MACRO ECONOMIC NEWS

TEDDY IS LITTLE MADDY DEAR; ENJOY THE SHOW; CHEER THE MOMENT. WISHING A JOLLY DAY AHEAD.

Macro Economic News 27 Feb 2020

 

President Trump’s diplomatic drop-in was intense and brief; with host PM Modi providing expansive red-carpet treatment, as the two leaders sidestepped trade issues. India might go slow on trade deal with US with both sides consider to work on wider FTA However, Delhi will soon engage with Washington DC to finalise the next spate of visits by trade officials. Deepening economic damage from China’s coronavirus outbreak is forcing its leadership to confront an agonizing decision: when to ease quarantine restrictions that are strangling growth. Companies in Europe’s largest economy are rushing to limit the impact of the spreading epidemic, which hits a weakened German economy in a painful spot. German finance minister eyes plan to ease strict ‘debt brake’ while EU trade chief says US ‘mini deal’ is within reach. South Africa cuts public wage bill to avoid downgrade whereas dovish board member calls for review of BOJ's policy framework and New Zealand prepares for 'serious impact' on economy from virus. UK car industry seeks support eyeing free-trade Brexit deal as output falls while Moody finds Car sales in India will stabilise in 2020 due to stimulus measures and discounts. Panagariya opines India’s slowdown has bottomed out while economists expect GDP growth in Q3 likely to stay flat at 4.5 per cent. Firms loosen purse strings to help promoters by raining dividends on street whereas HNIs flock to commercial properties as residential market slows down amid FM warning to banks against trusting credit scores of loan seekers 'blindly'.

 

FINANCIAL TIMES

[I]  German finance minister eyes plan to ease strict ‘debt brake’

[I]  EU trade chief says US ‘mini deal’ is within reach

[I]  South Africa cuts public wage bill to avoid downgrade

[I]  European companies face coronavirus hit to supply chains

[I]  Brace for more virus cases, warns UK health secretary

[I]  Trump looks to defuse coronavirus threat and boost markets

 

REUTERS

[I]  Japan defends cautious approach on coronavirus testing amid concerns

[I]  Dovish board member calls for review of BOJ's policy framework

[I]  UK car industry seeks support, free-trade Brexit deal, as output falls

[I]  New Zealand prepared for 'serious impact' on economy from virus - finance minister

[I]  Lower mortgage rates, mild weather lift U.S. new home sales to 12-1/2-year high

[I]  China's economic recovery accelerating, Politburo says

 

BLOOMBERG 

[I]  China May Cut Deposit Rates So Battered Banks Can Keep Lending

[I]  Volatility Market Signals the Stock Pain Isn't Going Away Soon

[I]  U.S. Warns on Travel to Korea; Trump Taps Pence: Virus Update

[I]  Australia Has World’s Best-Performing Stock Market Since 1900

[I]  Bank of Korea Stands Pat Despite Virus Hit to Growth View

[I]  Yellen Says Coronavirus Could Throw U.S. Economy Into Recession

[I]  Early Fed Cut, BOK Under Pressure, China Deposit Rate: Eco Day

 

WALL STREET JOURNAL

[I]  As China’s Economy Suffers, Xi Faces Pressure to Lift Virus Restrictions

[I]  The German Economy Was Faltering, Then Came the Coronavirus

[I]  Fed’s Wait-and-See Posture Tested by Virus

[I]  China Lifts Import Restrictions on U.S. Farm Goods

[I]  The Taj Mahal, Folk Dancers, ‘Hey Jude’: Trump’s 36 Hours in India

[I]  Labor Rule Impedes Fast-Food, Contract Workers’ Ability to Unionize

 

BUSINESS LINE

[I]  India faces WTO heat to exempt food for humanitarian needs from export curbs

[I]  New Delhi has been resisting move as it could compromise food security

[I]  Car sales to stabilise in 2020 due to stimulus measures, discounts: Moody’s

[I]  RBI asks banks to extend farm loans eligible for subvention only via KCCs

[I]  Soon, goods can be moved between India and Russia via Iran: Concor

[I]  Cabinet okays adoption of Central Acts in J&K

 

ECONOMIC TIMES

[I]  Car sales seen to be pulling out of slow lane

[I]  India's slowdown has bottomed out, says Panagariya

[I]  ADB raises $118 million from rupee-linked bonds

[I]  First leg of India-US trade deal likely in 3 months

[I]  GDP growth in Q3 likely to stay flat at 4.5 per cent: Economists

[I]  States will be ranked basis their efforts to promote MSMEs

 

BUSINESS STANDARD

[I]  Raining dividends on Street: Firms loosen purse strings to help promoters

[I]  FM warns banks against trusting credit scores of loan seekers 'blindly'

[I]  HNIs flock to commercial properties as residential market slows down

[I]  Start-ups in race to pick a big slice of India's wellness market

[I]  In a major boost to electronic giants, SEZs clear local sourcing test

[I]  Govt's new audit rules to shield companies against financial frauds

[I]  India's largest solar tender stuck, firms await greenshoe option nod

[I]  India to go slow on trade deal with US, both sides to work on wider FTA

 

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 11671;  USDINR DGCX: 71.9725;  DJIA Mini: 26958;  FTSE 100 Fut: 6863;  NIKKEI 225 Fut: 22025;  EUR-USD: 1.0906; Crude Oil (WTI): 48.05;  Gold (Spot): 1647

 

Best Regards, ARBIND
27 Feb 2020