MACRO ECONOMIC NEWS

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Macro Economic News 12 Dec 2019

 

Europe sought to bolster the world's faltering battle against climate change with its "Green Deal" to slash fossil fuel dependence. British PM Boris Johnson looks on course to win election though the race has tightened markedly and he can no longer be sure of a majority, while UK house prices fall at fastest rate in seven months. The Federal Reserve held its benchmark interest rate steady and signalled no appetite to raise it anytime soon, while the government budget gap was 12% bigger in the first two months of the fiscal year. US Consumer prices rose at a 2.1% annual pace in November, from 1.8% in October. South Korea central bank sees decreasing uncertainties whereas Japan's Oct. machinery orders slip for fourth month, raising doubts about business spending and Argentina to hold talks with bondholders to delay debt. London, New York and Hong Kong share a troubled future although these three cities regularly dominate rankings for the world’s top financial centres, but they are located in countries that are increasingly turning nationalist, which diminishes their international appeal. A February RBI rate cut is on a knife's edge, with just under half of economists polled expecting easing at that meeting, and is highly likely by the middle of next year, according to a Reuters poll while Asian Development Bank cuts India’s growth forecast to 5.1% for FY2019 but projects 6.5% for next year. India may soon change the way it measures economic growth.  

 

FINANCIAL TIMES

[I]  US hits Iran’s biggest airline and shipping group with sanctions

[I]  Lagarde faces investor scrutiny in first ECB meeting

[I]  EU unveils plan to be carbon neutral by 2050

[I]  French PM to push ahead with pensions overhaul despite strikes

[I]  Credit Suisse cuts targets after investment banking loss

[I]  China’s smaller banks forced to act to support shares

 

REUTERS

[I]  EU leaders offer money to reluctant east to push 2050 climate neutrality

[I]  Mexican businesses focus on labor provisions as they pore over USMCA trade deal text

[I]  Japan's Oct. machinery orders slip for fourth month, raising doubts about business spending

[I]  Argentine economy minister Guzman sees no fiscal tightening in 2020

[I]  South Korea central bank sees uncertainties decreasing: deputy chief

[I]  UK house prices fall at fastest rate in seven months: RICS

[I]  Reserve Bank of India February rate cut on a knife's edge: Reuters poll

[I]  UK PM Johnson heads for Brexit election win in tightening race

[I]  Europe launches 'Green Deal' as Thunberg denounces climate inaction

[I]  High-stakes White House meeting expected Thursday to debate U.S.-China tariffs - sources

[I]  Lagarde in the spotlight at first ECB meeting

[I]  China retaliatory tariffs cost billions in lost consumption: study

[I]  U.S. Core Inflation Modest in November Ahead of Fed Meeting

 

BLOOMBERG 

[I]  Fed Dots May Yield Clue on Split Over Pause: Decision Day Guide

[I]  Johnson and Corbyn in Final Push as Poll Gap Narrows: U.K. Votes

[I]  Here’s How Miserable 2019 Was for the Airline Industry

[I]  The Great Moscow Bank Shakedown

[I]  U.K. Housing Market in Limbo Ahead of Election, RICS Says

[I]  More Pain Looms for Asia’s Worst-Performing Bonds

[I]  Argentina to Hold Talks With Bondholders to Delay Debt

 

WALL STREET JOURNAL

[I]  Federal Reserve Keeps Interest Rates Steady, Sees Long Pause

[I]  Parsing the Fed: How the December Statement Changed From October

[I]  U.S. Budget Deficit Widened 12% in First Two Months of Fiscal Year

[I]  London, New York and Hong Kong Share a Troubled Future

[I]  Inflation Isn’t Likely to Take Off Anytime Soon

[I]  North American Trade Pact Could Cushion U.S. Economy

[I]  Newsletter: Tariff Delay, Fed Fizzle, and the Rise of Noncompetes

 

BUSINESS LINE

[I]  GST rates may go up for various items to meet revenue shortfall

[I]  Asian Development Bank cuts India’s growth forecast to 5.1% for FY2019; projects 6.5% for next year

[I]  WTO Appellate Body’s non-functionality could hit poorer countries more

[I]  Differential EPF rates, change in gratuity rule on the cards

[I]  GST rates may go up for various items to meet revenue shortfall

[I]  Government carrying out reforms to boost economy, says Piyush Goyal

[I]  Proposed India-EU FTA has to address labour, government

 

ECONOMIC TIMES

[I]  India may soon change the way it measures economic growth

[I]  Govt clears amendments to insolvency law

[I]  US yields slip on UK election, trade uncertainty

[I]  Setback for India as WTO extends nil tax on e-transmissions

[I]  ADB trims India's GDP growth forecast to 5.1% in FY20

[I]  Prices of 20 of 22 key food items rose steadily in 2019: Consumer Affairs Ministry

[I]  Lok Sabha passes bill to set up unified body to regulate IFSCs

[I]  Cabinet clears social security pact with Brazil

[I]  Social Security Code Bill introduced in Lok Sabha

 

BUSINESS STANDARD

[I]  Higher GST rate on mobiles, fabrics likely to boost revenue collection

[I]  Stressed asset buyers get protection after Cabinet clears IBC amendment

[I]  Swinging fortunes: Rich list shrinks, but top 10 add $40 billion to wealth

[I]  India's coal power usage set to shrink for the first time in 14 years

[I]  Personal data protection Bill may bring new usage consent managers: Experts

[I]  MFIs managing risk by turning to tech innovation to ensure loan repayment

[I]  Indices back to winning ways as banking, IT and auto stocks shine

[I]  Revival hopes help markets continue their winning run, absorb GDP shocker

 

MARKETS (08:00 am)

[I]  SGX NIFTY Fut: 11995;  USDINR DGCX: 70.8425;  DJIA Mini: 27942;  FTSE 100 Fut: 7224;  NIKKEI 225 Fut: 23460;  EUR-USD: 1.1143; Crude Oil (WTI): 58.86;  Gold (Spot): 1475

 

Best Regards, ARBIND
12 Dec 2019