MACRO ECONOMIC NEWS

YIPPEEE! ITS SATURDAY TODAY; SIT SETTLE AND SIP. WISHING A SUPER WEEKEND AHEAD.

Macro Economic News 24 Aug 2019

 

India is rolling back recent tax hikes on foreign and domestic equity investors and is accelerating a capital infusion of $10 billion into state-run banks, in an attempt to boost market sentiment and revive the slowing economy. Britain is hoping the rest of the European Union falls in behind France and Germany and agrees to work on solving a deadlock over Brexit, but conscious of the need for a wider consensus in Europe. Fed Chairman Jerome Powell gave his most forceful warning yet about the risks to the U.S. economy from escalating trade tensions and the limits to the central bank’s ability to cushion any fallout. Latest round in trade war set to hit U.S. vehicles, agriculture hard. Bank of England Gov. Mark Carney said, “Central banks should consider joining forces to create a virtual currency that could supplant the dollar’s role in the global economy”, offering a novel solution to concerns about the greenback’s status as the world’s foremost reserve currency.

 

FINANCIAL TIMES

[I]  Trump lifts Chinese tariffs after stocks tumble

[I]  Stunned Greenlanders say no to sale but welcome investors

[I]  India embarks on car-buying spree to boost flagging economy

[I]  Carney calls for global monetary system to replace dollar

[I]  Central banks have lost much of their clout

[I]  The case for working a decade longer — or more

 

REUTERS

[I]  India rolls back tax hike on investors; outlines steps to boost sentiment

[I]  Trump heaps another 5% tariff on Chinese goods in latest tit-for-tat escalation

[I]  As EU threatens trade retaliation, Brazil sends army to fight Amazon fires

[I]  Japan, U.S. made 'big progress' in trade talks: Japanese minister

[I]  India's summer crop acreage down 2.3%, sowing gap narrows

[I]  Encouraged by Johnson's visit, UK officials now hoping rest of EU agrees to work on Brexit solution

[I]  Fed's Powell vs. Trump: who's got a 'feel' for markets now?

[I]  UK economy headed for stagnation in third quarter: Bank of England's Carney

[I]  World needs to end risky reliance on U.S. dollar: Bank of England's Carney

BLOOMBERG 

[I]  Fed Says It’s Trade, Not Rates, That’s Undermining the U.S. Economy

[I]  IMF Mission Arrives in Argentina Saturday for Crucial Review

[I]  Carney Says No-Deal Brexit Would Probably Lead to BOE Easing

[I]  Peso Slump Turns Argentina Into a Bargain -- at Least for a Day

[I]  Central Banker Sees No Room for Colombia Interest Rate Cuts

[I]  German Chancellery Also Sees Mild Recession, Spiegel Reports

[I]  Trade War to Last Longer Than Boost From Fed Cuts, Analysts Say

 

WALL STREET JOURNAL

[I]  Powell Issues Warning Over Trade, Signals More Rate Cuts Are Possible

[I]  Trump Lashes Out at China, Sending Markets Falling

[I]  Latest Round in Trade War Set to Hit U.S. Vehicles, Agriculture Hard

[I]  Divided G-7 Leaders Headed for Clashes at Tense Summit

[I]  BOE’s Carney Floats Idea of New, Virtual Reserve Currency

[I]  Fed’s Clarida Shrugs Off Market Drop, Offers Little Guidance on Rates

[I]  Papers Outline Increased Fed Focus on Global Factors and Communication

[I]  Mexican Economy Stagnated in Second Quarter

 

BUSINESS LINE

[I]  Stimulus package: New measures unveiled for auto sector to boost demand

[I]  India’s GDP expansion much higher than global growth: Finance Minister Nirmala Sitharaman

[I]  Stimulus package: Auto industry cheers FM’s booster dose

[I]  Super rich surcharge for equity investors rolled back, CSR violations not be a crime

[I]  Market sell-off due to overall slowdown: SEBI chief

[I]  Stimulus package: MSMEs to get pending GST refunds within 30 days, says FM

[I]  Job creation down 5.36% in June to 12.19 lakh: ESIC payroll data

 

ECONOMIC TIMES

[I]  FM's GST move that no one saw coming

[I]  No more super rich tax on foreign investors

[I]  Angel tax no longer a demon for startups

[I]  Inside India’s messy e-vehicle revolution

[I]  India has 7 of world’s 10 worst bank stocks

[I]  Forex reserve falls by $70.8 million to $430.5 billion

[I]  Rupee weakens to 72 against US dollar for first time in 2019

[I]  Bond world on high alert after rallying to historical extremes

[I]  Banks suggest easier farm loan rules to remove stress

[I]  Moody's cuts India GDP growth forecast to 6.2 pc for 2019

[I]  Code on Wages 2019 becomes a reality; minimum wage for 50 crore workers on the anvil

[I]  Govt to upfront infuse Rs 70,000-cr capital into public sector banks

[I]  Unprecedented situation for govt in 70 years: Niti Aayog VC on liquidity crisis

 

BUSINESS STANDARD

[I]  Donald Trump orders firms out of China as Beijing sets new duties

[I]  Confident of hitting tax-collection target, says FM Nirmala Sitharaman

[I]  Govt sets up task force to streamline infra projects worth Rs 100 trillion

[I]  Govt's reform push: Business income may also see surcharge relief

[I]  Surcharge rollback to capital for PSBs, FM announces steps to boost economy

[I]  Markets likely to react positively on Monday after FM's announcements

 

Best Regards, ARBIND

24 Aug 2019