MACRO ECONOMIC NEWS

SOMETIMES WE ONLY NEED TO FEEL AROUND US WITH THE COMFORT OF FOG AND MIST OF LIFE. WISHING A RELIEVING DAY AHEAD.

Macro Economic News 19 Dec 2019

 

In historic step, U.S. House impeaches Donald Trump for abuse of power, obstruction. Now he will be trailed in the US Senate which would need two-third votes to oust him of power. The U.S. expansion, now in its 11th year, will continue through the 2020 presidential election with a healthy labor market backing it up, economists say, although the US Congress can’t seem to drive a stake through the heart of what some have called “zombie” incentives. FED’s John Williams expects the U.S. economy to maintain its good performance in 2020 and sees a supportive central-bank policy to help achieve that outlook whereas Canadian inflation accelerates on higher energy prices. Brussels warns UK over risk from lack of trade deal while ECB urged to end secrecy over policy votes. German business confidence rises at end of rocky year whereas Sweden grapples with housing market reform as risks mount. BOJ may warn of soft output keeping policy steady on easing trade tensions. Indian Government approves Rs 436 crore outlay for skilling 4 lakh persons and GST Council fixes 28% uniform rate for lottery. NITI Aayog plans to bring all medical devices under one regulatory regime. States demand to relax fiscal deficit limit from 3% to 4% of GDP while the fiscal deficit for April-November likely stood at 107% of FY20 target. Former CEA , Arvind Subramanian says that the economy is confronted with ‘four balance sheet’ challenge.

 

FINANCIAL TIMES

[I]  Brussels warns UK over risk from lack of trade deal

[I]  Macron seeks to end strikes with pensions compromise

[I]  ECB urged to end secrecy over policy votes 

[I]  German business confidence rises at end of rocky year

[I]  Canadian inflation accelerates on higher energy prices

 

REUTERS

[I]  India plans bio-gas plants to tackle toxic pollution, but experts sceptical

[I]  BOJ to keep policy steady on easing trade tensions, may warn of soft output

[I]  In historic step, U.S. House impeaches Donald Trump for abuse of power, obstruction

[I]  Australia must respect China if relations are to improve - Chinese envoy

[I]  Sweden grapples with housing market reform as risks mount

[I]  Strong German business morale signals modest growth in fourth quarter - Ifo

 

BLOOMBERG 

[I]  Trump Impeached on Two Counts by House, Setting Up Senate Trial

[I]  New Zealand Economic Growth Accelerated in Third Quarter

[I]  BOE to Hold Fire as Bets on 2020 Cut Grow: Decision Day Guide

[I]  China Adds Most Cash in Open Market Operations Since January

[I]  Australian Unemployment Unexpectedly Falls; Currency Gains

[I]  Roughed Up India Bonds Greet 2020 With Hope

[I]  Muller Says ECB Review Should Start With Inflation Deep Dive

 

WALL STREET JOURNAL

[I]  U.S. Expansion Expected to Continue Through 2020 - WSJ Survey

[I]  The Demographic Threat to America’s Jobs Boom

[I]  China’s Farm-Purchase Targets Under Trade Deal Face Skeptics

[I]  Why Congress Just Can’t Kill ‘Zombie’ Tax Breaks

[I]  New York Fed’s Williams Says Rates in Right Place

[I]  China’s Growing Power, and a Growing Backlash

 

BUSINESS LINE

[I]  Indian economy is facing a Great Slowdown

[I]  Over 40% of Ujjwala beneficiaries not vetted for duplication: CAG

[I]  GST Council fixes 28% uniform rate for lottery

[I]  Land records in 90% of Indian villages have been computerised

[I]  December wheat stocks hit 7-year high on poor offtake; may pose storage challenge

[I]  Sugar production down 35% till December 15: ISMA

 

ECONOMIC TIMES

[I]  Consumers will be back soon, say FMCG companies

[I]  Era of low sovereign bond yields to persist well into 2020: Poll

[I]  Higher wholesale prices, strong reservoir levels to help farmers in FY20

[I]  9 major trends reshaping the world economy

[I]  Govt imposes restrictions on import of gold, silver

[I]  Government approves Rs 436 crore outlay for skilling 4 lakh persons

[I]  Fiscal prudence is important but growth will take precedence: Sources, Ministry of Finance

 

BUSINESS STANDARD

[I]  FMCGs turning attention on premium, small packs as spending curbs grow

[I]  As UPI gears up for global markets, Indian fintechs smell opportunity

[I]  Panel flags Rs 63,000-crore compensation cess shortfall in 2019-20

[I]  NITI Aayog plans to bring all medical devices under one regulatory regime

[I]  Relax fiscal deficit limit from 3% to 4% of GDP, states ask Sitharaman

[I]  Fiscal deficit for April-November likely stood at 107% of FY20 target

 

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 12219;  USDINR DGCX: 71.0925;  DJIA Mini: 28258;  FTSE 100 Fut: 7553;  NIKKEI 225 Fut: 23780;  EUR-USD: 1.1128; Crude Oil (WTI): 60.89;  Gold (Spot): 1478

 

Best Regards, ARBIND
19 Dec 2019