MACRO ECONOMIC NEWS

LOVE THOU SMILE; GENEROUS, PROLIFIC AND PROFOUND, STILL TENDER. WISHING A CHARISMATIC DAY AHEAD.

Macro Economic News 16 Jan 2020

 

The US and China signs first phase of the deal which aims to boost sales of U.S. goods and services to China, better protect intellectual property of companies operating in China and further open Chinese markets, especially in financial services. While Argentina posts year-end inflation of 54%, highest in almost 30 years, U.S. Consumer Inflation Moderates in 2019 complicating the outlook for FED officials. With interest rates stuck around zero, and inflation seemingly subdued, long exercised ability of The Fed and other central banks, to influence over booms and busts, is shrinking. With environmental risks jumping to the top of the concerns of government, academic and business leaders over a 10-year horizon, EU warns of ‘tectonic’ shift as economy goes green while Inflation fears return to haunt investors in Europe’s East. With GDP growth of 0.6% last year, Germany’s economy expanded at its slowest rate since 2013, the height of the Eurozone’s debt crisis with its flagship auto industry getting hindered by trade disputes and China’s slowdown. State Grid, China's largest utility company, warns China GDP at risk of slipping to 4% for next five years.  India is planning a new law to safeguard foreign investment by speeding up dispute resolution, aiming to attract more capital from overseas to boost stuttering domestic growth. India's exports decline by 1.8 per cent for fifth straight month in December and import falling by 8.8 per cent resulting trade deficit shrinking to $11.25 billion.

 

FINANCIAL TIMES

[I]  US and China sign deal to pause trade war

[I]  Angela Merkel warns EU: ‘Brexit is a wake-up call’

[I]  House votes to trigger Trump impeachment trial

[I]  State Grid warns China GDP at risk of slipping to 4%

[I]  Germany’s economic growth slows to six-year low

[I]  EU warned of ‘tectonic’ shift as economy goes green

[I]  Soft services sector weighs on wholesale US inflation in December

 

REUTERS

[I]  India plans new law to protect foreign investment

[I]  U.S. and China tiptoe around holes in new trade agreement

[I]  India's exports decline for fifth straight month in December, trade deficit narrows

[I]  Turkish economy to pick up some pace in 2020 after stumble: Reuters poll

[I]  Merkel, state leaders agree terms of brown coal exit: document

[I]  China's December home price growth hits slowest annual pace in almost 1-1/2 years

[I]  With a mixture of fanfare and grievance, Trump signs U.S.-China trade deal

[I]  China 2019 GDP estimated to have grown more than 6% - Vice Premier Liu He

[I]  China's 'market condition' caveat on U.S. ag purchases adds to trade deal doubts

[I]  Instant View: Signed U.S.-China trade deal removes one risk factor for markets

 

BLOOMBERG 

[I]  Indonesia to Become Southeast Asia’s Biggest Stock Market

[I]  Trump’s Economic Data Plan Is a Recipe for Chaos

[I]  The $95 Billion Centerpiece of the Trade Deal Is Already In Doubt

[I]  China to Hit 2019 Economic Targets as Trade Deal Lifts Outlook

[I]  Inflation Fears Return to Haunt Investors in Europe’s East

[I]  U.K. Productivity Woes More Costly Than Worst-Case Brexit

[I]  U.K. Housing Market Sees Bounce After Johnson’s Election Victory

[I]  Argentina Posts Highest Year-End Inflation in Almost 30 Years

[I]  Rating Cuts Ratchet Up Pressure on Japan’s Regional Banks

 

WALL STREET JOURNAL

[I]  U.S., China Sign Agreement Easing Trade Tensions

[I]  The Era of Fed Power Is Over. Prepare for a More Perilous Road Ahead.

[I]  Fed’s Beige Book Reports Continued Modest Growth

[I]  Environmental Risks Loom Large Among Economic Forum Members

[I]  German Growth Falls to Six-Year Low, Hit by Manufacturing Recession

[I]  Fed’s Harker Says Rates Should Hold Steady For Now, Money Markets Calm

[I]  Fed’s Kaplan Warns Central Bank Actions Are Driving Up Risk Taking

[I]  Fed's George: It's ‘Appropriate' to Hold Rates Steady for Now

[I]  U.S. Consumer Inflation Moderates in 2019

 

BUSINESS LINE

[I]  India's exports fall for fifth straight month in December by 1.8 per cent

[I]  Imports fall 8.83 per cent, trade deficit shrinks to $11.25 billion

[I]  Government will put restrictions on imports of products under ‘others’ category: Piyush Goyal

[I]  Government drafting national fisheries policy with Rs 45,000 crore budget

[I]  Govt offers 11 oil and gas blocks in 5th bid round

 

ECONOMIC TIMES

[I]  LTCG to go? Govt weighs move to win back upset FIs

[I]  India plans law to safeguard foreign investment

[I]  Opec raises oil demand outlook for 2020

[I]  RBI’s Operation Twist just started and it may be out of bonds

[I]  SEZ eligibility may now depend on new jobs, R&D and not forex

 

BUSINESS STANDARD

[I]  7,990 business people committed suicide in 2018; up 2.7 per cent: NCRB data

[I]  Govt plans restrictions on imports of products categorised as 'others'

[I]  Govt may propose GST refunds on capital goods purchases to exporters

[I]  New PM house, PMO & Parliament before 2024; ministries along central vista

[I]  NBFCs' asset quality deteriorates, delinquency rate rises by 50 bps in Q3

[I]  Now, switch on/off your card for online payment, set transaction limits

[I]  After slowdown, inflation now presents a new test for food companies

 

MARKETS (09:30 am)

[I]  SGX NIFTY Fut: 12389;  USDINR DGCX: 70.8325;  DJIA Mini: 29046;  FTSE 100 Fut: 7568;  NIKKEI 225 Fut: 23928;  EUR-USD: 1.1153; Crude Oil (WTI): 58.17;  Gold (Spot): 1557

 

Best Regards, ARBIND
16 Jan 2020