MACRO ECONOMIC NEWS

LET 2020, UNFOLD THE WONDERFUL WORLD OF ADOLESCENT ASPIRATIONS, AWESOME ADVENTURES AND ANGELIC ADMIRATIONS. WISHING A DECOROUS DECADE AHEAD.

Macro Economic News 02 Jan 2020

 

In 2020’s opening week, some economic news nuggets could give clues about how the new year will unfold, with new factory data for China, Europe and the U.S., and the Fed could offer more monetary-policy clarity. President Trump said he would sign the phase-one trade deal with China on Jan. 15 and will later travel to Beijing for talks on a broader pact. Chinese officials kicked off the new year—one that is expected to present new challenges for the world’s second-largest economy—by signalling a tilt toward easier money. With China facing the highest consumer inflation in almost a decade and the slowest economic growth since the early 1990s, some experts are fretting about a once unthinkable prospect there: stagflation. PBOC stresses policy flexibility as economic pressures persist, cuts banks' reserve ratios again, frees up $115 billion to spur economy whereas Pakistan inflation touches 12.6% in December and Singapore economy expands 0.7% in 2019, slowest in a decade. High-grade issuers may sell $120 billion of debt in January spree. India-Mauritius FTA nears finalisation while FDI rises 15% during Apr-Sept period. Gross GST collections cross Rs One lakh cr in December 2019 while Infra projects' cost overrun crosses Rs 4-lakh crore mark. Auto sales continue to slide in Dec, likely to remain subdued for some time. India is expected to struggle to post 5% GDP growth in 2020, largely due to credit squeeze and other cyclical issues while Govt sees nominal GDP at 12.2% till FY22 assuming average inflation of 4%.

 

FINANCIAL TIMES

[I]  Russia fills the void in Cuba left by tougher US embargo

[I]  Do not underestimate Trump’s re-election chances

[I]  A revolution in Africa’s relations with France

[I]  The EU needs to learn the language of power

[I]  Biodiversity is key to action on climate change

 

REUTERS

[I]  India approves third moon mission, months after landing failure

[I]  Singapore economy expands 0.7% in 2019, slowest in a decade

[I]  Singapore fourth-quarter GDP growth picks up on services sector

[I]  Israel's Netanyahu says he will seek immunity in graft cases

[I]  North Korea's leader promises 'new strategic weapon,' leaves room for talks

[I]  Dollar starts new year with a hangover as others find cheer

[I]  China cuts banks' reserve ratios again, frees up $115 billion to spur economy

[I]  Pakistan inflation 12.63% in December - statistics bureau

 

BLOOMBERG 

[I]  China Muni Bond Sales Start Earlier Than Ever as Economy Slows

[I]  The Strongest Major Currency This Year Could Stall Out in 2020

[I]  Why It's A Big Problem That Economists Still Don't Understand Money

[I]  China Bank Boost, Xi Defends China Model, U.S. Consumer

[I]  Singapore’s Economy Slumps in Final Months of 2019

[I]  PBOC Stresses Policy Flexibility as Economic Pressures Persist

[I]  High-Grade Issuers to Sell $120 Billion of Debt in January Spree

[I]  Venezuela Cuts List of Tax-Free Imports to Boost Local Producers

[I]  U.S. Consumer Confidence Unexpectedly Drops on Muted Outlook

 

WALL STREET JOURNAL

[I]  Jobs and Inflation: The Great Trade-Off, Demystified

[I]  Tariffs on Chinese Goods Are Skirted by Some U.S. Shoppers

[I]  Trump Says He Will Sign Phase-One Trade Deal With China on Jan. 15

[I]  China’s Monetary Policy Eases Into the New Year

[I]  Home Prices Rose at a Slightly Faster Pace in October

[I]  South Africa’s Scandal-Hit State Firms Put Economy on ‘Cliff’s Edge’

[I]  Economy Week Ahead: Purchasing Managers, Consumer Confidence, Fed Minutes

[I]  China Is Taking No Chances With Stagflation

 

BUSINESS LINE

[I]  Gross GST collections touch Rs 1.03 lakh cr in December 2019

[I]  FDI rises 15% during Apr-Sept to $26 bn

[I]  India-Mauritius FTA nears finalisation

[I]  LPG price hiked by around ₹20/cylinder across India

[I]  Import duty on crude, refined palm oils cut by 5%

[I]  ‘India will struggle to post 5% GDP growth in 2020’

 

ECONOMIC TIMES

[I]  FDI rises 15 per cent during Apr-Sep to $26 billion

[I]  Reforms in 2020: Enough of Snakes & Ladders for economy

[I]  Bengaluru-Chennai Expressway sees some hope as bids likely soon

[I]  Infra projects' cost overrun crosses Rs 4-lakh crore mark

[I]  PM-Kisan, mandi reforms steal the show in 2019

[I]  All eyes on Nirmala Sitharaman's second Budget for tax relief

 

BUSINESS STANDARD

[I]  In a booster dose, pharma industry gets 'green' signal in New Year

[I]  India's start-up culture concentrated in a few states: RBI survey

[I]  Auto sales continue to slide in Dec, likely to remain subdued for some time

[I]  Tricky predictions: How users, producers may adapt to shared consumption

[I]  Govt slashes import duty on crude, refine palm oil, move to hurt refiners

[I]  Govt sees nominal GDP at 12.2% till FY22; assuming average inflation of 4%

[I]  Industry players lobby for relaxation of offshore fund taxation rules

 

MARKETS (07:30 am)

[I]  SGX NIFTY Fut: 12241;  USDINR DGCX: 71.4850;  DJIA Mini: 28582;  FTSE 100 Fut: 7500;  NIKKEI 225 Fut: 23450;  EUR-USD: 1.1219; Crude Oil (WTI): 61.33;  Gold (Spot): 1519

 

Best Regards, ARBIND
02 Jan 2020