MACRO ECONOMIC NEWS

EXTRAORDINARY SITUATIONS CALL FOR EXTRAORDINARY TRUST. WISHING A REMARKABLE DAY AHEAD.

Macro Economic News 19 Mar 2020

Fear grips markets as faith in intervention runs out which is triggering wave of U.S. workers filing for jobless benefits while getting lump-sum payments into the hands of every American as the government tries to turn its tax-collection system into a money-distribution machine. The deficit may soar well past the record $1.5 trillion hit in 2009, when the U.S. reeled through two years of financial crisis and recession although White House warms to raining ‘helicopter money’ on US. Brazil cuts rates to 3.75% with likely recession while Indonesia, Philippines set to cut rates anew. With much of Europe in lockdown, economic activity has come to a near standstill and markets have been in a tailspin, foreshadowing a deep recession on par with the 2008 global financial crisis and raising questions about the euro zone's cohesion at times of stress. The European Central Bank announces a new €750 billion bond-buying program to combat a coronavirus-related economic slowdown. ECB launched a new, dedicated bond-purchase scheme, bringing its planned purchases for this year to 1.1 trillion euro with the newly agreed buys alone worth 6% of the euro area's GDP. The Finance Ministry of India is considering a rescue package worth as much as $1.6 billion proposal that includes the temporary suspension of most taxes levied on the aviation sector, including a deferment of aviation fuel tax.

FINANCIAL TIMES

[I]  Fear grips markets as faith in intervention runs out

[I]  ECB tensions over how to combat coronavirus spill into open

[I]  Second wave of coronavirus cases hits Asia

[I]  Spanish PM calls for emergency budget to combat coronavirus

[I]  EU warns of broadband strain as millions work from home

[I]  US and Canada close land border to non-essential traffic

[I]  White House warms to raining ‘helicopter money’ on US

[I]  UK needs to do more to help workers and families

REUTERS

[I]  India mulls up to $1.6 billion rescue plan for aviation sector after coronavirus

[I]  ECB to print 1 trillion euro to stem virus rout

[I]  Japan must be mindful of fiscal situation when compiling stimulus, finance minister says

[I]  Dollar surges, stocks fall as ECB fails to stop panic

[I]  Risk premium on U.S. investment-grade credit triples on virus worries

[I]  Indian banks shelve fundraising as coronavirus derails markets

[I]  U.S housing market shows strength before coronavirus outbreak

BLOOMBERG 

[I]  ECB Announces 750 Billion Euro Pandemic Bond-Buying Program

[I]  New Zealand Government Says Citizens Should Not Travel Overseas

[I]  World Could Need $26 Trillion Stimulus, Top Global Fund Says

[I]  Australia Unemployment Unexpectedly Falls, Defying Virus Hit

[I]  China Builders Face Defaults as Cashflow Comes Under Pressure

[I]  Australia, New Zealand Bonds Join Global Sell-Off as QE Looms

[I]  New Zealand Economic Growth Slowed Before Coronavirus Hit

[I]  U.S. Rescue Plan, QE Down Under, ECB Emergency Call: Eco Day

[I]  Brazil Cuts Rates to 3.75% With Recession Likely After Virus

[I]  Indonesia, Philippines Set to Cut Rates Anew: Decision Guide

WALL STREET JOURNAL

[I]  Coronavirus Pandemic to Test Limits of How Much Debt U.S. Can Bear

[I]  ECB To Launch New Bond-Buying Program

[I]  Treasury Asks Congress to Let It Backstop Money Markets

[I]  The Government Wants to Send You Money—but How Soon Will It Arrive?

[I]  Senate Passes Bill to Combat Pandemic, Turns to Stimulus Plan

[I]  Coronavirus Triggers Wave of U.S. Workers Filing for Jobless Benefits

[I]  Some Bank Branches Run Low on Cash as Customers Make Big Withdrawals

[I]  Challenge for Policy Makers: Rescue Economy Without Fueling a Backlash

BUSINESS LINE

[I]  Covid-19: Work from home is no option for these pillars of economy

[I]  Total installed solar capacity in the open-access market reached 3.6 GW in December 2019: Report

[I]  Moody’s cuts global shipping industry outlook to negative

[I]  Work-from-home a tough proposition for manufacturing, services sectors; experts fear job losses

[I]  Govt to mobilise ₹51,000 cr more via Treasury-Bills to bridge cash flow mismatch

[I]  Fraud reporting: Centre to reduce fines on auditors

ECONOMIC TIMES

[I]  Digital India gets renewed push due to virus

[I]  RBI to infuse Rs 10,000 crore liquidity, likely to aid shorter term yields

[I]  Government liabilities at Rs 93.89 lakh crore at December-end, up 3.2 per cent over Q2

[I]  S&P lowers India's growth forecast to 5.2 pc in 2020

[I]  Foreign trade policy with long-term goal of self-reliance in works

[I]  Can’t comply with summons due to coronavirus: Companies, banks, NBFCs tell taxman

BUSINESS STANDARD

[I]  Advance corporation tax collection falls over 10% in Apr-Mar FY20

[I]  Soon, pay less and get better health cover: IRDAI hints at new changes

[I]  Toll collection, traffic movement down 10-20%, force majeure likely

[I]  As fiscal year comes to a close, auditors to get advisory amid virus scare

[I]  Struggling to meet target, IT staffers urge to extend FY20 to Apr 30

[I]  Vegetable prices surge ahead of mandi closure despite surge in arrivals

[I]  Economic impact of Coronavirus: Bad in Jan-March, worse in April-June

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 8050;  USDINR DGCX: 75.3000;  DJIA Mini: 18888;  FTSE 100 Fut: 4889;  NIKKEI 225 Fut: 16200;  EUR-USD: 1.0892; Crude Oil (WTI): 21.52;  Gold (Spot): 1474

Best Regards, ARBIND

19 Mar 2020