Ahead of the Spring meeting starting tomorrow, International Monetary Fund (IMF) managing director, Kristalina Georgieva warned, that the COVID-19 will turn global economic growth “sharply negative” in 2020 with only a partial recovery seen in 2021 - Photo by World Bank Office

JAKARTA (TheInsiderStories) – The executive board of the International Monetary Fund (IMF) nominated Kristalina Georgieva become the next managing director to replace Christine Lagarde position which is being nominated as president European Central Bank. The candidate, the board said she has confirmed her willingness to lead the multilateral body.

Currently Georgieva work as the CEO of the World Bank and a Bulgarian national.  It said, the Board will now proceed the appointment and targeting to complete the selection process at the latest by Oct. 4, 2019.

From Europe, surprisingly, United Kingdom (UK) economy grew 0.3 percent in July helped by the dominant services sector. The pound rose 0.6 percent to $1.236 in reaction to the figures. However, there is evidence that the economy lost some momentum more recently as the political crisis over Brexit hit confidence and the trade war between the United States (US) and China escalated.

Still from UK, Queen Elizabeth gave final approval to a piece of legislation which seeks to prevent Prime Minister Boris Johnson from taking the country out of the European Union without an exit deal on Oct 31. Followed that order, Johnson will suspend parliament starting Monday for more than a month despite Brexit crisis.

The step, known as Royal Assent, is effectively a rubber-stamp from the monarch for the law which passed through parliament last week despite opposition from the government. The Royal Assent was announced in parliament’ upper chamber, the House of Lords.

In Asia, North Korea is willing to restart talks with the US in late September that have stalled since a failed summit in February. The meeting could be held at a time and place agreed between both sides, said Vice North Korean Foreign Minister Choe Son Hui.

While, Washington is “very concerned” about China’ purchases of Iranian oil. Currently, its reported, US officials would discuss the issue with the Chinese government. Last year, US withdrew from a nuclear deal that world powers had done with Iran in 2015, and reimposed sanctions to strangle Iran’s vital oil trade.

In the country, Indonesian central bank (BI) will release Retail Sales Index today. In June the index lowered to 1.8 percent after peak season in Ramadhan and Eid Fitr.

Furthermore, Indonesian government considering to ban bauxite export after nickel ore, said Chinese media citing coordinating minister of maritime affairs Luhut Pandjaitan. The potential ban of the aluminium raw material comes after the country announced to restricted nickel ore exports starting Jan. 1, 2020.

While, the energy and mineral resources ministry indicated it would not provide quota for fuel oil imports to business entities until the end of the year. It said the quota given by the government to business entities for importing fuel was considered sufficient. He hopes that the business entities will maximize the quota that the government has provided.

The latest business entity given additional import recommendations is ExxonMobil Indonesia. From government data, the American oil producer received an import recommendation of 800,320 kiloliters of diesel fuel, that is not produced domestically and is used for partners with long-term contracts.

On Monday, Indonesian Rupiah lowered 0.46 percent to 14,025 over the Greenback contrary to the Jakarta Composite Index (JCI) strengthened 0.27 percent to 6,326.213. Today, the both major instrument is estimating still have to strengthening as the external pressure subsided.

On Tuesday, some analysts recommended PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Central Asia Tbk (IDX: ASII), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Unilever Indonesia Tbk (IDX: UNVR), PT Bank Mandiri Tbk (IDX: BMRI), PT HM Sampoerna Tbk (IDX: HMSP), PT Astra International Tbk (IDX: ASII), PT Chandra Asri Petrochemical Tbk (IDX: TPIA), PT Bank Negara Indonesia Tbk (IDX: BBNI), and PT Gudang Garam Tbk (IDX: GGRM) stocks 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