MACRO ECONOMIC NEWS

INNOCENCE WITHIN IS MAKING US FORGETTING EVERYTHING; IT’S COURAGEOUS PRUDENCE. WISHING THE GULLIBLE DAY AHEAD.

Macro Economic News 17 Dec 2019

 

The global economy is regaining some of its footing, with recent economic and trade developments in the U.S. and China offering some comfort that the slowdown is easing. The U.S. has enjoyed its longest economic expansion on record without triggering inflation as interest rates remain historically low. A nearly $1.4 trillion spending agreement would fund the government through the rest of the fiscal year, permanently repeal a number of health-care-related taxes and raise the legal age for purchasing tobacco products to 21. A raft of supportive central government policies lifted China’s economic activity—bolstering factory production and consumer spending—which prompted some economists to raise their growth estimates for next year however, corporate default hotspot tests Beijing’s appetite for bailouts. Goldman Sachs Group has decided to provide $750 billion in financing, advisory services and investments for green projects and companies, as well as those that foster economic opportunities for under-served people over the next decade. Eurozone manufacturing activity shrinks for 11th straight month while Brazil grapples with tangle of tax laws and Argentina proposes raising tax burden on private sector. Bank of England Recommends Tighter Rules on Money Managers.

 

RBI governor said that there is scope in India for cutting interest rates further and the central bank will use it when required after studying growth and inflation data whereas IMF’s Gita Gopinath said that India should focus on structural reforms. Moody's slashes FY20 growth forecast to 4.9% on weak household consumption citing prolonged economic slowdown would hurt retail loan quality however World Bank highlights that low e-com penetration in South Asia holds back growth.

 

FINANCIAL TIMES

[I]  UK stocks jump as election result eases uncertainty

[I]  Eurozone manufacturing activity shrinks for 11th straight month

[I]  Germany steps up hunt for migrant workers

[I]  Brazil grapples with tangle of tax laws

[I]  Argentina proposes raising tax burden on private sector

[I]  Corporate default hotspot tests Beijing’s appetite for bailouts

 

REUTERS

[I]  Welcoming new lawmakers, PM Johnson vows a speedy Brexit

[I]  Portugal draft budget targets first surplus in decades, solid growth

[I]  Pound falls on report Johnson planning new Brexit deadline

[I]  Johnson, Trump look forward to ambitious trade agreement - Downing Street

[I]  Goldman Sachs' green goal: $750 billion in work for environmental projects by 2030

[I]  RBI governor reiterates there is more scope to cut rates

[I]  Welcoming new lawmakers, British PM Johnson vows a speedy Brexit

[I]  U.S. top trade negotiator praises deal, China remains cautious

[I]  Mexico, U.S. seek to dispel tension over labour tweak to trade deal

[I]  Italy govt wins Senate confidence vote on budget, moves on to lower house

 

BLOOMBERG 

[I]  Asia Stocks Edge Up, Set for Highest Since 2018

[I]  Japan Widens Lead on China as Top Foreign Treasuries Holder

[I]  Hong Kong’s Economy Limps Into 2020 With Fate Tied to Protests

[I]  Oil Stays Above $60 Mark on U.S.-China Trade Accord Optimism

[I]  IMF Board Approves $368 Million Credit to Boost Congo’s Reserves

[I]  This Is How Online Dating Is Reshaping The Entire Economy

[I]  A Tough Year for Emerging Markets Ends With Money in the Bank

[I]  Bank of England Recommends Tighter Rules on Money Managers

 

WALL STREET JOURNAL

[I]  Global Economy Regains its Footing

[I]  Economists Got the Decade All Wrong. They’re Trying to Figure Out Why.

[I]  U.S., Mexico Appear to Settle Labor Controversy in USMCA

[I]  Federal Spending Agreement Adds Up to Nearly $1.4 Trillion

[I]  Trump’s ‘America First’ Trade Vision Comes Into Focus

[I]  Chinese Economic Activity Gets a Lift as 2019 Comes to a Close

 

BUSINESS LINE

[I]  FM starts pre-Budget consultation for FY 21 Budget

[I]  India should focus on structural reforms, says IMF’s Gita Gopinath

[I]  Karnataka to offer incentives for agri-related units: BS Yediyurappa

[I]  Inflation based on wholesale prices rises to 0.58 per cent

[I]  Weak household consumption to curb growth: Moody’s

 

ECONOMIC TIMES

[I]  Kerala to showcase over 100 projects in the global investor meet

[I]  Government mulls new duty on imports

[I]  India’s worrying growth statistics and what they mean for the future

[I]  Government focusing on improving data credibility: FM

[I]  Govt will continue to intervene as long as needed: Nirmala Sitharaman

[I]  Govt took several steps for ease of doing biz: MCA

 

BUSINESS STANDARD

[I]  PSBs on merger track may get recapitalisation allocation in Budget 2020

[I]  Moody's slashes FY20 growth forecast to 4.9% on weak household consumption

[I]  10-yr bond yields hit treasury math; moves up about 30 bps since rate pause

[I]  Green shoots: State-run banks, NBFCs tilt towards renewable energy projects

[I]  Prolonged economic slowdown to hurt retail loan quality: Moody's

[I]  Low e-com penetration in South Asia holds back growth, says World Bank

 

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 12105;  USDINR DGCX: 70.9775;  DJIA Mini: 28242;  FTSE 100 Fut: 7519;  NIKKEI 225 Fut: 23990;  EUR-USD: 1.1146; Crude Oil (WTI): 60.17;  Gold (Spot): 1476

 

Best Regards, ARBIND
17 Dec 2019