JAKARTA (TheInsiderStories) – Good Morning! King of Dutch, Willem Alexander has scheduled to meet President Joko Widodo during his visit to Indonesia starting yesterday. In the previous meeting with prime minister Mike Rutte at the Bogor Palace on Oct. 7, 2019, both has agreed to continues the National Capital Integrated Coastal Development in Greater Jakarta areas.
The sea dike development plan in the northern waters of Jakarta requires fantastic funding, at least Rp500 trillion (US$35.46 billion) is needed until this project is completed. Dutch has important rules to find the financial strategic for the projects. While, coordinating minister for the economy, Airlangga Hartarto, will hold a bilateral meetings with the Dutch minister of trade and development cooperation.
With the markets in panic mode on Monday, United States (US) President Donald Trump is set to meet with his economic team in crafting a further response to reassure investors and businesses. While, the Federal Reserve (Fed) pumped more cash in the banking system in an effort to meet any spike in money demand as another rout on Wall Street stemming from fears about the coronavirus raised concerns about a liquidity crunch.
A number of economists expect the Fed will revisit the tactics it deployed during global financial crisis more than a decade ago as the virus breakout has killed over 3,000 people worldwide and has sent US stocks from all-time peaks earlier this year. These potential measures include lowering short-term rates near zero, buying longer-term Treasuries or quantitative easing and targeted lending to specific sectors.
Investors will also be looking for any more strict moves governments make in attempts to keep COVID-19 in check. Israel announced a mandatory 14-day quarantine for all foreign visitors and Italy’ prime minister announced that restriction of movement will be extended to the entire nation.
Deaths in Milan’ Lombardy region jumped 25 percent in a day to 333, while the national death toll soared by 97 to 463, the highest in the world after China. Over 9,000 people have become infected in Italy over two weeks, out of a global total of more than 110,000 in over 100 countries. Some 3,900 people have died across the world, the vast majority in China.
In Spain, schools were closed across the Madrid region and the Basque capital Vitoria for two weeks as cases topped 1,200 nationwide. Prime minister Pedro Sanchez said an emergency economic plan had been prepared.
Iran, with 7,161 cases and 237 deaths, said it was temporarily releasing about 70,000 prisoners because of the coronavirus. While, China and South Korea both reported a slowdown in new infections.
South Korea reported 165 new cases, bringing the national tally to 7,478, while the death toll rose by one to 51. President Moon Jae-in said South Korea could enter the “phase of stability” soon.
In the financial market, major US markets and European stock markets dived more than 7 percent. While, Japanese indexes fell over 5 percent after Saudi launched an oil price war with Russia.
The oil market had everything for bears on Monday, with Saudi Arabia and Russia turning a busted production cut deal in to an all-out price war on top of more fears of demand destruction. That resulted in crude prices plunging 25 percent, the worst drop since the 1991 Gulf War.
Crude oil prices have experienced the biggest decline since the last 29 years after the collapse of discussions between the Organization of the Petroleum Exporting Countries (OPEC) and Russia, which pushed Saudi Arabia to wage a price war.
On Monday, the West Texas Intermediate crude contract in April closed down 25 percent to as low as US$31.13 and Brent crude for the May contract dropped 24 percent to as low as $34.36 on the London-based ICE Futures Europe Exchange. Saudi Arabia cut official crude oil prices and threatened to push production to the highest level while Russia has said it will increase production next month.
In Indonesia, Rupiah lowered 1.16 percent to 14,385 against the US Dollar and the Jakarta Composite Index (JCI) dropped by 6.8 percent to 5,136.81 on Monday. Today the local currency its expected move in the range 14,320 to 14,410 against the American Dollar and the stock index is projected to continue the downward trend after a free fall of 6.58 percent yesterday.
The movement in line with the impact of the coronavirus and the oil price war. The analysts also said, the government and Bank Indonesia acknowledging that the global economic conditions are experiencing uncertainty due to the unfinished trade war, the coronavirus and coupled with the tariff war between OPEC and its allies. That gave rise to instability in the domestic economic resilience so that it had a negative impact on the currency and the JCI.
With these conditions, they recommended PT Medco International Tbk (IDX: MEDC), PT Adaro Energy Tbk (IDX: ADRO), PT United Tractors Tbk (IDX: UNTR), PT Bank Central Asia Tbk (IDX: BBCA), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Jasa Marga Tbk (IDX: JSMR), PT Astra International Tbk (IDX: ASII), PT Telkom Indonesia Tbk (IDX: TLKM), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Unilever Indonesia Tbk (IDX: UNVR), and PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP) shares for today.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia