MACRO ECONOMIC NEWS

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Macro Economic News 18 Mar 2020

India has dropped at least three crucial policy initiatives, including lowering import taxes on vegetable oils. Australian Prime Minister Scott Morrison declared a "human biosecurity emergency" and said the country's citizens should abandon all overseas travel because of the coronavirus epidemic. The pandemic is devastating global travel, causing business to evaporate and forcing companies to slash payroll in what’s shaping up to be the biggest test the modern travel industry has ever faced. FED said it would relaunch a crisis-era facility that allows large financial institutions access to short-term loans and establish a lending facility to support short-term commercial debt markets to prevent intensifying funding strains. World is grappling with an increasingly urgent problem along with the novel coronavirus pandemic that the growing risk that millions of businesses and households won’t be able to pay their everyday bills. France, Spain and UK unleash rescue packages to help companies while German investor sentiment hits lowest level in 12 years. Indian banks to appeal for relief on bad loans while PE/VC investments and exits slide over 30% y-o-y in February. Mumbai is the frontline in India's fight against Covid-19 although S&P lowers India's growth forecast to 5.2 pc in 2020. EM ETF outflows topped $4 billion last week; China, India among worst hit while Sri Lanka follows Philippines in shutting bourses.

FINANCIAL TIMES

[I]  Western countries embark on trillion-dollar virus fightback

[I]  Aggressive testing helps Italian town cut new cases to zero

[I]  US loan prices slump to lowest since financial crisis

[I]  Fed to buy commercial paper to ease market turmoil

[I]  France, Spain and UK unleash rescue packages to help companies

[I]  German investor sentiment hits lowest level in 12 years

REUTERS

[I]  India halts key policy plans as revenues shrink: sources

[I]  Global powers throw cash at spiralling coronavirus crisis

[I]  Trump presses for $1 trillion stimulus as U.S. coronavirus deaths cross 100

[I]  Indian banks to appeal for relief on bad loans amid coronavirus concerns

[I]  Australia declares emergency, invokes new powers to fight coronavirus

BLOOMBERG 

[I]  Federal U.S. Government Shifts to Work-From-Home: Virus Update

[I]  Trump Checks, German Joint Debt, China 11% Contraction: Eco Day

[I]  Oil Slumps to Lowest Since 2003 on Global Recession Threat

[I]  Fed Opens New Emergency Lending Program for Primary Dealers

[I]  Italy, France, Belgium Ban Short Selling Amid Coronavirus

[I]  Big Oil’s Big Crisis: How to Save Sacred Dividends From Collapse

[I]  Credit Turmoil Is Closing In on Japan’s $650 Billion Market

WALL STREET JOURNAL

[I]  Coronavirus Sends Travel Business and Millions It Employs Into All-Out Crisis

[I]  Fed to Relaunch Primary Dealer Credit Facility

[I]  Behind the Stimulus Frenzy: the Prospect of Billions of Unpaid Bills

[I]  Hotels Seek $150 Billion in Aid as Travel Plummets

[I]  Trump Administration Seeks to Send Checks to Americans as Part of Stimulus Package

[I]  Fed to Launch Funding Facility Amid Coronavirus Uncertainty

[I]  U.S. February Retail Spending Drop Shows Coronavirus Concerns Started to Take Hold

BUSINESS LINE

[I]  PE/VC investments and exits slide over 30% y-o-y in February: IVCA-EY

[I]  Combination of monetary, fiscal policy needed to address coronavirus impact: SBI report

[I]  Economy vulnerable to coronavirus-led slowdown, says government

[I]  Global airlines running out of cash, need govt support: IATA

[I]  Covid-19: Visitors not to be allowed in Central govt offices

ECONOMIC TIMES

[I]  Mumbai is the frontline in India's fight against Covid-19

[I]  Lenders weigh measures to soften outbreak blow

[I]  Widening yield gap makes equities cheaper relative to bonds globally

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

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

[I]  RBI's new uncertainty indices could act as vital inputs for future policy making

[I]  No plan to withdraw Rs 2,000 notes: Anurag Thakur

BUSINESS STANDARD

[I]  ICMR asks private diagnostic labs to test coronavirus samples for free

[I]  Commodity prices extend declines amid market volatility led by silver

[I]  Change in debt valuation norms from April 1 to impact liquid schemes

[I]  EM ETF outflows topped $4 billion last week; China, India among worst hit

[I]  Coronavirus impact: Sri Lanka follows Philippines in shutting bourses

MARKETS (09:30 am)

[I]  SGX NIFTY Fut: 8955;  USDINR DGCX: 74.2450;  DJIA Mini: 20224;  FTSE 100 Fut: 5162;  NIKKEI 225 Fut: 17269;  EUR-USD: 1.1030; Crude Oil (WTI): 27.08;  Gold (Spot): 1531

Best Regards, ARBIND

18 Mar 2020