MACRO ECONOMIC NEWS

LET THE DAY BE A DAY FULL OF CELEBRATION AS THE FIRST MONTH ENDS ON FRIDAY TOO. WISHING A MEMORABLE DAY AHEAD.

Macro Economic News 31 Jan 2020

 

Britain bows out of EU with optimism and regret while Ireland warns no special favours for UK in EU trade talks. The US economy grew at a rate of 2.3% last year, slowest annual pace since 2016, settling into a steady pace of roughly 2% that has prevailed during the decade-old economic expansion. U.S. GDP growth masks biggest decline in imports since 2009. Federal Reserve officials, after holding rates steady on Wednesday, indicated in a post-meeting statement and press conference that they were focused on “global developments” in deciding what to do next about interest rates.  U.S. life expectancy increased in 2018 for the first time in four years as deaths from drug overdoses dropped. The Bank of Canada might need to look beyond its usual two-year horizon when considering the impact of monetary policy on consumer debt and housing markets. Mexican economy stagnates in fourth quarter whereas Eurozone jobless rate slides to 12-year low as sentiment improves. China's factory activity stalls as virus risks grow while Japan's fourth-quarter factory output falls at fastest pace on record with steady jobless rate in December at 2.2% and rising CPI.

 

FINANCIAL TIMES

[I]  Britain bows out of EU with optimism and regret

[I]  Coronavirus poses challenge for China’s centralised system

[I]  Diplomats warn over heady vision of future UK-EU relationship

[I]  Ireland warns no special favours for UK in EU trade talks 

[I]  Closure of Russia-China border sparks trade fears

[I]  UK battles to define defence and security role post-Brexit

[I]  US economy grows at slowest annual pace since 2016

[I]  Eurozone jobless rate slides to 12-year low as sentiment improves

[I]  Mexican economy stagnates in fourth quarter

 

REUTERS

[I]  State of emergency declared as bushfire threatens Australian capital

[I]  U.S. tells citizens not to travel to China as virus toll tops 200

[I]  China's factory activity stalls as virus risks grow

[I]  Japan's fourth-quarter factory output falls at fastest pace on record

[I]  Indian smartphone makers fear supply disruptions due to China virus

[I]  Japan's fourth-quarter factory output falls at fastest pace on record 

[I]  Japan jobless rate steady in December at 2.2% 

[I]  Tokyo Jan. core CPI rises 0.7 percent year-on-year

 

BLOOMBERG 

[I]  China’s Factories Were Struggling Even Before the Virus Worsened

[I]  India Braces for Deficit Blowout, Higher Borrowing: Budget Guide

[I]  Argentina Cuts Key Interest Rate for Fifth Time Under Fernandez

[I]  Investors Flee Junk-Bond Funds, Pour Record Cash Into High-Grade

[I]  U.S. GDP Growth Masks Biggest Decline in Imports Since 2009

[I]  Home Loan Rate at Lowest Since September Pressures Mortgages

 

WALL STREET JOURNAL

[I]  U.S. Economy Heads Into 2020 With Steady Growth

[I]  The World Is the Dog, the Fed Is the Tail

[I]  U.S. Regulators Propose Removing Limit on Banks’ Ownership of Venture Capital Funds

[I]  Ross: Coronavirus Outbreak Could Help Bring Jobs Back to U.S.

[I]  Life Expectancy Rises in U.S.

[I]  Bank of Canada Might Need to Look Beyond Two-Year Horizon in Setting Rates

[I]  Newsletter Special Report: GDP Steady, Outlook Stable

 

BUSINESS LINE

[I]  Textile exporters bleed as Govt asks them to repay sops availed

[I]  Coronavirus impact: Shutdown in China may hit Indian companies hard

[I]  Govt grants two-year extension to rate discount scheme for coastal vehicle carriers

[I]  Domestic airline industry may post net loss of ₹ 7,800 crore: ICRA

[I]  Govt may trim budget allocation for PM-Kisan

 

ECONOMIC TIMES

[I]  Your bank deposit cover may go up by Rs 2 lakh

[I]  Global currency markets show signs of surviving virus scare

[I]  Not fiscal stimulus, alternate measures needed to boost economy: Rajiv Kumar

[I]  UK-EU divorce on Friday; India on target list for post-Brexit UK trade campaign

[I]  Government may cut down on foreign training of officials

[I]  Government restores 2% additional duty benefit to mobile phone export

 

BUSINESS STANDARD

[I]  Budget 2020: Tax revenue estimate for FY20 likely to be slashed 4-6%

[I]  Global oil demand could nearly halve if coronavirus threat escalates

[I]  LTCG, dividend distribution tax roll-back on top of Budget wishlist

[I]  India's food ministry seeks over $28 billion for food subsidies: Report

 

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 12082;  USDINR DGCX: 71.6450;  DJIA Mini: 28821;  FTSE 100 Fut: 7363;  NIKKEI 225 Fut: 23268;  EUR-USD: 1.1026; Crude Oil (WTI): 53.23;  Gold (Spot): 1572

 

Best Regards, ARBIND
31 Jan 2020