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Macro Economic News 11 Apr 2018

Investors breathe a sigh of relief after some positive comments from the leaders of the U.S. and China on trade, while oil and aluminum bulls get some good news and Facebook’s Mark Zuckerberg testifies to Congress for the first time.

A challenge for investors all over the world, corporate governance is becoming a particularly thorny hurdle for investors in China’s bond market as the amount of low or unrated borrowers swells. Bonds issued by high-yield and unrated companies have climbed to 55 percent of total sales this year, the most since 2011.

Wednesday is inflation day, though it may turn out to be not so inflating. Japan reports PPI before China reports CPI and PPI, and economists forecast that all three will show a slower pace of price gains.

 

FINANCIAL TIMES

[I]  Norway’s wealth fund blocked from investing in private equity

[I]  European indices a poor guide to domestic economic health

[I]  Moscow urges calm as chill hits from new round of US sanctions

[I]  Euro area’s banking union heads for ‘critical phase’

[I]  North Korea acknowledges prospect of dialogue with Trump

[I]  Donald Trump’s homeland security adviser leaves White House

[I]  UK dominates EU ranking of millionaire bankers

[I]  India’s misguided war on solar panel imports

[I]  US-China rivalry will shape the 21st century

[I]  Brexit confusion threatens the UK aviation industry

 

REUTERS

[I]  India looks to use new-found clout to seek better oil bargains

[I]  Japan's February machinery orders beat expectations, wholesale prices slow

[I]  China central bank governor says will continue to carry out prudent monetary policy

[I]  China March consumer inflation slows to 2.1 percent year-on-year, PPI at 3.1 percent

[I]  Federal Reserve proposes new capital rules for Wall Street

[I]  ADB sees Asia's 2018 growth at 6 percent, but warns of trade risks

[I]  U.S., Russia clash at U.N. over chemical weapons attacks in Syria

[I]  China's central bank says it will skip OMOs on Wednesday

[I]  Singapore Exchange to list Indian equity derivative products in June 2018

[I]  Japan Feb machinery orders rise unexpectedly in positive sign for capex

 

BLOOMBERG 

[I]  What Will It Take to Keep Up With Shale Gas Boom? $170 Billion

[I]  British Business Wants to Keep EU Rules After Brexit

[I]  Trump Praises Xi’s Speech, Easing U.S.-China Trade Tensions

[I]  U.S.-China Talks Stalled Over Trump’s Demands on High-Tech Industries

[I]  How ‘Made in China 2025’ Frames Trump's Trade Threats

[I]  ‘No Direct Confrontation’: Investors Voice Relief at Xi's Speech

[I]  The World Is Cracking Down on Bitcoin—Except Japan

[I]  China’s Factory Inflation Slows as Consumer Price Gains Ease

[I]  Kenyan Retailer in Talks to Raise Cash as It Fights for Survival

[I]  London Home Prices Now Offer Clues for Buyers in New York, Tokyo

[I]  PBOC's Yi Pledges More Steps to Further Open China's Economy

[I]  China Opens Door to New $450-Billion Funding Buffer for Banks

[I]  Flood of Junk Issuance Raises Risks in China's Bond Market

[I]  Volatility in Currency Markets Is Surprisingly Calm

 

WALL STREET JOURNAL

[I]  For Many New Homeowners, Debt Consumes Half of Income

[I]  U.S. Labor Market Shows Resilience Despite Volatile Backdrop

[I]  U.S. Business Price Growth Came in Hotter Than Expected Last Month

[I]  Chinese Investment Into the U.S. Fell Sharply in 2017

[I]  Xi Pledges a More Open China, Increased Imports and Lower Auto Tariffs

[I]  Should the U.S. Worry That China Is Closing In on Its Lead in Research and Development?

[I]  U.S. Manufacturers Worry Tariffs Could Undermine Recovery

[I]  Fed Floats First Major Big-Bank Rule Change of Trump Era

[I]  Europe’s Boom Reawakens the Ghost of Crisis Past: Debt

[I]  Real Time Economics: Budget Blowout | Inflation in Focus | China Chides ‘Cold War’ Mentality

 

BUSINESS LINE

[I]  More air connectivity, imparting job skills among proposals to develop N-E States

[I]  Groupings of States soon to address common problems

[I]  DIPP to hold consultations today with stakeholders on FDI in tobacco

[I]  Needless controversy over finance panel: Jaitley

[I]  India, US discuss market access issues in trade policy forum

[I]  E-way bill for goods movement within State from April 15

[I]  FPI cap: SEBI clubs all related entities’ investments as one

[I]  For RRBs, first uniform NPA norms then corrective action: Officers’ federation

 

ECONOMIC TIMES

[I]  How FPIs buy government bonds with a tweak

[I]  Doubts emerge over India’s bond rally; here’s why

[I]  Wheat target achievable in india despite weather-woes

[I]  CAI lowers 2017-18 cotton production estimate by 2 lakh tonnes

[I]  India, EU to resume FTA dialogue on April 12: Diplomat

[I]  Government mulls taking GSTN control from private entities

[I]  Trai may seek powers to regulate app data flow

[I]  States to step up e-way bill vigilance to clamp down on evasion

[I]  Finance ministry to check readiness of PSBs on bad loan frauds

[I]  Five states account for 61% of e-way bill generation: GSTN

[I]  India could face high inflation, low growth

[I]  NITI outlines five development missions for northeast

[I]  New NPA norms: Panel to meet RBI Guv and top bankers

[I]  Satellite images data to help predict economic indicators

 

BUSINESS STANDARD

[I]  FinMin raises questions on interest rate of 8.55% proposed by EPFO

[I]  IT industry's dependency on visas to decline further: New Nasscom chairman

[I]  Passenger vehicle sales hit record 3.28 million in 2017-18, says Siam

[I]  No bias against states in finance commission's terms of reference: Jaitley

[I]  Don't deny pension for want of Aadhaar: EPFO to banks

[I]  Govt mulls policy to push virtual varsities via tablets, big screens

[I]  Sudden rain spares standing wheat crops in Punjab, Madhya Pradesh

[I]  Walking the digital financial tightrope

[I]  China's long-term plans for its currency

[I]  Making parliamentarians accountable

[I]  Market breadth negative this year even as Sensex, Nifty managed to hold up

 

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 10427;  USDINR DGCX: 65.0325;  DJIA Mini: 24278;  FTSE 100 Fut: 7166;  NIKKEI 225 Fut: 21750;  EUR-USD: 1.2357; Crude Oil (WTI): 65.36;  Gold (Spot): 1341

Best Regards, ARBIND

11 Apr 2018