MACRO ECONOMIC NEWS

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Macro Economic News 08 Jan 2020

 

The U.S. trade deficit narrowed in November for the third straight month, dropping to its lowest level in three years as the rate of imports dropped and exports picked up. A Senate committee approved a rewrite of the North American Free Trade Agreement despite criticism from some lawmakers that it lacks sufficient protections for U.S. companies. Mark Carney, Governor of BOE, warns that Central banks are low on ways to fight recession and they might struggle to fight deep downturn while many economists fear of US approaching limit of monetary policy. Eurozone inflation rises up whereas Johnson to tell EU chief of no extension to trade deal talks while France and the US seek to resolve digital tax dispute. As per Indian Govt data, GDP growth is seen slipping to 11-yr low of 5 per cent this fiscal with the estimated growth of real GVA in 2019-20 is 4.9 per cent as against 6.6 per cent in 2018-19 although India’s per-capita income rises 6.8 per cent to 11,254 a month in FY20. With record industrial slump restrict GDP growth, Govt is taking steps to simplify taxation and curb harassment of honest taxpayers. RBI allows 24x7 forex mkt ops via select banks while banks staring at 20% more provisioning for Rs 2.2-trillion debt.

 

FINANCIAL TIMES

[I]  Central banks low on ways to fight recession, warns Carney

[I]  Carmakers move from cars to building cities at CES

[I]  France and US seek to resolve digital tax dispute

[I]  China tourism growth lifts fortunes of Russia’s airports

[I]  Ireland braces for public spending dispute in election campaign

[I]  Eurozone inflation hots up on pre-Christmas consumer spending

[I]  Economists fear US is approaching limit of monetary policy

 

REUTERS

[I]  India predicts slower 5% growth, likely prompting budget stimulus

[I]  Oil surges after Iran attacks U.S. forces in Iraq, WTI at around $65

[I]  U.S. FAA says 'closely monitoring' aviation safety in Middle East after missile attack

[I]  Europeans should control their B-to-B data, says EU commissioner

[I]  U.S. wine industry fears 'Armageddon of costs' from tariffs on French imports

[I]  Johnson to tell EU chief - no extension to trade deal talks

[I]  Central banks might struggle to fight deep downturn - Carney

 

BLOOMBERG 

[I]  Global Market Reaction to Iran Rocket Attack in Four Charts

[I]  U.K. Urged to Get Tougher on Firms Not Paying Minimum Wage

[I]  Brazil’s Record-Setting Stocks Are Testing Foreigners’ Appetite

[I]  Bond ETFs Come of Age After $150 Billion Year Heralds New Order

 

WALL STREET JOURNAL

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

[I]  Senate Panel Clears North American Trade Pact

[I]  IRS Personal Income-Tax Audits Drop to Lowest Level in Decades

[I]  A Counterintuitive Fix for Robot-Driven Unemployment

[I]  Economists Question Targeted Tax Breaks

[I]  Demand For Fed Liquidity Rises, New York Fed Injects Nearly $100 Billion

[I]  Newsletter: Gold, Oil, Uncertainty and Iran

 

BUSINESS LINE

[I]  GDP growth seen slipping to 11-yr low of 5 per cent this fiscal: Government data

[I]  India’s per-capita income rises 6.8 per cent to 11,254 a month in FY20

[I]  India-Iran trade dips 79.4 per cent in April-Nov; may fall further

[I]  Budget 2020 wishlist: Real estate sector for quick implementation of AIF regime to rescue stressed residential projects

 

ECONOMIC TIMES

[I]  Govt firms up a nine-point plan to plug GST revenue leaks

[I]  Safe-haven currencies in demand

[I]  RBI allows 24x7 forex mkt ops via select banks

[I]  Risks loom for state banks binging on sovereign bonds

[I]  India asks domestic refiners to avoid buying Malaysian palm oil: Sources

[I]  GDP growth rate for 2019-20 estimated at 5% against 6.8% in FY19

[I]  India plans to cut spending to curb deficit; may hurt growth

[I]  Govt taking steps to simplify taxation; curb harassment of honest taxpayers: FM

 

BUSINESS STANDARD

[I]  In a first, RBI plans to put weak private lenders under the hammer

[I]  Despite relaxation in norms, 25 stressed power assets yet to be resolved

[I]  Record industrial slump to restrict GDP growth to 5% this year

[I]  Banks staring at 20% more provisioning for Rs 2.2-trillion debt

 

MARKETS (08:00 am)

[I]  SGX NIFTY Fut: 11961;  USDINR DGCX: 72.0350;  DJIA Mini: 28339;  FTSE 100 Fut: 7560;  NIKKEI 225 Fut: 23114;  EUR-USD: 1.1153; Crude Oil (WTI): 64.10;  Gold (Spot): 1586

 

Best Regards, ARBIND
08 Jan 2020