The Blissful Rest Lies In Peace 

Wishing A Peaceful Day Ahead

Best Regards 

Arbind

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Macro Economic News 17 Feb 2021

The central bank officials are acknowledging that the economies are still disrupted by the pandemic but most of them are ruling out any threat arising out of rising inflation. 

Over the last year the food prices - from cheese to cherry - are rising across world, however it seems within policymakers’ comfortable limits. 

The asset size of crypto currencies are enhancing with the representative Bitcoin trading at $50000 level. 

European nations are still struggling to  wean the economy off the double dip recession and the ECB is concerned about any long term impacts. 

Switzerland method of taxing wealth, which contributes the largest share of govt revenue, is a real and rare example of taxing asset is more effective - although it’s also facing criticism. 

The reflation trade is attracting attention and momentum with the rising yield on the benchmark 10-year paper.  

As Indian economy is climbing to its normalcy, a very effective indicator of the same, movement of good across the country is rising and in certain cases it has risen to the record.  

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 May The Wisdom Walk Our Way From Darkness To Light

Wishing A Happy Basant Panchami

 

Best Regards

Arbind

 

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Macro-Economic News 16 Feb 2021

 

The rising assurance from governments that translates into the expansion of balance sheets of its central banks and financial institutions often narrows the credit spread and widens the gap between the actual risk and perceived risk. Such markets are heaven for the “Risk Arbitrage.” Currently, risky borrowers are occupying the largest share of junk bond deals since the last market meltdown. Although, yield, yield spread, and yield structure are a long way off to cause any harm to economic recovery.

The Reserve Bank of Australia foresees the need for ‘very significant’ monetary support for some time now. RBA emphasized, “it would be premature to consider withdrawing monetary stimulus.” It is precisely in line with other advanced economies extending supportive hands with hands-full with cash, credit, and credentials. Although central banks, including RBA as it mentions in its recent minutes, are aware of risks – hunting for yields, Currency premiums, leveraged asset price, possible bubbles, housing market imbalances – and are keeping a close watch on them.

Indian wholesale price inflation rose to more than two percent in January. Ind-Ra expects states' fiscal deficit to narrow to a comfortable 4.3 percent of GDP in 2021-22. Nomura expects the economy to revert to its normalcy with a 13.5% growth rate in the same period.

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 Empowering Is Being The Nature 

Wishing A Rejuvenated Week Ahead

 

Best Regards

Arbind

 

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Macro-Economic News 15 Feb 2021

 

One more time, economics is at the top of the economy. Draghi completes the transformation from being a central banker to the Italian prime minister. With Nikkei reclaiming 30,000 after more than 30 years, Japan is extending its economic recovery with increasing stimulus and capital expenditure. Thailand, which was the worst blown economy in Asia during the pandemic, is climbing back on the supportive stimulus. The U.K. economy is experiencing the largest contraction while its GDP declined by the most in 300 years. 

The U.S. consumer sentiment skid during the early Feb pulled by the lower-income population. Global sales of electric vehicles have increased by nearly 40% during 2020 while M&A deals in India jumped by more than 30 percent to $37 bn. India experienced lowered retail inflation during Jan – a 16-month low.

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