MACRO ECONOMIC NEWS

LET US CHERISH A LITTLE NONSENSE NOW AND THEN. WISHING A RELISHING WEEKEND AHEAD.

Macro Economic News 22 Jun 2019

 

India's government is likely to overshoot the budget deficit target previously set for the current fiscal year as a slowing economy creates a big shortfall in tax collections and prompts new stimulus plans. Factory output is slowing in a number of key economies, darkening the outlook for the global economy and increasing the likelihood that leading central banks will respond with fresh stimulus. Fed Chairman Jerome Powell sounds prepared to cut interest rates if growth prospects don’t suddenly improve. Two Federal Reserve officials said they believed the central bank should have lowered and not held steady its short-term rate target this week to help address persistently weak inflation pressures and rising economic risks. Governments across the world are increasingly questioning the autonomy of their central banks, putting the relationship between the two at stake.

 

Central Banks Policy Stances

USA - Prepared to cut interest rates

Europe - Could cut interest rates again

UK - Would be likely to cut interest rates

Japan - Could combine interest rate cuts with bigger asset buying

Norway - More rate rises to come and at a “slightly faster” pace

Brazil - Held back from signalling looser policy

Taiwan - Continued to keep policy on hold as rates are already low

Columbia - Cut the reserve requirement, could cut interest rate.

Indonesia - Signalled its readiness to support credit expansion

India - Door open for more policy easing

Australia - May cut policy rates further this year

Russia - Paving the way for further monetary easing

 

FINANCIAL TIMES

[I]  Death of the high street weighs on landlords round the world

[I]  US-Iran: on collision course for war?

[I]  Nato prepares first outer space strategy

[I]  EU conclave more divided than ever over new leadership

[I]  Germany on edge as neo-Nazis target mainstream

[I]  Eurozone business conditions show slight improvement

[I]  London insurance market moves to clean up its act

 

REUTERS

[I]  India steel ministry seeks higher duties to deter Chinese imports - document

[I]  India raises concerns over rising oil prices with Saudi Arabia

[I]  India becomes investment darling for sovereign wealth and pension funds

[I]  Gold discounts in India widen to highest in almost three years as prices reach record

[I]  Trump China tariffs could cost billions for consumers: retailer study

[I]  U.S. cities brace for immigration raids, say they will not participate

[I]  India likely to let budget deficit rise as tax receipts fall short

[I]  U.S. oil prices soar 10% in the week on fears of U.S.- Iran conflict

[I]  European central bankers claim oversight over Facebook’s cryptocurrency

[I]  Dollars in the detail; banks pan for gold in 'data lakes'

[I]  Soft U.S. factory activity darkens economic outlook

[I]  Saudi Arabia named full member of anti-illicit funding body

 

BLOOMBERG 

[I]  Gold Shot to a 6-Year High This Week. Here's What to Watch Next

[I]  Surging Volume Deluges Market, Roils Stocks on Quad-Witching Day

[I]  Hedge Funders Study Alternative Warfare, Julius Caesar for 2019’s Summer Book List

[I]  U.S. Factory Index Falls to Fresh Nine-Year Low

[I]  Autos Nudge Canadian Retail Sales Higher in April

[I]  Doctors Add MBAs to Their MDs as Health-Care Burnout Spreads

[I]  Draghi Wins EU Standing Ovation as He Urges Looser Purse Strings

 

WALL STREET JOURNAL

[I]  Faltering Factories Cast a Dark Cloud Over Global Economy

[I]  U.S. Existing-Home Sales Rose in May

[I]  Five Takeaways From the June Fed Meeting

[I]  Fed’s Clarida: ‘We’ll Act as Appropriate to Sustain Expansion’

[I]  Two Fed Doves Make Case for Central Bank Rate Cuts

[I]  Real Time Economics: Factory Weakness Keeps Central Banks in Play

 

BUSINESS LINE

[I]  GST Council gives anti-profiteering body 2 more years

[I]  Global airlines reroute services to avoid flying over Iran

[I]  Present e-vehicle conversion plan in 2 weeks, NITI Aayog tells 2-wheeler makers

[I]  Textiles body seeks government help to halt fall in apparel exports

[I]  India will engage with US on trade, but national interest is paramount: Goyal

[I]  At G-20 meet in Osaka, India to push for strengthening WTO

[I]  Truant rains affect sowing of major kharif crops up to 50%

 

ECONOMIC TIMES

[I]  Why Chennai’s water crisis should worry you

[I]  Forex reserve declines by $1.3 billion to $422.2 billion

[I]  Right time to expand GST coverage to all sectors; converge tax slabs: India Inc

[I]  M&A deal activity records 87% plunge in value in May: Report

[I]  More independent directors take the exit fearing legal scrutiny

[I]  New scheme to provide social security pension to farmers

[I]  Rice production in India to shrink due to late monsoon

 

BUSINESS STANDARD

[I]  With slow progress of rains, sowing of kharif crops remains slack

[I]  Govt refuses to budge on electric vehicle deadline for 2- and 3-wheelers

[I]  India becomes investment darling for sovereign wealth, pension funds

[I]  Supreme Court order opens way for naming more wilful corporate defaulters

[I]  Govt to reduce bank lending rate for exporters, says Piyush Goyal

[I]  Industry demands fiscal stimulus in Budget to spur economic growth

 

Best Regards, ARBIND

22 Jun 2019