MACRO ECONOMIC NEWS

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Macro Economic News 17 Jan 2020

 

Climate crises in the next 30 years may resemble financial crises in recent decades: potentially quite destructive, largely unpredictable and, given the powerful underlying causes, inevitable. Germany is set to become the first country to drop both nuclear and coal power by 2038. U.N. cautions Global economy is anaemic and incomes are likely to suffer while Reuters poll finds Euro zone slowdown has bottomed but no big bounce in sight. ‘American Exceptionalism’ fades for now as U.S. growth weakens however, economists don’t see any U.S. growth bump from U.S.-China deal and they expect U.S. growth to continue this year and business investment to increase, but the pace of hiring is seen slowing. U.S. Senate passes North America trade deal, Canada still to approve, that replaces Nafta marks a rare moment of bipartisan cooperation on Capitol Hill. The U.S. government will begin issuing 20-year bonds in the first half of 2020. Foreign treasury pile shrinks with China further trailing Japan Bank of England is expected to hold steady on January 30 but chance of a cut high while Turkey delivers fifth rate cut in a row in effort to boost growth and Bank of Korea holds rate amid economic green shoots. Higher hedging costs risk derailing India’s Dollar debt binge. UN lowers India growth forecast and expects momentum to pick up in 2020 while Finance ministry exempts mutual funds from foreign-investor status.

 

FINANCIAL TIMES

[I]  Germany strikes €44bn deal to phase out coal use by 2038 

[I]  UK regulators launch fresh push to switch away from Libor

[I]  EU trade commissioner criticises US-China trade deal

[I]  Turkey delivers fifth rate cut in a row in effort to boost growth

[I]  Britain’s retail banking reform has fallen short

 

REUTERS

[I]  India, U.S. closer to resolving some trade issues - Piyush Goyal

[I]  China posts weakest growth in 29 years as trade war bites, but ends year on firmer note

[I]  Singapore December exports snap nine-month losing streak, but concerns remain

[I]  U.S. Senate passes North America trade deal, Canada still to approve

[I]  Brazil's tribes stride into digital age to defend their culture, forests

[I]  China's 2019 property investment up 9.9% year-on-year, sales fall

[I]  Bank of England to hold steady on January 30 but chance of a cut high - Reuters poll

[I]  Euro zone slowdown has bottomed but no big bounce in sight: Reuters poll

[I]  Global economy anaemic and incomes likely to suffer, U.N. says

[I]  Germany adds brown coal to energy exit under landmark deal

 

BLOOMBERG 

[I]  China’s Economy Grew 6% in Fourth Quarter as Demand Stabilized

[I]  ​​​​​​​Bank of Korea Holds Rate Amid Economic Green Shoots

[I]  ‘American Exceptionalism’ Fades for Now as U.S. Growth Weakens

[I]  Higher Hedging Costs Risk Derailing India’s Dollar Debt Binge

[I]  Foreign Treasury Pile Shrinks With China Further Trailing Japan

[I]  Economists Don’t See Any U.S. Growth Bump From U.S.-China Deal

 

WALL STREET JOURNAL

[I]  Consumer Spending Solid at End of Holiday Shopping Season

[I]  Treasury to Issue New 20-Year Bond in First Half of 2020

[I]  Trump Readies Nominations of Shelton, Waller for Federal Reserve Board Seats

[I]  WSJ Survey: U.S., China Agreement Will Boost Growth

[I]  For Economy, Climate Risks Are No Longer Theoretical

[I]  Senate Passes USMCA, New North American Trade Pact

 

BUSINESS LINE

[I]  ‘Centre is taking steps to revive consumption, growth’

[I]  ‘Banks’ financial health has improved and are now in a position to lend more’

[I]  Maharashtra govt sets up panel to extend relief to farmers with loans of over ₹2 lakh

[I]  Australia gets some relief as thunderstorms put out some bushfires

[I]  India not to be directly affected by US-China deal

 

ECONOMIC TIMES

[I]  Cautious optimism lifts Asian currencies after Sino-US trade deal

[I]  Weak economy likely to halt jump in company bond yields

[I]  Cheaper loans for exporters in the works

[I]  UN lowers India growth forecast; expects momentum to pick up in 2020

[I]  Govt considering hike in customs duty on toys, certain paper, footwear products in Budget

 

BUSINESS STANDARD

[I]  Centre likely to impose 25% safeguard duty on single-mode optical fibre

[I]  Stock of imported edible oil in pipelines, at ports falls to multi-year low

[I]  Govt plans increase in thickness of polyethylene bags to 125 microns

[I]  Finance ministry exempts mutual funds from foreign-investor status

[I]  Sebi's proposal to put cap on fee to put investment advisers in a lurch

[I]  In a major reform, Sebi allows stock exchanges to launch 'options on goods'

[I]  MF industry seeks LTCG easing in commodity, gold ETFs, scrapping of STT

 

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 12348;  USDINR DGCX: 70.0825;  DJIA Mini: 29279;  FTSE 100 Fut: 7559;  NIKKEI 225 Fut: 24050;  EUR-USD: 1.1135; Crude Oil (WTI): 58.54;  Gold (Spot): 1554

 

Best Regards, ARBIND
17 Jan 2020