Tuesday, May 26, 2020

WOTS TUES MAY 26 2020

The Markets:

The Asian markets closed up NIK by 2.55%  HSI  by 1.88%  SHANG by 1.01%

The EU markets are currently trading in the green by no more then 1.5%

Our futures are currently trading in the green  DOW at 24932 up by 2.07 %  SNP  up by 1.90%  NDX up by 1.85%




Precious Metals:
Gold is red at 1725  Silver is  green at 17.92 Copper is green at 243   Platinum is red at 838

  Brent is green at 36 WTI  green at 34  

Favorite Currencies Forex Quotes

SymbolBidAskHighLowOpenChangeTime
 USD/IQD  1165.2000  1220.2000 1192.9000 1192.9000 1192.9000  2.0000 06:04
 USD/VND  23312.0000  23315.0000 23297.2700 23297.2700 23297.2700  2.8300 01:30
 USD/CNY  7.1318  7.1338 7.1370 7.1262 7.1350  -0.0041 04:55
 USD/KWD  0.3086  0.3096 0.3089 0.3087 0.3089  -0.0002 04:54
 GBP/USD  1.2311  1.2314 1.2325 1.2178 1.2182  0.0130 04:55
 USD/IRR  42000.0000  42210.0000 42097.5000 42097.5000 42097.5000  97.5000 06:03
 USD/IDR  14740.0000  14740.0000 14806.0000 14503.0000 14518.0000  219.0000 04:54


Things in the News:


Iraqi Articles:

Oil prices continue to rise

Oil prices rose on Tuesday, supported by growing confidence in the market that producers will stick to their pledges to reduce crude supplies while demand improves as more cars return to the roads amid easing anti-Corona virus measures around the world.
US West Texas Intermediate crude futures rose 3.4%, or $ 1.12, to $ 34.37 a barrel, slightly lower than today's high of $ 34.54.
Brent crude futures rose about 1.7%, or 61 cents, at $ 36.14 a barrel, after gains of 1.1% on Monday in meager transactions due to the holiday.
The market was supported by statements from Russia stating that its oil production had decreased, nearing its target of 8.5 million barrels per day for May and June, under a supply reduction agreement with the Organization of Petroleum Exporting Countries and other major producers, within the framework of the group called OPEC +.
“There is absolutely a feeling that these cuts have crystallized as best,” said Daniel Haynes, chief commodity market strategist at Australia and New Zealand Banking Group.
OPEC + countries will meet in early June to discuss keeping supply cuts aimed at supporting prices, which are still down about 45% since the beginning of the year. The major producers had agreed in April to cut production by about ten million barrels per day in May and June. 
 
 

Al-Nujaifi Front: Al-Kazemi did not fulfill the first era he made before the House of Representatives

Hazem al-Janabi, leader of the Salvation and Development Front, said on Tuesday that Prime Minister Mustafa al-Kazemi had not fulfilled the first promise he made to himself in the Chamber of Deputies while voting on his cabinet.
Al-Janabi told Al-Maalouma that “Prime Minister Mustafa Al-Kazimi promised to Parliament on the day of the vote on his government to complete the ministerial cabinet before the current Eid Al-Fitr.”
He added, "The dispute over the portfolio of the Ministry of Oil and Quota in the remaining ministries caused a delay in resolving this file," noting that "Al-Kazemi was the first to not listen to the political blocs and not to accept this quota."
On May 7, the House of Representatives granted confidence to the government of Prime Minister-designate Mustafa Al-Kazemi, but he postponed the vote on five ministries.

The Stock Exchange: We will reorganize five sessions a week after Eid Al Fitr 
The stock exchange announced, on Sunday, that it will reorganize five sessions a week after Eid Al-Fitr, indicating that its first session will be on Sunday, May 31.

The Stock Exchange said in a statement, "Economy News" received a copy of it, "The Stock Exchange will reorganize five sessions per week after the blessed Eid Al-Fitr after the Board of Governors reduced the number of trading sessions from five sessions per week to three sessions per week organized on Sunday, Tuesday and Thursday."
The statement added, "The first trading session will be after Eid Al-Fitr on Sunday, May 31, 2020."
It is noteworthy that the Iraqi Stock Exchange was established in June 2004, and was previously dependent on manual trading. In April 2009, electronic trading was approved by some companies, and electronic trading began for the companies registered in the year 2010, and 104 companies affiliated to eight sectors are banking, industrial, Hotel, tourist, agricultural, investment, insurance, in addition to communications.


Canada has announced an urgent half-million-dollar financial grant to support a rapid response to humanitarian needs in Iraq, pledging to overcome the Corona epidemic together.
"Canada is pleased to announce that it is contributing $ 500,000 to the United Nations office to support the rapid response to humanitarian needs in Iraq, including the fight against Covid-19," the Canadian embassy in Baghdad said in a tweet on its Twitter account.  
"We are proud to be the largest donor to the United Nations' humanitarian response plan for 2020 in Iraq," she concluded.  

Indonesia Launches National Economic Recovery Program


  • Indonesia launched the National Economic Recovery program on May 11, 2020, which provides the latest stimulus policies for the economy.
  • The program is estimated to cost US$43 billion and comprises of tax breaks for industries, capital injections to state-owned companies, and liquidity support for the banking industry, among others.
  • With the launch of the program, the country’s budget deficit is expected to reach 6.7 percent of GDP in 2020, much higher than the anticipated 5.07 percent of GDP.
On May 11, 2020, the Indonesian government issued Regulation 23 of 2020 (Reg 23/2020) on the implementation of the National Economic Recovery (NER) program, which sets out the latest stimulus policies to soften the economic impact caused by the pandemic.
The program, estimated to cost US$43 billion, is an expansion of the incentives in the stimulus packages issued in February and March 2020. The NER comprises of tax breaks, capital injections for state-owned enterprises (SOEs), interest subsidies for micro, small, and medium-sized (MSMEs) enterprises, liquidity support for the banking industry, as well as financial assistance for vulnerable households, among others.
With the introduction of the NER, the budget deficit has swelled to 6.27 percent of GDP, much higher than the anticipated 5.07 percent of GDP. In providing assistance to SOEs, the government has stated this will only apply to SOEs engaged in strategic roles, such as transportation and energy.

Tax incentives for more industries

The government has allocated 123 trillion rupiah (US$8.3 billion) in tax incentives for more industries.
This includes reducing the corporate income tax (CIT) rate from 25 percent to 22 percent for the 2020-2021 tax year. This will be further reduced to 20 percent for the 2022 tax year.
Employees earning below 200 million rupiah (US$13,000) working in certain sectors will be exempted from paying income tax. These sectors are:
  1. Agriculture, forestry, fisheries;
  2. Mining and quarrying;
  3. Processing industry;
  4. Electricity, gas, steam, and cold air suppliers;
  5. Water management, wastewater, waste recycling, and remediation activities;
  6. Construction;
  7. Wholesale, retail, repair, car, and motorcycle maintenance;
  8. Freight and warehousing;
  9. Hotels and accommodation providers, F&B;
  10. Information and communication;
  11. Financial activities and insurance;
  12. Real estate;
  13. Professional scientific and technical services;
  14. Rental activities, warehouse rental business, employment, travel agents and other business support;
  15. Education;
  16. Human health and social activities;
  17. Tourism, arts, entertainment, and recreation industry; and
  18. A company whose activities are located in special bonded zones.
The government will bear the 0.5 percent income tax on businesses having a gross annual turnover of 4.8 billion rupiah (US$326,000) as stipulated under Ministry of Finance Regulation 23 of 2018, from April to September 2020.
Furthermore, for the aforementioned industries, the government will relax value-added tax (VAT) refunds, as well as the deferral on import tax payments. Taxpayers will need to submit a VAT tax return overpayment refund for the period April-September 2020 with a maximum value of 5 billion rupiah (US$340,000).

Interest subsidies for MSMEs

In assisting the immediate cashflow of MSMEs, the regulation will enable the government to provide interest payment subsidies ranging from two to six percent. 
This incentive applies to the 26 million or so borrowers of the government’s Ultra-Micro Financing Program and the Women-based Financing Program. A further 28 million borrowers of the national Micro-credit Program who take out loans between 10 million rupiah (US$654) and 500 million rupiah (US$33,000) will have their loan repayments suspended for the next six months.
SMEs who have borrowed between 500 million rupiah (US$33,000) and 10 billion rupiah (US$668,000) are eligible for three percent interest subsidies for three months and two percent for the next three months.
Finally, six million farmers will be eligible for interest subsidies of six percent for a period of six months.
To be eligible, MSMEs must ensure they have a valid tax number, and are not blacklisted by the Financial Services Authority (OJK), the agency that regulates the financial services sector. Additionally, they must also have a good history of loan repayments before the onset of the pandemic.

Working capital for MSMEs

State-owned investment management company Bahana Pembinaan Usaha Indonesia will receive 6 trillion rupiah (US$408 million) to strengthen state-owned insurance providers Askrindo and Jamkrindo, in their capacity to provide credit guarantees to MSMEs.

Funding for banks

Through this measure, the government will provide funding up to 87 trillion rupiah (US$5.9 billion) to commercial banks (participating banks) who will provide liquidity to banks (implementing banks), which are providing working capital for MSMEs.
 To participate, these commercial banks need to fulfil several criteria:
  • The bank must be a commercial bank and incorporated as an Indonesian entity, with at least 51 percent of shares owned by an Indonesian citizen/legal enterprise;
  • The bank must be categorized as healthy by the Financial Services Authority (OJK); and
  • They must be categorized as a top 15 bank by asset size.
Upon receiving the funds, participating banks can provide the liquidity to the implementing banks, provided they are for financing/working capital for MSMEs or for rural/shariah banks undertaking the same measures.
A commercial bank can also become an implementing bank and receive the liquidity buffer if:
  • They are categorized as healthy by the OJK; and
  • The bank is a holder of government securities, Bank Indonesia Deposit Certificates, Bank Indonesia Sukuk and Shariah Certificates, and Bank Indonesia Certificates, which are not subject to any repurchase agreements that add up to no more than six percent of the bank’s third-party funds.

Working capital for SOEs

More than 44 trillion rupiah (US$2.9 billion) has been allocated to certain state-owned enterprises who are deemed ‘crucial’ to the economy. The companies are mentioned below:
  • State construction company, Hutama Karya, was allocated 11 trillion rupiah (US$748 million);
  • State electricity company, Perusahaan Listrik Negara (PLN), was given five trillion rupiah (US$340 million);
  • National carrier, Garuda Indonesia, who was allocated 8.5 trillion rupiah (US$578 million);
  • Financial services providers, Permodalan Nasional Madani, who was allocated 2.5 trillion rupiah (US$170 million);
  • Major operator of public railways in Indonesia, Kereta Api Indonesia, was given 3.5 trillion (US$238 million);
  • Perumnas, the SOE engaged in the building of houses and settlements, was given 650 billion rupiah (US$44 million);
  • Perkebunan Nusantara, a company engaging in plantations, has been given to four trillion rupiah (US$272 million);
  • Krakatau Steel, the largest steel producer in the country, was allocated three trillion rupiah (US$204 million);
  • Investment management and banking firm Bahana Pembinaan Usaha Indonesia, was given 6.2 trillion rupiah (US$421 million); and
  • Indonesian Tourism Development Corporation was given 500 billion rupiah (US$34 million).
In addition to the US$340 million in funding for PLN, the company has been given 45 trillion rupiah (US$3 billion) in compensation payments by the government. State oil company Pertamina has also been given the same amount in compensation payments.

Support for consumer spending

The government has provided 172 trillion (US$11.6 billion) in funding for social programs. These are intended to impact laid-off workers and vulnerable households.
The funds will be distributed among several charitable programs. These include 37 trillion (US$2.5 billion) allocated for the Family Hope Program, which provides educational and health facilities to low-income households. 43 trillion rupiah (US$2.9 billion) has been designated to the Staple Food Program, which will assist more than 15 million people, and 20 trillion rupiah (US$1.3 billion) for the government’s Pre-Employment Program, among other measures.

Assistance for government ministries and regional administrations

Government ministries, in particular those dealing with housing and tourism, are eligible to receive 65 trillion rupiah (US$4.4 billion) whereas regional administrations have been supported with 15 trillion rupiah (US$1 billion) in funding.

Biodiesel program

The government’s biodiesel program, in which the country has produced biodiesel containing 30 percent palm-based fuel, has been given subsidies worth 2.7 trillion rupiah (US$183 million).

5-25-2020   Newshound Guru Pimpy  When Al-Kazemi got into office I was hoping he'd be whipping butt.  But I had no clue that this guy was going to accomplish what he's accomplishing and he's done it all in such a short period of time...   

5-25-2020   Newshound Guru MilitiaMan  
Article:  "The Kurdistan government approves the Baghdad proposal to settle the financial situation We see the Kurds are in agreement with the new PM on the implementation of the FMLA of 2019..this is music to my ears. They agreed on the REER (Real Effective Exchange Rate) for the future budgets and will be in preparation for their fundamental implementation...No wonder Saudi Arabia is off and running... Word travels fast. This looks like a notification that was dated May 19th.. 1) DONE 2) DONE and 3) DONE...imo.

5-25-2020   Newshound Guru Pimpy  ...when I say Iraq or Vietnam are a long term investment you're misunderstanding what I'm saying so I want to clarify this.  I'm not talking about their currencies.  I think the currencies are gonna change really quick here.  Especially the Iraqi dinar.  As a matter of fact I can make a bold suggestion and that is, our time is this year 2020.   There's no doubt that the Iraqi dinar rate will change in 2020.  I feel very confident about that...and then I say, 'oh these two countries you should consider longer term.'  People are like oh my God pimpy is saying it's going to be 5, 10, 15 years down the road for their currencies.  No. I'm not talking about the currencies...I'm considering Iraq and Vietnam as "long term" outside of their currencies.  As long term investment opportunities.  There's just so much growth potential there...

5-25-2020   Intel Guru Footforward   [Vietnam increases reference exchange rate.]  Article:  "HANOI: The State Bank of Vietnam on Monday (May 25) set the daily reference exchange rate between Vietnamese dong and US dollar at 23,257 Vietnamese dong per US dollar, up 15 Vietnamese dong against the last working day of the previous week."   it's telling us they have a good economy and that the dong went up less then 1/10th of a penny. It's good to hear reports of their economy but this doesn't change anything for us at the moment.

5-25-2020   Newshound Guru MilitiaMan  Article: "Under royal directives, the Saudi ambassador returns to work in Baghdad"  Quote:  "Prime Minister Mustafa Al-Kadhemi and Minister of Finance Ali Abdel Amir Allawi, affirming the Kingdom’s concern for the unity of the Iraqi people, and the importance of cooperation with the new Iraqi government to achieve mutual interests and enhance ties Bilateral relationship between the two brotherly countries..."  Looks like more of the PM hitting the ground and running!! This is also huge and supportive Iraq has agreed to be compliant and international..imo.

5-25-2020   Intel Guru Frank26  ...at any time this could happen.  Don't be looking for no date.  No specific time of the year.  I don't care what everybody's telling you.  At any time it could happen because it's an accounting process.  It's all about the numbers...they tested this...they tested it in the markets - successfully.  Their exchange rate was tested - successfully.  What do you mean?  The auctions, they shut it down and they've maintained their exchange rate... - successfully.  They proved themselves.  They proved themselves to be worthy to go international - to have the value to their currency lifted by the Fab 4.  Therefor they are a go.  They are ready to go...

5-25-2020   Newshound Guru MilitiaMan  We know the CBI printed 4 trillion dinar in April. They didn't print large notes. They printed smaller increments of money. imo. We know they showed us they were destroying large amounts of perfectly good large notes. The new money is to replace the large with smalls...The education process for the new currency will come once the REER  (Real Effective Exchange Rate)  is exposed...They could show the new money and educate for re opening of the ISX well before they open...So, lets see what they do next. But, it sure looks like we are in a good place.. imo.  [post 2 of 2]

5-25-2020   Newshound Guru MilitiaMan   Article:  "Finance Minister: Agreement to activate the electrical connection between Iraq and Saudi Arabia"  ...The move that supports they are Article 8 compliant in business..imo    They cut off Iran and Iraq's electricity dealings yesterday...The energy is now coming from Saudi Arabia. That means to me they are international in regard to doing business. The implications of that are huge...We know the plan is to become a social market economy for Iraq. That requires internationalism. Doing so requires Iraq to be article 8 compliant...From the looks of the recent agreement with Saudi Arabia, they are showing that they are now compliant, ioo. The meetings with the Finance Minister, aka Deputiy Prime Minister, has me thinking they are or may have brought or now are bringing the REER (Real Effective Exchange Rate) to the neighboring countries...imo Times are seriously getting real, imo!  [post 1 of 2....stay tuned]    



Catnip's Corner:
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ARTICLE 1 (from PM Kadhimi's website; posted only on Arabic side, not on English side)

Prime Minister Mustafa Al-Kazemi discusses with the Russian President the development of relations and economic conditions

The Prime Minister, Mr. Mustafa Al-Kazemi and the President of the Russian Federation, Mr. Vladimir Putin, discussed, in a telephone call, the development of relations between the two countries and economic conditions.

He congratulated the Russian President, Mr. Al-Kazemi, on assuming the presidency of the government and on Eid Al-Fitr.

Mr. Al-Kazemi discussed with Mr. Putin the strengthening of relations and conditions in the region, low oil prices and impacts, the OPEC agreement, the Corona pandemic, and the security situation in Iraq and Syria.

The Russian President expressed his country's aspiration to develop bilateral relations between Russia and Iraq and its importance in all fields, economic, commercial, and energy, and to increase the volume of investments to twice what it is now, as well as in the field of electric energy.

With Mr. Al-Kazemi stressed the government's interest in strengthening cooperation with Russia and inviting Russian companies to come to Iraq and invest in all fields, and work to overcome the difficulties in front of these companies because of their positive repercussions on Iraq and in the relations between the two countries.

Mr. Putin extended an invitation to Mr. Al-Kazemi to visit Moscow, and Mr. Al-Kazemi extended a similar invitation to Mr. Putin to visit Baghdad.



Media office of the Prime Minister
May 25-2020



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ARTICLE 2 (from Government of Iraq twitter account)

Iraq’s Minister of Finance visits Kuwait for talks on economic cooperation, investment
24 May 2020 - 11:19 am

Iraq’s Minister of Finance, Ali Allawi, arrived in Kuwait on Saturday for talks with senior officials.

Mr. Allawi held discussions with the Prime Minister of Kuwait, Sheikh Sabah Al-Khalid Al-Sabah, on bilateral relations and delivered a written message from Prime Minister Mustafa Al-Kadhimi.

He also held talks with the Minister of Finance, Barrak Al-Shitan, the Minister of Oil, Khaled Al-Fadhel, the Deputy Foreign minister, Khaled Al-Jarallah and other senior Kuwaiti officials.

The discussions focused on taking forward and implementing the decisions of the International Conference for the Reconstruction of Iraq held in Kuwait in February 2018, linking the electricity grids of the two countries, and rescheduling Iraq’s compensation payments to Kuwait.

The two sides also discussed encouraging Kuwaiti investment in Iraq, especially in the commercial and industrial sectors, and in infrastructure.

Mr. Allawi earlier visited Saudi Arabia where he held talks with Saudi officials on deepening economic and commercial and cooperation.

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ARTICLE 3

Hassan Al-Kaabi calls on Al-Kazemi to complete the return of the Iraqis stranded abroad
25/5/2020 19:36
Where's the news - Baghdad

The first deputy speaker of the House of Representatives, Hassan Karim Al Kaabi, called on Monday, the head of the Supreme Committee for Health and High National Safety Mustafa Al-Kazemi for urgent action to complete the return of Iraqis stranded in our embassies in foreign countries, especially students, bodies and their relatives in India and other countries.

Al-Kaabi said in a statement that the agency received a copy of it, that “we have previously asked Mr. Al-Kazemi to listen to all the appeals that we received from our people abroad and our confirmation in an official book to support the airlines by providing a financial allocation that can return all those stranded abroad, especially the dead bodies and patients present in India".

He added, "Our responsibility is all to accelerate their safe return to the homeland as part of this country and their humanitarian demands cannot be ignored under any circumstances."

Al-Kazemi called for "taking this humanitarian issue seriously and urgently returning one of the bodies", stressing that "all concerned parties should cooperate with the Iraqi embassies to install those who want to return and take all precautionary and preventive measures as soon as they arrive at the country's airports."

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ARTICLE 4

Kurdish leader: A delegation from the Patriotic Union of Kurdistan will visit Baghdad after the holiday
5/25/205 16:29 • 5 times read
[Baghdad-where]

Member of the Patriotic Union of Kurdistan, Mahmoud Khoshnaw, announced on Monday that a delegation from the union will visit Baghdad after the blessed Eid Al-Fitr.

"A party delegation from the leaders of the Patriotic Union of Kurdistan will pay a close visit to Baghdad after the blessed Eid Al-Fitr to discuss several files," Khoshnaw said in a press statement.

He added, "The delegation of the Kurdistan Regional Government postponed its visit to Baghdad, which was scheduled before the Eid for unknown reasons," noting that "The delegation of the Kurdistan Regional Government visited according to the information also after the Eid, but both visits are unique."

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ARTICLE 5

The crowd announces the killing of the most prominent ISIS leaders in the "dead" area on the border between Diyala and Salahuddin
 25/5/2020 16:07 • 21 times read
Where's the news - Baghdad

The leader of the popular crowd, Sadiq al-Husseini, revealed, on Monday, the killing of one of the most prominent ISIS leaders in an ambush on the border between Diyala and Salah al-Din.

Al-Husseini said in a press interview that "a joint force ambushed some of the afternoon today at the dead outskirts of the border between Diyala and Salah al-Din and confronted a motorcycle driven by two ISIS terrorists, killing one of them, a leader of the organization, according to preliminary information."

Al-Husseini added, “4 ISIS terrorists have been killed so far in ambushes on the border between Diyala and Salah al-Din during the past two weeks, confirming that the popular crowd cut through its spread near the dead one of the most important and most dangerous passages of the organization’s infiltration from Salah al-Din towards Diyala through the great Hawi to reach the depth of cities And villages to tamper with internal security and stability.

ISIS cells are active in abandoned villages on the border between Diyala and Salah al-Din, but they are within the latter's boundaries and are trying, through Hawi al-Azim, to infiltrate from time to time.

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