MACRO ECONOMIC NEWS

THE HAPPINESS OF ACTION IS BLISSFUL ECSTASY; EVEN ON MONDAY. WISHING A DYNAMIC WEEK AHEAD.

Macro Economic News 06 Jan 2020

 

Former Fed Chairman Ben Bernanke said that the Federal Reserve has ample tools for fighting a potential recession even though its benchmark interest rate remains historically low. The U.S. factory sector headed into 2020 on a weak footing, contracting in December for a fifth consecutive month as trade tensions continued to pressure manufacturers. Few Bank Failures Could Be a Warning Sign for U.S. Financial  System but the FDIC says that it could be an ominous sign as the U.S. banking industry is highly profitable, lending is up and the number of problem institutions is the lowest since early 2007. Passive investing boom reaches Europe as assets hit $1tn while China's central bank says it will keep monetary policy prudent, flexible and appropriate. Iran pulls back from nuclear deal as tensions rise whereas France warns US against digital tax retaliation. India Inc's overseas borrowing rises 6.5% to $2.12 billion in Nov 2019 while India Inc is travelling in top gear even in the shadow of a slowdown. DPIIT focusing on 6 parameters to push India's ranking in World Bank's ease of doing biz however, Government is unlikely to announce capital infusion for PSU banks in Budget.

 

FINANCIAL TIMES

[I]  Iran pulls back from nuclear deal as tensions rise

[I]  France warns US against digital tax retaliation

[I]  Passive investing boom reaches Europe as assets hit $1tn

[I]  Beijing replaces its top Hong Kong representative

[I]  EU weighs plastics waste tax to plug ‘Brexit gap’ in budget

[I]  Offshore forecast fears blow through European wind farms

 

REUTERS

[I]  Fed faces new trade-offs, hunts for new model, in low-rate world

[I]  France, Britain, Germany: Iran must refrain from violence and respect nuclear deal

[I]  Rain brings brief respite in Australian bushfire crisis

[I]  China's central bank says will keep monetary policy prudent, flexible and appropriate

[I]  Saudi non-oil private sector loses momentum in December - PMI

 

BLOOMBERG 

[I]  Zombie Firms Aren't Feeding Off Low Rates and Cheap Money

[I]  Low Rates Could Get Even Lower, Senior Central Bankers Warn

[I]  Indonesia Short on Policy Ammunition as It Targets Higher Growth

[I]  Draghi, Yellen Warn of Risks Facing Policy in Low-Rate World

[I]  Oil Jumps Near $70 as U.S. Says Iran May Strike Saudi Again

[I]  Happy-2020 Forecasts Sent Awry as Iran Tension Saps Risk Assets

[I]  Saudi Default Risk Jumps as U.S.-Iran Tensions Flare: Chart

 

WALL STREET JOURNAL

[I]  Did the U.S. Tax Overhaul Do What It Promised?

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

[I]  Fed Has Many Tools to Deter Recession, Former Chairman Bernanke Says

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

[I]  Fed’s Williams Stresses Need to Stick to 2% Inflation Target

[I]  Few Bank Failures Could Be a Warning Sign for U.S. Financial  System

[I]  Economy Week Ahead: U.S. Trade and Jobs Data

 

BUSINESS LINE

[I]  Revenue Dept cautions DGFT on ‘star’ exporters getting GST refunds using fake invoices

[I]  CBDT notifies IT return forms for certain individuals, firms for AY 2020-21

[I]  Further escalation in US-Iran tension may affect India’s exports: FIEO

[I]  Kochi to host global meet on marine ecosystem

[I]  Eight states finalise action plan for agri export policy: Govt

[I]  States stare at over Rs 1 lakh crore revenue gap post withdrawal of GST compensation in 2022

 

ECONOMIC TIMES

[I]  Govt readies new plan to monetise toll assets

[I]  How govt can bridge trust deficit with people

[I]  Indian Railways is all set to be overhauled

[I]  Eyeing top 50: Insolvency resolution, cross-border trade, contracts in focus

[I]  World Bank's ease of doing biz: DPIIT focusing on 6 parameters to push India's ranking

[I]  Government unlikely to announce capital infusion for PSU banks in Budget

 

BUSINESS STANDARD

[I]  Facing liquidity issues, big realtors eye new development management models

[I]  Budget 2020: I-T Act may allow seizure of trustees' personal assets

[I]  In digital age, advertising should take print in its stride for good show

[I]  India Inc is traveling in top gear even in the shadow of a slowdown

[I]  New GST rules to eligibility test, what's on India Inc's checklist for 2020

[I]  India Inc's overseas borrowing up 6.5% to $2.12 billion in Nov 2019: Report

 

MARKETS (06:30 am)

[I]  SGX NIFTY Fut: 12225;  USDINR DGCX: 71.7600;  DJIA Mini: 28491;  FTSE 100 Fut: 7550;  NIKKEI 225 Fut: 23210;  EUR-USD: 1.1164; Crude Oil (WTI): 63.88;  Gold (Spot): 1573

 

Best Regards, ARBIND
06 Jan 2020