MACRO ECONOMIC NEWS

SMILE, WITH THE TENDER LITTLE MADNESS OF SPRING. WISHING A LOVING WEEK AHEAD.

Macro Economic News 03 Feb 2020

 

Consumer spending and wage gains eased at the end of last year, signs the U.S. economy is returning to a more moderate pace of growth. The Fed could decide by the middle of the year to change its policy-setting approach. This raises some questions. Tech companies face disruptions to their supply chains in China including prolonged factory closures and labor shortages, as the deadly coronavirus outbreak threatens China’s vast manufacturing network. ECB have urged to give weight to housing in inflation fight while ECB chief economists opine Euro zone inflation pressures are building but only slowly. China central bank unexpectedly cuts reverse repo rates to help economy as virus spreads and expected to inject 1.2 trillion yuan via reverse repos while Caixin survey highlights that China January factory activity growth slows to five-month low. India plans $30bn assets sales to tackle deficit while Crisil says budget measures too long term, unlikely to meet growth targets in FY21. FM has clarified that govt has no intention to tax global income of NRIs in India whereas, CBDT chairman mentions that Direct tax collection target scaled has been down in budget and new slabs will benefit taxpayers.

 

FINANCIAL TIMES

[I]  China steps in to support financial system as virus spreads

[I]  ECB urged to give weight to housing in inflation fight

[I]  US and Kenya to start talks on ‘model’ trade deal for Africa

[I]  EU member states reject cuts to development fund

[I]  India plans $30bn assets sales to tackle deficit

[I]  Pension funds’ puzzling fondness for buyouts

[I]  Democrats must not draw wrong lessons from Labour

 

REUTERS

[I]  China central bank unexpectedly cuts reverse repo rates to help economy as virus spreads

[I]  Australian home prices start year on strong note, building to follow

[I]  China central bank to inject 1.2 trillion yuan via reverse repos - traders

[I]  China January factory activity growth slows to five-month low - Caixin survey

[I]  Exclusive: Germany ran world's largest current account surplus in 2019 - Ifo

[I]  Euro zone inflation pressures are building but only slowly - ECB chief economist 

[I]  South Korea vows to address financial market volatility amid virus outbreak

 

BLOOMBERG 

[I]  Commodity Prices Collapse in China as Demand Fears Spook Market

[I]  U.S. Manufacturing Titans Portend Gloom for the Global Economy

[I]  Fiscal Pressures Prompt India to Raise Money From Finance Sector

[I]  China’s Cash Injection, RBA’s Nightmare, Gloomy Titans: Eco Day

[I]  The U.S.-China Trade War Has Vietnam in the Crosshairs

[I]  Fate of Turkey’s Next Rate Cut at Stake With Inflation Near Peak

[I]  The Perfect Storm of Economic Risks on Hong Kong’s Horizon

[I]  RBA On Hold as Nightmare Scenario of China Slowdown Emerges

[I]  No Reprieve for Emerging Markets Amid China Stock Rout

 

WALL STREET JOURNAL

[I]  Boeing’s Woes Create Headwinds for U.S. Economy

[I]  U.S. Consumer Spending, Wage Gains Eased in Late 2019

[I]  Fed’s 2020 Rate Outlook Clouded by Framework Review

[I]  U.S. Removes Cosco Shipping Units From Blacklist

[I]  Tech Sector Fears Supply Delays as Effects of Virus Ripple Through China

[I]  Trump’s Impeachment Is Virtually Over. What Did It Change?

 

BUSINESS LINE

[I]  Interest rate re-setting on small savings to get improvised mechanism; new rates from Q1

[I]  Govt plans to impose penalty for fake invoices used to claim input tax credit

[I]  No intention to tax global income of NRIs in India, says FM

[I]  New tax regime to definitely benefit taxpayers in some brackets: Nirmala Sitharaman

[I]  People with taxable income of ₹5 lakh will not be required to pay DDT: FinMin

 

ECONOMIC TIMES

[I]  New vs old tax regime? Know which one's for you

[I]  NRIs to be taxed for income earned in India

[I]  Budget measures too long term, unlikely to meet growth targets in FY21: Crisil

[I]  Explaining Budget proposals: Headed for lower tax and no exemptions, says FM

[I]  Business trusts’ $100 billion fund-raising plans at risk

[I]  Direct tax collection target scaled down in budget; new slabs to benefit taxpayers: CBDT chairman

 

BUSINESS STANDARD

[I]  Companies likely to change dividend tax policy after Budget changes

[I]  It's not the right stage to put differential premium on banks: Finance Secy

[I]  Budget day trading: IT resilience continues as stocks gain over 1%

[I]  Nirmala Sitharaman's Budget proposals to stimulate economic growth

[I]  Tax incentives for sovereign funds to boost public sector monetisation

 

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 11685;  USDINR DGCX: 71.8200;  DJIA Mini: 28256;  FTSE 100 Fut: 7286;  NIKKEI 225 Fut: 22962;  EUR-USD: 1.1082; Crude Oil (WTI): 51.43;  Gold (Spot): 1581

 

Best Regards, ARBIND
03 Feb 2020