MACRO ECONOMIC NEWS

BLESSED ARE YOU, WE AND EVERYONE, WITH GRACE PEACE AND LOVE. WISHING A CARING DAY AHEAD.

Macro Economic News 06 Mar 2020

 

India is among the 15 most affected economies due to the coronavirus epidemic and slow down in production in China. The FED half-point rate cut and market jitters are focusing attention on potential government measures to soften the economic impact. Mortgage rates fell to their lowest level on record. Central bank officials opted for a deep cut to its benchmark interest rate because they judged that downside economic risks outweighed any worries about exacerbating existing financial vulnerabilities. Concerns about the epidemic clouded the outlook in February for U.S. businesses in service industries, posing a new risk to economic growth. U.S. factory orders fall more than expected in January while treasury 30-year bond yield falls below 1.5% for first time and investors withdraw most cash from U.S. credit funds in a decade. Safety trade falls apart in market unhinged by spread of virus while Bank of Canada mulled rate cut before virus risk escalated. EPFO in India cuts rate on employee provident fund to 7-year low of 8.5% for FY20. Reuter poll finds BOJ will ease policy in March and another report finds India’s ultra-wealthy individuals set to double by 2024.

 

FINANCIAL TIMES

[I]  US official hits out at hoarding of coronavirus medical supplies

[I]  US voters turn their backs on female candidates

[I]  Fed’s lone move bucks history of collaboration

[I]  US to back Ethiopian reform with $5bn investment

[I]  EU’s climate law faces criticism on all fronts

 

REUTERS

[I]  India shuts Delhi schools, imposes new travel restrictions over coronavirus

[I]  Trump says U.S. economy could take hit from coronavirus

[I]  Fed's Williams says central bank will respond as appropriate to address coronavirus risks

[I]  BOJ to ease policy in March as coronavirus hits growth: Reuters poll

[I]  Australia closes first school after pupil contracts coronavirus

[I]  Fed's Kaplan says wise to act 'boldly' on monetary policy in face of threats

[I]  U.S. weekly jobless claims fall; labor market weathering coronavirus for now

[I]  U.S. factory orders fall more than expected in January

 

BLOOMBERG 

[I]  Treasury 30-Year Bond Yield Falls Below 1.5% for First Time

[I]  Central Banks Just Starting Virus Fight With Record Low Rates

[I]  Fed’s Kaplan Signals Virus Spread May Be Key to Another Rate Cut

[I]  Central-Bank Collaboration on Virus Is as High as Poloz Has Seen

[I]  India’s State Cotton Trader Ups Buying to Help Virus-Hit Farmers

[I]  Investors Withdraw Most Cash From U.S. Credit Funds in a Decade

[I]  Safety Trade Falls Apart in Market Unhinged by Spread of Virus

 

WALL STREET JOURNAL

[I]  Focus May Shift to Government Spending to Blunt Coronavirus Impact

[I]  Analysis: Why the Fed Is Likely to Cut Again

[I]  Mortgage Rates Hit Record Low, but Coronavirus May Deter Buyers

[I]  Biden Tax Plan Targeting Top Earners Would Raise $4 Trillion in 10 Years, Study Says

[I]  U.S. to Make 35,000 Additional Seasonal Worker H-2B Visas Available

[I]  Fed Retools Capital Rules for Largest U.S. Banks

[I]  Fed’s Williams Says Rate Cut Will Provide ‘Meaningful Support' to Economy

[I]  Bank of Canada Mulled Rate Cut Before Virus Risk Escalated

[I]  U.S. Service Industries Feel Weight of Coronoavirus Uncertainty

 

BUSINESS LINE

[I]  Trade impact of Coronavirus for India estimated at $348 mn: UN report

[I]  India Inc in preventive mode: Issues travel advisories, cautions against infection

[I]  Indian manufacturing firms rank big data, predictive analytics as top investment priority: EY

[I]  India’s ultra-wealthy individuals set to double by 2024: Report

[I]  India blocks first request by EU at WTO for dispute panel on ICT import duties

[I]  Now companies in the red can pay their independent directors well

 

ECONOMIC TIMES

[I]  India's super rich list to almost double in 5 yrs

[I]  EPF rate lowered, here's how it affects you

[I]  Importers rushing for cover, markets looking for rate cut

[I]  View: Govt's move to have a charter of taxpayers is welcome but it needs strong execution

[I]  India to integrate central public procurement portal with government e-marketplace

[I]  Das says RBI to be ‘proactive’ in tackling virus threat

 

BUSINESS STANDARD

[I]  Public sector banks announce share-swap ratios ahead of April 1 merger

[I]  Airfares to UK, US get cheaper by 30% amid coronavirus outbreak

[I]  Maharashtra's economy to grow at 5.7% in 2019-20: Economic survey

[I]  EPFO cuts rate on employee provident fund to 7-year low of 8.5% for FY20

[I]  EPFO reduces interest rate on employee provident fund to 8.5%

 

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 10880;  USDINR DGCX: 74.2125;  DJIA Mini: 25827;  FTSE 100 Fut: 6582;  NIKKEI 225 Fut: 20653;  EUR-USD: 1.1139; Crude Oil (WTI): 45.50;  Gold (Spot): 1669

 

Best Regards, ARBIND
06 Mar 2020