Home TIS Intelligence Morning Briefing: Powell Calls Congress to Reduce US’s Deficit

Morning Briefing: Powell Calls Congress to Reduce US’s Deficit

Bank Indonesia (BI) and United States (US) Federal Reserves (Fed) has signed foreign and international monetary authorities or repo lines with worth of US$60 billion, said the governor today (04/07) - Photo: Privacy

JAKARTA (TheInsiderStories) – Good Morning! United States (US) Federal Reserve (Fed) chair, Jerome Powell, called on Congress to reduce the deficit amid concerns about the unsustainable path of the federal budget and debt. He has called on lawmakers to reduce the deficit for years.

Since President Donald Trump took office in 2017, the country’ debt has risen from under US$20 trillion to over $23 trillion. After testified at the Congress, today Powell will be back on Capitol Hill for the second half of his semiannual Congressional testimony.

From Europe, the block is expected to open its markets to Vietnam but closing its trade doors with Cambodia. The moves mark the continent’ increased insistence that trading partnerships go beyond liberalization and be coupled with commitments to environmental, labor and social standards.

The deal, which could take effect in July, would eliminate 99 percent of tariffs. Many Vietnamese goods benefit from preferential access to European Union markets under a scheme.

In Asia, Chinese policymakers have implemented a raft of measures to support an economy jolted by a coronavirus outbreak that is expected to have a devastating impact on first-quarter growth. On Feb. 3 – 4, the People’s Bank of China (PBoC) has pumped in RMB1.7 trillion (US$243.90 billion) through open market operations and unexpectedly cuts some key short-term money market interest rates.

The central bank also said that it will use tools such as targeted reserve requirement cuts, re-lending (RMB300 billion) and rediscount, to support key sectors.  The central bank has told banks to cap rates on loans for selected firms at 3.15 percent, one percentage point lower than the latest loan prime rate.

The Finance ministry also had allocated a total of RMB71.85 billion to fight the virus and directly used for epidemic control will be exempt from import tariffs from Jan. 1 to March 31. In Indonesia, President Joko Widodo called fiscal stimulus to be accelerated in an effort to protect Southeast Asia’ largest economy from the coronavirus crisis to support the economy.

From US, the Energy Information Administration (EIA) will report the latest weekly figures today. Yesterday, the American Petroleum Institute said that the crude stockpiles rose by 6 million barrels for the week ended on Feb. 7.

Today, the head of state, will lead a limited meeting related to the acceleration of improving ease doing business and the availability of raw materials for the steel and iron industry. While, the coordinating minister for maritime and investment, Luhut Binsar Panjaitan visited the US to meet potential investors there.

On Tuesday, Indonesian Rupiah closed up 0.27 percent to 13,675 over the US Dollar and the Jakarta Composite Index edged up 0.04 percent to 5,954.4 compared to prior day. For today, the local currency its expecting move between 13,590 – 13,740 versus the Greenback and the stock index has potential to break 6,000 level and move in the range 5,700 – 6,050.

The stocks to be watch for today PT Lippo Karawaci Tbk (IDX: LPKR), PT Unilever Indonesia Tbk (IDX: UNVR), PT Bukit Asam Tbk (IDX: PTBA), PT London Sumatra Indonesia Tbk (IDX: LSIP), PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Telekomunikasi Indonesia Tbk (IDX: TLKM), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Adaro Energy Tbk (IDX: ADRO), PT United Tractor Tbk (IDX: UNTR), PT Chandra Asri Petrochemical Tbk (IDX: TPIA), PT Waskita Karya Tbk (IDX: WKST), and PT Adhi Karya Tbk (IDX: ADHI).

US1: RMB6.97

May you have a profitable day!

Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia