G20 summit on June 28-29 will be overshadowed by the bilateral meeting between United States President Donald Trump and Chinese President Xi Jinping - Photo by the White House

JAKARTA (TheInsiderStories) – Good Morning! This week the world’ center will be on the Group of 20 (G20) meeting in Osaka, Japan. The summit on June 28-29 will be overshadowed by the bilateral meeting between United States (US) President Donald Trump and Chinese President Xi Jinping, as they try to conclude a trade deal.

President Trump has signaled that the US will implement another round of tariff hikes on Chinese products if the bilateral trade talks do not make sufficient progress. The Trump-Xi talks could open the path for renewed trade negotiations to defuse the US-China trade and technology wars that have been escalating in recent weeks.

Having made it through one of the most complicated meetings of Fed officials in recent history, Chairman Jerome Powell will speak at a Council on Foreign Relations event in Washington. He will do so as investors seek clues into whether and how soon he will deliver the interest-cuts he last week shifted toward. Whether Trump continues his attacks on the Fed will also draw attention after Bloomberg reported the president believes he can strip Powell of the chairmanship if he wants to. Other key economic reports include the release of durable goods data on Wednesday and the University of Michigan survey on Friday.

In the eurozone, markets will be watching flash consumer inflation data for June as the European Central Bank stands ready to introduce new stimulus. While, in Asia, the focus intensifies on the health of manufacturing amid escalating trade war tensions.

Industrial output data for a number of export-oriented economies such as Japan, Thailand, Taiwan, Korea and Singapore will be highly anticipated. China’ industrial profits will also be under scrutiny, as will the Purchase Manufacturing Index data (issued on June 30).

Beside, releases from the Bank of Japan will meanwhile be scoured for clues as to what form new stimulus could take. And this morning Statistic Indonesia will release trade data after posted the worse deficit in May at US$2.5 billion.

On Friday, US’ Federal Reserves’ chairman Jerome Powell will speak at a Council on Foreign Relations event in Washington. Other key economic reports include the release of durable goods data on Wednesday.

In Canada, the country to publish the first snapshot of gross domestic product in the second quarter and the Bank of Canada releases its business outlook survey. In Asia, central banks in New Zealand and Thailand will meet to set monetary policy on Wednesday.

Furthermore, the center of global eyes will focus on Indonesian Constitutional Court decision decision on the 2019 presidential election dispute. Last week the panel of judges hear the witnesses from all parties and this week will examine the testify.

Last week, Southeast Asian (ASEAN) leaders has meet in Bangkok, Thailand amid the disputes in the South China Sea and the plight of ethnic Rohingya fleeing in Myanmar. After the two-days meeting, the leaders announced a collective vision for the Indo-Pacific region on Sunday (06/23), in an attempt the strategic rivalry between China and the US.

The document says: “The rise of material powers, like economic and military, requires avoiding the deepening of mistrust, miscalculation, and patterns of behavior based on a zero-sum game.”

While, Asian Development Bank President Takehiko Nakao met Indonesian President Widodo today on the sidelines of the ASEAN Summit to reaffirm the Fund’ support for the country’ reform agenda and plans for expanding the organization operations in Indonesia.

At the meeting, he updated the president on ADB’ support through a comprehensive $800 million emergency response package following natural disasters in Central Sulawesi and Lombok in 2018. The first phase of the support, worth $500 million to meet immediate rehabilitation needs, was approved by ADB on Nov. 20, 2018.

The second phase of support for $300 million, which ADB’ board will consider on June 26, will support the reconstruction of damaged irrigation facilities, water supply and sanitation systems, a large university, and port and airport facilities. 

ADB’ regular sovereign lending program to Indonesia, which has grown in recent years, is expected to reach $2.6 billion in 2019. ADB finances investments in energy, skills development, irrigation, and border area development, through its project and results-based loans.

ADB is also supporting structural reforms in the areas of public sector management, financial sector, energy sector, and investment climate through policy-based lending. In addition to sovereign lending, ADB’ private sector operations provide loans to private sector projects in strategic areas such as geothermal energy.

Indonesian Rupiah lowering to 14,161 this morning after closed higher on Friday (06/21) at 14,125 against the Greenback. On Thursday the local currency ended at 14,145 over the American Dollar.

May you have a profitable day!

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