MACRO ECONOMIC NEWS

THE LIFE IS JUST THE COMFORTING MIX OF TENDER FLAKES, GENTLE SNOW AND ICE ROCKS. WISHING A CALMING DAY AHEAD.

Macro Economic News 20 Dec 2019

 

Prime Minister Boris Johnson unveiled what he called a radical government agenda, setting his sights on a quick Brexit, future trade deals and on transforming Britain. 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. U.S. home sales are picking up in the second half of the year, a sign that low mortgage rates and a solid economy are helping to heat up the once-sluggish housing market going into next year. Sweden’s central bank, one of the first to wield negative interest rates, has ended that policy, a move closely watched by other institutions that have resorted to what was supposed to be a radical and short-lived measure. Mexico cuts its key rate for fourth time after inflation slows while Japan's consumer inflation ticks up as shoppers pay more for sushi, ice cream. German Finance ministry expects its subdued exports in coming months while Reuters poll find global outlook to remain sombre for late-cycle expansion despite market joy. World Bank warns on $55tn emerging market debt pile whereas corporate India has pitched for “uniformity” in the corporate tax rate, stating that a rate of 22 per cent for existing firms and 15 per cent for new manufacturing firms creates “inequality”.

 

FINANCIAL TIMES

[I]  World Bank warns on $55tn emerging market debt pile

[I]  Putin hints at constitution change for presidential terms

[I]  EU’s new economy chief warns on bloc’s budget rules

[I]  BoE sticks to forecast of post-election growth rebound

[I]  Sweden ends negative rates regime over side-effects concern

[I]  N Koreans in China and Russia look set to defy sanctions

 

REUTERS

[I]  RBI sees room for rate cuts, await clarity on inflation, minutes show

[I]  U.S. House passes new North American trade deal, Senate timing unclear

[I]  U.S. makes it easier for holders of industry-standard patents to block product sales

[I]  Japan's consumer inflation ticks up as shoppers pay more for sushi, ice cream

[I]  With a 'radical' agenda, Johnson sets sights on quick Brexit

[I]  U.S. deports Mexicans far from border, may send others to Guatemala

[I]  U.S.-China to sign 'Phase one' trade pact in early January -Mnuchin

[I]  Global outlook somber for late-cycle expansion despite market joy - Reuters poll 

[I]  German exports to remain subdued in coming months - Finance Ministry 

[I]  U.S. labour market on solid ground; mid-Atlantic factories sputter

 

BLOOMBERG 

[I]  U.S. Existing-Home Sales Fall to 5-Month Low on Lean Inventories

[I]  Mexico Cuts Key Rate for Fourth Time After Inflation Slows

[I]  Fed Says Banks Cite Regulations Among Reasons for Repo Spike

[I]  Southeast Asia May Soon Need a ‘Plan B’ to Deal With Lowflation

[I]  U.K. Consumers, Firms End 2019 on Upbeat Note as Sentiment Jumps

[I]  Economists Boost China Outlook on Trade Deal, Survey Shows

[I]  It’s Crunch Time for Indian States’ Finances as Economy Slows

[I]  Argentina Asks Pimco to Roll Over Debt as Restructuring Looms

 

WALL STREET JOURNAL

[I]  U.S. Home Sales Pick Up in Second Half of Year

[I]  Fed's Bullard Sees No Reason Now to Change Rates in 2020

[I]  House Passes North American Trade Pact With Bipartisan Support

[I]  A Pioneer of Negative Rates Pauses the Experiment

[I]  Japan’s Economy Faces Another Rocky Year

[I]  Traders Got Head Start on Bank of England News Conferences

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

 

BUSINESS LINE

[I]  At pre-Budget meet, India Inc seeks a single corporate tax rate of 15% over three years

[I]  Room for strong growth for microfinance in India: KPMG

[I]  Need for National Tourism Policy, suggests CII

[I]  Air passenger traffic to drop to 6-year low in 2020: ICRA

[I]  Poor demand, weak prices hit farm exports in April-October

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

[I]  US wants India to lower its tariffs

 

ECONOMIC TIMES

[I]  What India Inc wants from Budget 2020

[I]  After onions, potato prices on fire, jump 75% in Delhi

[I]  Bengaluru highest paying city, IT highest paying industry in India: Report

[I]  Govt begins industry consultations

[I]  GST compensation to 9 states put at Rs 70,000 Cr

[I]  India Inc seeks steps to stimulate consumption, revive investment

[I]  Government plans law to reposition stats body

 

BUSINESS STANDARD

[I]  Business fears hit to cash flow from new GST input tax credit restriction

[I]  Govt plans to implement all four labour codes in one go, likely in 2020

[I]  India Inc wants Centre to take more steps on ease of doing business

[I]  Govt's bid to provide employment via MSME jobs portal fails to take off

[I]  Puzzled why stock market is buoyant amidst slowdown: Arvind Subramanian

 

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 12280;  USDINR DGCX: 71.2300;  DJIA Mini: 28398;  FTSE 100 Fut: 7572;  NIKKEI 225 Fut: 23770;  EUR-USD: 1.1115; Crude Oil (WTI): 61.09;  Gold (Spot): 1478

 

Best Regards, ARBIND
20 Dec 2019