JAKARTA (TheInsiderStories) – Good morning! President of European Central Banks (ECB) Mario Draghi has hinted that the central bank will cut rates in September. The statement out after the Governing Council decided that interest rates remain unchanged and expects the ECB’ main interest rates stay at their current or lower levels at least until the first half of 2020.
International Monetary Fund (IMF) supported the ECB’ commitment to maintain strong accommodation in its monetary policy. Next, investor wait and see on what the Federal Reserve does.
In Washington, the senate committee will vote a bill that will impose sanctions on companies and individuals involved in building the Nord Stream 2 natural gas pipeline from Russia to Germany next week, which according to the President Donald Trump administration will strengthen Moscow‘ economic grip against Europe.
In Britain, new premier Boris Johnson vowed to leave European Union (EU) in 99 days and said “No ifs, No but”. Yesterday, he holds his first cabinet meeting and gave his first speech in the parliament.
He promised that Brexit would make Britain the best place in the world, echoing President Trump’ patriotic rhetoric in his debut speech. Johnson, who was hailed by Trump, has pledged to make a new Brexit divorce deal with the EU and to energize the world’ fifth largest economy after what he called Theresa May’ premiership gloom.
Elsewhere in Europe, the Spanish Pedro Sanchez will be confirmed as new premier for the nation. While, Italian coalition split grew less imminent yesterday after peace broke out between the rolling League and 5-Star partners.
Yesterday, Turkey takes center stage again, when the central bank holds its first meeting after Governor Murat Cetinkaya get fired. In the Middle East, Kuwait said it was working with Saudi Arabia to continue oil production in a neutral zone among those who had been closed for at least four years.
This zone can produce as many as 500,000 barrels per day, equal to about 4 percent of the combined output of countries last month. Saudi Energy Minister of State Prince Abdulaziz Bin Salman on Wednesday next week visited Kuwait and will discuss reopening after “resolving all necessary technical issues”.
In Indonesia, Finance Minister Sri Mulyani Indrawati said the government would soon release the electric cars rule. The new law which not only contained electric vehicles, but also included industries supporting battery development and luxury goods sales tax incentives.
Then, Indonesian government has reached an agreement with Bangladesh over the entire text of the Indonesia-Bangladesh Preferential Trade Agreement (IB-PTA) at the second meeting of the Negotiating Committee in Bali on July 22-23. Both delegates agreed to carry out the third IB-PTA meeting in Bangladesh in January 2020 as the stage of finalizing the text of the agreement.
While, Minister of Energy and Mineral Resources Ignasius Jonan inaugurated 16 electricity projects in the West and East Nusa Tenggara regions (NTB/NTT). The inaugurated electricity project is the Bima gas engine power plant (50 MW), Sumbawa power plant (50 MW) in NTB province.
And in NTT namely Maumere (40 MW), the Sita-Borong micro hydro power plant (2x 500 kW) and the Maumere-Ropa-Ende (2×1 MW). In addition the high voltage air ducts and Substation projects (70 kV & 150 kV) were also inaugurated in NTB Province.
On Thursday, the government finally stated to be aware of the effect of the drought on inflation, which this year is targeted to reach 3.5 percent. The long dry season is feared to affect the supply of food commodities, which has the potential to hoist prices, said a minister.
The Meteorology and Geophysics Agency predicts that the peak of the dry season will occur in August-September, and its possible to continue into November. That means, the peak of the dry season is predicted to coincide with the harvest.
Not only in Indonesia, the world is being hit by global warming. Record-breaking temperatures in France, Britain and the Dutch on Thursday when heat waves gripped Europe for the second time in a month, in what scientists say is a more frequent event when the planet heats up.
This condition disrupted train travel in parts of England and sent some Europeans. Temperatures in France are currently 42 Celsius; England 36.9 Celsius and south Dutch 40.4 Celsius.
In addition, President Joko Widodo has signed Presidential Decree concerning the temporary closure of the Indonesian embassy in Sana’a, Republic of Yemen. For the time being, the duties and functions of Yemen are carried out by the Republic of Indonesia embassy in Muscat, Oman.
Yesterday, the Jakarta Composite Index closed at 6,401, or rose 0.26 percent or 16.37 points compared to previous trade, after being corrected for three consecutive days. The Rupiah also strengthened 0.14 percent to the level of 13,977 per US dollar due to the results of weak US economic data released the night before.
Today, the composite index is estimating move in the range 6,302 – 6,488 and Rupiah stagnan. The analysts recommended PT AKR Corporindo Tbk (IDX: AKRA), PT HM Sampoerna Tbk (IDX: HMSP), PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Bank Central Asia Tbk (IDX: BBCA), PT PP Tbk (IDX: PTPP), and PT Wijaya Karya Tbk (IDX: WIKA) 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