MACRO ECONOMIC NEWS

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Macro Economic News 03 Jul 2019

 

Australia cuts rates to record low of 1%. Italy bond yield turns negative. Global debts, now delivering negative yields, are ballooning further.  EU agreed to name Frenchwoman Christine Lagarde as the new head of the European Central Bank and sealed a deal on filling the other four top jobs in the bloc after tortuous marathon talks exposed their deepening divisions. Cleveland Fed said she is open to lowering rates if the economic outlook deteriorates, but she also questioned whether cutting short-term borrowing costs would do much to push inflation back up toward the central bank’s target. The U.S. has widened its threat to impose tariffs against the European Union, pending the outcome of a World Trade Organization case over subsidies to the airplane manufacturer Airbus.

 

FINANCIAL TIMES

[I]  Lagarde tapped to head ECB as EU reaches deal on top jobs

[I]  Hong Kong mayhem sparks wave of anger in Beijing

[I]  EU watchdog warns of €135bn bank capital shortfall

[I]  Trade tensions delivering shock to global outlook, says Carney

[I]  US economic expansion becomes longest in history

[I]  China to allow foreign ownership of securities companies in 2020

[I]  Australia cuts rates to record low of 1%

 

REUTERS

[I]  Wilful defaults in India cross $21 billion in 2018-19

[I]  Hoping to boost spending, Japan tries to sell shoppers on cashless purchases

[I]  China steel output to flatten; iron ore stays in rational bubble

[I]  Commodities wary of U.S.-China trade news

[I]  India's June gold imports rise 12.6% year-on-year amid global price rally - government source

[I]  EU leaders choose France's Lagarde for ECB after marathon summit

[I]  Europeans urge Iran to abide by nuclear pact; Israel says preparing military

[I]  Under pressure from Trump, OPEC embraces Putin

[I]  Lagarde to rely on political skill to overcome shortcomings at ECB

[I]  UK economy may need more help as trade war, Brexit risks grow-BoE's Carney

 

BLOOMBERG 

[I]  Asia Stocks Drift; U.S. Yields Near 20-Month Low: Markets Wrap

[I]  Lagarde to Succeed Draghi as ECB Chief as Economy Weakens

[I]  Carney Warns of Downside Risks on Simmering Global Trade War

[I]  Oil Plunges in Worst Reaction to OPEC Since 2014 on Demand Woes

[I]  Grim Earnings Forecasts Are Getting Worse by the Week

[I]  More Yuan Bonds Sold Outside China Than in Any Quarter Since '14

[I]  Slow Start to Year for M&A Gathers Force With June's Flood of Deals

[I]  Saudi-Russian Oil Fling Becomes a Marriage to Last an ‘Eternity’

[I]  OPEC Deal Points to Weaker Oil Demand and Takes Toll on U.S. Grades

 

WALL STREET JOURNAL

[I]  Christopher Waller, Judy Shelton Are Trump’s Latest Picks for Fed Board

[I]  Who Got Refunds, Who Paid More: Inside the New Tax Law

[I]  IMF’s Christine Lagarde Wins EU Support to Lead European Central Bank

[I]  Fed’s Mester: Too Soon To Say What Happens Next With Rates

[I]  U.S. Threatens Further Tariffs on $4 Billion of EU Goods

[I]  House Panel Sues Treasury for Trump Tax Returns

 

BUSINESS LINE

[I]  CBI turns up the heat on bank fraudsters, conducts raids in 50 places across country

[I]  Farm sector, rural economy hope for a big push

[I]  Need to re-imagine the farm as an enterprise

[I]  ‘M&A activity in India down 51.4% in H1’

[I]  PSBs need Rs. 50,000-crore growth capital this fiscal: SBI report

[I]  Taking resource saving to the next level with ‘Net Zero’ buildings

 

ECONOMIC TIMES

[I]  Direct tax code: Does India really need a new law?

[I]  Mumbai records second highest rainfall in 45 years

[I]  Saudis dig in for shale fight as Opec+ extends cuts into 2020

[I]  APAC M&A activity in first half of 2019 slows down to lowest level since 2013: Report

[I]  India ratifies OECD's convention to check tax evasion

 

BUSINESS STANDARD

[I]  RBI may get regulatory powers over HFCs; NHB to be in charge of supervision

[I]  Global tax rules may increase litigation between authorities and investors

[I]  Money matters at Mint road: RBI's capital reserves vs other central banks

[I]  Govt to offer 10-20% of national highway projects on BOT basis for bidding

[I]  States' GST revenue takes bigger hit than Centre's in April-June

[I]  Export-promotion forum, trade fair to boost farm cooperatives: Govt

[I]  Rapid growth of microfinance industry leading to risks of over-borrowing

 

MARKETS (07:00 am)

[I]  SGX NIFTY Fut: 11958;  USDINR DGCX: 69.1075;  DJIA Mini: 26756;  FTSE 100 Fut: 7498;  NIKKEI 225 Fut: 21590;  EUR-USD: 1.1289; Crude Oil (WTI): 56.55;  Gold (Spot): 1433

 

Best Regards, ARBIND

03 Jul 2019