MACRO ECONOMIC NEWS

LET THE WEEKEND RECREATE THE SPACE FOR MIND, MONEY, MATTER AND MATERIAL. WISHING A MAGNIFICENT WEEKEND AHEAD.

Macro Economic News 04 Jan 2020

 

FED officials said that broad structural changes in the global economy have held down interest rates, inflation and economic growth in ways that are difficult for central bankers to address. Although at their mid-December meeting, they appeared comfortable holding interest rates steady, while shrugging off deepest slump in U.S. factory sector in more than 10 years and expressing caution about metastasizing tensions in the Middle East. Australia pins hopes on new wave of industrialisation while authorities have urged Australians to evacuate parts of the eastern states of Victoria and New South Wales to escape bushfires. Indonesia's air force seeded clouds with salt to try to stop rainfall reaching the slowing sinking capital after deadly flash floods and landslides triggered by some of the heaviest rain ever recorded. India's gold imports in 2019 fell 12% from a year ago to the lowest level in three years as retail buying faltered in the second half after local prices rallied to a record high. Rabi sowing tops 600 lakh ha on higher coverage whereas unseasonal rains again in Maharashtra damage crops. Budget session of Parliament may start from Jan 31 while Nobel laureate Abhijeet Banerjee opines of no need for further reduction in corporation tax. Dividend payout ratio for foreign-owned insurance intermediaries is reaching nearly 75% coinciding Forex reserve hitting record high. More than Rs 4 trillion liquidity surplus in banks may be a worry for it leading to inflation although large and medium enterprises see seven-year fall in credit quality during April-Dec.

 

FINANCIAL TIMES

[I]  Fed minutes show confidence in 2020 interest rate path

[I]  Trend lifts revenues at a time when UK spending cuts have hit finances

[I]  US-Iran tension pumps up oil price and jolts markets

[I]  Australia pins hopes on new wave of industrialisation

[I]  High-tech manufacturing emerges as solution to reduce nation’s reliance on mining for exports

[I]  Living standards grow at slowest rate since war

[I]  Employment soars but poor productivity hits wage increases

 

REUTERS

[I]  U.S. Democratic contenders condemn Iran strike, warn of war

[I]  U.S. sees no domestic threat but New York braces for Iranian retaliation

[I]  What rising Middle East tensions mean for oil market

[I]  Southeast Australia faces another dangerous day for bushfires

[I]  India 2019 gold imports hits three-year low as record high prices dent demand

[I]  Australia urges people to flee as fires set to surge at weekend

[I]  Indonesia seeds clouds to keep them away from flooded capital

[I]  Fed officials kick off 2020 with optimistic view of U.S. economy 

[I]  U.S. factory sector in deepest slump in more than 10 years

 

BLOOMBERG 

[I]  Fed Officials Saw Rates on Hold, With an Eye on Downside Risk

[I]  Iran Flashpoint Confronts Investors With Unpriceable 2020 Risks

[I]  U.S. Factory Gauge Unexpectedly Falls to Lowest Since 2009

[I]  Iran-Driven Oil Rally a Boon to Most-Beleaguered U.S. Producers

[I]  The Big 2020 Yield-Curve Steepening Bet Stumbles Out of the Gate

[I]  Predictions for the Start of a New Year

[I]  BOE Looks to Jamaica Central Bank Reggae for Communication Ideas

[I]  The ECB Policy Most Disliked in Germany Is Now Run by a German

 

WALL STREET JOURNAL

[I]  Fed Minutes Show Comfort with Prolonged Pause on Rates

[I]  Fed Officials Say Rate Policy in Right Place for Now, Downplay Factory Data

[I]  Fed Officials Say Global Economic Shift Is Keeping Rates Low

[I]  U.S. Manufacturing Shrinks for Fifth Month

[I]  Fed’s Barkin Says He’s Hopeful Uncertainty Is Declining

[I]  Fed’s Evans Says Weak ISM Is Surprising, But Confidence Unshaken

 

BUSINESS LINE

[I]  As exports slide, jewellery council plans fresh strategy to tap new markets

[I]  CBDT extends till Jan 31 deadline for compounding of I-T offences

[I]  Govt releases FAQs on e-invoicing under GST

[I]  At 9.2%, salary growth in India set to be the highest in Asia

[I]  Unseasonal rains again in Maharashtra damage crops

[I]  Govt may blink on industry’s demand to create SMP buffer

[I]  Rabi sowing tops 600 lakh ha on higher coverage

 

ECONOMIC TIMES

[I]  7 disruptions that might strike your finances

[I]  Budget session of Parliament may start from Jan 31

[I]  Forex reserve hits record high of $457.46 billion

[I]  RBI to sell cash management bills for Rs 30,000 crore

[I]  Tea exports fall in first 11 months of 2019

[I]  Inflation, CAD under US-Iran tensions ahead of Budget

 

BUSINESS STANDARD

[I]  No need for further corporation tax cuts, says Abhijit Banerjee

[I]  US-Iran tensions may spell trouble for India's oil future and economy

[I]  Liquidity surplus in banks races past Rs 4 trn. Will it lead to inflation?

[I]  Dividend payout ratio 75% for foreign-owned insurance intermediaries

[I]  Large, medium enterprises see 7-year fall in credit quality in April-Dec

[I]  11 states record retail price inflation rate of over 6% in November

[I]  After standardising health insurance, Irdai looks at rating of hospitals

 

Best Regards, ARBIND
04 Jan 2020