MACRO ECONOMIC NEWS

WISHING YOU A WEEK OF FREEDOM FROM OWN IMPRISON. GOOD MORNING.

Macro Economic News 13 Aug 2018

Months of steady increases have pushed up the inflation rate to the highest level in years. Overall prices are up 2.9% over the past 12 months, a rate last exceeded in early 2012. Europe’s economy has slowed, and seems unlikely to bounce back strongly in what remains of a year that began with high hopes and then hit a series of setbacks. The White House push to confront rivals over trade has spread beyond the world’s biggest economies like China and Europe to include poorer countries that also see the U.S. as a critical market for their goods. Economists are boosting their projections for growth in U.S. output this year, but trade disputes, a fading boost from fiscal stimulus and rising rates leave them thinking strong growth won’t last much longer than that.

FINANCIAL TIMES

[I]  Turkish lira slides despite promised plan to calm markets

[I]  EU prepares crackdown on ‘citizenships for sale’

[I]  Russia tries to win hearts and minds with aid in Syria

[I]  Private equity spending pace slows to 10-year low

[I]  Soaring US profit margins pose challenge for investors

[I]  Turkey looks to ‘new alliances’ for way out of crisis

[I]  Russia reduces dependence on US dollar in response to sanctions

[I]  Pakistan dynasties unite against triumphant Imran Khan

[I]  Zimbabwe’s post-election crackdown scuppers investment hopes

[I]  UK financial watchdog opens record number of cases

REUTERS

[I]  Singapore revises second-quarter GDP growth lower, flags risks from trade

[I]  Global Markets: Asian shares, euro trampled as Turkish rout spreads

[I]  Euro soft as investors bid up safe havens on Turkish crisis

[I]  Insight: Israel seeks early re-tender of mining rights to shore up Dead Sea

[I]  Insight: Beijing struggles to defuse anger over China's P2P lending crisis

[I]  France fumes at proposed post-Brexit EU sea trade links

[I]  Turkey's Erdogan stands by opposition to high interest rates

BLOOMBERG 

[I]  Singapore's GDP Growth Disappoints as Construction Slumps

[I]  China Faces Problem in Getting Its Banks to Lend More Money

[I]  BOJ's ‘Stealth Tapering’ Expected to Spread to Equities Buying 

[I]  Turkey Crisis in Charts: Worse Than Lehman, Similar to 1998

[I]  Turkey Policy-Making Paralysis Promises More Markets Tumult

[I]  Dubai Bank's Turkey Bet Just Got $1 Billion Cheaper. And Riskier

[I]  U.K. House Prices Are on the Longest Losing Streak Since Crisis

[I]  Russia's Richest Lose $3.1 Billion as Tax Proposal Hits Shares

[I]  Lira Looms Over Emerging Markets With Turkey White-Knuckle Ride

[I]  Losing Faith Fast, Istanbul Merchants Throw in Towel on the Lira

WALL STREET JOURNAL

[I]  Rising U.S. Consumer Prices Are Eroding Wage Gains 

[I]  Eurozone Optimism Ebbs With Tensions Over Trade, Turkey 

[I]  U.S. Takes Trade Fight to Smaller Nations 

[I]  Economists See Growth Hitting 3% in 2018 

[I]  Turkey on the Economic Brink, Explained in a Dozen Charts

[I]  U.S. Budget Gap Widens

[I]  China’s Tariff Turnaround: U.S. Crude Oil Drops Off the Target List

BUSINESS LINE

[I]  Vehicle-scrapping policy likely only after 2019 polls

[I]  Jan Dhan a/cs: Panel pitches for changes in overdraft facility to raise utilisation

[I]  No GST on fortified toned milk, but treated tamarind kernel powder to attract 5% tax

[I]  New Bay low to bring heavy rain across the North-West

ECONOMIC TIMES

[I]  Think your money is safe? Well, think again

[I]  Gold puts up a fight as selloff slows near key $1,200 level

[I]  Govt announces ₹10,000-crore connectivity plan for NE states

[I]  Subway, Yum restaurants under watch for failing to pass on GST rate cut benefits

[I]  National Anti-Profiteering Authority moves to make sure consumers gain from GST cuts

[I]  Glitch-ridden GST was due to lack of time: GSTN CEO

[I]  NAA's directive on audit of e-comm cos stuck over jurisdiction issue

[I]  Company secy not required to disclose non-filing of previous year's annual return: Court

BUSINESS STANDARD

[I]  PSBs to be recapitalised in Q4 FY19, exercise linked to progress on reforms

[I]  Not just volumes, profit growth takes centre stage for FMCG companies

[I]  National retail trade policy proposal back in consumer affairs department

[I]  Motor vehicle insurance firms seek more time to comply with SC orders

[I]  East, West freight corridors likely to be commissioned by March 2020

[I]  Statsguru: IMF expects India to grow at 7.3% in FY19, 7.5% in FY20

MARKETS (9:15 am)

[I]  SGX NIFTY Fut: 11371  USDINR DGCX: 69.2100;  DJIA Mini: 25197;  FTSE 100 Fut: 7610;  NIKKEI 225 Fut: 21900;  EUR-USD: 1.1384; Crude Oil (WTI): 67.61;  Gold (Spot): 1208

Best Regards, ARBIND

13 Aug 2018