MACRO ECONOMIC NEWS

TOUCH THY HEART AND SAY I AM WITH YOU. WISHING A LOVING WEEKEND AHEAD.

Macro Economic News 22 Feb 2020

 

U.S. business activity in February fell to its lowest level in more than six years as companies pulled back on fears of slow global growth, according to private survey data. U.S. home sales sputtered in January, the latest sign that some of the lowest interest rates in half a century are failing to offset the high prices and limited inventory keeping many buyers on the sidelines. If central banks want to get the most out of crisis-era stimulus tools the next time they are needed, they should be deployed “early and aggressively” when confronting a downturn, new research claims. President Trump said the U.S. would consider a third round of aid payments for farmers who have borne the brunt of retaliation for U.S. tariffs for much of the past two years. UK manufacturers also feel the heat as EU trade battles loom. China's passenger car sales tumble 92% in first half of Feb. while BOE's Tenreyro says hit to global growth could be large. India Inc’s effective tax rate falls for first time in 6 years although Auto sector's woes may not end anytime soon while service providers feel the pain as India Inc faces working capital squeeze. India-focused PE/VC funds create record by raising $11.7 billion in 2019 while Forex reserves touch lifetime high on rise in foreign currency assets.

 

FINANCIAL TIMES

[I]  Fed governor backs temporarily higher inflation target

[I]  UK manufacturers feel heat as EU trade battles loom

[I]  Fear of post-Brexit tariffs forces groups to rethink dependence on overseas markets

[I]  Eurozone’s manufacturing slump eases despite coronavirus 

[I]  Government bonds rally as concerns drip back into market

[I]  Economists should learn lessons from meteorologists

 

REUTERS

[I]  India set to dazzle Trump as trade rows fester

[I]  U.S., India at odds over trade as Trump heads for encounter with Modi - U.S. officials

[I]  China prisons, Korean church spread coronavirus woes as fears weigh on global markets, U.S. business

[I]  China's passenger car sales tumble 92% in first half of Feb. due to virus outbreak

[I]  Mercedes steering wheel to be outlawed after this season

[I]  Trudeau says rail blockades must end, indigenous protesters remain defiant

[I]  IMF urges Colombia to tighten fiscal adjustment, increase reserves

[I]  In next downturn, Fed may opt for quick, strong action

[I]  BOE's Tenreyro says coronavirus hit to global growth could be large

[I]  U.S. services, manufacturing sectors hit wall in February - Markit

 

BLOOMBERG 

[I]  Singapore’s REIT Hub Ambition Pays Off With Most Foreign IPOs

[I]  U.S. Lifts Ban on Brazil Beef Imports After More Than Two Years

[I]  Flows Into Inverse ETFs Show Demand for Coronavirus Hedges

[I]  U.S. Dismisses Media Objections to Economic-Release Changes

[I]  China Could Use Offshore Wind to Power Entire Coast, Study Finds

[I]  The Hope That’s Driving Key Commodity Prices Higher

[I]  Fed Needs to Outline Plan to Fight Next Downturn, Economists Say

[I]  U.S. Existing-Home Sales Remain Solid Amid Scarce Inventory

 

WALL STREET JOURNAL

[I]  Coronavirus Hits U.S. Business Activity

[I]  Home Sales Sluggish as Lack of Inventory Frustrates Buyers

[I]  Central Banks Advised to Use Tool Kits Aggressively During Trouble

[I]  Trump Says Farmers Might Get More Aid

[I]  The U.S.’s Next Trade War? As China Clash Cools, Conflict With India Looms.

[I]  James P. Hoffa Won’t Stand for Re-Election as Teamsters President

[I]  Fed Official Proposes New Way to Target Inflation

[I]  Bank CEOs Courted By Regulator On Low-Income Lending Overhaul

[I]  Fed Officials Debate How to Incorporate Financial-Market Signals into Policy Outlook

 

BUSINESS LINE

[I]  India Inc’s effective tax rate falls for first time in 6 years

[I]  Coal allocation for spot e-auction declines by 8% in April-January

[I]  India should bring in robust infrastructure for IP financing, says report

[I]  By March, consumers can expect price hikes and less choices on retail shelves

[I]  EU denies India’s charge that its pesticide limits create non-tariff barriers

[I]  FPOs should adopt two-level processing model, says co-op leader

 

ECONOMIC TIMES

[I]  Auto sector's woes may not end anytime soon

[I]  Safe-haven yen takes a hit as hopes for China stimulus grow

[I]  Cabinet approves crop cover rejig, dairy sop schemes

[I]  Money flow from banks to NBFCs picks up in Oct-Dec

[I]  India & US delink trade deal from Donald Trump's visit, eye FTA

 

BUSINESS STANDARD

[I]  Service providers feel the pain as India Inc faces working capital squeeze

[I]  Deal or no deal: Trump flip-flops keep all guessing ahead of India visit

[I]  Changes in CCI norms proposed to bring buyer cartels under competition law

[I]  India-focused PE/VC funds create record by raising $11.7 billion in 2019

[I]  Forex reserves touch lifetime high on rise in foreign currency assets

 

Best Regards, ARBIND
22 Feb 2020