAD and JPY. The most affected currencies due to Trump’s policy changes are of the emerging markets such as Mexican peso, Turkish lira and South African rand. Trump’s controversial tweets targeting various Corporates or entire nations have impacted major currencies in a big way. Trump’s Twitter account has more than 18.8 million followers and is a major driving factor for investor sentiments across the globe. The below table illustrates the Trump effect on major currencies between US elections held on Nov 8th, 2016 and Jan 5th, 2017.
|Currency||% Change (vs. USD)|
The US Dollar index enjoyed substantial rally since Trump’s surprise victory in November elections and reached its 14-year high of 103.820 on Jan 3. The notable surge in US dollar was mainly due to the protectionist growth policies of the new President. But the greenback dipped by 3 per cent from its January 3 high after Trump raised a red flag over a strong dollar to the Wall Street Journal. He felt that Dollar was “too strong” for US companies to compete in global trade with their Chinese counterparts. He also blamed countries like China, Japan and Germany for manipulating currencies to get a trade benefit over the US. The remarks made by Trump over China and other nations in media resulted in the weakening of US dollar which Trump feels will favour US exports and boost manufacturing. It also led to the strengthening of Japanese Yen which is considered as a safe haven by currency traders. The US dollar dropped 0.6% against Japanese Yen to 111.95 Yen due to the uncertainty prevailing around trade policies by Trump. As a Forex trader, you should make use of real time trading charts and technical indicators to predict the future trends of currency movements, which will help you to make well-informed trading decisions.
Forex investors are eagerly awaiting Trump’s address to the US Congress on Feb 28th regarding changes in the monetary policy and possible corporate tax cuts. Trump Administration’s reflationary policies so far have had a positive impact on the US dollar and equities. The financial markets are interested to know about the tax reforms that will be proposed by Trump during his address to the Congress on Tuesday. The disruptive border adjustment tax that is under consideration by the Republican government under Trump aims at increasing taxes for imports and subsidises exports to boost manufacturing in the US. Russia has been on the positive side of Trump so far since he feels it’s a protectionist country which does not pose any threat to U.S. jobs. Hence, Russian Ruble has had a positive impact and has grown by 7.7% against U.S dollar.
Besides his proposal to build a wall between the US and Mexico, Trump has frequently opposed the NAFTA (North American Free Trade Agreement) during his campaign and wanted to restrict imports from Mexico and China by increasing the import tariffs. He promised to raise taxes for imports from Mexico and China by 35% and 45% respectively to reduce the imports from these countries. Such remarks have resulted in a considerable impact on both Chinese Yuan and Mexican Peso against the US dollar. Since Mexico is one of the biggest exporters to the US with more than 80.3% of its goods sent across border tax-free, scrapping of NAFTA and the introduction of new tariffs based on the proposed border tax reforms will have a great impact on the Mexican peso. His tweets have already weakened the Mexican peso against U.S dollar. It reached record lows of 21.619 when he criticised General Motors for exporting cars made in Mexico to the United States with the below Tweet. Ford motors also cancelled its production of $1.6 billion plant in Mexico in line with Trump’s policies to make in the USA.
“General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across the border. Make in U.S.A.or pay big border tax!”
The dollar tumbled against Japanese Yen and moved below 113.00 due to the uncertainty prevailing around the tax reforms to be proposed by Trump during his address to Congress and possible interest rate hikes by the Federal Reserve. Steven Mnuchin, U.S. Treasury Secretary under Trump Administration, stated that lot of work is to be done towards tax reforms, which would encourage inflation and push US interest rates higher. He also added that the impact of the new government’s pro-growth policies is unlikely to be seen this year.
Trump has pointed out several times that fiscal debts are getting beyond control and he wants significant changes in the Fed policy. This could mean the reversal of Quantitative Easing and an increase in interest rates which will result in a strong dollar. There are possibilities that Trump might even appoint a new chair to Federal Reserve who will do whatever he says. If there is any announcement of interest rate hikes by US Federal Reserve during the upcoming FOMC meeting in March, we can expect a surge in US dollar once again, and this will have a negative impact on other currencies like Chinese Yuan, Japanese Yen, Euro and Mexican Peso. We can expect a lot of fluctuations in the currency markets based on Trump’s trade agenda and as a Forex trader, you should start considering about investing in Forex binary options to increase your returns.
Managing creative employees
Designers, journalists, photographers are talented and not ordinary people. At the same time, you can often hear that they can be easily distracted. But if someone complains about the uncontrollability of the creative employees, one simply does not know how to organize them.
How to manage creative employees
Designers, journalists, photographers are talented and not ordinary people. At the same time, you can often hear that they can be easily distracted. But if someone complains about the uncontrollability of the creative employees, one simply does not know how to organize them. Find out how to organize your creative employees in the best way and without unnecessary stress following the tips from these 10-page papers.
The method of the stick doesn’t work
Formally, creative people are no different from all others. And informally, of course, the difference is obvious. The geniuses have other motivators. For example, for them recognition is more important than money. A free schedule is more comfortable than working from a call to a call.
So, it’s advisable to rather choose the right leadership style to live in peace and harmony. In the scientific literature, four types of management are distinguished:
- Authoritarian. When everything in the company occurs at the behest of the head, and the subordinates are obedient executors.
- Market. Relations in the team are built on the principle “you do something for me and I’ll do something for you.” This is kind of entrepreneurial approach.
- Bureaucratic. The company has clear regulations, management orders are not discussed, and all employees are disciplined and executive.
- Democratic (humanistic). This is a paradise for creative workers. The staff of the company is one big team, where everyone is given chances to realize their ideas, even the most grandiose ones.
Follow your line
The main words to the manager is to become the creative leader himself. However, it makes no sense to create without knowing the measure and purpose. Therefore, top managers of innovative companies adhere to the following principles when running a team:
- Self-management. Provide employees with a field for activities, not pushing in their strict framework, but also avoiding arbitrariness.
- Personal responsibility for the result. Do so that every member of the team understands that the success of the project depends on it. Praise because creative people like approval very much.
- Freedom. Every employee has the right to work as he likes. Work from home, at night or daytime – in fact it’s not important. The main thing is the result.
- Tasks for interests. A routine is the most terrible word for creatives. They are bored sitting for a long time in one place, doing the same thing. A maximum of three years, and the true creator will run away, even if you give him free breakfast and lunch. So periodically change everything: tasks, areas of responsibility, and projects.
Looking for talents
In order to prevent the search for personnel from turning into a torture, one should immediately pay attention to those candidates who are equally capable of working both in the office and in public transport. And at the same time to give out unique intellectual products that did not exist before, absolutely viable.
During the interview, offer the applicant a simple test. For example, to come up with as many options for non-standard use of a paper clip within one minute. The candidate writes the answers on a letterhead, which is then analyzed.
It’s more interesting for the creative person to work in a circle of like-minded people. It is not necessary for this to open super offices where you can ride bikes or lie on bear hides.
The creative environment is a mood, a climate, a kind of comfort. Everything will turn out fine if you take into account some features in time:
- Create friendly relations. It is very good when you can communicate freely the company, without hierarchy, consult all issues directly with top managers and take the initiative.
- Support the staff. In a good working climate, ideas and proposals are received with interest and are welcomed by leaders of all ranks. Often arrange brainstorming so that everyone can feel the team spirit and positive attitude.
- Demonstrate trust and be open. When each person puts forward ideas and is not afraid to express his opinion, the emotional burnout of staff will not overtake.
- Joke so there will be ease, spontaneity, and a friendly atmosphere.
The best ways to protect your business against financial fraud
Businesses of all types can fall victim to fraudulent activity, from the smallest of enterprises to the largest multinational organisations. Financial fraud is all-too-common and can really impact on the image and reputation of any business. But, there are steps you can take to protect your business against fraud, and here’s how.
Keep a closer eye on your accounts
You need to keep a close eye on your accounts because, if you don’t know your company’s figures, how are you going know whether or not you have become a victim of financial fraud? Criminals are clever and they will be able to steal large sums of money from you over time, without it making a noticeable difference to your daily working operations straight away.
One of the best ways to stay on top of this is to invest in a software solution that allows you to keep track of your finances at-a-glance whenever and wherever you want to see them. The easier it is to access your accounts, the easier you’ll find it to monitor what’s coming in and out and spot any transactions that don’t look right.
Employee background checks
These days you need to be vigilant so consider running background checks on potential employees who will be handling money for your business, whether this is dealing with cash or financial records. Having employees that you can trust is the first step to combating potential fraud – they are, after on the front line against fraud.
Firewalls and virus protection
Make sure all your computers, including the ones used for work outside of the office, are fully equipped with the latest firewall and virus protection software. Malware and spyware are ones to consider as these could be used by fraudsters to trick their way into your systems.
Have your employees regularly change their login passwords. Passwords should ideally be changed every 60 to 90 days and have at least eight or more characters featuring upper and lowercase letters as well as numbers. Again, this is all about making it harder for people to hack into your systems and access your private financial data.
Keep company information safe
Your business requires you to hold information such as employee identification numbers, tax, wage and other sensitive information. This should be encrypted and safely stored, with access only given to those who require it for their jobs.
You should also keep important paperwork such as checks protected and in a secure location that is not easily accessible to the wrong hands. When it comes to disposing of any company documents, shred them. Being cautious with your business information is an important step to preventing fraud. If you give nothing away, there’s nothing for fraudsters to latch onto.
Protecting your business against financial fraud should be an important priority. Take it seriously, follow the steps above and give yourself the best possible chance of staying safe.
Francisco Reynés: “Naturgy wants to play an important role in Europe”
Francisco Reynés, executive chairman of Naturgy (formerly Gas Natural Fenosa), has mentioned the great value of the energy multinational company in the reorganisation of the sector in Europe. He has also expressed that they are open to corporate acquisitions.
Francisco Reynés has made these statements during an interview with the Spanish newspaper EXPANSIÓN, leader in economic news.
Francisco Reynés has mentioned the Naturgy Strategic Plan for the period 2018-2022, which was presented some weeks ago in London; a plan that promises its shareholders to increase the dividend in cash by at least 5% per year until the end of the period.
To reinforce the new shareholder remuneration policy, and if the intended acquisitions do not materialize, the company could allocate a maximum of € 2,000 million in the period as share buyback.
About this possibility, Francisco Reynés has explained that “in march, when we started to design the strategic action plan, we decided to conceive it without restrictions so that we can accomplish our own strategic decisions”.
“We want to demonstrate that it is not necessary to buy another company; Naturgy is in a position to develop by itself”, he added.
Once the strategic plan has been drafted and presented, Francisco Reynés has recognized that “it is important to look at everything”. It is not a race where you are running alone, you have to look what the competition is doing. To grow in business should not an obsession, it is rather an option”, he said.
Francisco Reynés has also insisted on the need to “play an important role in the reorganisation of the sector (…) We can be a relevant energy actor in Europe”, he concluded.
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