THERE ARE MANY HUMANS, WHAT THE WORLD NEEDS IS HUMANITY. WISHING A CARING WEEKEND AHEAD.

Macro Economic News 08 Jun 2019

 

The Reserve Bank of India diluted its guidelines on stressed assets and has now mandated banks to undertake a review of a borrower’s accounts within 30 days of default. British Prime Minister Theresa May stepped down as leader of the governing Conservatives. Mexico's government had reached a deal with the United States to avert a tariff war by pledging to take "strong measures" to contain the migration of mostly Central Americans crossing the southern U.S. border. NASA will allow private citizens to stay at the International Space Station (ISS) for month-long getaways at a cost of about $35,000 per night, the U.S. space agency said on Friday. Employers tapped the brakes on hiring in May, signalling companies are taking a more cautious approach at a time of cooling global growth and trade tensions and adding to other signs of a slowdown in the U.S. economic expansion. A series of well-intentioned government decisions since the 1960s has left us with today’s out-of-control higher education market.

 

FINANCIAL TIMES

[I]  Slowing US job growth spurs rate-cut debate

[I]  UK landowners prepare for Brexit

[I]  German central bank warns ‘lacklustre exports’ taking toll on economy

[I]  Putin says US ‘economic raiding’ could lead to global conflict

[I]  Freelancers face a looming tax nightmare

 

REUTERS

[I]  RBI relaxes stressed asset guidelines for lenders

[I]  India likely to receive lower rains in June, monsoon to pick up in Aug-Sept: official

[I]  UK's May steps down as party chief, igniting leadership race

[I]  U.S. sanctions target Iran petrochemicals, analysts see modest effect

[I]  Trump calls off tariffs on Mexico after deal on migration

[I]  Got $50 million for a vacation? NASA to open space station to private citizens

[I]  India flips to discount, premiums skid elsewhere as gold prices surge

[I]  Trade war, tariff threats to challenge G20 finance leaders' solidarity

[I]  U.S. and Russia trade blame over near collision in East Asian waters

[I]  Is the U.S. economy about to contract? Three charts say maybe not

[I]  Global Economy: Outlook turns sour as trade war drags on

[I]  U.S. gives Chinese imports more time before more tariffs hit

 

BLOOMBERG 

[I]  Two Epic Bull Markets Are Dueling Over the Fate of Global Growth

[I]  U.S. Payrolls, Wages Cool as Trade War Weighs on Economy

[I]  Trump’s Tariffs Have Already Wiped Out Tax Bill Savings for Average Americans

[I]  Worst May Be Yet to Come for U.S. Jobs as Trade War Intensifies

[I]  A Common Brazil-Argentina Currency? A ‘Distant Mirage’ For Now

[I]  Urgent Push for Digital Taxes Faces Hurdles: G-20 Finance Update

[I]  Central Bank Crusade to Spark Inflation Isn't Convincing Traders

[I]  Oil Optimism Slumps to 12-Week Low as Price Dips to Bear Market

[I]  Consumer Credit in U.S. Rises in April by Most in Five Months

 

WALL STREET JOURNAL

[I]  U.S. Added 75,000 Jobs in May as Hiring Slowed

[I]  Key Takeaways From the May Jobs Report

[I]  U.S., Mexico Reach Deal to Avoid Tariffs

[I]  Softer Labor Market Could Strengthen Case for Rate Cut

[I]  President Spoke With Fed Chairman Amid Public Campaign for Lower Rates

[I]  Trump Sees ‘Good Chance’ of Migration Deal With Mexico

[I]  The Long Road to the Student Debt Crisis

 

BUSINESS LINE

[I]  RBI issues revised norms to deal with stressed assets

[I]  Goods imported for manufacturing and sent for job work are eligible for concessional duty: CBIC

[I]  Paint makers see rosy year for decorative, protective segments; auto blues to continue

[I]  Pre-Budget talks: FM to meet industry captains on June 11

[I]  Regulatory sandbox: Watchdog may need to fine-tune certain proposals

[I]  MCA, SEBI ink agreement to tighten regulatory oversight

[I]  Individual investors — lambs being led to the slaughter

[I]  RBI lobs ball in banks’ court to deal with resolution

[I]  NPAs rise 43% in drought-hit Gujarat

 

ECONOMIC TIMES

[I]  RBI issues circular on NPAs, scraps 1-day default rule

[I]  Stage set for big-bang sale, 50 PSUs in first list

[I]  Indians are losing confidence in economy

[I]  Forex reserve swells by $1.8 billion to $421.8 billion

[I]  All disaster relief expenditure to count towards CSR

[I]  Govt planning e-registration for PM KISAN to speed up implementation

[I]  Draft law proposes 10-year jail term for dealing in cryptocurrency

[I]  Indians turn pessimistic as job worries weigh on confidence

 

BUSINESS STANDARD

[I]  Global majors, PE players pick up a larger slice of debt-laden Indian firms

[I]  RBI's revised NPA norms give banks 30 days from default for resolution plan

[I]  Student housing can attract $50-billion private investment, says report

[I]  RBI rate cut not likely to boost corporate lending, private sector's capex

[I]  Credit growth expected to stay slow despite RBI's interest rate cut: Fitch

 

Best Regards, ARBIND

08 Jun 2019

LET US SEE THE HAPPINESS EVERY MOMENT, EVEN IN SMALLEST OF THINGS; ITS ALL AROUND US. WISHING A BLISSFUL DAY AHEAD.

Macro Economic News 07 Jun 2019

 

Central banks across globe are synchronising for monetary easing. RBI cuts interest rate to 9-year low. Emerging market investors will be more cautious and selective in making risky bets against a strong dollar in coming months as fears over the United States' aggressive trade policy rattles markets, a Reuters poll found. U.S. President Donald Trump said he would decide whether to carry out his threat to hit Beijing with tariffs on at least $300 billion in Chinese goods after a meeting of leaders of the world's largest economies late this month. One month ago, Federal Reserve Chairman Jerome Powell played down speculation of an interest-rate cut this summer. Now officials face a darker economic outlook, making such a move possible. The economy is churning out jobs and wages are rising. But employers face headwinds, such as trade tensions and slowing global growth that could slow hiring.

 

FINANCIAL TIMES

[I]  Draghi prepares fresh stimulus as economic fears grow

[I]  Draghi seeks to shape policy beyond his term

[I]  Trump officials push on with Mexico tariffs plans

[I]  Macron urges Trump to stick with western allies

[I]  India cuts interest rate to lowest level in 9 years 

[I]  Brussels acts over EU single market failings

[I]  South Korea defends economic restructuring

[I]  Limits of China’s online education boom start to show

 

REUTERS

[I]  RBI cuts rates, turns 'accommodative' as economy slows

[I]  UK opposition Labour fights off Brexit Party to retain parliament seat

[I]  Japan's household spending, wages weakness cloud economic outlook

[I]  'Balancing act' for emerging market currencies ahead

[I]  Rupee outlook worsens on trade war, growth risks

[I]  China's exports, imports seen shrinking as tariffs bite

[I]  Trump to decide on $300 billion China tariffs after G20 meeting

[I]  UK's Hammond takes case for digital sales tax to G20 meeting in Japan

[I]  Japan household spending rises but wages down in April

[I]  Indian rupee outlook worsens on trade war, growth risks: Reuters poll

 

BLOOMBERG 

[I]  Investors Signal Draghi Is Running Out of Time and Ammunition

[I]  Fitch Cuts Pemex to Junk as Markets Lose Faith in Rescue

[I]  Here's What to Watch at the G-20 Finance Meetings This Weekend

[I]  U.S. Yields Will Hit Record Lows by Year-End, Commerzbank Says

[I]  Indonesia Rate Cut Depends on Timing, Deputy Governor Says

[I]  Tariff Waiting Game, Draghi Talks Tough, G-20 Preview: Eco Day

[I]  Come On, Join the Club! Central Banks Turn to Interest-Rate Cuts

[I]  Investors Are Deserting Junk Bonds as Trade Tensions Sour Mood

 

WALL STREET JOURNAL

[I]  Fed Begins Debate on Whether to Cut Rate as Soon as June

[I]  ECB Raises Prospect of Rate Cut

[I]  Five Things to Watch in the May Jobs Report

[I]  U.S., Mexico Make Progress on Migration Issues, but Tariffs Still Loom

[I]  Household Net Worth Rose 4.5% in First Quarter

[I]  Rise in U.S. Worker Productivity Could Be Difficult to Maintain

[I]  U.S. Trade Gap Narrowed in April

 

BUSINESS LINE

[I]  To boost economy, RBI cuts repo rate by 25 bps to 5.75%

[I]  NITI Aayog revamped

[I]  Digital push: Transfers via RTGS, NEFT made free

[I]  Despite crisis, large NBFCs see rise in public deposits

[I]  Review of liquidity management framework could boost transmission

[I]  Lowering leverage ratio threshold can offer banks leeway to expand their balance sheet

[I]  We are closely monitoring NBFC sector to ensure financial stability: Shaktikanta Das

 

ECONOMIC TIMES

[I]  Can RBI policy be the blueprint for world's central banks?

[I]  Sebi has a plan to keep rating cos in check

[I]  India may ask Ola, Uber to take green route

[I]  Food Corporation of India's facelift on the anvil

[I]  India-China trade to cross USD 100 billion this year: Envoy

[I]  India lost USD 13 billion to trade misinvoicing: Report

[I]  Govt looks to cut export sops, boost infra, credit

[I]  India’s economy to grow 7.3% in 2019, 7.5% in 2020: G-20 note

[I]  RBI cuts interest rate to 9-year low; 10 key takeaways

 

BUSINESS STANDARD

[I]  Banks likely to cut lending, deposit rates by 20 bps in four months

[I]  Media & entertainment industry pegged at Rs 4.5 trillion by 2023

[I]  Indices give thumbs down to RBI rate cut, expected liquidity measures

[I]  India will not push for GSP benefits from US, says Piyush Goyal

[I]  Amendment to Competition Act on cards to rein in digital companies

[I]  RBI allows on-tap licensing of SFBs to drive financial inclusion

 

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 11861;  USDINR DGCX: 69.2275;  DJIA Mini: 25774;  FTSE 100 Fut: 7274;  NIKKEI 225 Fut: 20880;  EUR-USD: 1.1268; Crude Oil (WTI): 53.25;  Gold (Spot): 1337

 

Best Regards, ARBIND

07 Jun 2019

GROWING IS BEING HUMBLE, RISING ABOVE BELIEFS, AND COMFORTING EVERYONE AROUND. WISHING A COURTEOUS DAY AHEAD.

Macro Economic News 06 Jun 2019

 

Companies are failing to disclose sufficient detail about how exposed they are to the potential risks of climate change. Oil prices hovering around their lowest levels since January as markets remain under pressure from rising U.S. supply and stalling demand amid an economic slowdown. New figures showed U.S. apprehensions at the southern border rose sharply, as Mexican and U.S. officials ended their first day of talks Wednesday without a deal to head off tariffs President Trump has threatened on Mexico. Market turmoil over U.S. tariffs on China and the threat of the same on Mexico in large part stems from a fear of the unknown: No one knows what a trade war would look like, but the 1973 Arab oil embargo holds some clues. Service-sector activity across the U.S. grew at a faster rate in May, while in India it hit a year low.

 

FINANCIAL TIMES

[I]  Lagarde warns of trade war’s ‘self-inflicted wounds’

[I]  Brussels warns Italy it is in breach of EU budget rules

[I]  Investors face $647bn China banking blind spot

[I]  US warns China halt to rare earths could cause ‘significant shocks’

[I]  Russia strengthens China ties in defiance of Trump 

[I]  Eurozone retail sales slip in sign of subdued domestic demand

[I]  Italy revives ‘alternative currency’ proposal

[I]  Australian growth fears rise as shoppers curb spending

[I]  Korea’s yield-seeking pensioners are shaking markets

[I]  Global regulators’ net tightens around big tech

 

REUTERS

[I]  Monsoon rains to arrive on India's southern coast around June 8: IMD

[I]  Trump says 'not enough' progress made in high-stakes U.S.-Mexico talks

[I]  Oil prices hover near January lows amid surging supply, economic slowdown

[I]  China central bank injects 500 billion yuan via one-year MLF, rates unchanged: statement

[I]  IMF's Lagarde warns U.S.-China tariffs to slash global growth in 2020

[I]  Companies lag in climate-related disclosures: G20 Task Force

[I]  Strong dollar lives on, but trade war, rate cuts to tamp it down - Reuters poll

[I]  U.S. refiners warn Trump: Mexico tariffs could result in higher fuel prices

[I]  ECB to give euro zone economy a small shot in the arm

[I]  Fed's testing of new ideas for policy framework already underway

[I]  Recession in Mexico likely if Trump tariffs bite, analysts say

[I]  In rare move, Pakistan military agrees to budget cut amid economic woes, PM says

 

BLOOMBERG 

[I]  Stocks Mixed as Mexico Tensions Sap Risk Appetite: Markets Wrap

[I]  Oil Sinks Into Bear Market as U.S. Storage Jumps Most Since 1990

[I]  The Trade War Could Pop Hong Kong's Property Bubble

[I]  Steepening Yield Curve Shows Market Isn't Waiting for Fed to Act

[I]  China Calms Markets With Second-Largest Cash Injection on Record

[I]  Philippines Central Bank Governor Survives Rocky Start as Peso Rebounds

[I]  Saudis, Russia Meet With Future of OPEC+ Cuts Still Unresolved

[I]  Millions of Britons Heading for a Poor Old Age, Think Tank Says

[I]  ECB Watched as Central Banks Shift Gears: Decision Day Guide

 

WALL STREET JOURNAL

[I]  Fed’s Beige Book Sees Modest Growth

[I]  Border Arrests Climb Amid Threat of Tariffs

[I]  As Tariffs Bite, Get Ready for a 1970s-Style Supply Shock

[I]  Nonfarm Private Sector Added Just 27,000 Jobs in May, Missing Forecasts

[I]  U.S. Service-Sector Economy Powers on Despite Global Headwinds

[I]  The Two Forces Pushing and Pulling at Trump’s Economy

[I]  Global Economy Cools Faster Than Expected as Trade Tensions Rise, World Bank Says

[I]  After Record-Long Expansion, Here’s What Could Knock the Economy Off Course

 

BUSINESS LINE

[I]  Govt set to upgrade CPI, IIP series in 2020

[I]  To curb rollover of CPs, RBI mulls a day’s cooling period

[I]  Corporates now willing to spend more on safety, health of workers: Study

[I]  Services PMI hits 12-month low

[I]  Low-income States fare well on holistic fiscal performance: CII

[I]  Partly an act of God, mostly a man-made disaster

 

ECONOMIC TIMES

[I]  Japan's new rules pose no threat to Indian IT

[I]  India Inc leaders now walk the green talk

[I]  FDI in services sector up 37 pc to $9.15 bn in 2018-19

[I]  World Bank retains India's growth rate for FY19-20 at 7.5 per cent

[I]  Customs departments work closer to vet MNC transfer pricing

[I]  Copyright amendment rules will widen framework, bring transparency: Govt

[I]  RBI may shun sectoral exceptions, ease timelines for stressed assets

[I]  Food subsidy to be hiked by 20% to Rs 2.21 lakh crore

[I]  CII launches new Index to measure fiscal performance

[I]  Finance Ministry may retain allocations made in Interim Budget

 

BUSINESS STANDARD

[I]  Tax officials may ask for 6% reduction in collection target in Budget 2019

[I]  PM Modi to head two new Cabinet committees on economy, employment

[I]  Weak demand may force steel mills to offer discounts in the short-term

[I]  Foreign defence firms be allowed a majority stake in Indian JVs: Assocham

[I]  Global natural gas prices drop, but policy blocking India from making gain

[I]  FDI in services sector rises 37% to $9.15 billion in 2018-19, says govt

 

MARKETS (09:30 am)

[I]  SGX NIFTY Fut: 12024;  USDINR DGCX: 69.5950;  DJIA Mini: 25560;  FTSE 100 Fut: 7222;  NIKKEI 225 Fut: 20810;  EUR-USD: 1.1231; Crude Oil (WTI): 51.82;  Gold (Spot): 1336

 

Best Regards, ARBIND

06 Jun 2019