MACRO ECONOMIC NEWS

MAY THIS PAUSE IS WELL CONSUMED. WISHING AN INSPIRING DAY AHEAD. 

Macro Economic News 27 Mar 2020

 

FM outlines ₹1.7 lakh crore economic stimulus to help poor hit by lockdown as for India’s estimated 120 million migrant labourers, the shutdown is a crisis, as wages dry up and many cannot afford the rent or even food in the cities while trade unions write to PM, seek Rs 5-7 lakh cr relief package. CRISIL cuts GDP growth forecast for fiscal 2021 to 3.5 per cent whereas SBI research expects that economic growth may fall sharply to 2.6 per cent. The ECB signals to aggressively support Italy and other indebted eurozone countries, by starting purchases under a new €750 billion ($812 billion) bond-buying program although European banks back suspension of dividends and buybacks and UK Banks call for freeze on UK housing market. The FED balance sheet soared past $5 trillion in assets for the first time this week as it scooped up bonds and extended loans to banks, mutual funds and other central banks in its unprecedented effort while G20 leaders are to inject $5 trillion into global economy and big banks are postponing decisions about staff cuts despite their businesses getting a hard hit. Oil producers are selling in the physical market at much lower prices, than its futures, not seen since the aftermath of the Asian financial crisis of the late 1990s. Despite FED chairman assurance to make businesses of all sizes to have a bridge of support, more than 3 million workers applied for unemployment benefits last week. A strong labor market had kept the U.S. economy humming for a decade—and then, in a matter of days, it stopped. U.S. home healthcare industry warns of possible 'collapse'. 

FINANCIAL TIMES

[I]  US jobless claims surge to record 3.3m

[I]  Banks call for freeze on UK housing market

[I]  SEC steps in after investors buy up the wrong Zoom

[I]  US overtakes China for most confirmed coronavirus cases

[I]  Ireland’s job losses show scale of global coronavirus shock

[I]  Trump urged to use wartime powers over US companies

[I]  ECB shakes off limits on new €750bn bond buying plan

[I]  Russia to tax bank deposits to fund coronavirus package

[I]  European banks back suspension of dividends and buybacks

 

REUTERS

[I]  India's migrant workers face long walk home amid coronavirus lockdown

[I]  India outlines $23 billion stimulus to help poor

[I]  U.S. House leaders determined to pass $2.2 trillion coronavirus bill

[I]  G20 leaders to inject $5 trillion into global economy in fight against coronavirus

[I]  Fed balance sheet tops $5 trillion for first time as it enters coronavirus war mode

[I]  Tens of millions face losing jobs in escalating coronavirus crisis

[I]  China's industrial firms post steepest fall in profits in a decade

[I]  U.S. home healthcare industry warns of possible 'collapse'

[I]  UK throws lifeline to self-employed hit by coronavirus

[I]  Big banks reassure staff about potential job cuts

[I]  In oil markets, it's back to 1998 crisis pricing

[I]  ECB primes money-printing gun to combat coronavirus 

[I]  China implementing $344 billion of mainly fiscal measures in coronavirus fight

 

BLOOMBERG 

[I]  The Second Virus Shockwave Is Hitting China’s Factories Already

[I]  India’s Monetary Panel Finalizes Steps to Boost Economy

[I]  Chinese Industrial Firms See Profits Slump on Virus Impact

[I]  Virus-Stricken African Currencies Are Set for Even More Pain

[I]  Balance Sheet Blowout, Jobless Spike, RBA 1-Week of QE: Eco Day

[I]  Echoes of 1997 Asia Financial Crisis Haunt Region’s Debt Market

[I]  Zimbabwe Restores Dollar Peg as Currency Crashes

 

WALL STREET JOURNAL

[I]  Powell Says Economy May Be in Recession, Virus Will Dictate Timetable

[I]  Record Rise in Jobless Claims Halts Historic Run of Employment Growth

[I]  Senate Approves Near $2 Trillion Virus Relief Package

[I]  Relief Package Would Limit Coronavirus Damage, Not Restore Economy

[I]  What’s in the $2 Trillion Senate Coronavirus Bill

[I]  Europe Opts for Economic Freeze in Coronavirus Tradeoff

[I]  ECB Begins New Bond Purchases, Throwing Weight Behind Virus-Hit Nations

[I]  Mnuchin Says U.S. Financial Markets to Remain Open

 

BUSINESS LINE

[I]  Covid-19: Government paves way for doorstep delivery of drugs

[I]  Coronavirus relief package: States urged to use District Mineral Fund for medical-testing, screening facilities

[I]  CRISIL cuts GDP growth forecast for fiscal 2021 to 3.5 per cent

[I]  Government extends ban on international commercial airlines flying to India till April 15

[I]  PM Gareeb Kalyan: Half of Jan Dhan account holders to benefit from cash transfer

[I]  FM outlines ₹1.7 lakh crore economic stimulus to help poor hit by lockdown

[I]  There is enough produce, supply chain is the problem, say suppliers

 

ECONOMIC TIMES

[I]  How catastrophic will virus be for economy? This holds clue

[I]  India sees 10 IPOs in March quarter; median deal size just $1 million

[I]  Which sectors to take biggest hit & which ones will survive with some bruises

[I]  Covid-19 takes a toll on state bonds

[I]  Farmers left stranded with fruit and veggies lying in the fields

[I]  Economic growth may fall sharply to 2.6 per cent in 2020-21: SBI Ecowrap

[I]  Coronavirus lockdown: Trade unions write to PM, seek Rs 5-7 lakh cr relief package

[I]  Indian Industry seeks 10-point boost plan from govt for the exporters effected by coronavirus

[I]  Covid 19: Centre sets up control room to monitor supply of essential commodities

 

BUSINESS STANDARD

[I]  New-age warriors against coronavirus: Robots, drones, chatbots, apps

[I]  Delay in regulatory leeway likely to prove costly affair for banks

[I]  Govt allows doorstep delivery of drugs to help citizens under lockdown

[I]  Centre asks states to allow manufacture, distribution of packaged foods

[I]  How start-ups are spotting unhappy consumers and addressing their needs

 

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 8795;  USDINR DGCX: 74.8950;  DJIA Mini: 21970;  FTSE 100 Fut: 5620;  NIKKEI 225 Fut: 18895;  EUR-USD: 1.1067; Crude Oil (WTI): 22.96;  Gold (Spot): 1627

 

Best Regards, ARBIND

27 Mar 2020