MACRO ECONOMIC NEWS

LET THE ALIVENESS AND EXCITEMENT PERMEATE THIS WEEK. WISHING A PASSIONATE WEEK AHEAD.

Macro Economic News 20 Jan 2020

 

The European Central Bank, Bank of Japan and Bank of Canada are leading the charge this week with their first interest-rate meetings of 2020, each of which may set the tone for the year ahead. ECB will discuss on whether to change their inflation target while in Tokyo, central bank officials are poised to keep their monetary stance unchanged as they confront growing expectations for eventual tightening. Meanwhile the Bank of Canada is also expected to stay on hold. Officials in India and the U.S. are preparing a limited bilateral trade agreement that could be unveiled during a visit by President Trump to New Delhi in the coming weeks. Boom in emerging market corporate debt stirs fears that lack of liquidity could lead to violent price declines in a crisis. Shadow banks have experienced their first fall in assets since 2008, according to new data from the Financial Stability Board, as a Chinese crackdown and stock market declines threw the sector's growth. China keeps lending benchmark LPR steady for second straight month in January while it also unveils plan to reduce single-use plastic by 2025. According to the latest data from the International Monetary Fund, India's growth premium over the emerging economies (EMs) will hit a seven-year low in 2019-20 (FY20) and an 18-year low against the developed economy, including the US.

 

FINANCIAL TIMES

[I]  Brussels alarmed by UK vow to diverge from EU rules

[I]  Boom in emerging market corporate debt stirs fears

[I]  US boosts funding of tech companies helping Iran protests

[I]  ECB fights consumer perception of high inflation

[I]  Shadow bank assets fall for first time since 2008

[I]  State oil companies underprepared for energy transition

 

REUTERS

[I]  China keeps lending benchmark LPR steady for second straight month in January

[I]  Dollar holds gains as investors cheer U.S. economic outlook

[I]  As Brexit nears, UK's Johnson pushes for deeper trade ties with Africa

[I]  Honduras vows to fight corruption after ending anti-graft body's mandate

[I]  Australian government says to support tourism industry as bushfires recede

[I]  Yield curve's still weird. Fed's Bullard is okay with that

[I]  EU industry chief to dismiss fears strict security rules could delay 5G

[I]  UK's Javid aims to double UK growth after Brexit: FT

 

BLOOMBERG 

[I]  Bond-Market Jolt Will Have to Wait Ahead of Central-Bank Bonanza

[I]  China Unveils Plan to Reduce Single-Use Plastic by 2025

[I]  London Luxury House Sales Rebound as Buyers Race to Beat New Tax

[I]  Oil Jumps After Unrest Hits Key OPEC Producers Libya and Iraq

[I]  BOJ Expected to Stand Pat, Raise Growth Forecast: Decision Guide

[I]  Emerging Markets Yearn for Growth as Yield Buffer Evaporates

[I]  BOE Rate Cut May Be Coming Even If Key Economic Number Improves

[I]  Trio of G-7 Central Banks May Set Tone for 2020: Eco Week Ahead

 

WALL STREET JOURNAL

[I]  Trump Wields U.S. Economic Might in Struggles With Adversaries, Allies

[I]  Employers Pull Back on Posting New Jobs

[I]  China’s Slowing Growth Underlines Stress Facing Its Economy in 2020

[I]  U.S., India Draft Trade Pact for Unveiling in Possible Trump Visit

[I]  Fed’s Harker: Data Will Determine Course of Interest Rate Policy

[I]  What’s Next on the President’s Trade Agenda? Europe

[I]  The Dog That Didn’t Bark: What Soybean Prices Say About Trade Deal

[I]  Economy Week Ahead: ECB, BOJ Meetings; U.S. Existing Home Sales

 

BUSINESS LINE

[I]  Commerce Ministry wants tighter curbs on duty-free sale of alcohol, tobacco

[I]  Waive tax on senior citizens savings schemes’ interest: SBI report

[I]  Govt’s reforms have been transformative: Sitharaman

[I]  Commerce Minister Piyush Goyal to lead Indian delegation to WEF 2020

[I]  Govt makes it easier for pensioners to submit life certificates

 

ECONOMIC TIMES

[I]  Feb 8 may end up reshaping Indian politics

[I]  Government plans to extend urad imports till June on likely domestic shortage: Sources

[I]  Trade deficit checks: Curbs on duty-free cigarettes, liquor proposed

[I]  Trump, Merkel and Imran to visit WEF at Davos

[I]  National database of workers in informal sector in the works

[I]  No dearth of money, plan to spend Rs five lakh crore on infrastructure: Gadkari

[I]  Government may include off-budget spending for a clearer picture

[I]  Government considering specific excise duty on ATF

 

BUSINESS STANDARD

[I]  Global carmakers set to firm up India strategy amid auto sales slump

[I]  Govt likely to abolish dividend distribution tax in upcoming Budget

[I]  India's GDP growth premium over EMs to hit 7-year low of 1.1%: IMF

[I]  No wish for laws treating businesses with suspicion: FM Nirmala Sitharaman

[I]  Centre considering specific excise duty on aviation fuel to curb volatility

[I]  Climate change threatens around half of world GDP, says WEF study

[I]  US companies could win lucrative job of cleaning up China's bad debt

 

MARKETS (08:00 am)

[I]  SGX NIFTY Fut: 12401;  USDINR DGCX: 71.1175;  DJIA Mini: 29348;  FTSE 100 Fut: 7675;  NIKKEI 225 Fut: 24098;  EUR-USD: 1.1097; Crude Oil (WTI): 59.16;  Gold (Spot): 1557

 

Best Regards, ARBIND
20 Jan 2020