MAY WE TAKE SMALL STEPS TO LIGHTEN UP THE WORLD AROUND US. WISHING A BUOYANT DAY AHEAD.

Macro Economic News 26 Oct 2019

 

Banks' loans rise 8.8% in two weeks to October 11; deposits climb 9.8%. Slowing growth takes toll on diesel consumption to the lowest level since 2017. India hopes to finalise Saudi Arabia’s investments in its National Infrastructure Investment Fund (NIIF) during Prime Minister Narendra Modi’s visit to the country next week. European nations step up financing for Green Climate Fund. The European Union agreed to London's request for a Brexit deadline extension but set no new departure date, giving Britain's divided parliament time to decide on Prime Minister Boris Johnson's call for a snap election. London’s luxury homes take big price cuts amid Brexit bargain. The U.S. spent nearly $1 trillion more in fiscal 2019 than it took in, the highest deficit in seven years that would have been bigger without a rebound in corporate tax revenue. Hong Kong medical workers plan to rally in the heart of the city's financial centre on Saturday, angry at perceived police brutality during more than four months of sometimes violent anti-government protests.

 

FINANCIAL TIMES

[I]  Argentina’s voters set to usher Peronists back to power

[I]  Wind power has capacity to meet world’s electricity needs

[I]  France stands apart as EU weighs UK Brexit extension

[I]  South Korea caves in to US over WTO developing nation status

[I]  European nations step up financing for Green Climate Fund

[I]  US and China ‘close to finalising’ parts of trade deal

[I]  Brexit bargains: London’s luxury homes take big price cuts

 

REUTERS

[I]  U.S., China say they are 'close to finalising' part of a Phase One trade deal

[I]  Australia to settle more immigrants outside major cities

[I]  EU agrees Brexit extension but sets no date as UK squabbles over election

[I]  Tech consultations on parts of U.S. trade deal completed - China's Commerce Ministry

[I]  U.S. denies China's claim of 'weaponizing' visa decisions for Washington space meeting

[I]  Oversupply drives Asian prices down despite new demand, supply issues

 

BLOOMBERG 

[I]  China, U.S. Agree on Some Agriculture Product Regulatory Issues

[I]  Hong Kong Leads the Global IPO Market Since September

[I]  Big VIX Options Trade Braces for a 2008-Like Volatility Surge

[I]  Fisher’s Week Worsens as Goldman Joins Pensions Yanking Cash

[I]  Chile’s Popular Unrest Is a Lesson for the World

[I]  Charting the Global Economy: Draghi’s Exit, Cautious Corporates

[I]  Adventures in Brexit Wasteland Leave U.K. Bond Markets Nowhere

[I]  U.S. Consumer Sentiment Pares Gains as Economic Outlook Dims

[I]  Weaker World Trade Volumes Show Summer Tariff Escalations

 

WALL STREET JOURNAL

[I]  U.S. Deficit Hits Seven-Year High

[I]  Business Activity Slows Around the World

[I]  Fed Adds $77.3 Billion in Weekend Liquidity

[I]  Mario Draghi, Hailed as the Euro’s Savior, Leaves the ECB With the Bank Divided

[I]  Home-Improvement Boom Is Forecast to Fizzle

[I]  Newsletter: Businesses Fear U.S.-China Deal Won’t Get Past Phase One

 

BUSINESS LINE

[I]  Saudi investments in NIIF, oil sector to be finalised at PM’s visit next week

[I]  Persistent fall in cotton yarn exports raise concern

[I]  With BS-6 looming large, is this the right time to buy a car?

[I]  No slowdown blues for pre-owned car market

[I]  IMD declares formation of cyclone 'Kyarr' over Arabian Sea

[I]  Slowing growth takes toll on diesel consumption

 

ECONOMIC TIMES

[I]  What ghost cities tell us about India's economy

[I]  Forex reserve rises by $1.04 billion to $440 billion

[I]  Stubble burning up by 5% in Punjab and Haryana, but so is harvesting

[I]  Why India should start taking apples seriously

[I]  View: Credit culture needs to change

[I]  MNC tax: Delays plague mutual agreement process

[I]  Sitharaman has her task cut out as what India wants next becomes clear

 

BUSINESS STANDARD

[I]  Samvat 2075: Gold and silver give returns of 21% each, outperform equities

[I]  Dim Diwali: From watches to clothes, luxury brands get the slowdown blues

[I]  Quick-service restaurants post 5-7% rise in sales, buck the slowdown trend

[I]  Despite consumption slowdown, packaged food sector grows 14.4%: IIP data

[I]  Private equity inflows in realty up by 19% to $3.8 billion in 2019

[I]  Govt plans to remove minimum alternate tax on SEZs, boost exports

[I]  Trai wants 5 MHz spectrum in premium 700 MHz band for Indian Railways

[I]  Banks' loans rise 8.8% in two weeks to October 11; deposits climb 9.8%

 

Best Regards, ARBIND
26 Oct 2019

MAY YOU BE BLESSED WITH ABUNDANCE OF WEALTH THIS DAY, TO THINK, WHETHER TO OPEN BANK ACCOUNT OR BANK ITSELF. WISHING AN AFFLUENT DAY AHEAD.

Macro Economic News 25 Oct 2019

 

India moves up 14 places to 63rd position in World Bank’s Doing Business 2020 survey whereas World Bank official says, ”India needs fresh reforms to be in top 50 nations with ease of doing business”. Fitch cuts India’s FY20 GDP growth forecast to 5.5 per cent. Commerce Ministry considers 5-year extension of income tax benefits for SEZ units. India mulls personal income tax relief while scrapping some exemptions to boost demand. Interestingly, Smartphone shipment touches all-time high of 49 mn units. Prime Minister Boris Johnson called for a general election on Dec. 12 to break Britain's Brexit impasse, conceding for the first time he will not meet his "do or die" deadline to leave the European Union next week. Business activity continued to slow around the world headed into the fall, with the U.S. showing signs of tepid growth. Carmakers hit as China slowdown and trade wars bite. The New York Fed’s expanded offerings of liquidity to the financial system saw strong demand from eligible banks. ECB vows to hold rates at historic low until inflation picks up. Turkey’s central bank cut its benchmark rate for the third time in four months, as its new governor continued to ease policy in line with its President’s attempt to stimulate the recession-hit economy. Reuters poll suggests deeper global slowdown still more likely despite round of rate cuts. BOJ warns of rising financial vulnerability as banks hunt for yields whereas outgoing ECB chief Draghi says on monetary policy legacy, 'Never give up'.

 

FINANCIAL TIMES

[I]  Consumer goods giants fall short on plastic pledges

[I]  Chile’s reform pledge to quell protests questioned by economists

[I]  Boris Johnson in new push for UK general election

[I]  Architect of Germany’s debt limit calls for new borrowing

[I]  ECB vows to hold rates at historic low until inflation picks up

[I]  Lebanon protests grow among young jobseekers

[I]  Carmakers hit as China slowdown and trade wars bite

[I]  Worsening skills gap will hold back the UK

 

REUTERS

[I]  South Korea to give up developing country status in WTO talks

[I]  Deeper global slowdown still more likely despite round of rate cuts - Reuters poll

[I]  Italy says 2020 budget not a significant deviation from EU rules

[I]  BOJ warns of rising financial vulnerability as banks hunt for yields

[I]  Euro zone business activity stagnates as Draghi bows out

 

BLOOMBERG 

[I]  Hong Kong Markets Are Calm as Protests Linger and a Recession Looms

[I]  Australian Property Is Starting to Boom Again. That's a Worry

[I]  These Asia Hold Outs Are One Shock Away From Quantitative Easing

[I]  Koreans Are Shunning Japan Products, But Not Its 26% Investment Returns

[I]  Mario Draghi Reaches the End of His Fight to Save Euro

[I]  The Thai Baht Reached a New 6-Year High. Here’s Why It’s Surging

[I]  New Normal for India’s Record Borrowing Spree Puts Heat on Bonds

[I]  Oil Set For Strongest Week in a Month as Supply Doubts Return

[I]  India’s Ailing Economy Is Bleeding Diesel as Demand Evaporates

 

WALL STREET JOURNAL

[I]  Business Activity Slows Around the World

[I]  Mario Draghi, Hailed as the Euro’s Savior, Leaves the ECB With the Bank Divided

[I]  Home-Improvement Boom Is Forecast to Fizzle

[I]  Fed Boosts Amount of Liquidity Offered to Financial System

[I]  Chicago Fed Board Chief Can Continue While Former Firm Under Investigation

[I]  Turkey Cuts Rates Further to Kick-Start Its Sluggish Economy

 

BUSINESS LINE

[I]  Commerce Ministry considers 5-year extension of income tax benefits for SEZ units

[I]  PSU disinvestment: Centre invites proposal to appoint General Advisers

[I]  Govt to give 3 years for winners of operational mines for fresh environment clearance

[I]  Chennai Metro announces 50% discount on all Sundays, public holidays

[I]  Fitch cuts India’s FY20 GDP growth forecast to 5.5 per cent

[I]  Global models see powerful cyclone in Arabian Sea, away from Indian coast

[I]  India moves up 14 places to 63rd position in World Bank’s Doing Business 2020 survey

 

ECONOMIC TIMES

[I]  Tax cut in Budget? Govt mulls move to boost growth

[I]  A new Tiger roars with bold India bets

[I]  Bond defaults are highest on record as economy slows

[I]  Sugar output may drop 12.38% to 28-29 million tonnes

[I]  India needs fresh reforms to be in top 50 nations with ease of doing business: World Bank official

[I]  India mulls personal income tax relief while scrapping some exemptions

[I]  India plans to restructure some PSU companies

[I]  World Bank rates China, India as 'most improved' for doing business

 

BUSINESS STANDARD

[I]  Smartphone shipment touches all-time high of 49 mn units, defies slowdown

[I]  Corporates prefer gifting vouchers than 'costly' gold this Diwali season

[I]  Ease of doing biz: India needs reforms to be in top 50, says World Bank

[I]  Slowdown blues: Direct tax mop-up growth slumps to 3.5% till mid-October

[I]  Indian economy in transition phase, growth will return: SBI chairman

[I]  'Never give up', outgoing ECB chief Draghi says on monetary policy legacy

 

MARKETS (07:30 am)

[I]  SGX NIFTY Fut: 11584;  USDINR DGCX: 70.9575;  DJIA Mini: 26756;  FTSE 100 Fut: 7305;  NIKKEI 225 Fut: 22750;  EUR-USD: 1.1102; Crude Oil (WTI): 55.88;  Gold (Spot): 1502

 

Best Regards, ARBIND
25 Oct 2019

THE INNER TRANQUILLITY IS PERMEATING SERENITY INTO SURROUNDINGS. WISHING A COMPOSED DAY AHEAD.

Macro Economic News 24 Oct 2019

 

India calls for reforming Non-Aligned Movement. IMF sees Indian economic growth rebounding to 7 per cent next fiscal. India has lifted the price at which it buys locally produced new-season wheat but the rise was the lowest in five years. Rating agencies see risk of contagion in India's financial sector is rising. Bond defaults are the highest on record as India’s economy slows. India announced an almost $8 billion plan to help loss-making state telecom providers BSNL and MTNL catch up with private competitors, including a merger of the two companies. The global auto industry is going through a shakeout rarely seen outside recessions. It is hitting structural headwinds that are raising costs and constraining sales—and slowing the global economy. EU member states delayed a decision on whether to grant Britain a three-month Brexit extension, while Prime Minister Boris Johnson said if the deadline is deferred to the end of January he would call an election by Christmas. Japan factory activity shrinks at quickest pace since 2016 in October - flash PMI. Singapore central bank chief says slowdown may be nearing end.

 

FINANCIAL TIMES

[I]  Moscow emerges as powerbroker after Putin-Erdogan pact

[I]  Tusk seeks EU consensus on fresh Brexit delay

[I]  Ross looks to negotiations to ease trade dispute with EU

[I]  Economic malaise behind Latin America’s year of unrest

[I]  Russia looks to translate Gulf’s warm welcome to cold cash

[I]  Most humans can’t resist the lure of luxury living

 

REUTERS

[I]  India announces $8 billion plan to revive BSNL, MTNL

[I]  Risk of contagion in India's financial sector rising - rating agencies 

[I]  Pound pauses for breath on Brexit limbo, dollar stable

[I]  Japan factory activity shrinks at quickest pace since 2016 in October - flash PMI

[I]  Chile sees first major organised labour strikes since president pledged social reforms

[I]  India raises wheat buying price, makes exports unviable

[I]  EU keeps UK waiting on Brexit delay, Johnson gears for an election

[I]  Workers in pain: Employers take a new twist to prevent costly injuries

[I]  UK-EU regulatory dialogue key to post-Brexit financial trade - banking official

[I]  China implementing new rules to make business easier - state planner

 

BLOOMBERG 

[I]  Singapore Slowdown May be Nearing End, Central Bank Chief Says

[I]  Bargain Hunters Revel as Hong Kong Businesses See Life or Death

[I]  U.S. Currency Manipulation Threat Puts Asia Nations on Guard

[I]  Fourth Rate Cut Is in the Cards for Bank Indonesia

[I]  Global Takeovers Drop to Eight-Year Low

[I]  Vulnerable Bank Stocks in India Are a Risk for Index Investors

[I]  Bond Defaults Are the Highest on Record as India’s Economy Slows

[I]  Unhappy Americans, Asia’s Currency Risk, ECB vs Germany: Eco Day

[I]  U.K.’s Dirty Money Trail Leads to Private Schools, Crocodile Handbags

[I]  Final Countdown to Draghi Features Five Rate Decisions in Region

[I]  Mario Draghi Reaches the End of His Fight to Save Euro

 

WALL STREET JOURNAL

[I]  ‘Peak Car’ Is Holding Back the Global Economy

[I]  Fed to Increase Temporary Liquidity Available To Markets

[I]  Rising California Gasoline Prices Highlight Growing Divide in U.S.

[I]  Trump Administration Sues California Over Cap-and-Trade Market

[I]  Does Oregon Have the Answer to High Housing Costs?

 

BUSINESS LINE

[I]  Centre approves norms to grant ownership in Delhi’s unauthorised colonies

[I]  Companies with a minimum net worth of ₹ 250 crore can now sell petrol and diesel

[I]  IMF sees Indian economic growth rebounding to 7 per cent next fiscal

[I]  CCEA approves new MSP rate for rabi crops, wheat floor price goes up to Rs 1925

[I]  IMD sounds cyclone alert in Arabian Sea

 

ECONOMIC TIMES

[I]  India's banking sector stares at a bigger crisis

[I]  India calls for reforming Non-Aligned Movement

[I]  IMF doesn't think India's bad days will stay

[I]  Why the US needs more of India’s best and brightest

[I]  How mortgage lending became a hot potato

[I]  How are RBI rate cuts affecting bond yields and rupee dynamics

[I]  Bumper harvest in Jammu & Kashmir keeps apple prices low

[I]  Govt hikes MSP for wheat by Rs 85/qtl; pulses up to Rs 325/qtl

[I]  India unlikely to benefit from US-China trade tensions: EIU

[I]  Non-personal data panel eyes public consultation

 

BUSINESS STANDARD

[I]  India Inc Q2 earnings start on positive note, tax rate cut boosts profit

[I]  Govt approves BSNL-MTNL merger, clears Rs 70,000-crore relief package

[I]  Govt relaxes fuel retailing norms, private firms can set up petrol pumps

[I]  Agents of foreign firms seek GST exemption, cite govt body clarifications

[I]  India is likely to move up in Ease of Doing Business report of World Bank

[I]  Cabinet approves agreement with other countries in medicine, science & tech

[I]  Mauritius' regulator red-flags removal of investment status by Sebi

[I]  P-note investments dip for fourth straight month in Sept at Rs 76,611 cr

 

MARKETS (07:30 am)

[I]  SGX NIFTY Fut: 11669;  USDINR DGCX: 70.7725;  DJIA Mini: 26809;  FTSE 100 Fut: 7230;  NIKKEI 225 Fut: 22760;  EUR-USD: 1.1140; Crude Oil (WTI): 55.55;  Gold (Spot): 1493

 

Best Regards, ARBIND
24 Oct 2019