MACRO ECONOMIC NEWS

COMFORTING IS THE GOODNESS AND LOVE AROUND. WISHING A REASSURING WEEK AHEAD.

Macro Economic News 23 Mar 2020

India goes into lockdown as coronavirus spreads. New Delhi and scores of Indian districts under lockdown to contain coronavirus spread while automakers halt production in India although Centre urged to consider blanket moratorium on debt repayments for a year. Officials say, India has enough stock to supply ration shops for one year. Economic forecasts turned bleak as it became clear that a pandemic would now affect life in the U.S. far more than originally understood. The new coronavirus is dealing another blow to the struggling U.S. agricultural sector, driving down crop and livestock prices and threatening labor shortages for farms. The intervention during the coronavirus pandemic brings renewed attention to what some current and former regulators say was a troubled effort after 2008. Germany is to spend extra €122.5bn to counter slump while negotiations falter over $2tn US stimulus deal although banks are in talks with Fed on further steps to boost lending and Europe is in need of a new scale of stimulus in cash not in credit. Coronavirus risks calamity for the emerging world whereas Venezuela prohibits company layoffs and suspends credit collections over coronavirus and Australian financial watchdog to reduce regulatory burdens on banks although U.S. Jobless rate is expected to Soar to 30%.

FINANCIAL TIMES

[I]  India goes into lockdown as coronavirus spreads

[I]  Germany to spend extra €122.5bn to counter coronavirus slump

[I]  Negotiations falter over $2tn US stimulus deal

[I]  EU plans fiscal firepower boost to tackle virus fallout

[I]  Banks in talks with Fed on further steps to boost lending

[I]  A tenth of oil production may become uneconomic

[I]  This time, small guys should get the bailouts

[I]  Europe needs a new scale of stimulus — and cash not credit

[I]  Coronavirus risks calamity for the emerging world

REUTERS

[I]  New Delhi and scores of Indian districts under lockdown to contain coronavirus spread

[I]  New Zealand announces move to enter lockdown over next 48 hours

[I]  Automakers halt production in India due to coronavirus

[I]  Australian firms dump guidance as virus lockdown jolts markets

[I]  Venezuela prohibits company layoffs and suspends credit collections over coronavirus

[I]  Australian financial watchdog to reduce regulatory burdens on banks

[I]  UK tells vulnerable to stay at home for 12 weeks to fight virus

BLOOMBERG 

[I]  Top Economists See Echoes of Depression in U.S. Sudden Stop

[I]  Dire Dollar Shortage Shows Failure to Fix Key Crisis Flaw

[I]  Baht’s Best-to-Worst Move Set to Accelerate After Policy Blitz

[I]  U.S. Aid Plan, N.Z. Turns to QE, China Set to Rebound: Eco Day

[I]  Oil Drops Toward 17-Year Low as Hopes for OPEC-Texas Truce Fade

[I]  India Sees Room For Fiscal, Monetary Boost to Avoid Default Wave

[I]  Fed Could Provide Massive Support for Business, States in Bill

[I]  Morgan Stanley Sees U.S. Economy Plunging 30% in Second Quarter

[I]  New Zealand Turns to Quantitative Easing to Support Economy

[I]  U.S. Jobless Rate May Soar to 30%, Fed’s Bullard Says

[I]  How RBA’s Easing Backfired in a Flash Crash for Aussie Bonds

WALL STREET JOURNAL

[I]  Coronavirus-Triggered Downturn Could Cost Five Million Jobs

[I]  Coronavirus Hits Already Frail U.S. Farm Economy

[I]  U.S. Layoffs Likely Surged to Unprecedented Level This Past Week

[I]  Why Fed Had to Backstop Money-Market Funds, Again

[I]  ‘I Have Bills I Have to Pay.’ Low-Wage Workers Face Brunt of Virus Crisis.

[I]  Economy Week Ahead: Assessing Mounting Damage from Coronavirus Pandemic

[I]  With Unmandated Sick Leave, U.S. Economy Is More Vulnerable to Pandemics

BUSINESS LINE

[I]  ’Janta Curfew’ just the beginning of a long battle against coronavirus: PM Modi

[I]  ATF price cut by 12 per cent; petrol, diesel prices untouched

[I]  Rupee breaches 75-mark as dollar demand surges

[I]  The Covid economic task force must get cracking

[I]  Centre, RBI must take adequate measures to prevent rupee volatility

[I]  Covid-19: SBI opens emergency credit line for borrowers

[I]  Centre urged to consider blanket moratorium on debt repayments for a year

[I]  EMC 2.0 Scheme will help India become mobile manufacturing hub

[I]  Cargo movement hit as truck drivers head to villages, on Covid-19 fears

ECONOMIC TIMES

[I]  Sitharaman may unveil steps to tackle Covid-19 today

[I]  After Janata Curfew, India gets ready for long haul

[I]  Flares are up, India Inc knocks on PM's doors

[I]  No shorter working hours for markets, it'll be business as usual: Sebi

[I]  Green certificate sales up 64% to 21.42 lakh in February

[I]  Coronavirus mayhem: FPIs pull out over Rs 1 lakh crore in March so far

[I]  Rupee in a free fall amid rush to safety! How low can it go?

[I]  India Inc seeks fiscal stimulus, moratorium on debt repayment to mitigate coronavirus impact

[I]  How RBI set up war-room in just one day amid coronavirus outbreak

BUSINESS STANDARD

[I]  Investors brace for more pain as India goes under lockdown to curb Covid-19

[I]  Petrol, diesel consumption likely to burn out on coronavirus heat

[I]  Coronavirus impact: Maruti to M&M, automakers put brakes on production

[I]  Coronavirus: India in lockdown mode; no trains or metros to run till Mar 31

[I]  Will take relook at GDP forecasts for FY20, FY21, but it's too early: CEA

[I]  Grain cushion: India has enough stock to supply ration shops for 1 year

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 7765;  USDINR DGCX: 76.3300;  DJIA Mini: 18399;  FTSE 100 Fut: 4848;  NIKKEI 225 Fut: 16570;  EUR-USD: 1.0722; Crude Oil (WTI): 23.04;  Gold (Spot): 1496

Best Regards, ARBIND

23 Mar 2020