JAKARTA (TheInsiderStories) – Good Morning! British’ Prime Minister Boris Johnson try again to get approval for a Dec. 12 general election today to smooth his Brexit plan. He is now expected to back a Liberal Democrat plan to change the law in order to secure an early election.
While, European Union leaders agreed to postponed the British’ exit plan from the block to January 2020. President European Council, Donald Tusk, said Britain could leave before the deadline if a deal was approved by House of Commons and House of Lords.
From United States (US), the Democratic Party will hold a vote regarding the investigation of the impeachment of President Donald Trump on Thursday (10/31). In a letter to members of her faction in the Congress, House speaker Nancy Pelosi promised to provide legal protection for Trump. The impeachment step requires of a two-thirds majority vote for members of the Senate.
Last week, US treasury department announced, the country’ budget deficit widened to US$984 million in the latest fiscal year, surging to the highest level since 2012 as Trump cut taxes and boosted spending. Its representing 4.6 percent of gross domestic product.
The deficit is set to widen further as spending increases for mandatory programs and interest payments. For the 12-month period, spending rose 8.2 percent, totaling $4.45 trillion while revenues advanced 4 percent to $3.46 trillion. For September alone, the surplus was $82.8 billion, compared with $119.1 billion a year earlier.
From the commodity market, crude oil prices slipped into the red zone and ended down for the first time in a week on Monday, amid new signs of swelling crude oil inventories in the US. Price of West Texas Intermediate crude for the December 2019 contract fell 85 cents and ended at $55.81 a barrel on the New York Mercantile Exchange.
While, Brent oil for the December 2019 contract closed down 45 cents at the level of $61.57 per barrel on the ICE Futures Europe Exchange. Based on Genscape Inc., data, US oil inventories had expanded by 1.5 million barrels and Russia tends to play down hopes that a new round of efforts to curb crude supplies will soon take place.
Oil prices have faced pressure for months after protracted trade disputes between the US and China eroded demand growth and made the world economic outlook bleak.
In Indonesia, maritime and fisheries minister Edhy Prabowo was reviewing two policies issued by his predecessor Susi Pudjiastuti. They were the ban on the use of cantrang (deep trawling) and the ban on transshipment. He was aware that there were concerns about the method that might let ships sell their cargo in mid-ocean.
Then, industry minister Agus Gumiwang Kartasasmita seeks to operate the smelter of PT Freeport Indonesia sooner although the initial target of 2022 is already deemed acceptable. According to him, the government is in the midst of looking for a way to operate the smelter, which has spent up to $151 million.
The construction of the Freeport smelter is done over a 100-hectare land with a total cost of up to $3 billion. The smelter is expected to be able to process 2 million tons of copper concentrate and to be fully operational in 2022.
Today, the ministry of finance targets Rp7 trillion (US$500 million) from sharia bonds auction which will mature in April 2020, January 2022, October 2024, April 2034, and July 2047. This year, the government planned to release the notes as much as Rp825.70 trillion for the 2019 State Budget’ deficit.
Yesterday, Indonesian Rupiah closed up 0.07 percent to Rp14,028 over the Greenback and the Jakarta Composite Index (JCI) also rose 0.2 percent to the level of 6,265 compared to last weekend. Today the local currency is estimating will move in limited range and the stock index between 6,224 to 6,342.
Some analyst rated the strengthening of the Rupiah was triggered by the weakening of US dollar and the progress of US – China trade negotiations. For the next two days, said the observers, the global financial markets will be watching the Federal Open Market Committee meeting which runs until Oct. 30.
Traders estimate 90 percent chance the benchmark interest rate will drop by 25 basis points.
The stocks to be watch for today are PT Japfa Comfeed Indonesia Tbk (IDX: JPFA), PT Indofood Sukses Makmur Tbk (IDX: INDF), PT Bank Mandiri Tbk (IDX: BMRI), PT Aneka Tambang Tbk (IDX: ANTM), PT AKR Corporindo (IDX: AKRA), PT Unilever Indonesia Tbk (IDX: UNVR), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Indika Energy Tbk (IDX: INDY), and PT Lippo Karawaci Tbk (IDX: LPKR).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia