MACRO ECONOMIC NEWS

GOD OF WISDOM BLESSES US ALL WITH THE ULTIMATE PURPOSE OF OUR EXISTENCE. WISHING AN INSIGHTFUL DAY AHEAD.

Macro Economic News 29 Jan 2020

 

IMF sees medium-term risks to global economy; more easing not the answer while investors seek clarity from Fed on balance sheet expansion. According to a Congressional Budget Office report U.S. national debt will rise to 98% of gdp by 2030 while sustained federal budget deficits and debt will hit the highest levels since World War II. U. S. business investment fell in December, according to a closely watched proxy measure - the latest sign that manufacturing remains on uneven footing. FED officials are likely to hold interest rates steady in coming months while the focus of their meeting this week shifts to fine-tuning their control of short-term rates. The eurozone’s main banking regulator encouraged lenders to consider mergers and acquisitions to boost profits, reinforcing an increasingly vocal message to bankers across the region whereas Six eurozone banks fall short of ECB capital requirements. Portugal is expected to curb tax breaks for wealthy foreigners; Australian headline inflation exceeds estimates as drought bites and Moody’s says it’s too early to assess South Africa’s progress. Indian government is expected to raise spending on infrastructure and cut some personal tax in its 2020/2021 budget, to spur consumer demand and investment, government sources and economists said. With rise in acreage and surge in yields, record production of Rabi wheat is expected. MCA notifies easier winding-up rules for small firms to ease shutting business.

 

FINANCIAL TIMES

[I]  US attacks UK’s decision on Huawei

[I]  Six eurozone banks fall short of ECB capital requirements

[I]  Portugal to curb tax breaks for wealthy foreigners

[I]  Abe nominates dovish economist to Bank of Japan

[I]  Spectre of stagflation looms over India and China

[I]  Investors seek clarity from Fed on balance sheet expansion

[I]  UK competition policy undermines British start-ups

 

REUTERS

[I]  UK seeks to end automatic rights for EU vessels to fish in British waters

[I]   Australia inflation edges up but still below target

[I]  Risk currencies steady as investors assess virus fallouts 

[I]  India's budget likely to raise spending to revive economic growth

[I]  White House did not ask for a suspension of U.S.-China flights - official

[I]  BOJ debated scope for policy review in January - summary

[I]  Decline in UK shop prices eases in January - BRC

 

BLOOMBERG 

[I]  Australian Headline Inflation Exceeds Estimates as Drought Bites

[I]  Hong Kong Reopens to Crisis as Virus Tests Market Resilience

[I]  Market Linchpin Rejects Argument It’s to Blame for Repo Chaos

[I]  ECB’s Hernandez de Cos Says WTO Needs Makeover to Stay Relevant

[I]  No End to Brexit Blight for Economy as Britain Leaves the EU

[I]  Moody’s Says It’s Too Early to Assess South Africa’s Progress

 

WALL STREET JOURNAL

[I]  U.S. National Debt Will Rise to 98% of GDP by 2030, CBO Projects

[I]  Durable-Goods Orders Rise, Masking Manufacturing Weakness

[I]  Fed Faces Decisions on Its Balance Sheet

[I]  European Banking Regulator Encourages Mergers to Boost Profits

[I]  Outbreak Tests Faith in Global Economy

[I]  Banks Face Eased Volcker Restrictions on Venture-Capital Funds

 

BUSINESS LINE

[I]  India’s crude steel output rises 1.8 per cent to 111.2 million tonnes in 2019: Report

[I]  Just one out of 4 assessees has submitted GST audit conciliation report so far for FY18

[I]  What is the aam aadmi hoping for in this Budget?

[I]  Rise in acreage, surge in yields to push rabi wheat production to new highs

 

ECONOMIC TIMES

[I]  NBFCs' wishlist to emerge from the shadows

[I]  Record grain output in 2020; horticulture to grow too

[I]  NBFCs seek setting up of permanent refinance window in Union Budget

[I]  India's budget likely to raise spending to revive economic growth

[I]  Cracking the whip: E-comm policy to deal with online counterfeits

[I]  Power companies feel divestment may increase cost of borrowings

[I]  The top officials working behind the scenes on India’s budget

 

BUSINESS STANDARD

[I]  Bankers get shield from fraud heat; boards of PSBs to be held accountable

[I]  From tax rate cuts to job creation, India Inc sees a populist Budget

[I]  MCA notifies winding-up rules: Shutting business now easier for small firms

[I]  IMF sees medium-term risks to global economy; more easing not the answer

 

MARKETS (07:30 am)

[I]  SGX NIFTY Fut: 12101;  USDINR DGCX: 71.4125;  DJIA Mini: 28733;  FTSE 100 Fut: 7428;  NIKKEI 225 Fut: 23344;  EUR-USD: 1.1016; Crude Oil (WTI): 53.96;  Gold (Spot): 1565

 

Best Regards, ARBIND
29 Jan 2020