JAKARTA (TheInsiderStories) – Good morning! British Prime Minister Theresa May to meet European Commission (EC) leader Jean-claude Juncker today to take the latest stated of Brexit. May will present a new legal proposals to solve the Irish backstop at the meeting.
The most hardline Eurosceptics have repeatedly said they will only support May’ deal if the compromise is written into the European Union (EU) withdrawal agreement to replace the backstop. The mechanism that would keep the United Kingdom (UK) in a customs union if there were no solution to the Irish border.
If May and Juncker could agree a possible way forward tonight, Geoffrey Cox, the attorney general will be able to change his legal advice to the government, which currently states that the backstop could mean a permanent customs union.
Speaking to parliament on Tuesday (02/19), former Bank of Japan (BoJ) Governor Haruhiko Kuroda said would have to consider additional stimulus if the exchange rate affected Japan’ inflation and economy. He added the BoJ’ options included lowering bond yields and increasing asset purchases.
He told lawmakers that currency manipulation is not a goal of the central bank policy, but Japan’ trading partners might not be convinced if BoJ does act to offset a stronger Yen.
In this early 2019, Japanese Yen dramatic surge becomes another concern for the global market. Since early December, Yen recorded as the best performing major currency in the world.
The invigorating Yen is considered as a sign for this year’s slowdown global economy. Japanese investors who tended to invest a large portion of their savings overseas, brought their money home during extreme market stress and drove the yen powering up.
While in Indonesia, after the second’ presidential debate between Joko Widodo and Prabowo Subianto, Saiful Mujani Research and Consulting (SMRC) Executive Director Djayadi Hanan deemed had an effect toward voters, especially the swing voters. He claims that this voter demographic would only decide after being informed of a candidate’ programs.
The second presidential debated took place on Sunday (02/17) discussed a wide range of issues from natural resources, energy and food security, environmental issues, and infrastructure.
While, Indonesia Finance Minister Sri Mulyani Indrawati opened hearing from businessmen for 2020 State budget. It is in order to have another insight on designing next year’ fiscal policy, including tax, excise, non-tax state revenue, and state expenditure.
The minister said that government committed to keep the interaction with business players. Indrawati admitted that 2018 wasn’t an easy year to managed, due to unexpected occurrence such as oil price increase, Rupiah depreciation, and Fed rate hike.
Other than that, the US-China trade war was also impacted Indonesian economy. Even so, she claimed that Indonesia’s state revenue expenditure budget is relatively healthy and stable.
Yesterday, Indonesian Rupiah moved slightly decreasing to 14,031 against the greenback. Then, the Jakarta Composite Index closed declining by 0.04 percent to 6,494.44 with Rp618.64 billion (US$1.33 million) foreign net sells.
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia