MACRO ECONOMIC NEWS

COLOR OF LIFE IS PEACE AND JOY AT EVERY STEP. WISHINNG A JOLLY DAY AHEAD. 

Macro Economic News 11 Mar 2020

 

Businesses are bracing for a longer and steeper downturn than the single-quarter event initially anticipated, as companies face both a shock to supply chains and weaker demand from rattled consumers. Airlines around the world sank deeper into crisis on Tuesday and Italy's lockdown hammered passenger numbers, forced the cancellation of thousands of flights. Emergency rate cuts loom for Asia as virus slams economies although countries differential ability of monetary easing might risk the return of currency wars. In large parts of the rich world, notably the Eurozone and Japan, interest rates are below zero and use of other easing tools such as asset purchases is close to the limit; in the US, policy interest rates began this crisis in a range of 1.5 to 1.75 per cent but have already been cut by 50 basis points. Countries such as Mexico, with interest rates of 7 per cent, and Russia at 6 per cent have more room for manoeuvre. This asymmetry is a recipe for “currency wars”, not outright currency manipulation in pursuit of competitive advantage, but divergences in monetary policy that lead to sharp foreign exchange movements, and threats of retaliation by those who lose out. Japan unveils multibillion-Dollar plan to support businesses while UNCTAD warns of recessionary conditions across globe.

 

FINANCIAL TIMES

[I]  Vladimir Putin sets stage for retaining his grip on power

[I]  EU vows to use all tools available to battle coronavirus impact

[I]  Saudi pumps up volume in escalating oil price war

[I]  New Malaysia cabinet sworn in to calm political turmoil

[I]  Eurozone industrial production rebounds before coronavirus hits

[I]  Chinese companies get back to work — but with stricter rules

[I]  Coronavirus risks the return of currency wars

[I]  UK Budget can slay the pessimism that fed populism

 

REUTERS

[I]  Holi celebration muted in India amid coronavirus fears

[I]  Italy in coronavirus lockdown as deaths soar and economy fades

[I]  Air freight rates skyrocket amid passenger flight cuts, Chinese factory restarts

[I]  Australia unveils $1.6 billion health package to combat coronavirus

[I]  UK to ramp up coronavirus fight in first budget of Johnson government

[I]  How to cope with $30 oil: producers ready more cuts

[I]  Airlines strive to stave off calamity as coronavirus locks down Italy

[I]  Saudi Arabia, Russia raise stakes in oil standoff

[I]  India 2019 thermal coal imports rise 12.6% to nearly 200 million tonnes: government

[I]  Washington considers actions to bolster U.S. economy as coronavirus cases mount

[I]  EU privacy rules no obstacle to coronavirus fight; smartphone tracking a no-no

[I]  Coronavirus crackdown is cutting Italy's GDP by 10-15%: economist

[I]  Thailand unveils $12.7 billion stimulus package to ease coronavirus impact

 

BLOOMBERG 

[I]  JPMorgan Warns ‘Work From Home’ Risks Disrupting Funding Markets

[I]  Warning Bells Sound for U.S. Economy As Virus Squeezes Ports

[I]  Reserve Bank Deputy Says Rate Cuts Are Aiding Australia’s Economy

[I]  Over 100 Homebuilders Go Bust in China as Virus Strains Deepen

[I]  Emergency Rate Cuts Loom for Asia as Virus Slams Economies

[I]  U.S. Risks Ceding Top-Producer Status to Saudis on Output Cuts

[I]  Europe Mulls Relief for Banks Still Reeling From Last Crisis

 

WALL STREET JOURNAL

[I]  Coronavirus Confronts Global Economy With Tough Recovery

[I]  Treasury Secretary Convenes Call of Financial Regulators

[I]  Lawmakers Rebuff Trump on Payroll-Tax Suspension for Outbreak

[I]  Trump Struggles to Balance Mitigating Epidemic, Protecting Economy

[I]  Virus Clouds China’s Prospects to Meet U.S. Trade Commitments

[I]  Japan Unveils Multibillion-Dollar Plan to Support Coronavirus-Hit Businesses

 

BUSINESS LINE

[I]  How coal-power policy has unplugged independent producers

[I]  Global corporate earnings to drop 10% in 2020: Citigroup

[I]  Chinese farmers dodge coronavirus and go online for spring seeds and supplies

[I]  Maharashtra govt for capping fares at 3 times base rate for cab aggregators

[I]  UNCTAD warns of recessionary conditions

[I]  US envoy sees potential to boost US-India defence ties

 

ECONOMIC TIMES

[I]  A US move has made India really unhappy

[I]  A $28 bn threat looms over handset industry

[I]  Crude outlook: Oil prices may hit 20-year low

[I]  Copper slides to three-year low

[I]  India manufacturing inc charts digital priorities

 

BUSINESS STANDARD

[I]  Italy imposes unprecedented lockdown amid worst coronavirus outbreak

[I]  Coronavirus impact: Govt keeps close tabs on drug supply, pricing

[I]  OMCs, paints, cement firms to benefit as oil crash rebuilds hopes

[I]  Indian cruises continue sail unperturbed amid coronavirus outbreak

[I]  Thermal plants' Jan load factor at 5-yr low as slowdown hits power demand

 

MARKETS (08:00 am)

[I]  SGX NIFTY Fut: 10400;  USDINR DGCX: 74.1350;  DJIA Mini: 24410;  FTSE 100 Fut: 6009;  NIKKEI 225 Fut: 19708;  EUR-USD: 1.1324; Crude Oil (WTI): 35.39;  Gold (Spot): 1658

 

Best Regards, ARBIND
11 Mar 2020