MACRO ECONOMIC NEWS

WISHING YOU A DAY OF NEW START, FREELY. GOOD MORNING.

Macro Economic News 16 Aug 2018

U.S. tariffs intensify pressure on the Turkish lira, raising the prospect of an open-ended cycle of protectionism and devaluation. Few other countries are troubled by as broad a constellation of economic problems as Turkey. And that may reduce the risk of contagion. The U.S. put Russia and China on notice that it is unhappy with their enforcement of sanctions on North Korea by taking action against companies in those countries it said aided North Korea’s shipping industry. U.S. industry output rose slowly in July, held down by weakness in the mining and utilities sectors. A jump in retail sales and rising manufacturing output suggest the U.S. economy’s strong growth in the second quarter continued into the third.

FINANCIAL TIMES

[I]  Emerging markets index falls into bear territory

[I]  New Zealand bans foreigners from buying homes

[I]  Spain feels heat from rising migrant numbers

[I]  Narendra Modi offers healthcare sweetener ahead of India elections

[I]  South Korea’s economic integration plan with North risks US ire

[I]  Turkey’s central bank raises rates via the backdoor

REUTERS

[I]  Modi announces space mission, health scheme 

[I] India says forex reserves comfortable to withstand rupee fall

[I]  China approves $11.2 billion in fixed-asset investment projects in July

[I]  Asian shares hit one-year low on Turkey, China worries

[I]  Trump says his steel tariffs will save the U.S. industry: WSJ

[I]  Japan export growth slows as U.S.-bound shipments fall

[I]  U.S. and Mexico to set up joint team to fight drug cartels

[I]  U.S. retail sales, manufacturing data bolster third-quarter economic outlook

BLOOMBERG 

[I]  Emerging Markets Get Pummeled and Are on the Cusp of a Bear Market 

[I]  China's Tumbling Equities Now Look Very Attractive, to Some

[I]  Hong Kong Spends $2.1 Billion This Week to Defend Dollar Peg

[I]  Lack of Correlation for Bitcoin Provides Little Relief as Markets Sell Off

[I]  U.S.-China Stock Gap Widens as Economic Fortunes Split

[I]  China to Send Group to U.S. for First Trade Talks Since June

[I]  Australia's Unemployment Falls to Lowest in Almost Six Years

[I]  Indonesia Inc. Finds Haven in Loans Amid Emerging Market Woe

[I]  China Firm on 8-Year Winning Streak Is Opening a New Hedge Fund

WALL STREET JOURNAL

[I]  Another Step in the Push to Weaponize Global Finance 

[I]  Turkey Shifts Toward Russia Amid U.S. Sanctions

[I]  Turkey Raises Tariffs on U.S. Products

[I]  Turkey’s Economic Red Flags Stand Out Among Emerging Markets 

[I]  Qatar to Inject $15 Billion Into Turkey

[I]  Ankara Raises Tariffs on U.S. Products

[I]  U.S. Blacklists Russian, Chinese Firms It Says Aided North Korean Shipments 

[I]  U.S. Industrial Production Edged Up in July 

[I]  Dollar Rises Against Emerging-Market Currencies

[I]  Smaller Cities Are a Worry in China’s Too-Hot Property Market

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

[I]  South Korean Shipbuilder, Container Carrier Hit Hard by Shipping Slump

BUSINESS LINE

[I]  Tax havens harm not just the exchequer, but also the environment

[I]  CBDT plan to incentivise ‘quality orders’ worries trade

[I]  ‘Services by HO staff for branches in other States can attract GST’

[I]  Changes in Motor Vehicle Act will not curb States’ powers: Gadkari

[I]  Spike in Chinese raw material prices hits Indian drug-makers

[I]  India-Bangladesh trade to scale new high

[I]  Foreign exchange market being monitored: Jaitley

ECONOMIC TIMES

[I]  Has India's age of awakening finally begun?

[I]  July sees 11 PE exits worth $376 million: EY

[I]  Gold hits 18-month low as dollar flares on Turkey woes

[I]  Comfortable forex reserves to deal with rupee volatility: Jaitley

[I]  Monsoon revival brings mix of misery & cheer for farmers

[I]  Modi says agri export policy on the anvil; on track to double farm income by 2022

[I]  Note-ban, GST hit household savings rate, decline may pose challenge for economy: Report

[I]  CPI inflation to average 4.4 per cent this fiscal: Report

[I]  Ecommerce policy needs to focus on investments, not micro issues like discounts: Amitabh Kant

[I]  RBI puts 200 stressed account under scanner

[I]  Draft policy expects e-commerce platforms, search engines to store data locally

BUSINESS STANDARD

[I]  Corporate India sees earnings rebound after sharp fall in March quarter

[I]  On Independence Day, PM announces roll-out of Ayushman Bharat on 25 Sept

[I]  June quarter results: Retail lenders spur consumer demand across industries

[I]  Global developments are being monitored closely, says Arun Jaitley

[I]  Indirect tax base has surged 65% to 11.6 mn since GST roll-out: PM Modi

MARKETS (8:10 am)

[I]  SGX NIFTY Fut: 11409  USDINR DGCX: 70.4525;  DJIA Mini: 25305;  FTSE 100 Fut: 7526;  NIKKEI 225 Fut: 22206;  EUR-USD: 1.1380; Crude Oil (WTI): 65.14;  Gold (Spot): 1173

Best Regards, ARBIND

16 Aug 2018