MACRO ECONOMIC NEWS

WISHING A DAY OF CHANGE AND CHARGE. GOOD MORNING.

Macro Economic News 02 Aug 2018

RBI has raised its interest rate while The Federal Reserve left short-term rates unchanged but put a hike in September back in focus. Markets were mixed as prospects for strong economic growth were offset by rekindled trade-war concerns. China’s central bank has started actively encouraging banks to extend more credit by taking a softer stance on loan quotas as authorities ratchet up efforts to bolster a cooling economy.

FINANCIAL TIMES

[I]  Fed hails strong economy with rate rises ahead

[I]  Nicaragua’s $13bn economy sinks as uprising persists

[I]  Drugmakers prepare to stockpile drugs in UK before Brexit

[I]  Russia says Iranian forces pulled back from Israeli border

[I]  US Treasury outlines tax reforms over $3tn offshore cash pile

[I]  Indian central bank raises rates for second time in three months

[I]  China easing threatens to derail debt-cutting efforts 

[I]  UK takes heart at Angela Merkel’s rethink on Brexit

REUTERS

[I]  Fed leaves rates unchanged, stays on course for September hike

[I]  England slump as India strike back in final session

[I]  India gold demand to revive in H2 as government supports farmers - WGC

[I]  Iran is seen readying major exercise as tensions with U.S. simmer

[I]  Trump's overture to emerging Asia drowned out by trade war

[I]  China central bank to fine-tune policy to ensure ample liquidity

[I]  China's state planner expects consumption growth to recover as seasonal factors fade

[I]  Trump administration adds to China trade pressure with higher tariff plan

[I]   Highlights of RBI comments after rate-hike decision

[I]  RBI hikes key rate by 25 bps for second straight meet; 'neutral' stance kept

[I]  Bank of England poised to raise rates in the face of Brexit risk

BLOOMBERG 

[I]  Indian Rate Hike a ‘Non-Event’ for Stocks, Next Up the Election

[I]  China Junk Bond Bargains Tempt Aberdeen to Increase Exposure

[I]  China’s Empire of Money Is Reshaping Global Trade

[I]  Bitcoin's Use in Commerce Keeps Falling Even as Volatility Eases

[I]  U.S. Targets Property, China's New Empire, Fed Outlook: Eco Day

[I]  BOE Rate Hike Seen Despite Brexit on Horizon: Decision Day Guide

[I]  Looking for a Pay Rise in Britain? Change Jobs, Economists Say

[I]  Drought Sends Australian Wheat on a World-Beating Rally

WALL STREET JOURNAL

[I]  Federal Reserve Holds Rates Steady, Says Economy Is Strong 

[I]  Parsing the Fed: How the August Statement Changed From June 

[I]  Private Sector Adds 219,000 New Jobs in July, Driven by Mid-Sized Firms 

[I]  Adding Up the Cost of Climate Change in Lost Lives 

[I]  U.S. Turns Up the Pressure on China 

[I]  Auto Sales Lost Speed in July

[I]  U.S. Manufacturing Activity Loses Momentum

[I]  U.S. Consumer Confidence Rises Slightly

[I]  U.S. Household Spending, Income Rose in June

BUSINESS LINE

[I]  RBI strikes another blow in inflation fight

[I]  TRAI recommends lower prices for spectrum auctions

[I]  Car sales slip marginally in July

[I]  GST mop-up exceeds Rs. 96,000 crore in July

[I]  July fails to deliver rain, clouds monsoon outlook

[I]  ‘Rate hike was to maintain 4% retail inflation target: Patel

[I]  Lending, deposit rates to go up

[I]  To boost priority sector lending, RBI allows banks to co-originate loans with NBFCs

[I]  E-comm policy ‘work-in-progress, will incorporate more views’

ECONOMIC TIMES

[I]  10-year yield rises above 3% as US steps up borrowing

[I]  RBI assures debt market of more liquidity

[I]  Retail inflation for industrial workers rose to 3.93 pc in June

[I]  RBI cites crop MSP, oil volatility, fiscal slippage as risks to inflation while hiking repo rate

[I]  Indian consumer sentiment hits record high in July: Report

[I]  Manufacturing sector activity eases in July amid softer increase in output, new orders: PMI

[I]  How to de-risk infrastructure investments

[I]  RBI rate hike to avoid drifting away from inflation mandate, says Urjit Patel

[I]  Cabinet clears amendments to GST laws

BUSINESS STANDARD

[I]  Trai recommends sale of airwaves of over Rs 5 trn for 5G auction

[I]  RBI increases repo rate by 25 bps to 6.5%; retains 'neutral' stance

[I]  Proxy advisory firms push for more changes in corporate boardrooms

[I]  Domestic car industry to report decline in July sales on high base effect

[I]  Manufacturing PMI eases to 52.8 in July as new orders, output rise

[I]  With UPI 2.0 set to launch soon, transactions for July fall by 4%

[I]  Centre's fiscal situation comfortable: DEA Secretary Subhash Garg

[I]  China to ease financial conditions, steps up effort to boost lending

MARKETS (10:30 am)

[I]  SGX NIFTY Fut: 11320;  USDINR DGCX: 68.6025;  DJIA Mini: 25247;  FTSE 100 Fut: 7564;  NIKKEI 225 Fut: 22501;  EUR-USD: 1.1650; Crude Oil (WTI): 67.74;  Gold (Spot): 1219

Best Regards, ARBIND

02 Aug 2018