MACRO ECONOMIC NEWS

IT’S TIME TO CREATE STORIES; ITS FRIDAY AGAIN. WISHING A FUN-FILLED DAY AHEAD.

Macro Economic News 06 Dec 2019

 

Oil producers led by Saudi Arabia and Russia agreed to cut output by an extra 500,000 barrels a day in the first quarter of 2020 but stopped short of pledging action beyond March. Asian governments step up stimulus as economic growth stalls while ECB says it may need its own digital euro if payments drive fails. The U.S. now has lower taxes than all but three countries in the Organization for Economic Cooperation and Development. Prime Minister Shinzo Abe’s cabinet approved a $120 billion stimulus program, citing the same global economic risks that have led central banks in the U.S. and Europe to cut interest rates while the Federal Reserve Bank of New York added $107.4 billion in temporary liquidity to financial markets. Growth takes a back seat as RBI revises inflation projection upwards in view of rising food prices while sharply cutting GDP forecast to 5% from 6.1%  and keeping repo rate unchanged at 5.15% with accommodative stance. OECD says more reforms needed to boost jobs, incomes while government may come up with more measures to arrest slowdown. India's manufacturing capacity utilisation declines to the lowest ever while panel considering ways to boost revenue suggests 5% GST slab may be increased to 6%. The Indian government has decided to withdraw a circular on intermediary services under the GST, a major relief for corporates, especially multinational companies. Government sources indicate that India may force social media platforms to offer user verification.

 

FINANCIAL TIMES

[I]  Future of the UK on the line in the general election

[I]  EU gives green light to sustainable investment rules

[I]  Greece woos the wealthy with ‘non-dom’ tax breaks

[I]  Brussels steps up row over global digital tax deal

[I]  Russians charged over global bank internet fraud

[I]  Central bank talk of launching cryptocurrencies is bluff

 

REUTERS

[I]  India may force social media platforms to offer user verification - government sources

[I]  BOJ's low-rate policy not behind megabank's fee moves: Aso

[I]  World Bank adopts $1 billion-plus annual China lending plan over U.S. objections

[I]  Japan firms brace for economic contraction after Olympics, seek more stimulus - Reuters poll 

[I]  Government's loan bonanza seen a temporary salve and a long-term pain

[I]  OPEC, allies agree to deepen oil output cuts

[I]  Modest U.S. growth outlook static despite hopes for trade reprieve - Reuters poll

[I]  UK jobs market wanes in November as demand for staff fades - REC

 

BLOOMBERG 

[I]  U.K. Labor Market Freezes Amid Brexit, Election Uncertainty

[I]  Oil Sputters After OPEC+ Fails to Nail Down New Output Target

[I]  Ending Pakistan’s Boom-Bust Cycle Is Central Bank’s New Plan

[I]  Asian Governments Step Up Stimulus as Economic Growth Stalls

[I]  India’s Economy Is Sputtering. But Its Stock Market Powers Ahead

[I]  ECB Says It May Need Its Own Digital Euro If Payments Drive Fails

 

WALL STREET JOURNAL

[I]  Mnuchin Working Closely With Fed, Bank Regulators on Repo Market Issues

[I]  Trump’s Tax Cuts Reduce U.S. Burden to One of Lowest in the World

[I]  China Says U.S. Trade Talks Remain on Track

[I]  The U.S. Furniture Industry Is Back—but There Aren’t Enough Workers

[I]  Japan Approves $120 Billion Stimulus Package as Economic Clouds Gather

[I]  Fed Adds $107.4 Billion in Short-Term Liquidity to Financial Markets

[I]  Newsletter: The U.S. Now Has One of the Lowest Tax Burdens in the World

 

BUSINESS LINE

[I]  Relief for back-office firms: Govt withdraws GST circular on intermediary services

[I]  WTO Appellate Body will soon become dysfunctional

[I]  Canada Pension Plan Investment Board to invest up to $600 million in NIIF

[I]  Listing of high-potential farm goods, global alerts to boost exports

[I]  Government is examining Direct Taxes Code: FM

 

ECONOMIC TIMES

[I]  Govt wants you to verify social accounts

[I]  RBI set to tighten screws on co-op banks

[I]  Forex reserve hits a new high of $451.7 billion

[I]  View: It's time for a fair distribution of GST proceeds between Centre and states

[I]  No decline in household consumer expenditure: Govt

[I]  RBI revises inflation projection upwards in view of rising food prices

[I]  Government may come up with more measures to arrest slowdown

[I]  More reforms needed to boost jobs, incomes: OECD

[I]  RBI's downgrading of FY20 growth means the $5 trillion GDP goal may have to wait longer

[I]  State governments not keen to levy GST on exempted goods

 

BUSINESS STANDARD

[I]  India's manufacturing capacity utilisation declines to the lowest ever

[I]  5% GST slab may be increased to 6%: Panel considering ways to boost revenue

[I]  RBI keeps repo rate unchanged at 5.15%, stance stays accommodative

[I]  RBI's policy surprise: Pause on rate cuts may hit real estate, auto sectors

[I]  Fifteenth FC may have kept devolution of divisible tax pool unchanged

[I]  Growth takes a back seat: RBI sharply cuts GDP forecast to 5% from 6.1%

 

MARKETS (08:00 am)

[I]  SGX NIFTY Fut: 12069;  USDINR DGCX: 71.3725;  DJIA Mini: 27713;  FTSE 100 Fut: 7155;  NIKKEI 225 Fut: 23360;  EUR-USD: 1.1108; Crude Oil (WTI): 58.32;  Gold (Spot): 1476

 

Best Regards, ARBIND
06 Dec 2019