MACRO ECONOMIC NEWS

BLESSED ARE YOU; SPREADING SMILES WITH YOUR SMILE. WISHING AN ELATED DAY AHEAD.

Macro Economic News 05 Nov 2019

 

India rejects China-backed Asian trade deal, as others move ahead with RCEP (The Regional Comprehensive Economic Partnership, for a proposed free trade agreement), citing that it could not compromise the interests of farmers and workers at home by joining a China-led regional trade pact after it failed to address Delhi's concerns over market access. India eases rules for Start-ups to raise money; the MCA plans to allow Start-ups to issue 50% of their paid-up capital as sweat equity and extend the period of exemptions from other regulatory filings for up to 10 years instead of five now. ICRA forecasts that the macro indicator, non food credit, could fall to a 25-yr low.

 

The Trump administration has filed paperwork to withdraw the United States from the Paris Agreement, the first formal step in a one-year process to exit the global pact to fight climate change. A new paper by top former Federal Reserve staffers shoots down a new way of potentially bolstering the Fed’s inflation target at a time when central bank tools to deal with an economic downturn are limited. According to a FED survey, demand for business loans weakened in the third quarter as bank customers dialed back their plans for new plant and equipment investment, China central bank cuts medium-term loan rate for first time since 2016 as growth cools while Malaysia is likely to hold key rate as cut seen on horizon. Lagarde urges Europe to overcome self doubt in first ECB speech.
 

FINANCIAL TIMES

[I]  Japan’s foreign minister sees progress on end to US car tariffs

[I]  US backs infrastructure scheme to rival China’s Belt and Road

[I]  Balkan leaders warn of rising risks after EU talks delay

[I]  India decides not to sign China-backed pan-Asian trade deal

[I]  China 5G rollout to boost cloud gaming

[I]  China Life Pension set to join world’s largest funds

[I]  The politics of fiscal stimulus are problematic

[I]  Free trade area is best chance to remake Africa

[I]  US rejected the skilled immigration model

 

REUTERS

[I]  Asia trade pact doesn't reflect India's interests, decided not to join: Modi

[I]   India rejects China-backed Asian trade deal, as others move ahead

[I]  China presses Trump for more tariff roll-backs in 'phase one' trade deal

[I]  France calls on China to 'consolidate' market opening

[I]  China central bank cuts medium-term loan rate for first time since 2016 as growth cools

[I]  U.S. tells U.N. it is quitting Paris climate deal - U.S. official

[I]  Hong Kong business activity contracts at fastest pace in 21 years

[I]  Trump administration begins Paris climate pact exit

[I]  India's October gold imports drop 33% as higher prices curtail festive buying 

[I]  China October services sector growth slips to eight-month low - Caixin PMI

 

BLOOMBERG 

[I]  MSCI May Axe Debt-Laden Indian Companies From its Indexes

[I]  Wall Street Gets 3-Year Reprieve From SEC on MiFID Compliance

[I]  Lagarde Urges Europe to Overcome Self Doubt in First ECB Speech

[I]  Fed Braces for Trump, Lagarde Urges Resolve, Weak China: Eco Day

[I]  Dubai Is Flouting the Biggest Taboo of an Economy Without Brakes

[I]  Malaysia to Hold Key Rate as Cut Seen on Horizon: Decision Guide

[I]  Fed Outlines Rationale for T-Bill Buying, But Keeps Options Open

[I]  PBOC Trims Cost of 1-Year Funding Amid Market Liquidity Nerves

 

WALL STREET JOURNAL

[I]  Former Top Fed Staffers Say Average Inflation Targeting Won’t Work

[I]  Fed’s Daly Says Three Rate Cuts Appropriate

[I]  Fed Chairman Powell to Testify Before Congressional Committee on Nov. 13

[I]  Fed Survey Shows Business Loan Demand Weakened in Third Quarter

[I]  N.Y. Fed Adds $77.6 Billion In Temporary Money To Markets

[I]  New York Fed Official Says Market Interventions Have Restored Calm

[I]  Economy Week Ahead: Factory Orders, Trade Data from the U.S. and China, Bank of England Rate Decision

 

BUSINESS LINE

[I]  RCEP against interests of farmers, small industries: Opposition parties

[I]  Madras High Court allows credit transition of education, farm-related cesses into GST

[I]  India refuses to sign up for RCEP; says its core concerns remain unresolved

[I]  Excess monsoon, post-monsoon rain likely to hit Kharif output

[I]  Wind energy players’ woes pile up

 

ECONOMIC TIMES

[I]  India eases rules for startups to raise money

[I]  This macro indicator (non food credit) could fall to a 25-yr low

[I]  RBI cracks the whip on private bank CEOs

[I]  Bond bulls shake off US-China talk progress over global concerns

[I]  Explained: As India decides to sit out, here's what happens to RCEP

[I]  15 RCEP countries to go ahead with pact, India's final decision to depend on 'satisfactory resolution' of issues

 

BUSINESS STANDARD

[I]  Bank CEOs' pay: Half of remuneration to be variable, no guaranteed bonus

[I]  FM Sitharaman unveils two IT initiatives for faster customs clearance

[I]  NBFCs will have to maintain liquidity coverage ratio, says RBI

[I]  Essential goods may soon come under IBC regulations: Details here

[I]  Centre mulls classifying jobs based on skills to remove arbitrariness

[I]  Why the world needs to cut back on production capacity of steel plants

 

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 11981;  USDINR DGCX: 71.2150;  DJIA Mini: 27450;  FTSE 100 Fut: 7372;  NIKKEI 225 Fut: 23270;  EUR-USD: 1.1124; Crude Oil (WTI): 56.56;  Gold (Spot): 1505

 

Best Regards, ARBIND
05 Nov 2019