US-China Trade Battle Hits Global GDP as Negative for 2-3 Years
United States and China have agreed to resume trade talks - Photo by GettyImages

JAKARTA (TheInsiderStories) – Washington relieved China’ Huawei Technologies Co., sanctions for another 90 days that had protected rural networks and other United States (US) customers from a ban on doing business with the company.

Huawei responded that the temporary relief“does not change the fact that the provider has been treated unjustly. Over the weekend, President Donald Trump indicated the US was “doing very well with China, and talking” but also suggested he wasn’t ready.

Immediately, US stocks rallied after the Trump administration signaled progress on trade negotiations and Commerce Secretary Wilbur Ross announced the extension. On Sunday, Trump said he would keep Vice President Mike Pence as his running mate in 2020′ election.

From Europe, the European Commission said that the European Union (EU) was ready for a no-deal Brexit with Britain caused they believed the country would suffer most under such a program. The  spokeswoman Natasha Bertaud said the program would never be the EU’ preferred scenario.

In July, Eurostat reported euro-area inflation slowed to 1 percent over the last 12 months, down from 1.3 percent in June and an initial estimate of 1.1 percent. While, European Central Bank (ECB) reported the current account of the euro area recorded a surplus of 18 billion Euros, compared with a surplus of 30 billion Euros in May 2019.

In the 12-month period to June 2019, the current account recorded a surplus of 318 billion Euros (2.7 percent of Euro area GDP), down from 391 billion Euros (3.4 percent of Euro area GDP) in the 12 months to June 2018.

From Asia, Japan’ foreign minister Taro Kono stated will meet his South Korean counterpart, Kang Kyung-wha, in Beijing tomorrow, amid deteriorating relations between the two countries. The talks will come during a trip to Beijing from Tuesday until Thursday for a meeting with their Chinese counterpart Wang Yi.

In Indonesia, President Joko Widodo said he understood the feelings of the people of Papua and West Papua that there was an offense. For this reason, he appealed to all citizens of the two provinces to be patient and forgive one another. While, Coordinating Minister for Political, Legal and Security Affairs Wiranto instructed the national apparatus to explore the main causes of the riots in Manokwari, West Papua.

He said that the riots could not be separated from the incidents of attacks on Papuan student dormitories in Surabaya and Malang in East Java because of alleged harassment of the Red and White flag. That was added by racist comments addressed to students by a number of parties.

On mining sector, the government is tightening the granting of fiscal facilities in the form of exemption from import duties and value added tax on imports by coal companies.

In the Minister Finance regulation PMK No.116 / PMK.04 / 2019, the fiscal authority specifies that the provision of fiscal facilities in addition must include the exemption or relief of import duties on imported goods in the Contract of Work and the New Coal Mining Business Cooperation Agreement, the contractor also required to include the period of release.

On Monday, Indonesian Rupiah lowered to 14,238 compared to last weekend. While, the Jakarta Composite Index closed up 0.16 percent to 6,296.72 compared to Friday.

Today, the composite index is estimated move in the range 6,200 to 6,340. The stock to be watch for today are PT Japfa Comfeed Indonesia Tbk (IDX: JPFA), PT Adaro Energy Tbk (IDX: ADRO), PT Adhi Karya Tbk (IDX: ADHI), PT Indosat Tbk (IDX: ISAT), PT Perusahaan Gas Negara Tbk (IDX: PGAS), and PT Eastparc Hotel Tbk (IDX: EAST).

May you have a profitable day!

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