MACRO ECONOMIC NEWS

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Macro Economic News 19 Feb 2020

 

Moody has lowered its growth forecast for the Asia-Pacific region to 5.2% from 5.8% for 2020 due to more pronounced impact of Covid-19 virus on China and India. India will install ₹11,000-cr renewable power transmission project in Ladakh whereas RBI Governor says no reason to doubt govt will meet fiscal deficit targets. India's 2019 PE/VC investments grew by 28% at $48 bn making up 1.7% of GDP while India is considering closer scrutiny of foreign direct investment in crucial sectors. Foreign holdings of US treasuries are growing for a third year while Risk premiums on Asia Dollar bonds keep dropping despite virus. The Trump administration is considering trade restrictions on China that would limit the use of American chip-making equipment. The Canada government is lowering the minimum rate used in a test designed to prove a buyer can afford principal and interest payments if rates climb. South Korea warns of economic ‘emergency’ while African growth set to suffer as virus cuts demand and Hong Kong is heading for its first back-to-back recessions on record. EU nations prepare tougher conditions on Brexit trade talks while unveiling plans to boost European firms and also targets textiles, batteries and packaging to halve waste by 2030.

 

FINANCIAL TIMES

[I]  Abenomics on trial as Japan teeters on brink of recession

[I]  South Korea warns of economic ‘emergency’ from coronavirus

[I]  African growth set to suffer as virus cuts demand

[I]  EU nations prepare tougher conditions on Brexit trade talks

[I]  Profit warnings hit record in Germany

[I]  IMF chief: we are rethinking our advice to emerging markets

[I]  Carmakers struggle to plan for an autonomous future

 

REUTERS

[I]  India industry wants tax cuts to tackle virus disruptions

[I]  Japan's exports, machinery orders fall as virus risks grow

[I]  China races to contain job losses as coronavirus batters economy

[I]  Virus-hit cruise ship passengers to start disembarking in Japan

[I]  EU to unveil plans to boost European firms, rein in U.S. tech giants

[I]  EU targets textiles, batteries and packaging in plan to halve waste by 2030

 

BLOOMBERG 

[I]  China Bought Time With Quarantine; Russian Borders: Virus Update

[I]  Apple Drops After Warning But Analysts See Short-Term Hit

[I]  Vancouver’s 1% Will Face a Tax Hike in Latest Affordability Push

[I]  Modi Backtracks on Free-Trade Vow With Import Curbs in India

[I]  Taiwan Bond Binge Is Leaving a Mark on the U.S. Treasury Market

[I]  Foreign Holdings of U.S. Treasuries Grow for a Third Year

[I]  Hong Kong Is Heading for Its First Back-to-Back Recessions on Record

[I]  Expats Families Flee Hong Kong After Double Whammy of Virus, Protests

[I]  Risk Premiums on Asia Dollar Bonds Keep Dropping Despite Virus

 

WALL STREET JOURNAL

[I]  U.S. Weighs New Move to Limit China’s Access to Chip Technology

[I]  Amid Coronavirus, the World Closes Its Doors to China: ‘I Feel So Isolated’

[I]  U.S. Sanctions Subsidiary of Rosneft Over Alleged Venezuela Oil Exports

[I]  Canada Loosens Mortgage-Financing Rules

[I]  Japan’s Economy Shrinks 6% as Sales-Tax Rise Cools Consumption

[I]  Bloomberg Proposals Would Stiffen Wall Street Oversight

 

BUSINESS LINE

[I]  Moody’s lowers APAC growth forecast for 2020 to 5.2%

[I]  India pushes for ‘permissible’ fishery subsidies at WTO

[I]  India Inc to dole out average 9.1% salary hike in 2020: Report

[I]  At 292 mt, country set to reap bumper harvest in 2019-20

[I]  Centre to install ₹11,000-cr renewable power transmission project in Ladakh

 

ECONOMIC TIMES

[I]  Crude oil may see a relief rally on China’s steps to support growth

[I]  Gold eases as drop in virus cases lifts risk appetite

[I]  Sugar production falls 23% till Feb 15, says ISMA

[I]  Foreign direct investment into India may see greater scrutiny

[I]  RBI Governor says no reason to doubt govt will meet fiscal deficit targets

 

BUSINESS STANDARD

[I]  Slowdown effect? Salary increase in 2020 may be lowest in a decade at 9.1%

[I]  Govt moves to take on coronavirus challenge, plays down price rise concerns

[I]  India may give reprieve to solar projects delayed by coronavirus fallout

[I]  India's 2019 PE/VC investments up 28% at $48 bn, make up 1.7% of GDP

[I]  Farmers irked as prices of pulses fall below MSP ahead of rabi harvesting

 

MARKETS (09:30 am)

[I]  SGX NIFTY Fut: 12090;  USDINR DGCX: 71.5775;  DJIA Mini: 29317;  FTSE 100 Fut: 7375;  NIKKEI 225 Fut: 23382;  EUR-USD: 1.0798; Crude Oil (WTI): 52.65;  Gold (Spot): 1602

 

Best Regards, ARBIND
19 Feb 2020