MACRO ECONOMIC NEWS

LET THE RAY OF HOPE ENLIGHTEN OUR INNER BEAUTY TO SPREAD ABUNDANCE OF TRUST TO EVERYONE. WISHING A DIVINE WEEKEND AHEAD.

Macro Economic News 21 Dec 2019

 

The World is days away from booking the best asset returns in a decade as consumers boosted spending buoyed by a rise in income and an optimistic outlook for the U.S. economy however, Moody’s warns on frothy US junk bond market. The German institute of economic research (DIW) expresses likely contraction of German economy in fourth quarter while Argentina is delaying payments on $9bn in its public debt. PM Boris Johnson won approval for his Brexit deal in parliament, the first step towards Britain's departure from the European Union by Jan. 31. PM Modi assures that India will emerge stronger from economic slowdown; however, IMF says economic revival is unlikely soon while Fitch has cut India's GDP growth to 4.6% as credit crunch cripples economy. IMF’s Gita Gopinath warns that India must stick to fiscal consolidation in medium-term along with policy certainty and structural reforms while Fitch highlights, India's growth outlook is still strong compared to peers. PM has encouraged India Inc. of making bold investment decisions to push up growth while assuring banks and India Inc about no inappropriate action on genuine commercial decisions whereas Nitin Gadkari invites them to set up industries along Delhi-Mumbai expressway and FM Sitharaman expressed intention the Govt. does not want businesses to shut rather will help them revive. India's appetite for petroleum products consumption is expected to drop to 6-year low while, as per RBI report, India's import cover had improved to 10 months in June 2019. India's volatile food prices are yet again posing a sticky inflation problem for its central bank, preventing it from cutting rates as deep as it would like to support a stuttering economy. in the meantime, Rupee bond yields fall after RBI brings in India's version of 'Operation Twist' where 10-year yield sees biggest fall in 10 weeks.

 

FINANCIAL TIMES

[I]  Johnson clears path for Brexit with draft bill victory

[I]  Argentina delays payments on $9bn in debt

[I]  Sweden worries it created a negative-rates monster

[I]  Ukraine and Russia sign deal on gas supply to Europe

[I]  Moody’s warns on frothy US junk bond market

 

REUTERS

[I]  India will emerge stronger from economic slowdown, Modi says

[I]  India's elevated food inflation limits scope for further rate cuts

[I]  Veteran watchdog Bailey to guide Bank of England through Brexit

[I]  UK on track for Jan. 31 Brexit as PM Johnson wins vote on deal

[I]  U.S. consumers put economy on moderate growth path in third quarter 

[I]  German economy likely to contract in fourth quarter, DIW says 

[I]  Gold demand tepid in major Asian hubs, protests in India curb buying

 

BLOOMBERG 

[I]  The World Is Days Away From Booking the Best Asset Returns in a Decade

[I]  ‘Unstoppable’ Global M&A Faces Slower 2020 on Markets, Politics

[I]  BofA CEO Says Leveraged-Loan Stress Could Ripple Through Economy

[I]  Going 100% Green Will Pay For Itself in Seven Years, Study Finds

[I]  The 2020 Outlook for Euro Interest Rate Volatility

[I]  U.S. Consumption, Incomes Pick Up in Sign of Holiday Cheer

[I]  Long-Term Inflation Expectations Hit Record Low in Michigan Consumer Survey

[I]  Consumer-Spending Bump Offset by Inventories in Revised U.S. GDP

 

WALL STREET JOURNAL

[I]  Consumer Spending Strengthens as Year Winds Down

[I]  When Congress Buys Time to Finish a Budget, the Price Is Uncertainty

[I]  With Brexit Looming, U.K. Picks Veteran as Central Bank Chief

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

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

[I]  Uber, Lyft Marshal Forces Over California Law on Gig Workers

 

BUSINESS LINE

[I]  PM to banks, India Inc: no inappropriate action on genuine commercial decisions

[I]  Three proposals get automatic nod under CCI green channel

[I]  Yield improvement need of the hour for cotton sector, says apex trade body

[I]  Policy certainty, structural reforms are key to growth: IMF’s Gita Gopinath

[I]  Set up industries along Delhi-Mumbai expressway: Gadkari

[I]  Spike in food inflation limits scope for further rate cuts

 

ECONOMIC TIMES

[I]  Fitch lowers India's growth to 4.6% in FY20

[I]  Forex reserve scales fresh record high at $454.49 billion

[I]  Rupee, bond yields fall after RBI brings in India's version of 'Operation Twist'

[I]  Operation Twist: 10-year yield sees biggest fall in 10 weeks

[I]  Economic revival unlikely soon: International Monetary Fund

[I]  India's growth outlook still strong compared to peers: Fitch

 

BUSINESS STANDARD

[I]  India Inc should make bold investment decisions to push up growth: PM Modi

[I]  Do not want businesses to shut, will help revive: Sitharaman to India Inc

[I]  India's appetite for petroleum products consumption to drop to 6-year low

[I]  India's import cover improves to 10 months in June 2019, says RBI report

[I]  Govt plans to take khadi turnover to Rs 2 trn in next 5 years: Gadkari

[I]  Fitch cuts India's GDP growth to 4.6% as credit crunch cripples economy

[I]  India must stick to fiscal consolidation in medium-term, says Gita Gopinath

 

Best Regards, ARBIND

21 Dec 2019