MACRO ECONOMIC NEWS

EASE OF ACCEPTANCE IS GRACIOUS. WISHING A FUN-FILLED DAY AHEAD.

Macro Economic News 17 Mar 2020

India’s luxury and upscale hotels are in dire straits. The travel ban and lockdown imposed by many countries to contain the spread of coronavirus has dealt a body blow to the sector. The Reserve Bank of India said its policy actions will be "considered and calibrated," after it left interest rates unchanged in the face of the coronavirus outbreak. The U.S. has joined the eurozone and Japan in the “black hole” of monetary policy with interest rates effectively at zero. Reviving the economy is now up to others, primarily fiscal policy. The Bank of Japan said it would double stock purchases and help companies get loans in response to the coronavirus pandemic, but the move failed to impress investors, who drove stocks down 2.5%. Philippines became the first country to suspend all financial markets as coronavirus spreads while New Zealand injects $7.3 billion stimulus in bid to save economy; promises more to come.

FINANCIAL TIMES

[I]  US airlines call for $50bn in aid to survive crisis

[I]  US workers brace as coronavirus ripples through real economy

[I]  US bond market volatility hits highest level since 2009

[I]  Coronavirus hits Italy’s social model hard

[I]  Virus and oil shocks risk recession in Latin America

[I]  Chinese economy suffers record blow from coronavirus

[I]  Fed announces more emergency support for markets

[I]  EU leaders plan entry restrictions for foreign travellers

REUTERS

[I]  RBI disappoints markets, leaves rates on hold

[I]  Philippines first country to suspend all financial markets as coronavirus spreads

[I]  New Zealand injects $7.3 billion stimulus in bid to save economy; promises more to come

[I]  UK closes down social life as coronavirus outbreak accelerates

[I]  Large U.S. banks plan to access Fed's discount window

[I]  Supermarkets plead with shoppers to stop panic buying

[I]  Italy under unprecedented coronavirus lockdown

[I]  IMF chief says over 20 countries seek aid, calls for coordinated spending

[I]  Japan business mood plunges to decade lows on coronavirus woes - Reuters Tankan

[I]  U.S. could pump $800 billion or more into economy - Trump adviser Kudlow

BLOOMBERG 

[I]  Australia Prepares to Scale Up Stimulus to Save Jobs, Businesses

[I]  U.S. Banks May Be Downgraded by Moody’s on Pandemic, Fed Move

[I]  Philippines Becomes First Country to Shut Financial Markets Thanks to Virus

[I]  Spain Bans Short Selling for A Month on Coronavirus Plunge

[I]  U.S. Stock Futures Stay Volatile After Worst Rout Since 1987

WALL STREET JOURNAL

[I]  U.S. Braces for Sharp Economic Downturn as Coronavirus Bears Down

[I]  U.S. Economy Slides Into the Monetary Black Hole

[I]  Coronavirus Sick-Leave Bill Raises Concern Over Small-Business Burden

[I]  A Day After Fed Takes New Action, Repo Demand Is Still Light

[I]  Bank of Japan to Double Stock Purchases to Blunt Virus Impact

[I]  Tax-Law Changes Make Life Harder for Firms Facing Coronavirus Losses

[I]  Newsletter: The Fed Goes Big, Americans Urged to Stay at Home

BUSINESS LINE

[I]  Luxury hotels take a beating as virus crimps travel plans

[I]  India Inc fears coronavirus to pull down GDP by 50 bps

[I]  Lok Sabha passes Appropriation Bill

[I]  Wholesale inflation eases to 2.26% in Feb on cheaper food items

[I]  Government asks States not to import thermal coal

ECONOMIC TIMES

[I]  RBI to conduct 5th LTRO for Rs 25,000 crore on March 18

[I]  Indian macroeconomic outlook vulnerable to disruption of trade with China : Finance Ministry on coronavirus

[I]  Direct tax collection contracts in April-February period, at 8.13 lakh crore

[I]  February wholesale inflation cools to 2.26% on food articles

[I]  Virus outbreak: Government gives more time for ESI contribution

BUSINESS STANDARD

[I]  New draft rules set to clamp down on CSR activities through trusts

[I]  Coronavirus hurts markets again; RBI will do 'whatever it takes' for help

[I]  Coronavirus outbreak: India bans air travel from UK, Europe till March 31

[I]  RBI tells banks to put in place biz continuity plans to prevent disruption

MARKETS (10:00 am)

[I]  SGX NIFTY Fut: 9260;  USDINR DGCX: 74.2025;  DJIA Mini: 20984;  FTSE 100 Fut: 5193;  NIKKEI 225 Fut: 16630;  EUR-USD: 1.1179; Crude Oil (WTI): 29.83;  Gold (Spot): 1502

Best Regards, ARBIND

17 Mar 2020