• The EU said it will extend the Brexit deadline until May 22, pending approval from UK lawmakers provided the withdrawal agreement is approved by the House of Commons next week. If Theresa May manages to pass a deal, the EU will let Britain remain in the bloc until the deadline to complete the formalities. If not, she will have to decide whether to seek a longer extension or leave without a deal.
• Canadian inflation rose to 0.7% last month at a slightly faster pace, pushing higher by increased costs associated with mortgage payments and fresh vegetables. Meanwhile, Canadian retail sales fell for a third consecutive month in January on decreased demand for new and used cars. Stats Canada said retail sales decreased 0.3% in January against the positive expectation of 0.4%.
• Oil edged lower but held near 2019 highs, supported by a sharp tightening of global stocks, OPEC production cuts and US sanctions on key producers Iran and Venezuela. WTI crude prices have hit a low of $59.04.
• President Donald Trump is considering appointing Stephen Moore, a visiting fellow at the Heritage Foundation and a long-time supporter of Donald Trump to the Federal Reserve Board. Trump was so incensed by the Fed’s policies, he is said to have sought advice late last year on whether he could fire its chairman, Jerome Powell.
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To the Clients of EncoreFX:
It is with much regret that we inform you that EncoreFX’s (the “Company”) offices are suspending trading effective immediately.
This suspension will give the Company time to consider its restructuring alternatives. The restructuring has become necessary as a number of customers to whom the Company granted credit have defaulted on their obligations to the Company due mainly, we believe, to the rapid changes in the FX market caused by the coronavirus pandemic.
In order to provide stakeholders with transparency, the Company has filed an assignment in bankruptcy pursuant to Section 49(1) of the Bankruptcy and Insolvency Act (Canada) (the “BIA”) with respect to its Canadian operations and has assigned its Australian and New Zealand subsidiaries in Voluntary Administration in Australia and New Zealand.
Ernst & Young has been appointed as the licensed insolvency trustee (the “Trustee”) in Canada and as the Administrator in Australia.
Once the Trustee, working with the Company, has determined the best options for the Company and its stakeholders it will share that information with you. Information pertaining to the bankruptcy of EncoreFX will be available, in due course, on the Trustee’s website at: www.ey.com/ca/encorefx.