• US January trade data has demonstrated a distinct drop in imports from China over the past month, as US-China trade talks will be continuing today. Chinese negotiators will be eager to get an agreement drafted before President Xi Jinping travels to the US, as both sides are expected to hold meetings in Washington starting April 3.
• US fourth-quarter GDP has been revised again, with economists polled forecasting that US economic growth will slow to a pace of 2.4% on the quarter marking a downward revision from 2.6% increase for the period. The overall sentiment for the economy should see US growth operating around trend with inflation a little below 2%.
• UK Prime Minister May has stated she will resign if the government deal succeeds and will stay if it fails. The UK Members of UK Parliament spent yesterday evening voting on eight indicative votes but as expected, the MPs failed to reach a consensus on any of the options.
• German and Spanish consumer price data came in mixed early this morning with Spanish flash CPI notably missing forecasts. Eurozone business sentiment opinion polls are also released later today. This comes as ECB President Draghi highlighted the damage of negative interest rates in a speech yesterday.
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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.