MACRO ECONOMIC NEWS

WISHING YOU FREEDOM POWER AND FULL SELF-EXPRESSION. HAPPY INDEPENDENCE DAY.

Macro Economic News 15 Aug 2018

Sharp declines in the Turkish lira, Indian rupee and other currencies have raised the prospect of a self-reinforcing flight from riskier emerging markets. Gradually rising interest rates have yet to dent Americans’ appetite for borrowing, with the total stock of new debt climbing to $13.3 trillion in the second quarter. The credit scores of millions of Americans have risen following a broad change in how credit-reporting firms handle negative credit information such as collections. As escalating trade disputes threaten to drive up the cost of imported goods for U.S. consumers and businesses, economists say a stronger dollar may be helping to offset some of the pain.

FINANCIAL TIMES

[I]  Eurozone GDP growth upgraded after stronger German figures

[I]  Turkish business groups call on Erdogan to heal rift with US

[I]  Iraq’s disillusioned give up on political leaders

[I]  India’s rupee hits all-time low on current account deficit fears

[I]  Lira’s fall highlights divisions in Turkish society

[I]  Australia to force tech giants to decrypt data

[I]  Hong Kong journalists’ club in free speech dispute

REUTERS

[I]  India not worried about weak rupee if other currencies also depreciate: senior official

[I]  Saudi pips Iraq as top oil supplier to India in July - data

[I]  July trade deficit widens to $18.02 billion

[I]  China says U.S. solar tariffs violate trade rules, lodges WTO complaint

[I]  Trump campaign files arbitration against former aide Omarosa: ABC

[I]  U.S. import prices flat; dollar limits imported inflation

[I]  Emerging economies face threat of Turkey knock-on effect

[I]  Risk of no-deal Brexit rising, 'everyone needs to prepare': British foreign minister

BLOOMBERG 

[I]  U.S. Household Debt Jumps to $13.3 Trillion While Student Loan Delinquencies Dip

[I]  Wall Street’s Latest Retail Product Pays Off Even if the Yield Curve Inverts

[I]  Currency Most Exposed to the Lira Meltdown Goes From Hero to Zero

[I]  Fed May End Taper, No Powell Pause, Argentina Fightback: Eco Day

[I]  Hong Kong Intervenes to Defend Currency Peg for First Time Since May

[I]  Libor's Heir Presumptive Prepared to Take on Bank Bond Market

WALL STREET JOURNAL

[I]  Sinking Turkish Lira, Indian Rupee Fuel Fears of Contagion 

[I]  Turkey to Boycott U.S. Electronics in Retaliation Against Sanctions 

[I]  Household Borrowing Reaches Record $13.3 Trillion 

[I]  Import Prices Fell Slightly, Helped by Strong Dollar 

[I]  Overhaul Boosts Credit Scores of Millions of U.S. Consumers 

[I]  China’s Growth Engine Sputters as It Battles U.S. Over Trade

[I]  German Economy Accelerates in Second Quarter

[I]  Tariffs Could Slow Exports, Not Just Imports, New York Fed Research Warns

BUSINESS LINE

[I]  Trade deficit at five-year high of $18 billion in July on oil imports

[I]  Despite a brief respite, price-rise worries persist

[I]  Rupee slide cuts both ways for tourism; hospitality sector will bear the brunt

[I]  E-commerce policy may be delayed as Ministry initiates fresh parleys

[I]  Rains scale up yet again as depression looms in Bay

ECONOMIC TIMES

[I]  Government attributes rupee fall to external factors, says nothing to worry

[I]  Euro on defensive as lira, EM currencies seen vulnerable

[I]  Private equity funds are looking to team up with professionals to create new disruptors

[I]  GDP likely to expand by 7.4% in FY'19: Ficci survey

[I]  India is considering 50 per cent Iran oil cut to win US waiver

[I]  India can't afford to turn its back on free trade

[I]  Wholesale inflation slows to 5.09% in July on cheaper food articles

[I]  Rupee breaches the 70 mark: How it's bad, and how it's good

[I]  Land acquisition rule for highways may be eased

BUSINESS STANDARD

[I]  IT companies see growth deceleration in Europe though US bounces back

[I]  UK think tank attacks Indian IT companies for 'exploiting visa loophole'

[I]  With India's imports exceeding exports, weak rupee does more harm than good

[I]  Foreign-bound for travel or studies? Get set to shell out as rupee falls

[I]  Govt says no concern over rupee, analysts see no benefit for exports

[I]  Inflation peaking off; August CPI likely to decline below 4%: Report

[I]  Govt's plan to revive hydropower projects in limbo due to lack of funds

[I]  With 350 stalled projects, UP adopts land pooling due to acquisition woes

[I]  Trade deficit widens to 5-yr high in July; exports grow by 14.3%

[I]  Govt proposes new financial model for building greenfield airports

[I]  High raw material costs take the sheen off stainless steel industry

MARKETS (7:00 am)

[I]  SGX NIFTY Fut: 11482  USDINR DGCX: --;  DJIA Mini: 25289;  FTSE 100 Fut: 7618;  NIKKEI 225 Fut: 22281;  EUR-USD: 1.1338; Crude Oil (WTI): 66.75;  Gold (Spot): 1192

Best Regards, ARBIND

15 Aug 2018