MACRO ECONOMIC NEWS

SMILE; YOU KNOW, SOMEONE SMILES WITH YOUR SMILE. WISHING A JUBILANT DAY AHEAD.

Macro Economic News 09 Jan 2020

 

U.S., Iran both appear to signal desire to avoid further conflict and they back from the brink of war at least for now although global airlines reroute flights amid tensions. Banks face the prospect of having to navigate different sets of rules for hundreds of billions of dollars in annual lending to lower-income borrowers if top U.S. regulators can’t settle a fight over competing plans for the industry. Fed economist sees long-term rates near zero in mild downturn, while U.S. consumer borrowing cools on drop in credit-card balances. The nonfarm private sector in the U.S. added 202,000 jobs in December, topping economists’ expectations, with most of the growth at medium- and small-sized businesses. A debate is heating up over whether businesses should pay up when they replace human workers with machines. Argentina central bank seeks to cut rates and slow inflation. World Bank trims 2020 growth forecast amid slow recovery for trade, investment and pegs India’s growth at 5%. India’s economy hasn’t been this bad in 42 years when measured on nominal GDP with the current fiscal year’s 7.5% growth the worst since 1978 - substantially lower than the 12% expansion the government had penciled in when projecting taxes. A cut in commodity transaction tax (CTT), dividend distribution tax (DDT) and rationalisation of difference between short-term capital gains tax (STCG) and long-term capital gains tax (LTCG) are likely to be part of Govt. budget. Economists prefer capex route to alleviate demand amid economic slowdown. India plans to amend proposed rules for policing digital content so the toughest measures apply only to big social media firms.

 

FINANCIAL TIMES

[I]  Trump backs away from military action against Iran 

[I]  Iran and US step back from the brink of war — for now

[I]  India cuts growth forecast to slowest pace in 11 years

[I]  Johnson sets up clash over fishing in talks with EU

[I]  World Bank gloomy in spite of easing US-China tensions

[I]  South Korea announces $51bn infrastructure spend

 

REUTERS

[I]  U.S., Iran both appear to signal desire to avoid further conflict

[I]  China December new yuan loans seen lower but hitting record in 2019: Reuters poll

[I]  Slow and uneven, Haiti rebuilds 10 years after devastating quake

[I]  India to tweak proposed content regulations to ease burden on some - sources

[I]  UK shoppers rein in spending to cap grim 2019 for retailers - BRC

[I]  World Bank trims 2020 growth forecast amid slow recovery for trade, investment

 

BLOOMBERG 

[I]  Fed Economist Sees Long-Term Rates Near Zero in Mild Downturn

[I]  Red Flags Emerge With Record-High Stocks Brushing Aside Political Turmoil

[I]  China’s Inflation Steady in December With Oil Spike Ahead

[I]  Handbags at Dawn, Australia Fires-GDP, Fed Back to Zero: Eco Day

[I]  Global Growth Poised for Modest Pickup This Year in Face of Stubborn Risks

[I]  Dealmaking Is Off to Slowest Start Globally Since 2015

[I]  U.S. Consumer Borrowing Cools on Drop in Credit-Card Balances

[I]  Argentina Central Bank Seeks to Cut Rates and Slow Inflation

 

WALL STREET JOURNAL

[I]  U.S. Private Sector Added 202,000 Jobs in December

[I]  Banks Caught in Regulators’ Squabble Over Low-Income Loan Rules

[I]  In Tight Job Market, Census Bureau Stresses Flexible Hours

[I]  Bloomberg Puts Geographic Inequality on the 2020 Agenda

[I]  U.S. Trade Gap Lowest in Three Years as Imports From China Slide

[I]  Should Robots Pay Taxes?

[I]  Big Banks Seek Less Liquidity From Fed Amid Stable Money-Market Rates

 

BUSINESS LINE

[I]  Cut in tax on commodity deals, DDT likely in Budget

[I]  Departmental audit under GST begins; first set of notices sent to assessees

[I]  Cabinet removes end use restrictions for participating in coal mine auctions

[I]  Skies over Tamil Nadu clear up, may allow morning chill to set in

[I]  Central Government imposes restrictions on import of refined palm oil

 

ECONOMIC TIMES

[I]  Worst economy in 42 yrs needs honest look

[I]  Govt to create temporary storage for 10 mt grain

[I]  India, US looking at an exclusive trade partnership: Shringla

[I]  World Bank pegs India’s growth for FY20 at 5%

 

BUSINESS STANDARD

[I]  CMD role split: In relief for India Inc, Sebi may extend March 31 deadline

[I]  Corporate earnings may worsen in Q3, but profits could get tax-cut boost

[I]  Amid revenue shortage, govt begins audit of GST returns for FY 2017-18

[I]  Govt looking for more revenue from highways, NITI suggests measures

[I]  Steep decline in recovery major challenge for sugar mills this season

[I]  Relief package soon for Maharashtra farmers with over Rs 2 lakh loan: Guv

[I]  Economists prefer capex route to alleviate demand amid economic slowdown

 

MARKETS (07:30 am)

[I]  SGX NIFTY Fut: 12174;  USDINR DGCX: 71.5775;  DJIA Mini: 28792;  FTSE 100 Fut: 7534;  NIKKEI 225 Fut: 23645;  EUR-USD: 1.1117; Crude Oil (WTI): 60.17;  Gold (Spot): 1560

 

Best Regards, ARBIND
09 Jan 2020