MACRO ECONOMIC NEWS

GOD MADE US WITH MINDS TO THINK FREELY, WITH HEARTS TO LOVE FREELY AND WILLS TO OBEY FREELY. WISHING A LIBERATED DAY AHEAD.

Macro Economic News 24 Jan 2020

 

China is struggling to contain a deadly new coronavirus that has already infected hundreds. The experience of SARS in 2003 suggests there will be a substantial hit to growth, at least in the short term. What really matters is how fast the spread is contained. US and France agree deal on digital tax while The Trump administration expects to secure trade deals with the European Union and Britain this year, but not India. Japan December core consumer inflation ticks up, but far from BOJ's target as slowing contraction in Japan factory activity eases fears of recession. Central banks are increasingly dabbling in digital currencies. RBA inflation target of 2%-3% hasn’t reached it’s the mid-point in more than half a decade but is set to surface as disasters fuel prices. A sharp rise in headline inflation would therefore shock markets, which are pricing in further RBA cuts this year. While Eurozone bankers in fresh push against negative rates, RBI is expected to hold rates on inflation concerns and likely fiscal boost as per Reuters poll. Insider trading by Indians is on the rise in the US coinciding with India ranking 80th in Corruption Perception Index. The government is expected to allow direct listing of Indian companies abroad as part of plan to allow them access a larger pool of capital and enable the move towards fuller account convertibility. RBI has allowed foreign portfolio investors to invest ₹1.5-lakh cr under ‘voluntary retention route’. Amid economic slowdown, housing sales has fallen by 9% in December quarter.

 

FINANCIAL TIMES

[I]  Alarm spreads over coronavirus despite China travel curbs

[I]  ECB kicks off policy battle as Lagarde launches strategic review

[I]  Eurozone bankers in fresh push against negative rates

[I]  US and France agree deal on digital tax

[I]  Candidate for EU bank watchdog rejected by lawmakers

[I]  German start-ups boosted by record number of drivers leasing cars

 

REUTERS

[I]  RBI to hold rates on inflation concerns, fiscal boost likely: Reuters poll

[I]  India likely to fund some $28 billion of 2020/21 expenditure via off-budget borrowings - sources

[I]  Japan December core consumer inflation ticks up, but far from BOJ's target

[I]  Slowing contraction in Japan factory activity eases fears of recession: flash PMI

[I]  U.S. officials see EU, British trade deals in 2020, not India

[I]  U.S. to unveil crackdown on counterfeit, pirated e-commerce goods

[I]  Gloomy economic outlook overshadowed BOJ's Dec. meeting

[I]  Global economy snapback to prove elusive despite market joy - Reuters polls

[I]  ECB's Lagarde launches policy overhaul that will leave no stone unturned

 

BLOOMBERG 

[I]  Singapore’s Leader Says Economic Rebound Depends on Global Calm

[I]  Big Economic Reads: Climate and Trade Qualms Echo in the Alps

[I]  Bank of Canada Pivot Raises Stakes for Retail Sales Numbers

[I]  Lagarde Sets ECB on Policy Autopilot While It Stops to Think

[I]  Central Banks Are Increasingly Dabbling in Digital Currencies

[I]  RBA Inflation Target Set to Surface as Disasters Fuel Prices

 

WALL STREET JOURNAL

[I]  Wuhan Virus Could Hit China’s Economy Harder Than SARS

[I]  U.S. Existing-Home Sales Wrapped Up 2019 on Solid Note

[I]  Europe Girds for Trade Battle

[I]  After Bankruptcy, Nearly Half of Retailers Close All Stores

[I]  Shadow Banks Come Into the Light in Global Lending

[I]  U.S. Seeks to Reset Clock on China Engagement

 

BUSINESS LINE

[I]  RBI doubles FPIs’ debt investment limit

[I]  Textile industry worried as Govt scraps export sops

[I]  BS-VI emission norms to force a 10-12 per cent rise in prices of two-wheelers: ICRA

[I]  India, Brazil to discuss trade pact, cooperation in bio-fuel during Bolsonaro’s visit

[I]  First look: India may have a good monsoon in 2020

 

ECONOMIC TIMES

[I]  India ranked 80th in Corruption Perception Index

[I]  Soon, Indian cos can directly list overseas

[I]  Insider trading by Indians on the rise in US

[I]  India plans fourth Summit with Africa in September

[I]  Public spending's crowding-out effect short-term in India: Study

[I]  Niti Aayog to develop National Data Platform

[I]  India Inc expecting budget to lower personal income tax rates

[I]  Govt mulls mediation to solve tax issues with companies

 

BUSINESS STANDARD

[I]  Govt seeks Rs 10,000-cr interim dividend from RBI to bridge fiscal gap

[I]  PE, VC investments in India grew 28% to $48 billion in 2019, says EY data

[I]  Housing sales fall 9% in December quarter amid economic slowdown

[I]  137 countries on board for OECD digital tax plan: Gurria at WEF Davos

[I]  Banks continue to see drop in small study loans, but high-value ones rise

[I]  WEF unveils new internet security principles to help protect 1 bn users

 

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 12186;  USDINR DGCX: 71.3625;  DJIA Mini: 29141;  FTSE 100 Fut: 7187;  NIKKEI 225 Fut: 23782;  EUR-USD: 1.1051; Crude Oil (WTI): 55.66;  Gold (Spot): 1561

 

Best Regards, ARBIND
24 Jan 2020