MACRO ECONOMIC NEWS

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Macro Economic News 13 Jul 2018

 

Yield curve flattening is hitting bond markets across Asia. Bonds in Indonesia, India and Australia are witnessing a flattening of yield curves that’s showcasing the challenges these formerly-favored markets face as dollar liquidity tightens. While Indonesia rushed to raise interest rates to stem a rout in the rupiah, continued weakness in the currency amid an emerging-market rout deepened by the U.S.-China trade war is fanning bets for further tightening. Aberdeen Standard Investments expects the nation’s yield curve to remain flat in the near term. However, India — which last month increased benchmark rates for the first time since 2014 — will probably see its curve steepening later in the year. The same is expected for Australia, with rising yields on U.S. Treasuries seen driving the nation’s long-end borrowing costs higher.

 

FINANCIAL TIMES

[I]  Donald Trump gives final tongue-lashing to Nato allies

[I]  US antitrust chief signals comfort with tech deals

[I]  Collateral damage predicted from US-China trade war

[I]  Theresa May unveils plans for softer Brexit

[I]  Brussels pushes ahead with migrant centres outside Europe

[I]  Economic reform risks being the loser in Brazil’s election

[I]  China denies US claims of sabotaging North Korea nuclear talks

[I]  US factories feel chilling effect of tariffs will halt revival

[I]  Europe’s steel market takes big step on consolidation

 

REUTERS

[I]  As foreign economists leave, protectionist India returns

[I]  India's falling rupee pushes retail inflation to five-month high in June

[I]  Iran says will strive to ensure oil supplies to India

[I]  China says United States trade accusations are groundless

[I]  Ousted Pakistan PM flying home to face jail, authorities lock down Lahore city

[I]  Chinese imports to U.S. ports start peaking early amid tariff threat

[I]  Chinese imports to U.S. ports start peaking early amid tariff threat

[I]  With U.S. trade under a cloud, China opens to Indian pharma

[I]  Singapore second-quarter GDP growth slows as trade tensions cloud outlook

[I]  Fed's escape from crisis holdings could hit dead end

 

BLOOMBERG 

[I]  Peru Keeps Rate at 2.75% to Bolster Copper-Fueled Rebound

[I]  Coming Soon to an Ocean Near You: Ships Moving a Tiny Bit Slower

[I]  Trump Says May's Brexit Plan Likely to Kill Off U.S. Trade Deal

[I]  Trade War Sparks Mounting Concerns of Growth Risks: Economy Week

[I]  Americans Are Back in Asia Dollar Bond Market as Locals Struggle

[I]  China's Rising Defaults Bring More Safeguards to Yuan Bonds

[I]  U.S., China Say They Are Open to Talks Amid Escalating Trade War

[I]  Singapore GDP Growth Eases to One-Year Low as Trade Risks Mount

[I]  Peru Keeps Rate at 2.75% to Bolster Copper-Fueled Rebound

 

WALL STREET JOURNAL

[I]  Germany Delays Greece’s Final Bailout Payment

[I]  Fed Chair Jerome Powell Says Trade Policies Complicate Outlook

[I]  Inflation Is Eating Away Worker Wage Gains

[I]  Economists Think Unemployment Is Headed to a 50-Year Low

[I]  WSJ Survey: Economists See Fed on Autopilot

[I]  From Seafood to Mattresses: How the U.S. Tariffs Affect Businesses

[I]  China’s Effort to Control Debt Loses Steam

[I]  U.S. Government Revenues Drop in Wake of Tax Cuts

 

BUSINESS LINE

[I]  RBI red-flags fiscal risks of States

[I]  Cement firms’ profits likely to crumble under cost pressure

[I]  PE investments in realty cross Rs. 59,000 cr in 2017

[I]  Indian industry must up its tech ante

[I]  PPP, paranthas and the GDP race

[I]  As banks clamp up, India Inc turns to ECBs, raises $5.2 billion in first 2 months of FY19

 

ECONOMIC TIMES

[I]  A coming war may change shopping forever

[I]  Commodity prices begin to rise on higher MSP

[I]  High yields, easier norms bring PSBs back to bond street

[I]  India could climb up to be 5th largest economy next year: Arun Jaitley

[I]  States slip on fiscal targets on farm loan waivers, GST: RBI

[I]  UK's Brexit strategy may hit plans for free trade pact with India

[I]  Australian exports to India to grow to $45 bn in 20 years, FDI to $100 bn, says report

[I]  Industry growth slips to 7-month low of 3.2% in May

[I]  Retail inflation edges up to 5% in June; IIP slips to 3.2% in May

[I]  Government sets up task force to suggest ways on reducing import dependence

 

BUSINESS STANDARD

[I]  Twin shocks for economy as growth slumps, retail inflation picks up

[I]  Pricing worries weigh on agri-input stocks: Higher MSP, good rain positives

[I]  75% of under-construction infra projects delayed, no clear timeline: CARE

[I]  Slide in states' fiscal position; capital outlay to grow slower, says RBI

[I]  Jewellers find new way to bypass tax authorities and launder smuggled gold

[I]  Digital payments: Sebi bars stock brokers from accepting cash from clients

[I]  US will hit EU cars if no good faith in trade talks, says Donald Trump

 

MARKETS (08:00 am)

[I]  SGX NIFTY Fut: 11047;  USDINR DGCX: 68.4225;  DJIA Mini: 24949;  FTSE 100 Fut: 7617;  NIKKEI 225 Fut: 22487;  EUR-USD: 1.1667; Crude Oil (WTI): 70.21;  Gold (Spot): 1247          

Best Regards, ARBIND

13 Jul 2018