MACRO ECONOMIC NEWS

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Macro Economic News 10 Mar 2020

 

Moody’s Investors Service said G-20 countries, as a group, are expected to grow by 2.1 per cent in 2020. Trump is considering several measures to ease the economic pain, including a possible payroll-tax cut. FED took an initial step to keep short-term funding markets operating by boosting the size of lending operations. Japan's Abe pressures BOJ to ease ahead of next week's rate review and Brazil Central Bank is to step into markets again to support real whereas U.K. emerges as test case for joined-up economic action on virus. Indian Rupee plunges to 17-month low against US dollar. 10-year Indian bond yields falls to decade-plus low while the US Bond yields also slips to 11-year low. US stocks fall 7.6% in worst day since December 2008 while Asia shares bounce as stimulus hopes stem rout, for now. IEA estimates Oil demand is set for first contraction since 2009 whereas Saudi Arabia oil gamble threatens modernisation drive while Russia says it can deal with pain of a Saudi oil price war. Oil buyers seek up to 50% more while historic oil crash exposes energy firms that binged on debt. China’s economic activity has begun to pick up, as businesses restart operations and consumers venture out again although Virus going global means China’s factories will get hit again. A rebound in IT hiring earlier this year might be short lived, as market turmoil is making employers brace for the impact on the global economy.

 

FINANCIAL TIMES

[I]  US stocks fall 7.6% in worst day since December 2008

[I]  Lagarde faces coronavirus crisis at ECB policy meeting

[I]  Europe policymakers search for answers to virus crisis

[I]  Saudi Arabia oil gamble threatens modernisation drive

[I]  Russia says it can deal with pain of a Saudi oil price war

[I]  Australia mine safety crisis spurs workforce debate

[I]  Bank investors confront a new fear: oil company defaults

 

REUTERS

[I]  Asia shares bounce as stimulus hopes stem rout, for now

[I]  Afghanistan's 'Game of Thrones' jeopardises peace process

[I]  Japan's Abe pressures BOJ to ease ahead of next week's rate review

[I]  Spain shuts schools in Madrid region and Basque capital over coronavirus

[I]  Australia PM Morrison says government will announce stimulus package soon

[I]  Under fire over virus, Japan's Abe may seek emergency declaration

[I]  Latest on the spread of coronavirus around the world

 

BLOOMBERG 

[I]  Virus Going Global Means China’s Factories Will Get Hit Again

[I]  U.K. Emerges as Test Case for Joined-Up Economic Action on Virus

[I]  Oil Buyers Seek Up To 50% More Saudi Crude as Price War Erupts

[I]  Historic Oil Crash Exposes Energy Firms That Binged on Debt

[I]  India Poised to Gain on OPEC+ Pain After Oil Windfall on Virus

[I]  China’s Inflation Slows as Coronavirus Locks Down Economy

[I]  U.K. Seen Selling Most Bonds Since 2011 Just as Rates Touch Zero

[I]  Brazil Central Bank to Step Into Markets Again to Support Real

 

WALL STREET JOURNAL

[I]  Trump to Propose Steps to Ease Economic Fallout From Coronavirus

[I]  Fed’s Crisis-Era Playbook Could Guide Response

[I]  Halting the No. 2 Economy Was Easy. Restarting It Is Hard.

[I]  Census to Kick Off This Week

[I]  U.S. Chip Industry Fears Long-Term Damage From China Trade Fight

[I]  Coronavirus, Market Woes Damp Hopes of IT Hiring Comeback

[I]  Newsletter: Oil Prices Plunge, Markets Rattled

 

BUSINESS LINE

[I]  Green energy on the rise globally, but China continues to play coal more

[I]  FY21 power outlook muted, discom dues on the rise, says India Ratings

[I]  Indian carriers may ground more aircraft

[I]  Shortfall in direct tax mop-up now just 0.7%

[I]  Exporters postpone gem and jewellery show to July

[I]  Coronavirus impact: Moody’s cuts G-20 growth outlook by 0.3 ...

 

ECONOMIC TIMES

[I]  Malls, eateries continue to battle loneliness

[I]  Virus Live: India closes border with Myanmar

[I]  Oil demand set for first contraction since 2009 due to coronavirus: IEA

[I]  Rupee plunges to 17-month low of 74.17 against US dollar

[I]  Bond yields slips to 11-year low; kindles hopes of rate cut with oil prices falling

[I]  India manufacturing inc charts digital priorities

[I]  Coronavirus: Moody's cuts India growth forecast to 5.3% for 2020 on dampened domestic demand

 

BUSINESS STANDARD

[I]  After coronavirus, it's a crude shock: Markets see worst rout in 5 years

[I]  Crude oil down 30% as Saudi, Russia fail to reach deal over supply cuts

[I]  Oil price slump: Centre may not hike excise duty for petro products

[I]  10-year bond yields at decade-plus low; rupee falls as oil prices crash

[I]  US Treasury yields plunge to new record lows on coronavirus panic

 

MARKETS (11:00 am)

[I]  SGX NIFTY Fut: 10447;  USDINR DGCX: 74.3700;  DJIA Mini: 24744;  FTSE 100 Fut: 6180;  NIKKEI 225 Fut: 19907;  EUR-USD: 1.1358; Crude Oil (WTI): 33.57;  Gold (Spot): 1659

 

Best Regards, ARBIND
10 Mar 2020