United States creating another dispute with European Union by given impose tariffs on US$7.5 billion of import goods from the region - Photo by the White House Office

JAKARTA (TheInsiderStories) – Good Morning! After making a trade war with China, now United States created another dispute with European Union (EU). Washington has been given the go-ahead to impose tariffs on US$7.5 billion of import goods from EU.

This is the latest chapter in a 15-year battle between the two parties over illegal subsidies for plane makers Airbus SE and rival Boeing Company. The tariffs on European goods ranging from aircraft parts to luxury goods and shellfish. Brussels said the move would be short-sighted and counterproductive, while the World Trade Organization gave “their blessed” on Donald Trump moves.

From Britain, Prime Minister Boris Johnson will give time to the EU until this weekend to open negotiations over his new Brexit deal. The premier has sent a six-page new deal to President EU Jean-Claude Juncker, that would leave Northern Ireland in a special relationship with the EU for four years

The premier also aimed to suspend the parliament starting next Tuesday, in order to hold a Queen’ speech. The new request was necessary to enable the government to launch a new legislative program on Oct. 14.

Bad news comes from IHS Markit, manufacturing conditions in Indonesia continued to deteriorate mid towards in the third quarter of 2019, the company reduced production in response to falling demand. While, new demand fell for the first time in four month in August, caused by a decline in exports.

At position 49.0 in August, the Purchasing Managers’ Index Indonesian manufacturing fell from 49.6 in July showed the sharpest decline in the health condition of the sector in only two years more. The headline index is a single digit indicator that is provide a brief description of business conditions in the sector manufacturing.

While, senior minister for maritime affairs Luhut Binsar Panjaitan said that Komodo Island would not be closed anymore and invited investor to manage the environment around the areas. He said the government had approached several operators who used to manage it professionally, one investors come from US.

Recently, Moody’s Investor Service released the new rating of PT Bank Negara Indonesia Tbk (IDX: BBNI) to Baa2. Moody’s support assumption is underpinned by the bank’ high systemic importance as the fourth-largest bank in Indonesia by assets, the critical role it plays in the country’ economic development, and the government’ majority ownership stake in the bank.

While, PT Bank Danamon Indonesia Tbk (IDX: BDMN) and other ratings that are Baa2 ratings incorporate a one-notch uplift from the bank’ Baseline Credit Assessment of baa3 because of Moody’s assumption of a high probability of support from its parent, MUFG Bank Ltd., (MUFG Bank, A1). 

Yesterday, Indonesian Rupiah closed down 0.11 percent to 14,190 compared to US Dollar. And the Jakarta Composite Index (JCI) experienced very deep declining 1.35 percent to 6,055.43 from prior day.

The analysts rated, the weakening of the Rupiah and JCI was caused by US manufacturing data, which was below market expectations and responded negatively by the investors. Amid the bad sentiments from global and domestic side, they sees the local currency and stock price index to survive in the red zone.

For today, the observes rated the JCI will break the resistance level at 6,000, and move between 5,985 to 6,189 level. In this condition they recommended PT Astra International Tbk (IDX: ASII), PT Gudang Garam Tbk (IDX: GGRM), PT Unilever Indonesia Tbk (IDX: UNVR), PT Summarecon Agung Tbk (IDX: SMRA), PT Pakuwon Djati Tbk (IDX: PWON) PT Kalbe Farma Tbk (IDX: KBLF), PT Tower Bersama Infrastructure (IDX: TBIG), and PT Waskita Karya Tbk (IDX: WSKT) to be watch.

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia