HAPPY HEART AND LAUGH LIFTS UP SPIRIT. WISHING A SPIRIT LIFTING WEEKEND.

Macro Economic News 27 Oct 2018

Strong consumer spending powered economic growth in the third quarter, helping to offset weak business investment and a drop in U.S. exports. The former central-bank chief, often credited with setting the stage for the boom of the 1980s, reflects on economic life lessons ahead of his new book, ‘Keeping At It.’ After a nearly 7% selloff this year, the yuan is at the brink of hitting 7 per dollar, a threshold that could trigger further selling if Chinese businesses and individuals decide they need to expatriate capital before any further decline.

 

FINANCIAL TIMES

[I]  US stocks head for worst month since the financial crisis

[I]  Growth jitters send investors heading for tech exit

[I]  China and Japan reset strained relationship

[I]  US economic growth tops forecasts

[I]  Draghi launches defence of central banks over political heat

[I]  Soaring German housing costs leave Merkel vulnerable

[I]  EU attracts record numbers of outside workers

[I]  Markets brace for near crisis-level drop in retail property values

 

REUTERS

[I]  China's industrial profits growth slows for fifth month as orders wane

[I]  Mixed U.S. inflation signals leave investors adrift

[I]  U.S. economic growth slows slightly in third quarter; outlook less upbeat

[I]  Asia Gold: Price rally takes sheen off India's festive buying

[I]  Analysis: Steel capacity set to expand just as demand growth ebbs

[I]  Pakistan PM Imran Khan, in search of loans, to visit China next week

 

BLOOMBERG 

[I]  U.K.'s Hammond to Cut Business Rates to Help Ailing High Street

[I]  Wheat's Weather Worries Drag On, But Grain Bears Are Coming Back

[I]  Italy Escapes a Second Rating Downgrade a Week After Moody’s

[I]  Corporate Bond Sales Fall Off Cliff

[I]  Business-Spending Slowdown Casts Shadow on Solid U.S. GDP Report

[I]  United Kingdom Affirmed by S&P, Outlook Remains Negative

[I]  Emerging-Market Assets Fall Amid Global Stock Sell-Off

[I]  Household Credit Growth in Canada Hits Its Slowest in 35 Years

 

WALL STREET JOURNAL

[I]  GDP Grows 3.5% on Consumer Vigor but Investment Slows

[I]  Volcker Sees Fed Rate Increases as Key to Stable Growth

[I]  Some 43% of College Grads Are Underemployed in First Job

[I]  U.S. Consumer Sentiment Ticked Down at the End of October

[I]  China Puts Yuan Skeptics on Notice as Currency Nears Decade Low

[I]  A Big Reason U.S. Economy Is Accelerating: Military Spending

[I]  U.S. Won’t Resume Trade Talks Without Firm Chinese Proposal

 

BUSINESS LINE

[I]  Digital sensors are the new ‘guards’ for equipment, logistics firms

[I]  SEBI moots easier listing norms for start-ups

[I]  It’s time tax-dodging MNCs paid their dues

[I]  Data security ‘is top concern of regulators worldwide’

[I]  NBFC crisis may trigger home price correction

 

ECONOMIC TIMES

[I]  RBI deputy bats for autonomy, says control 'catastrophic'

[I]  RBI to infuse Rs 40,000 cr to ease liquidity

[I]  Telcos cannot ask you for Aadhaar anymore

[I]  Dollar clings to narrow ranges as caution dominates markets after rout

[I]  Board remuneration: Miles to go for women directors

[I]  Promoters of 73,000 companies may face action

[I]  Pricing strategies of 50 companies under NAA lens

[I]  RBI rejects government's proposal to ease PCA norms for banks

 

BUSINESS STANDARD

[I]  Viral Acharya warns of market wrath, bats for more independence for RBI

[I]  Only 11% of residential inventories complete in top 3 cities: Report

[I]  China has agreed to increase its imports from India, says Suresh Prabhu

[I]  Income tax dept may seek first right on recovery of dues under IBC

[I]  Ensure there are no defaults by NBFCs, Arun Jaitley tells top PSBs

[I]  Direct investing in equity schemes could get cheaper after Sebi's circular

[I]  With innovator growth platform, Sebi eases startup listing norms

 

Best Regards, ARBIND

27 Oct 2018

OTHERS BECOME HAPPY WHEN THEY SEE YOU HAPPY. WISHING A DAY OF HAPPINESS ALL AROUND.

Macro Economic News 26 Oct 2018

 

The U.S. is refusing to resume trade negotiations with China until Beijing comes up with a concrete proposal to address U.S. complaints about forced technology transfers and other economic issues. A pickup in government spending, particularly defense, has helped drive a broad acceleration in U.S. economic growth, according to an analysis of Commerce Department data. As Iran braces for U.S. sanctions that target its financial lifeline—oil sales—it is resorting to a series of extraordinary steps including increasing government handouts to insulate the country’s increasingly restive working class.

 

FINANCIAL TIMES

[I]  ECB sticks with planned December halt to bond purchases

[I]  Germany rejects call for tax cuts as revenues head towards €tn

[I]  Janet Yellen sounds alarm over plunging loan standards

[I]  Rocky start for Iraqi PM as parliament rejects key cabinet picks

[I]  China defence chief criticises ‘dangerous’ US stance

[I]  EU steps up criticism of Romania over rule of law

[I]  US ‘imagination’ breaks in two over what it means to be American

[I]  Customers’ money trapped at UK fintech due to Malta bank freeze

[I]  China is committed to playing by the rules on global trade

 

REUTERS

[I]  Asian shares struggle to shake off rout despite Wall St bounce

[I]  China, India aim to hold army drills in China by end of year

[I]  India's April-September fiscal deficit at 5.95 trillion rupees

[I]  Tokyo inflation holds steady, little cheer for Japan's central bank

[I]  U.S. dairy farmers get little help from Canada trade deal

 

BLOOMBERG 

[I]  Asia Bulls Are Unbowed With Stock Signal on Economy Seen Shaky

[I]  Undeterred by Brexit, Hotelier Perseveres With U.K. Adventure

[I]  Trade Chiefs Say WTO No Longer Sustainable and Needs Reform

[I]  Oil Climbs as Equities Recover, OPEC Signals Output Cuts

[I]  Dollar Hits Second Straight 2018 High as Divergence Re-Emerges

[I]  Fed Fires Warning Shot at Wall Street's Riskier Loan Deals

[I]  Draghi Comments Have Economists Shifting Focus Toward December

[I]  Undeterred by Brexit, Hotelier Perseveres With U.K. Adventure

[I]  Malaysia Tax-Free Period to Boost Third-Quarter Earnings Growth

 

WALL STREET JOURNAL

[I]  U.S. Won’t Resume Trade Talks Without Firm Chinese Proposal

[I]  A Big Reason U.S. Economy Is Accelerating: Military Spending

[I]  Iran Moves to Shelter Millions as U.S. Sanctions Bite

[I]  U.S. Jobless Claims Edged Higher Last Week

[I]  Fed Vice Chairman: Strong Growth Supports Continued Rate Rises

[I]  New Home Sales Fall, Inventories Rise on Faltering Demand

 

BUSINESS LINE

[I]  Quality control order will soon cover all steel products: Minister

[I]  Focus shifts to domestic sales due to uncertainties in the export market

[I]  SEBI sets stage for ‘on-tap’ bond issues

[I]  Chinese imports are undermining ‘Make in India’

[I]  What’s ailing the Indian start-up ecosystem these days

[I]  Govt plans 1 million Wi-Fi hotspots by Dec 2019

[I]  North-East monsoon pattern evolves, but rains yet to begin

[I]  RBI issues ‘fit and proper’ criteria for sponsors of ARCs

 

ECONOMIC TIMES

[I]  Market in retreat and deferred IPOs upset PE investors’ exit plan

[I]  Rupee may recover to 70 level in H2 if RBI mops up $30 billion from NRIs

[I]  NPA crisis an opportunity to develop bond market: Sebi

[I]  Forex burn by RBI has silver lining for bond market

[I]  Crisil says corp bond supply may double by FY23

[I]  Agro specific zones being mulled in farm export policy

[I]  India coffee exports to drop as floods dent output -trade body

[I]  Supplies to US help offset fall in seafood exports to European Union

[I]  India makes big push to expand tea export to China

[I]  Elevated corridor to fetch Rs 35,000 crore toll revenue in 20 years

 

BUSINESS STANDARD

[I]  DoT wants telecom operators to stop Aadhaar-based biometric authentication

[I]  RBI plan to move from wholesale cash cycle to a retail-based model

[I]  Fiscal deficit hits 95.3% of full-year target of Rs 6.24 trillion in H1

[I]  India, Bangladesh ink key pacts for cargo, cruise movement: Shipping secy

[I]  India's sugar output may decline marginally this yr due to cane crop damage

 

MARKETS (07:30 am)

[I]  SGX NIFTY Fut: 10157;  USDINR DGCX: 73.2175;  DJIA Mini: 24738;  FTSE 100 Fut: 6916;  NIKKEI 225 Fut: 21313;  EUR-USD: 1.1375; Crude Oil (WTI): 66.86;  Gold (Spot): 1232

 

Best Regards, ARBIND

26 Oct 2018

A LITTLE SMILE ADDS SUBSTANTIAL SERENITY TO SETTLE THE STIRS OF LIFE. WISING A SMILING DAY AHEAD.

Macro Economic News 25 Oct 2018

 

Businesses are still optimistic about the economy’s growth trajectory, but indicated concerns that tariffs would continue to push up costs, according to a Fed. Sales of new homes in the U.S. slumped for the fourth-consecutive month and inventories swelled to the highest level in years, suggesting the housing market is falling deeper into a weak stretch. The Bank of Canada raised its key interest rate by a quarter-percentage point, as a resolution on a new North American trade pact and easing concerns over household debt gave policy makers more confidence in Canada’s economic outlook.

 

FINANCIAL TIMES

[I]  Merkel fights for future as German voters’ mood turns ugly

[I]  Nato launches biggest war game since Soviet era

[I]  South Africa slashes growth forecasts amid deficit warning

[I]  Italy lauds Putin and sets up Brussels battle

[I]  Eurozone economic confidence hurt by global trade war

[I]  South Korea seeks to revive struggling economy

[I]  France and Italy edge closer to shipbuilding alliance

[I]  Private equity set to surpass hedge funds in assets

 

REUTERS

[I]  Smartphones emerge as bright spot for Indian manufacturing

[I]  Global stocks crumble as global growth, U.S. earnings fears spook markets

[I]  New Delhi braces for 'deadly cocktail' of pollution as air quality slides

[I]  Government seeks to tighten rules against sexual harassment

[I]  BOJ deputy governor warns against pricking bubbles with monetary tightening

[I]  Course unchanged for ECB as growth worries bubble under

[I]  Japan, China seek warmer ties against backdrop of U.S. trade friction

 

BLOOMBERG 

[I]  RBI's Forex Burn Comes With Silver Lining for India Bond Market

[I]  China Calls Any Challenge on Taiwan ‘Extremely Dangerous’

[I]  Asia Stocks Lose $5 Trillion This Year With No End in Sight

[I]  China's $4 Billion Fund Liquidation Leaves Traders Guessing

[I]  Trump's Fed Jabs, Global Labor Supply, Canada Tightens: Eco Day

[I]  Canada’s Benchmark Index Enters Correction Amid Mounting Rate Worries

 

WALL STREET JOURNAL

[I]  Fed Report Sees Optimism About Growth, but Growing Concerns About Tariffs

[I]  Send Word: Trump Right to Fight Some Global Rules

[I]  New Home Sales Fall, Inventories Rise on Faltering Demand

[I]  Bank of Canada Raises Interest Rates

[I]  ‘Where Do We Have Tariffs?’ Trump Asks. Here’s a List

[I]  Manufacturers See Signs of New Risks

[I]  Global Postal System Fast-Tracks Rate Review Following U.S. Gripe

[I]  Foreign Buying of U.S. Treasurys Softens, Unsettling Financial Markets

 

BUSINESS LINE

[I]  Indian Institute of Skills to be set up in public-private partnership mode

[I]  Textile exports need ‘WTO-compliant’ subsidy schemes, says ICRIER study

[I]  Domestic air passenger traffic increases 19% in Sept

[I]  Nutritional beverages pushing sugary drinks out

[I]  Regulation mooted to stop hospitals from forcing patients to buy drugs from in-house pharmacies

[I]  VC funding for digital health cos rises 46% to $8 b in 9 months

[I]  NBFC crisis seen lowering land prices, triggering consolidation in realty sector

[I]  Corporate bond market may touch Rs. 60-lakh cr by FY2023-end: Crisil

 

ECONOMIC TIMES

[I]  Bihar completes 100% electrification before deadline

[I]  Oil cools off, but US sanctions on Iran set to be a big decider

[I]  Cash crunch in financial markets worsens further

[I]  India, Vietnam identify biotechnology, super-computing to take bilateral trade to $15 bn

[I]  India plans trade deal to boost exports to China

[I]  UK will find India a willing partner to increase trade after Brexit: Envoy

[I]  Business confidence improves marginally in October-December quarter: Report

[I]  Cabinet approves Adjudicating Authority for speedy disposal of benami cases

 

BUSINESS STANDARD

[I]  RBI rejects liquidity window for NBFCs; govt demurs citing cash crunch

[I]  Trade deficit in oil up 67% in H1 of FY19 due to drop in petro exports

[I]  India set to replace US as the second-largest steel-consuming country

[I]  PM Modi says citizens should do more, pitches for 'tax-plus-one' system

[I]  As NBFCs turn off tap, realty funds see deal proposal spurt but remain wary

[I]  Inflow of capital from China has reduced over past 4 years, shows report

 

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 10131;  USDINR DGCX: 73.3900;  DJIA Mini: 24670;  FTSE 100 Fut: 6897;  NIKKEI 225 Fut: 21473;  EUR-USD: 1.1411; Crude Oil (WTI): 66.31;  Gold (Spot): 1237

 

Best Regards, ARBIND

25 Oct 2018