MACRO ECONOMIC NEWS

EXPERIENCE THE EXCELLENCE OF BLESSINGS WITH EXTRAORDINARY GRATIFICATION. WISHING AN EXCEPTIONAL WEEK AHEAD.

Macro Economic News 30 Mar 2020

The Federal Reserve quickly deployed a half-dozen emergency lending programs over the past two weeks and now, Congress wants it to go much further, approving $454 billion to reload the Fed’s own ability to lend. The economic shutdown is testing America’s safety net, and the people holding it aloft are feeling the strain. This one-time cash distribution won’t boost economic output as similar programs in the past aimed to do, but it could limit its likely steep drop. EU backs bank rule delay to spur crisis lending while big companies raise record sums from bond market in dash for cash. Spain resists pressure from employers over economic ‘hibernation’ while German businesses race to secure crisis aid whereas migrant workers count the cost of coronavirus. BOJ says it is ready to relax capital and liquidity requirements for banks while New Zealand central bank gives more liquidity to companies and Zimbabwe brings back foreign currencies ahead of lockdown. Central banks have printed record amounts of money to save financiers and allow indebted governments to keep spending. After pandemic, we will have to reckon with the debt and inevitable Inflation while a global consumer default wave is just getting started. In India, shutdown puts Rs 15-trillion debt at risk to impact finances although Indian IT firms is unlikely to lay off employees amid coronavirus lockdown.

FINANCIAL TIMES

[I]  EU backs bank rule delay to spur crisis lending 

[I]  Big companies raise record sums from bond market in dash for cash

[I]  US companies seek clarity on $454bn lending fund

[I]  Venezuela faces threat of coronavirus catastrophe

[I]  Spain resists pressure from employers over economic ‘hibernation’

[I]  German businesses race to secure coronavirus crisis aid

[I]  Countries reject China pandemic product batches

[I]  US legal battle looms over coronavirus insurance payouts

[I]  Migrant workers count the cost of coronavirus

REUTERS

[I]  Italy to extend lockdown beyond April 3 - minister

[I]  Dollar slows slide as investors seek shelter amid pandemic crisis

[I]  BOJ says ready to relax capital, liquidity requirements for banks

[I]  Australia to review all foreign investments during coronavirus

[I]  New Zealand central bank gives more liquidity to companies

[I]  Zimbabwe brings back foreign currencies ahead of coronavirus lockdown

[I]  Saudi Arabia assures India of uninterrupted LPG supply: Dharmendra Pradhan

[I]  Bracing for the worst from U.S. earnings in a pandemic

[I]  Germany's coronavirus support will last two months, think tank tells paper 

[I]  Coronavirus crisis puts EU credibility on the line, says France

BLOOMBERG 

[I]  Global Jobs Slump Puts U.S. Payrolls in Spotlight: Eco Week

[I]  Unknowns Await Emerging Markets After Wildest Moves Since 2008

[I]  Rand Leads Currency Declines as Downgrades Ripple Across Markets

[I]  Oil Plummets to 17-Year Low as Broken Market Drowns in Crude

[I]  China’s Big Banks Brace for the Worst After Record Profit Run

[I]  Australia to Unveil Wage Subsidies, Limits Foreign Takeovers

[I]  South Africa Will Approach IMF for Health Funds If Needed

[I]  South Africa Sees Moody’s Junk Rating as Cue to Fix Economy

[I]  S&P Sees Dubai Property Prices Dropping to Levels Seen in 2010

WALL STREET JOURNAL

[I]  Washington Rearms Fed After Central Bank Unleashes Firepower

[I]  Coronavirus Threatens to Overwhelm Cities’ Social Safety Net

[I]  March Jobs Report Unlikely to Show Full Impact of the Coronavirus Crisis

[I]  After Coronavirus, We Will Have to Reckon With the Debt

[I]  Trump Signs $2 Trillion Coronavirus Stimulus Package

[I]  Economic-Stimulus Checks Differ From Past Interventions

[I]  Economy Week Ahead: First Glimpse of Pandemic’s Effect on U.S. Payrolls

BUSINESS LINE

[I]  Saudi Arabia assures India of LPG supplies: Pradhan

[I]  Restaurants urge mall owners, landlords to waive rentals, CAM charges till June

[I]  PM Garib Kalyan Scheme: EPF withdrawal applies to all subscribers, clarifies Labour Ministry

[I]  Transporting essential goods across States still remains a challenge

[I]  PMO sets up high-level panels to deal with situation post lockdown; restore normalcy

[I]  Audit firms not enthused with MCA proposals to tighten norms

[I]  MGNREGA wages up about 11%; yet at least 40% lower than minimum wages

ECONOMIC TIMES

[I]  India now has new covid testing problems

[I]  A global consumer default wave is just getting started

[I]  Take measures to provide liquidity to MFs, NBFCs: Arundhati Bhattacharya

[I]  Finance Minister, RBI meeting on Tuesday to decide first-half borrowing plan for FY21

[I]  Covid effect: Govt may ease resolution rules for insolvent firms

[I]  CCI revises guidance note for combination applications

[I]  Companies Can Donate CSR Funds to PM CARES: Corporate Affairs Ministry

BUSINESS STANDARD

[I]  Coronavirus shutdown puts Rs 15-trillion debt at risk, to impact finances

[I]  Seal border to stop migrant workers: Centre issues advisory to states

[I]  Indian IT firms unlikely to lay off employees amid coronavirus lockdown

[I]  Industry calls for extended financial year due to coronavirus pandemic

[I]  Sorry, but hard decisions needed: PM Modi on coronavirus lockdown

[I]  Work from home: Ensuring data security a challenging task for businesses

[I]  Defaulting promoters may get lifeline, lenders may defer pledged share sale

MARKETS (06:30 am)

[I]  SGX NIFTY Fut: 8360;  USDINR DGCX: ---;  DJIA Mini: 21173;  FTSE 100 Fut: 5374;  NIKKEI 225 Fut: 18630;  EUR-USD: 1.1110; Crude Oil (WTI): 20.69;  Gold (Spot): 1622

Best Regards, ARBIND

30 Mar 2020