MACRO ECONOMIC NEWS

HAPPINESS IS TRANSCENDENCE FROM “WAY OF WISHING” TO “WAY OF BEING” THROUGH “WAY OF LIVING”. WISHING A WISHFUL DAY AHEAD.

Macro Economic News 14 Jan 2020

 

At a White House ceremony Wednesday, the world’s two largest economies will sign a compromise that calms their trade war.  The U.S. ended its designation of China as a currency manipulator just two days before signing the first phase of the trade deal. The federal deficit totalled $1.02 trillion during 2019 - the first calendar year the deficit has exceeded $1 trillion since 2012. While China’s trade with U.S. fell in 2019, widening global surplus, China car sales tumbled for second year in row. Germany’s shift to electric cars puts 400,000 jobs at risk whereas Investors are rushing to place bets on UK rate cut in January. Nigeria ratifies finance law in boost for small business. India’s annual retail inflation accelerated to 7.35% in December, the highest in more than five years, strengthening views that the central bank will once again hold its key policy rates unchanged at next month's review although threat of stagflation still looms for former world-beating economy India. Kharif crops production is likely to decline up to 53.3 per cent due to erratic weather whereas Banks, telcos, insurers may be exempted from GST e-invoices. During the budget 2020, Central Government may address inverted duty structure while India Inc pitches for job creation, higher infra spending although FY21 fiscal deficit likely to be around 3.5% of GDP. Nomura has downgraded Indian equities from 'overweight' to 'neutral'.

 

FINANCIAL TIMES

[I]  US lifts China ‘currency manipulator’ tag ahead of trade deal

[I]  Investors rush to place bets on UK rate cut in January

[I]  ECB new faces give investors pause for thought over policy

[I]  China car sales tumble for second year in row

[I]  Germany’s shift to electric cars puts 400,000 jobs at risk

[I]  Nigeria ratifies finance law in boost for small business

[I]  South Korean inheritance tax threatens family business

[I]  Japanese regulator aims to shake up regional banks

 

REUTERS

[I]  Rising food prices push December retail inflation to over five-year high

[I]  North Korea remains open to dialogue with U.S. - South Korea's Moon

[I]  EU to unveil financial plan to shift to green economy

[I]  U.S. Treasury drops China currency manipulator label ahead of trade deal signing

[I]  Melbourne smothered in smoke as Australian bushfires burn despite cool change

[I]  U.S., Japan, EU to meet on China ahead of Wednesday trade deal signing - USTR

[I]  Global banks urge EU to 'improve' market access as Brexit looms

[I]  Australian economic outlook overshadowed by bushfires, drought - Reuters poll

 

BLOOMBERG 

[I]  China’s Trade With U.S. Fell in 2019, Global Surplus Widened

[I]  Stagflation Threat Looms for Former World-Beating Economy India

[I]  As Brexit Nears, Banks Plead for Easier Access to Europe Markets

[I]  Switzerland Back on U.S. FX Watchlist; Franc Holds Near Highs

[I]  FX Manipulator No More, Spiraling Debt, Hong Kong Hope: Eco Day

[I]  Bank of Korea’s Direction Is Unclear Until Moon Sheds Light on Board

[I]  Rush Out of Dollars Into Yuan Signals Good Days Ahead for Risk

[I]  Fed’s Mission to Control Benchmark Rate May Spur Another Tweak

 

WALL STREET JOURNAL

[I]  How the U.S. and China Settled on a Trade Deal Neither Wanted

[I]  U.S. Removes China’s Currency Manipulator Label Ahead of Trade Deal

[I]  U.S. Budget Gap Continued to Widen in 2019

[I]  New York Fed Paper Warns a Cyberattack on Banks Could Cause Major Disruption

[I]  Fed’s Rosengren Sees Higher Inflation Among This Year’s Biggest Risks

[I]  Fed’s Bostic Says Economy Doing Fine, Fed Should Stand Pat On Rates

 

BUSINESS LINE

[I]  Clean power push: Govt adds over 50,000 MW in 5 years

[I]  Budget 2020: Central Government may address inverted duty structure, say sources

[I]  Insolvency ordinance: Home buyers get some reprieve as SC orders status quo on pending cases

[I]  Revenue Dept lens on GST refunds from 2017 as data analytics reveals 931 fraud cases

[I]  Maharashtra sugar output may double next year

 

ECONOMIC TIMES

[I]  Inflation hits highest level in 6 years

[I]  India Inc gets a breather on CMD norms

[I]  RBI buys net $6.93 billion in currency market in November

[I]  Kharif crops production likely to decline up to 53.3 per cent due to erratic weather

[I]  Banks, telcos, insurers may be exempted from GST e-invoices

[I]  Government may address inverted duty structure in Budget

 

BUSINESS STANDARD

[I]  Banks, bankers may face fines for poor progress over RBI's June 7 circular

[I]  Budget 2020: FY21 fiscal deficit likely to be around 3.5% of GDP

[I]  Budget 2020: India Inc pitches for job creation, higher infra spending

[I]  Recovery in economic growth may be marred by drastic expenditure cuts

[I]  Temporary or permanent transfer of intellectual property attracts 12% GST

[I]  Nomura downgrades Indian equities from 'overweight' to 'neutral'

 

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 12373;  USDINR DGCX: 70.8075;  DJIA Mini: 28884;  FTSE 100 Fut: 7558;  NIKKEI 225 Fut: 24027;  EUR-USD: 1.1139; Crude Oil (WTI): 58.20;  Gold (Spot): 1540

 

Best Regards, ARBIND
14 Jan 2020