MACRO ECONOMIC NEWS

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Macro Economic News 04 Mar 2020

 

Central banks world-wide are signaling an aggressive effort to cushion the impact of the coronavirus on the global economy, starting in Australia where a 28-year streak without a recession is at risk of running aground. The Federal Reserve’s action, of rate cut of half-percentage point, reflects concern that the spreading epidemic will hit U.S. and global growth in the months ahead. It was the first rate cut in between scheduled policy meetings since the 2008 financial crisis while US 10-year yield falls below 1 per cent for first time. Hong Kong also cuts base rate following Fed’s emergency move. As per a business survey, China's services sector had its worst month on record in February as new orders plummeted to their lowest level since the global financial crisis, with economists urging swift support to avoid mass bankruptcies. Workers face a dilemma should they stay at home and see paychecks shrink, or go to work and create health risks. South Africa knocked by second recession in two years. WHO warns of global shortage of medical equipment to fight coronavirus while India, the world's main supplier of generic drugs, has restricted the export of 26 pharmaceutical ingredients and the medicines made from them, including paracetamol, as the coronavirus outbreak plays havoc with supply chains. India's gold imports plunged 41% in February from a year earlier as a rally in local prices to a record high squeezed retail demand and a survey finds 72% of travellers cancel their international plans due to Coronavirus while Rupee dives below 73 mark, hits 16-month low on forex outflows, crude surge.

 

FINANCIAL TIMES

[I]  Fed cuts rates a half-percentage point in face of coronavirus 

[I]  US 10-year yield falls below 1 per cent for first time

[I]  Hopes dim in Argentina for investment-led recovery

[I]  South Africa knocked by second recession in two years

[I]  Gold and its miners, a productive gamble on uncivilised times

[I]  Globalisation spreads contagion of many kinds

 

REUTERS

[I]  Global supplier India curbs drug exports on virus fears

[I]  WHO warns of global shortage of medical equipment to fight coronavirus

[I]  Fed makes emergency rate cut as coronavirus spreads

[I]  Australian economic growth picks up but outlook cloudy

[I]  China's central bank keeps short-term rates steady despite Fed easing

[I]  OPEC, Russia moving closer to big oil cut as coronavirus hits demand 

[I]  China's services activity plunges as virus wipes sales - Caixin PMI

[I]  India's February gold imports drop 41% as prices hit record high

[I]  Fed's Evans expects virus impacts on economy to be short-lived

 

BLOOMBERG 

[I]  No Bottom in Sight for Bond Yields After Fed ‘Bazooka’ Misfires

[I]  Now We Find Out If It’s a Bear Market: Investors React to Fed

[I]  Australian Economy Grew Faster Than Expected on Households

[I]  Hong Kong Cuts Base Rate Following Fed’s Emergency Move

[I]  Shadow Banks in India Face Their Biggest Funding Test Yet

[I]  World Bank Offers $12 Billion in Virus Aid to Developing Nations

 

WALL STREET JOURNAL

[I]  Fed Cuts Interest Rates by Half Percentage Point

[I]  A Misplaced Faith in the Power of Central Banks

[I]  Coronavirus Poses Dilemma for Workers Who Risk Losing Pay

[I]  Mnuchin Ready to Work With Congress on Emergency Funding Package

[I]  For Growing Numbers of Struggling U.S. Cities, the Downturn Has Arrived

[I]  Coronavirus Drives Interest Rates Lower in Australia

[I]  Fed's Mester Says Rate Cut Should Help Offset Coronavirus Risks

 

BUSINESS LINE

[I]  Grey prospects: Flattish demand growth for cement likely this fiscal

[I]  India's electricity supply rises 7.1 per cent in February

[I]  72% of travellers cancel their international plans due to Coronavirus: Survey

[I]  Coronavirus impact: China’s growth rate may fall to 4 per cent in March

[I]  RBI monitoring Covid-19 impact on economy

 

ECONOMIC TIMES

[I]  India's taxman is in a overzealous hurry to meet Modi's target

[I]  Dow sinks nearly 800 points after Fed rate cut

[I]  Rupee dives below 73 mark, hits 16-month low on forex outflows, crude surge

[I]  Government confident of doubling farmers income by 2022

[I]  Banks, select FIs report frauds worth Rs 1.43 lakh crore during April-Dec 2019

[I]  At USD 83.5 bn, India has 3rd highest trade-related illicit financial flow globally: Report

[I]  FDI inflow dips 1.4% to USD 10.67 bn in Oct-Dec

 

BUSINESS STANDARD

[I]  Coronavirus outbreak: US Fed cuts rates by 50 bps, RBI ready to take action

[I]  FM Sitharaman introduces bill that aims to prevent a PMC Bank-like crisis

[I]  Salaries of around 30 mn industrial workers set to rise with new CPI series

[I]  India saw Rs 6.14 trillion, or 3% of GDP, escape tax net in 2017: Report

[I]  Rating downgrades slip to 15-month low in Jan as incremental risks decline

 

MARKETS (09:30 am)

[I]  SGX NIFTY Fut: 11308;  USDINR DGCX: 73.3400;  DJIA Mini: 26230;  FTSE 100 Fut: 6694;  NIKKEI 225 Fut: 21157;  EUR-USD: 1.1162; Crude Oil (WTI): 48.04;  Gold (Spot): 1642

 

Best Regards, ARBIND
04 Mar 2020