WE ARE THANKFUL TO GOD FOR CREATING SATURDAYS. WISHING A REFRESHING WEEKEND AHEAD.

Macro Economic News 27 Jul 2019

 

The global economic momentum is slowing. US economic growth cools to 2.1% in second quarter. U.S. economic growth in 2018 missed the Trump administration's 3% target by any measure, which could renew criticism of the White House's $1.5 trillion in tax cuts. Profits earned by China's industrial firms contracted in June after a brief gain the previous month, fuelling concern that a slowdown in manufacturing from a bruising trade war will drag on economic growth. Uncertain times ahead, EMs lack safety net: RBI governor.

 

FINANCIAL TIMES

[I]  Saudi Arabia debates allowing shopping to eclipse prayer

[I]  Hong Kong protests target airport as crisis deepens

[I]  Ireland warns that hard Brexit threatens UK unity

[I]  US economic growth cools to 2.1% in second quarter

[I]  The global economic momentum is slowing

 

REUTERS

[I]  U.S. economy slows in second quarter; weak business investment a red flag

[I]  India's summer crop planting lags as monsoon rains remain patchy

[I]  India's Venezuelan June oil imports highest in seven quarters: trade

[I]  India rice exports could hit seven-year low on weak demand, higher prices: industry

[I]  China's industrial profits fall in June, add to fears of slowdown

[I]  U.S. economy misses Trump's 3% target in 2018

[I]  BoE to resist global tide of policy loosening

[I]  China's industrial profits fall in June, add to fears of slowdown

 

BLOOMBERG 

[I]  Trump Dollar Declarations Show U.S. Currency Move Still in Play

[I]  Dark Soils Burst With Spring Wheat as Funds Make Record Bear Bet

[I]  The Dilemma of Record Stocks Amid Recession Signals

[I]  1,500 Pounds of Gold Gone in Three Minutes During Brazil Heist

[I]  Bank of England to Hold Rates as Clouds Gather Over Outlook

[I]  Mexico Recession Risk Flashes as Economy Shrinks for Second Straight Month

[I]  Ghana Money Managers Get Back Deposits Tied Up in Failed Banks

 

WALL STREET JOURNAL

[I]  Economic Growth Slowed to 2.1% in Second Quarter

[I]  Growth Didn’t Hit 3% Mark Last Year, Revised Data Show

[I]  Trump Takes Aim at Both China and WTO

[I]  IRS Sending Warning Letters to More Than 10,000 Cryptocurrency Holders

[I]  Trump Says U.S. to Take Action Against France for Tax on American Tech Companies

[I]  Trump Rejected Proposal to Weaken Dollar Through Market Intervention

[I]  Real Time Economics: The Outlook is Getting ‘Worse and Worse’

 

BUSINESS LINE

[I]  GST Council meeting rescheduled for July 27

[I]  Paper industry frets as India gears up for RCEP talks

[I]  Keep some essential drugs out of price control, says panel

[I]  Prudent fiscal policies critical for growth: RBI chief

[I]  Online trade: India steps up efforts to end moratorium on customs duties at WTO

[I]  Digital trade set to grow 14 times by 2030: Study

 

ECONOMIC TIMES

[I]  RBI Governor Das wary of trade wars, backs high forex reserves

[I]  Yuan weakens, volatility low amid tepid hopes for trade talks progress

[I]  Sovereign external borrowing: A tightrope walk for govt

[I]  India rice exports could hit 7-year low on weak demand, higher prices

[I]  Despite slowdown, realty sector gets $2.7 billion fund inflows in H1

[I]  49 projects worth Rs 1,231 crore taken up in northeastern region

[I]  RBI to ease priority sector lending norms for exports

[I]  Policymakers a divided lot on Personal Data bill provisions

[I]  A Supreme Court ruling could allow millions of home workers to access benefits

 

BUSINESS STANDARD

[I]  Indians bought record number of movie tickets last year at multiplexes

[I]  Cabinet likely to soon decide on 2 ambitious semi-high speed train projects

[I]  Uncertain times ahead, EMs lack safety net: RBI governor Shaktikanta Das

[I]  Govt sets up a separate advisory board for medical devices sector

[I]  Govt drops plan for easier retrenchment, moots fixed-term employment

[I]  Rain in August to determine final output of kharif crops this year

 

Best Regards, ARBIND
27 Jul 2019

LIFE IS BETTER WHEN WE ARE HAPPY, THANKS GOD WE HAVE FRIDAY TOO. WISHING A CHEERING DAY AHEAD.

Macro Economic News 26 Jul 2019

 

The Prime Minister's Office of India wants the finance ministry to reassess the idea of issuing foreign currency overseas sovereign bonds. India's auto parts industry could be forced to slash a fifth of its 5 million or so workforce if the slowdown in vehicle sales continues, the president of the country's largest industry group for auto parts makers said.  European Central Bank President Mario Draghi all but pledged to ease policy further as the growth outlook deteriorates and even hinted at a reinterpretation of the ECB's inflation target, the cornerstone of its entire policy framework. The ECB also signaled it is preparing to cut short-term interest rates for the first time since early 2016 and possibly restart its giant bond-buying program. Turkish central bank slashes interest rates. EU urges alliance with US to counter Chinese tech dominance.

 

FINANCIAL TIMES

[I]  ECB paves way for fresh stimulus package

[I]  Barnier dubs Johnson’s Brexit deal terms ‘unacceptable’

[I]  Election in view as Johnson shows off Brexit resolve

[I]  Draghi’s ‘whatever it takes’ signal on inflation fails to convince

[I]  China construction points to military foothold in Cambodia

[I]  US increases federal aid for farmers hit by trade war

[I]  Turkish central bank slashes interest rates

[I]  EU urges alliance with US to counter Chinese tech dominance

[I]  S Korea economy rebounds on government spending

 

REUTERS

[I]  PMO wants finance ministry to restudy issuing overseas sovereign bond: sources

[I]  Parliament approves changes to right to information law despite protests

[I]  India to get above-average monsoon rains in next two weeks

[I]  Global economic growth rut at risk of deepening despite rate cuts: Reuters polls

[I]  Argentina posts June trade surplus of $1.06 billion: statistics agency

[I]  Dow cuts 2019 spending forecast on U.S-China trade tensions

[I]  ECB pledges more easing and ponders inflation goal review

[I]  Brexit whirlwind heads towards election or no-deal

[I]  India's auto parts makers warn of 1 million job cuts if slowdown continues

[I]  ECB pledges more easing and ponders inflation goal review

[I]  U.S. business investment picking up; goods trade deficit narrows

[I]  RBI to cut rates again in August as doves prevail: Reuters poll

 

BLOOMBERG 

[I]  Chinese Companies Are Changing the Way They Trade the Yuan

[I]  Japan’s Banks Are Running Out of Room to Cope With Negative Rates

[I]  Singapore Is Spending Big to Future-Proof Its Slowing Economy

[I]  New York Doubles Down on Tracking Empty Storefront Problem

[I]  ECB Has Significant Cohort Who Doubt Tiering Is Best Solution

[I]  Tight Labor Market Is Fattening Canadian Workers’ Wallets Again

[I]  Black Homeownership Falls to Record Low as Affordability Worsens

[I]  Draghi's Symmetry Remark Almost Reveals Precise Inflation Target

 

WALL STREET JOURNAL

[I]  ECB Signals Rate Cut, Possible Asset Purchases

[I]  U.S. Durable Goods Orders Rose in June

[I]  USDA Sets Plans for $16 Billion in New Aid to Farmers

[I]  Investors Wonder if the ECB Can Do Enough to Make a Difference

[I]  Higher Fed Inflation Target Before Recession Would Have Led to Faster Recovery, Economists Find

[I]  Homeownership Rate Slipped in Second Quarter

[I]  Prospective Fed Nominee Judy Shelton Resigned From EBRD Job

 

BUSINESS LINE

[I]  India ships 37-m smartphones, highest-ever, in Q2

[I]  Indian dairy sector grew 6.4 per cent annually over the last four years

[I]  SEBI may allow commodity futures delivery from sellers’ warehouses

[I]  FIDC calls for ‘refinance mechanism’ to prevent recurrence of NBFC crisis

[I]  Soon, bank a/c opening, loans to go paperless with Sahamati

[I]  Auto sector in dire straits as slowdown worsens

 

ECONOMIC TIMES

[I]  Indo-US ties wide-ranging; time to move on: MEA

[I]  Government extends Budget session till August 7

[I]  India to get above-average monsoon rains

[I]  Government working on e-passports: Jaishankar

[I]  India to raise significant portion of sovereign overseas borrowing via 30-year bonds

[I]  Digital payment firms wait for new finance secretary to discuss MDR

[I]  RBI panel for hike in collateral free lending, MUDRA loan limit to Rs 20 lakh

[I]  Government's new road-map for corporate-style governance of states

[I]  Water conservation fee likely on residential complexes, industry

 

BUSINESS STANDARD

[I]  Bank lending to NBFCs set to gather pace: RBI Governor Shaktikanta Das

[I]  New residential real estate likely to come with cheaper price tags

[I]  Monsoon delay hits sales of agri input companies in June quarter

[I]  NBFC-HFC lending to reality players down 48% in FY19 at Rs 27K cr: Report

[I]  Promoters pledge more stake in June quarter to meet margin calls

 

MARKETS (07:00 am)

[I]  SGX NIFTY Fut: 11269;  USDINR DGCX: 69.1950;  DJIA Mini: 27122;  FTSE 100 Fut: 7417;  NIKKEI 225 Fut: 21630;  EUR-USD: 1.1148; Crude Oil (WTI): 56.01;  Gold (Spot): 1417

 

Best Regards, ARBIND
26 Jul 2019

TAKE A MOMENT, UNIVERSE IS ALIGNED TO MAKE “IT” THE WAY WE WANT IT. WISHING A COMFORTING DAY AHEAD.

Macro Economic News 25 Jul 2019

 

India up 5 ranks to 52nd most innovative country in Global Innovation Index. India's monsoon rains were 35% below average in the week ending on Wednesday, with little rainfall over the central, western and northern parts of the country, the weather office said, raising concerns over the output of summer-sown crops. Eurozone manufacturing activity falls to worst in almost seven years. Heavily reliant on exports, Eurozone economies have been hurt by dwindling global trade flows. The San Francisco suburb of Emeryville recently implemented the highest minimum wage in the U.S., $16.30 an hour, becoming ground zero for a national debate over how to balance boosting wages for the lowest-paid workers and ensuring small businesses can afford to employ them. India is failing to reap the benefits of China-US trade war.

 

FINANCIAL TIMES

[I]  ‘No ifs or buts’ — Johnson vows to leave EU in 99 days

[I]  China’s army can intervene in Hong Kong, says Beijing

[I]  EU plans sweeping rules to curb illegal online content

[I]  Brutal dismissal of May era delivered on steps of Downing St

[I]  Italy targets migrant rescue boats with new law

[I]  UK struggles to win support for Gulf force

[I]  Eurozone manufacturing activity worst in almost seven years

[I]  India is failing to reap the benefits of China-US trade war

 

REUTERS

[I]  British Prime Minister Johnson promises a bold new Brexit deal

[I]  ANZ says watchdog plans action for wrongful fee charges

[I]  Fed to cut rates for first time in a decade this month: Reuters poll

[I]  To survive trade war, some U.S. importers embark on major revamps of product lines

[I]  With finger on trigger, ECB aims at more stimulus

[I]  Investors pull $1.5 billion from India equities so far in July - IIF

[I]  U.S. new home sales rebound; prior three months revised down

 

BLOOMBERG 

[I]  Chinese Drugmakers Warn on Profits as Government Overhaul Bites

[I]  A Third of Economists Expect BOJ to Bolster Rates Pledge in July

[I]  South Korea’s Economy Starts Growing Again as Outlook Darkens

[I]  ECB Set to Signal Rate Cut as Economy Slows: Decision Day Guide

[I]  Central Bankers Are Playing a Dangerous Game With Asset Prices

[I]  Singapore Braces for More Delistings Even After Rule Fix

[I]  Trade War Spurs Recession Risk in Singapore

[I]  IMF Approves Last Installment of $12 Billion Loan to Egypt

 

WALL STREET JOURNAL

[I]  For Boris Johnson’s Britain, a Cold World Awaits

[I]  Europe Gets Caught in the U.S.-China Crossfire

[I]  America’s Highest Minimum Wage Sparks Fight in Small California City

[I]  U.S. New Home Sales Picked Up in June

[I]  Congressional Leaders Urge Members to Approve Spending Deal

[I]  Prospective Fed Nominee Judy Shelton Resigned From EBRD Job

[I]  Real Time Economics: Housing Sales Slump, U.S.-China Talks Are Back On and Germany’s Economy Is in Trouble

 

BUSINESS LINE

[I]  Amid auto slump, components sector sees 8-10 lakh job cuts

[I]  States, like Centre, can now use Aadhaar for welfare schemes

[I]  Centre relaxes timelines for wind projects

[I]  E-waste management may end up as just junk sans policy support: Experts

[I]  Service tax demand is only for premium bank accounts

 

ECONOMIC TIMES

[I]  Is India walking into a middle-income trap? Signs aren't pretty

[I]  Filing ITR may not be as taxing as you think

[I]  Investors lose Rs 5.86 lakh crore in 5 days

[I]  India may launch $10 billion global bond sale in October

[I]  CCEA nod to 40 LMT sugar buffer stock at Rs 1,674 crore: Sources

[I]  GDP growth to be flat at 6.8% in FY20: Report

[I]  India is running out of time to cash in on young workforce

[I]  FM hints 25% corporate tax may be extended to all companies

 

BUSINESS STANDARD

[I]  FMCGs focus on earnings growth by cutting ad spends and other expenses

[I]  Auto parts industry fears 1 million jobs could be at stake due to slowdown

[I]  4 mt sugar buffer gets nod; floor price stays same amid growing arrears

[I]  India up 5 ranks to 52nd most innovative country in Global Innovation Index

[I]  India's monsoon rains 35% below average this week, says weather office

 

MARKETS (06:30 am)

[I]  SGX NIFTY Fut: 11294;  USDINR DGCX: 69.0025;  DJIA Mini: 27262;  FTSE 100 Fut: 7454;  NIKKEI 225 Fut: 21770;  EUR-USD: 1.1139; Crude Oil (WTI): 56.06;  Gold (Spot): 1424

 

Best Regards, ARBIND
25 Jul 2019