MACRO ECONOMIC NEWS

MAY THIS DAY PAVE THE PATH FOR NEXT ORBITAL SHIFT. WISHING A REWARDING DAY AHEAD.

Macro Economic News 29 Jan 2019

 

The partial government shutdown will cost the government about $3 billion and will subtract about 0.4 percentage point from annualized gross domestic product growth in the first quarter. The shutdown, the longest on record, caused modest harm to the economy overall but had more acute effects on individual workers and certain businesses.  The U.S. Treasury said it expects to issue less debt in the first quarter than it did a year earlier in advance of a key debt limit deadline in early March. Cabinet-level delegations from the U.S. and China will resume trade negotiations, but early indications are that the two sides remain sharply divided, suggesting a hard slog ahead for a deal to be cut before a March 1 deadline. Some investors blame the stock market’s volatility on the Federal Reserve shrinking its bond portfolio, but the critique puzzles Fed officials and some economists.

 

FINANCIAL TIMES

[I]  China’s army redoubles modernisation effort

[I]  Falling Hong Kong dollar is back in spotlight

[I]  Cuban crisis: rare tornado hits Havana

[I]  Shutdown knocked billions from US economy

[I]  China stimulus would boost eurozone, says Draghi

[I]  UK shows leadership on anti-microbial resistance

[I]  Continuity would be welcomed for business

 

REUTERS

[I]  How Venezuela got here: a timeline of the political crisis

[I]  U.S. sanctions Venezuelan state oil firm, escalating pressure on Maduro

[I]  China's plans to loosen restrictions on second-hand auto market

[I]  Yen firms on trade tensions, investors await Fed

[I]  Japan cuts view of exports as U.S.-China trade war hurts trade

[I]  Australian businesses ended 2018 with worrying downturn: survey

[I]  UK PM May did not set new date for vote on Brexit deal: source

[I]  China brings U.S. tariff dispute to WTO, berates Washington for blocking judges

[I]  ECB's Draghi warns that uncertainty is weighing on sentiment

 

BLOOMBERG 

[I]  Oil Holds Losses Near $52 as Venezuela Sanctions Shrugged Off

[I]  May Faces Losing Control Over Brexit Despite Gamble on Backstop

[I]  Bank of Japan’s 2008 Crisis Miscue Offers Messaging Lesson for Kuroda

[I]  U.S. Sanctions on PDVSA Look Like a De Facto Oil Import Ban

[I]  BOJ May Be Attempting to Let Steam Out of the Property Market

[I]  Australia’s Prime Minister Pledges to Create 1.25 Million New Jobs

[I]  China Slowdown, Trump Trade Demand, U.S. Deficit Spiral: Eco Day

 

WALL STREET JOURNAL

[I]  Big Divides Remain as U.S.-China Trade Talks Resume

[I]  CBO: Shutdown Will Cost Government $3 Billion of Projected 2019 GDP

[I]  The Cost of the Shutdown

[I]  A $4 Trillion Scapegoat for Volatility: the Fed’s Shrinking Portfolio

[I]  Big Railroads Don’t See Slowdown on Horizon for U.S. Economy

[I]  Economic Data Faces Further Delay After Shutdown

[I]  Treasury’s Borrowing to Decline in Quarter

[I]  Trade Talks Spotlight Role of China’s State-Owned Firms

 

BUSINESS LINE

[I]  Several state-owned banks will be profitable by year-end: Goyal

[I]  Income transfer can ease farm distress

[I]  The mistaken obsession with the fiscal deficit

[I]  Structural reforms must continue

[I]  E-commerce games

[I]  Greenfield States, such as Bihar, need to be nursed on to their feet

[I]  Untimely rain in Telangana wreaks havoc, damaging paddy, maize, red gram crops

 

ECONOMIC TIMES

[I]  India is second largest steel producer now

[I]  India keen to triple exports to Argentina, eyes additional $1.5 bn trade

[I]  FDI grew 18% in FY18 to Rs 28.25 lakh crore: RBI data

[I]  GST tweak, industry status make up real estate sector’s budget wishlist

[I]  Hindrance to resolution professional’s work will amount to Contempt of Court

[I]  Government asks PSBs to step up credit to the economy

 

BUSINESS STANDARD

[I]  Markets drop as investors dump firms with high debt levels, share pledging

[I]  Oversubscription provision overshadows base issuance in recent debt offers

[I]  Thank you China for smoking: Indian tobacco heads to biggest market

[I]  Global IT spending to grow 3.2%, reach $3.76 trn in 2019: Gartner

[I]  Rough Brexit: UK Inc sets up 'war-rooms', tells politicians to 'get a grip'

[I]  ISB only Indian B-School in top 25 of Financial Times Global MBA Rankings

 

MARKETS (08:00 am)

[I]  SGX NIFTY Fut: 10667;  USDINR DGCX: 71.0675;  DJIA Mini: 24380;  FTSE 100 Fut: 6693;  NIKKEI 225 Fut: 20447;  EUR-USD: 1.1429; Crude Oil (WTI): 52.14;  Gold (Spot): 1304

 

Best Regards, ARBIND

29 Jan 2019