MACRO ECONOMIC NEWS

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Macro Economic News 14 Nov 2019

 

Love of cash hinders India's move to digital economy; as per RBI data, since the demonetisation, currency in circulation has grown, rising 17 per cent to ₹21.1 lakh crore as of the end of March 2019. Trade talks between the U.S. and China have hit a snag over farm purchases, creating another obstacle as Beijing and Washington try to lock down a limited trade deal. China's industrial output grew significantly slower than expected in October, as weakness in global and domestic demand and the drawn-out Sino-U.S. trade war weighed on activity in the world's second-largest economy experiencing jobs risk. Japan's economy ground to a near standstill in the third quarter with growth at its weakest in a year as the U.S.-China trade war and soft global demand knocked exports, keeping pressure on policymakers to ramp up stimulus to bolster a fragile recovery. Federal Reserve Chairman Jerome Powell told lawmakers the central bank saw little need to cut interest rates further after making three reductions since July. The U.S. budget gap grew 34% in the first month of the fiscal year pushing the 12-month deficit past $1 trillion for the first time since February 2013. South Korea finance minister says, stimulus efforts are struggling; as recession takes hold, Hong Kong banks worry about risk of easier mortgage rules. Eurozone industrial output records second month of expansion and U.K. inflation hits 3-year low as energy price cap takes effect.

 

FINANCIAL TIMES

[I]  Top health websites are sharing sensitive data with advertisers

[I]  Powell sees little reason for December rate cut 

[I]  Netherlands cuts speed limit to curb emissions

[I]  EU’s gatekeeper laments bloc’s message to Balkans

[I]  South Korea stimulus efforts struggling, finance minister says

[I]  Eurozone industrial output records second month of expansion

 

REUTERS

[I]  Love of cash hinders India's move to digital economy

[I]  Jobs at risk as China's services sector feels heat of trade war

[I]  As recession takes hold, Hong Kong banks worry about risk of easier mortgage rules

[I]  China's economy grinds lower as October indicators miss forecasts

[I]  China's October property investment, sales growth at three-month low

[I]  Japan's economy nearly stalls in third-quarter, growth at one-year low as trade war bites

[I]  Australian jobs suffer biggest drop in three years, argue for more stimulus 

[I]  Fed chief Powell pushes back on negative interest rates 

[I]  U.S. inflation firms on rising healthcare, energy costs

 

BLOOMBERG 

[I]  Powell Satisfied With Current Fed Interest Rates But Flags Risks

[I]  Brexit Is the Reason the U.K. Missed Out on Elon Musk’s Tesla Gigafactory

[I]  Unprecedented Hong Kong Chaos Raises Fears About What’s Next

[I]  U.K. Inflation Hits 3-Year Low as Energy Price Cap Takes Effect

[I]  Russian Stocks Become Emerging-Market Darlings on Rich Dividends

[I]  Spain Overtakes U.K. as Europe’s Worst Stock Market After Vote

[I]  China’s Investment Growth Slows to a Record Low

[I]  Australian Unemployment Unexpectedly Climbs; Currency Drops

[I]  RBNZ Could Cut in February if Needed, Deputy Governor Says

[I]  Japan’s Economy Decelerates Sharply Amid Trade Tensions

[I]  A Jump in Bond Yields Gives the Bank of Japan Some Relief

 

WALL STREET JOURNAL

[I]  U.S.-China Trade Deal Hits Bump Over Farm Purchases

[I]  Fed’s Powell Signals Comfort With Current Interest-Rate Stance

[I]  Gas Prices Drive October Inflation Increase

[I]  U.S. Budget Gap Hits $1 Trillion Over Past 12 Months

[I]  Auto Borrowing Rises Amid Low Interest Rates, Solid Economy

[I]  Sweden to Abandon Negative Rates, but Currency Can’t Catch a Break

[I]  Newsletter: It’s Not the Economy Anymore, Stupid

 

BUSINESS LINE

[I]  Love of cash hinders India's move to digital economy

[I]  RBI sees sharp fall in consumption

[I]  Retail inflation jumps to 4.62 per cent in Oct on higher food prices

[I]  CCEA nod to pay shipbuilding subsidy to yards on a scheme that ended 12 years ago

[I]  After factory output contraction, retail inflation now surges to 16-month high

[I]  Government extends moratorium on soft loan to sugar mills

 

ECONOMIC TIMES

[I]  CPI hits 16-month high, breaches RBI's target

[I]  Govt seeks Rs 1.69L cr grant to curb pollution

[I]  Why everyone is obsessing over Q2 GDP

[I]  Rupee plunges 62 paise, slips below 72 level against dollar

[I]  Market worried over fiscal i math, repo-bond yield spread widens

[I]  Sebi tightens disclosure norms for muni bonds

[I]  India, Switzerland ink pact on sharing financial information

[I]  Taxman gears up to impose 18% GST on CXO salaries

[I]  India to consider shifting dividend tax to investors from firms

 

BUSINESS STANDARD

[I]  Supreme Court strikes down amended Finance Act rules for tribunals

[I]  Auto slowdown: Component makers, vehicle manufacturers differ on recovery

[I]  Riding the wave of online sales, smartphone shipments continue to surge

[I]  Slowdown blues for liquor: Consumption took a beating in September quarter

[I]  Housing inventory of 15 months in Bengaluru, 44 months in Delhi-NCR: Report

[I]  Rupee falls to over 2-month low on weak economic data, crosses 72 a dollar

 

MARKETS (09:30 am)

[I]  SGX NIFTY Fut: 11841;  USDINR DGCX: 72.2200;  DJIA Mini: 27729;  FTSE 100 Fut: 7324;  NIKKEI 225 Fut: 23110;  EUR-USD: 1.1004; Crude Oil (WTI): 57.40;  Gold (Spot): 1465

 

Best Regards, ARBIND
14 Nov 2019