INDONESIA: Government Seeking Tariff Exemptions For Key Commodity Exports
Jul-18 09:21
- Speaking earlier today, Susiwijono Moegiarso, secretary of the Coordinating Ministry for Economic Affairs, said that the government was still finalising details of its trade deal with the US, but was seeking exemptions for some of its key commodity exports.
- He said negotiations with the US are still continuing, and that the government had requested that palm oil, cocoa, nickel and rubber be exempted from the 19% tariff, according to a report on Reuters. He added that the 19% tariff will be imposed on top of existing sectoral tariffs.
- He also said that all goods imports into Indonesia from the US will face 0% tariffs, with some exceptions such as alcoholic drinks and pork.
- USDIDR edged down 0.25% today, but closed 0.5% higher on the week amid a 25bp rate cut from BI earlier in the week. Meanwhile, the JCI rallied by 0.34%, taking the weekly advance to 3.75%.
- After the BI rate cut this week, next week’s calendar is clear, with focus remaining on final trade negotiations ahead of the Aug 1 deadline.
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RIKSBANK: Sensible To Provide A Little More Support To Economy With Rate Cut
Jun-18 09:20
Q: How do you know that today's decision is the right one?
A: We cannot wait for fully certainty that we have made the right decision, but there are a good set of indicators that are in favour of the move.
- Thedeen notes that with inflation, wages and the krona in line with targets/not posing upside risks to the rate outlook, it makes sense to provide a little more support to the economy with another rate cut.
- Thedeen also notes that the Riksbank is not highlighting a specific meeting for another rate cut in its latest projections.
RIKSBANK: June Rate Path Is Best Assessment, Not A Promise
Jun-18 09:16
Thedeen: There is a certain probability of another rate cut this year.
- This is the Riksbank's best assessment of the outlook ahead. which corresponds to around a 50% chance of another rate cut.
- However, this masks substantial uncertainty around the projections, and the best assessment is not a promise.
EQUITIES: Large Estoxx Put Spread
Jun-18 09:14
SX5E (20/03/26) 5050/4650ps, bought for 84.7 in 20k.
