MACRO ECONOMIC NEWS

CARESS THE COURAGEOUS STAGE FOR CREATING SOMETHING CANDID. WISHING AN AUDACIOUS DAY AHEAD. 

Macro Economic News 31 Mar 2020

 

Never before have governments tried to put swaths of their economies in an induced coma and awaken them gradually. If it works, it will be a testament to capitalism’s flexibility. More likely, much will go wrong while pausing the economy while avoiding ruin. The economic fallout poses a new challenge for small banks across the country that often deals with customers face to face although G20 ministers agree to keep markets open. China ramped up efforts to heal the world's second-biggest economy, although the country remains wary of carriers of the disease coming from abroad and infected people who exhibit no symptoms. Hidden Chinese lending puts emerging-market economies at risk; more than $200 billion in Chinese overseas lending hasn’t shown up in official data in recent years, allowing emerging markets indebted to China to also borrow from other investors. Now borrowers are at risk of drowning in debt and investors face the reality that China may be ahead of them in collecting. The US government will begin sending out stimulus payments to households in the next three weeks, with no action required for most people while emerging market central banks embark on radical stimulus policies. Brazil suspends release of Jobs data while daily jobless claims surge more than 50% in Canada on lockdowns. India GDP growth forecast for FY21 slashed to 4.6% by Fitch Solutions, 3.6 percent by India Ratings, 2.5% by S&P, while to -0.5% by Nomura.

 

FINANCIAL TIMES

[I]  UK banks expect regulator to order dividend freeze 

[I]  Oil industry facing historic production shutdown

[I]  Emerging market central banks embark on radical stimulus policies

[I]  European economic sentiment tumbles in early March

[I]  India coronavirus shutdown hits outsourcing groups

[I]  Australia tightens investment rules on foreign takeovers

 

REUTERS

[I]  India orders banks to remain open during coronavirus lockdown

[I]  Exclusive: India may slash borrowing from market in April amid lockdown - sources

[I]  Pandemic to hit growth in Asia, China: World Bank

[I]  Gold prices set for sixth straight quarterly gain

[I]  U.S. renews sanctions waivers allowing Iran nonproliferation work

[I]  Dollar gains on Japanese demand before fiscal year end, pandemic weighs on mood

[I]  Japan's factory output growth slows in Feb as virus fallout widens

[I]  China takes steps to heal virus-hit economy as infections fall

 

BLOOMBERG 

[I]  New Federal Reserve Weekly Economic Index Shows Despair

[I]  Oil Halts Drop Near 18-Year Low After Crashing on Demand Shock

[I]  U.S. Jobless Soar, Australia Slump, Supply-Chain Sages: Eco Day

[I]  As Rest of World Locks Down, China Struggles to Get Shoppers Out

[I]  Brazil Suspends Release of Jobs Data Amid Coronavirus Crisis

[I]  Mortgage Rates Are Rising in Canada Despite Virus-Relief Cuts

[I]  Daily Jobless Claims Surge More Than 50% in Canada on Lockdowns

 

WALL STREET JOURNAL

[I]  A Global Conundrum: Pausing the Economy While Avoiding Ruin

[I]  Capital Account: Another Great Recession? It’s Not the Depth, It’s the Duration.

[I]  New Fed Data Point to Economic Pain

[I]  Hidden Chinese Lending Puts Emerging-Market Economies at Risk

[I]  As Coronavirus Spreads, Community Banks Brace for Fallout

[I]  Yellen Says Too Much Corporate Borrowing Will Hinder Recovery

[I]  Government to Begin Sending Stimulus Payments in the Next Three Weeks

 

BUSINESS LINE

[I]  Existing foreign trade policy likely to be extended

[I]  It’s time to end monopoly of APMCs; food majors should be encouraged to procure directly

[I]  Lockdown: MSMEs seek relief from electricity supply company

[I]  Now, dotting India’s highways are abandoned trucks

[I]  Existing foreign trade policy likely to be extended

[I]  Implementation of Stamp Act changes deferred by 3 months till July 1

 

ECONOMIC TIMES

[I]  India steps up efforts to prepare for the worse

[I]  Economic outlook for India is turning grim day by day

[I]  FPI limit in corporate bonds raised to 15% for FY21

[I]  No extension of the financial year, clarifies government

[I]  Fitch Solutions cuts India GDP growth forecast to 4.6% for FY21

[I]  India Ratings cuts economic growth forecast for India to 3.6 per cent

[I]  S&P further slashes India's growth forecast to 3.5% from 5.2% for FY21

 

BUSINESS STANDARD

[I]  Capacity utilisation across FMCG plants may rise as truckers return

[I]  Coronavirus impact: Nomura lowers 2020 GDP growth forecast to -0.5%

[I]  RBI notifies special series of G-Secs under 'fully accessible route'

[I]  Covid-19: Milk consumption down 25% in one month as eateries remain shut

[I]  Sebi defers key market reforms due to disruption caused by pandemic

[I]  G20 ministers agree to keep markets open amid coronavirus outbreak

 

MARKETS (10:00 am)

[I]  SGX NIFTY Fut: 8441;  USDINR DGCX: 76.3950;  DJIA Mini: 22023;  FTSE 100 Fut: 5517;  NIKKEI 225 Fut: 18870;  EUR-USD: 1.1017; Crude Oil (WTI): 21.21;  Gold (Spot): 1614

 

Best Regards, ARBIND
31 Mar 2020