JAKARTA (TheInsiderStories) – Good morning! China’ second-quarter economic growth only grow 6.2 percent, slower than the first quarter of 6.4 percent, as domestic and foreign demand declined in the face of a bruising trade war with the United States (US), the National Bureau of Statistics said on Monday (07/15).

This slowdown brought China to its weakest pace in at least 27 years. In his Twitter account, US’ President Donald Trump linked its competitor economy slowing growth caused the US tariffs. According to him, the US tariffs have a major influence on companies that want to leave China for non-tariff countries.

While, to avoid imposing unreasonable tariffs from Trump, India and Russia have agreed a new payment method through their national currency for a multi-billion dollar defense agreement. The effort taken in an effort to avoid the risks created by the threat of US sanctions and banking restrictions.

This step has previously been taken by ASEAN countries that use local currency for trade transactions in the region, to avoid the same polemic. The India – Russia agreement will soon flow along with plans to purchase two Russian-built warships for the Indian navy.

While the new mechanism has the potential to pave the way to release billions of US dollars in payment of contracts to Russia, it may still depend on India which won an agreement from Trump not to impose sanctions in retaliation.

In Middle East zones, Iran is ready to negotiate with the US if Washington lifts sanctions against Tehran and returns to logic and wisdom. Following this announcement, the US vowed to continue to accumulate economic pressure on Iran.

In May last year, Washington unilaterally ignored Iran’ nuclear agreement and restarted to sanction Iran. Finally, in early July, Iran announced that Iran was ready to begin enriching uranium beyond the 3.67 percent level set out in the Iran nuclear agreement, adding that Tehran would gradually abandon its nuclear commitments every 60 days.

In the United Kingdom, the pound sterling (GBP) moved back in the red zone on Monday’ trading as the Bank of England cut interest rates projections. Analysts said, the weakening of the GBP was also still caused by the election of the new prime minister and the US – China trade war and Brexit vagueness.

They predicted that the British’ central bank will cut interest rates by 25 basis points twice in 2020. Likewise, the Euro which had previously strengthened against the US dollar has now turned weaker. The European Central Bank (ECB), which is predicted to be more dovish when announcing monetary policy next week, makes the 19 currencies turn around. Market participants now see the ECB cutting interest rates by 10 basis points in September.

In the midst of the turmoil of the trade war and the uncertainty of the global economy, Indonesian President Joko Widodo prepared the 2020 State Budget that can anticipate the dynamics, especially in order to continue to strengthen national competitiveness while increasing the country’s economic growth.

Widodo finally emphasized that the priority of budget utilization in 2020 is more targeted on improving the quality of human resources and absorption in the business world which is also able to provide a stimulus to rise exports and investment.

At the end of this month, the Energy and Mineral Resources ministry planned to meet PT Vale Indonesia Tbk (IDX: INCO) regarding a 20 percent divestment of shares, which will mature in October 2019. The method used by the ministry in calculating the miner’ share value uses discounted cash flow.

In eastern Indonesia, an earthquake with magnitude 7.2 that occurred on Sunday (07/14), resulted two deaths and more than 2,000 displaced in 14 refugee points. The earthquake also affected damage to buildings and other infrastructure, including residents’ housing and public facilities.

Based on observation, earthquakes are estimated to be associated with active faults in the area. The epicenter is on land. Areas close to the source of the earthquake are composed of Tertiary volcanic and sedimentary rocks which can be unconsolidated, thus reinforcing the effects of earthquake shocks.

Yesterday, the Jakarta Composite Index closed up 0.7 percent or 44.89 points to 6,418.23 from the previous trading closing level which ended down 0.68 percent or 43.72 points at 6,373.34.

Six of the nine sectors closed higher, led by the infrastructure sector which rose 1.64 percent and followed by the basic industrial sector which rose 1.21 percent. While three sectors weakened and resisted further JCI gains, driven by the agricultural sector which fell 0.86 percent.

Today, the composite index is estimating move in the 6,302 – 6,488. The stocks to be considers for today are PT Gudang Garam Tbk (IDX: GGRM), PT Telkom Indonesia Tbk (IDX: TLKM), PT Jasa Marga Tbk (IDX:JSMR), PT XL Axiata Tbk (IDX: EXCL), PT PP Tbk (IDX: PTPP), PT Adhi Karya Tbk (IDX: ADHI), PT Wijaya Karya Tbk (IDX: WIKA), PT Waskita Beton Precast Tbk (IDX: WSBP), PT Sri Rezeki Isman Tbk (IDX: SRIL), and PT HM Sampoerna Tbk (IDX: HMSP).

Meanwhile, the Rupiah accelerated the most at the start of this week, where it rose 0.63 percent to 13,920 against US dollar compared to last weekend’ position at 14,008.

US$1 = Rp14,000

May you have a profitable day!

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