MACRO ECONOMIC NEWS

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Macro Economic News 05 Jun 2019

 

A worrying slowdown in India's economy makes a cut in the Reserve Bank of India's benchmark interest rate highly likely this week, but analysts say policymakers should also find ways to boost banks' liquidity to ensure they drop their lending rates too. The global economy has stumbled sharply in the first half of the year with trade and investment flows between countries falling faster than expected, according to semi-annual forecasts released by the World Bank. FED Chairman Jerome Powell said the central bank is closely monitoring the recent escalation in trade tensions and that it would respond if needed to keep the economy growing steadily.  Automation could force more than 100 million women globally to find new occupations by 2030, according to a study from McKinsey Global Institute. The U.S. economy has reached a 10-year milestone, and experts see the growth continuing. But looming risks include trade wars, interest-rate mistakes and the ballooning budget deficit.

 

FINANCIAL TIMES

[I]  Powell says Fed ready to act if trade wars hit economy

[I]  Trade war sparks record foreign outflow from China equities

[I]  News of China’s ‘unreliables list’ spooks foreign business

[I]  German industry says it has lost trust in Merkel coalition

[I]  World Bank chief laments trade slowdown

[I]  China warns its citizens on risks of visiting US

[I]  South African economy suffers worst slump in a decade

[I]  Australia cuts interest rate for first time in 3 years

 

REUTERS

[I]  India mission to recover climbers' bodies hampered by technical problems

[I]  India's services growth sinks to one-year low in May: PMI

[I]  China launches rocket from ship at sea for first time

[I]  Gold firms near three-month peak as Fed rate cut expectations grow

[I]  Australia's GDP growth hits decade low, stimulus needed to avoid recession

[I]  China paper cites drawn-out Korean War talks as reason not to bow to U.S.

[I]  Australia mining investment recovery, exports to add to GDP growth: RBA

[I]  RBI may cut rates after dismal GDP numbers

[I]  Japan May services PMI shows slight slowdown in expansion

[I]  U.S. manufacturing mired in soft patch as orders, shipments fall

[I]  South Korea posts current account deficit in April, first gap in seven years

 

BLOOMBERG 

[I]  China Curbs Property Developers' Funding to Cool Land Prices

[I]  Sluggish Productivity Threatens Israel's Growth Prospects: Study

[I]  South African Rate Cuts No Sure Thing Even as Economy Contracts

[I]  Rare Earths Battle Looms as U.S. Aims to Counter China Export Threat

[I]  Australia's Economy Expands at Slowest Pace in Decade on Housing

[I]  Fed Inches Toward Rate Cut as Trump’s Trade War Frays Patience

[I]  A Peek at the ECB Stimulus Toolkit as Inflation Pessimism Mounts

[I]  No-Deal Brexit Stock Market Mess Will Be London's Fault, EU Says

[I]  Bankers Under Stress as $45 Billion in Brazil Deals on the Line

[I]  World Bank Cuts Global Outlook as Trade Tumbles to Decade Low

[I]  Central Banks Are Poised to Act as World Economic Warnings Flash

 

WALL STREET JOURNAL

[I]  Fed Puts Interest Rate Cut in Play

[I]  Global Economy Cools Faster Than Expected as Trade Tensions Rise, World Bank Says

[I]  Powell Suggests Fed Could Cut Rates If Trade Spat Escalates

[I]  Automation Could Force Millions of Women to Find New Jobs

[I]  After Record-Long Expansion, Here’s What Could Knock the Economy Off Course

[I]  Trump Says Tariffs on Mexico Are Likely

 

BUSINESS LINE

[I]  Forget transmission, some banks have raised lending rates since last repo cut

[I]  India to oppose multilateral rules in e-commerce at G-20 meet in Japan

[I]  Steel firms’ profit to come under pressure in June quarter

[I]  Job creation in rural areas will be the key focus: Food Processing Minister

[I]  Employment tops our agenda: Skill Minister

[I]  Intense ‘low’ seen powering monsoon onset over Kerala

 

ECONOMIC TIMES

[I]  The clue to India's growth lies in the sky

[I]  10% drop in H1B visa approvals in 2018: US

[I]  RBI has become briefer in communications

[I]  Bill to amend Companies Act in Budget session

[I]  Govt creating 50,000 tonne of onion buffer to curb price rise

[I]  PM Modi’s income support scheme will benefit over 8 lakh large farmers

[I]  India to oppose global rules on e-commerce at G-20 Meet

[I]  World Bank retains India's growth rate for FY19-20 at 7.5 per cent

[I]  Government at work to give women a bigger role

 

BUSINESS STANDARD

[I]  National artificial intelligence unit stuck for lack of anchor department

[I]  Transparency push: Centre will provide unit-level data free of cost

[I]  Business confidence of India Inc drops 9.1% in Q4FY19, shows survey

[I]  Paper use, acceptance infrastructure need attention, says RBI report

[I]  Govt makes highest-ever expenditure cut of Rs 1.4 trillion for FY19

[I]  RBI data on bank frauds based on reporting year, not occurrence date: Govt

 

MARKETS (11:00 am)

[I]  SGX NIFTY Fut: 12048;  USDINR DGCX: 69.4725;  DJIA Mini: 25332;  FTSE 100 Fut: 7214;  NIKKEI 225 Fut: 20760;  EUR-USD: 1.1264; Crude Oil (WTI): 52.94;  Gold (Spot): 1332

 

Best Regards, ARBIND

05 Jun 2019