MACRO ECONOMIC NEWS

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Macro Economic News 09 Mar 2020

 

Saudi Arabia launches oil price war as the world's top oil exporter, plans to raise its crude oil production significantly above 10 million barrels per day in April, after the collapse of OPEC's supply cut agreement with Russia. Subsequently Oil plunges about 30% to less than $30/barrel which was $60/barrel two months ago. The recent outbreak of Covid-19 in China is seen as an opportunity for India as an alternative supply-chain market, particularly for electronics manufacturing and auto components sector while the epidemic has revealed a central problem for the global manufacturing industry. China’s shadow has grown so long that even companies that have moved on can’t wriggle free of the country’s grip on supply networks. Financial markets and economic forecasters are warning of rising risks for U.S. and world economies, which were picking up till now. The economic fallout could include recessions in the U.S., euro-area and Japan, the slowest growth on record in China, and a total of $2.7 trillion in lost output—equivalent to the entire GDP of the U.K. Japan's economy shrinks faster than estimated in fourth quarter and Lebanon set to default for first time as reserves plummet while Ukraine shake-up throws future of reforms into doubt whereas Investors across globe fear rise over recession bear market amid early signs of credit-market stress. Indian Govt reconstitutes platform for disaster risk reduction boosting efforts to curb corporate fraud. With YES Bank fallout and subsequent RBI move casts shadow on Rs 1-trillion AT-1 bond market although RBI assures that deposits are still safe while default by some NBFCs on secured debentures pushes SEBI to introduce reforms whereas CEA Subramanian mentions Indian banks are well capitalised and hence no reason to worry.

 

FINANCIAL TIMES

[I]  Saudi Arabia launches oil price war after Russia deal collapse

[I]  White House expert warns on ‘community spread’ of virus

[I]  Lebanon set to default for first time as reserves plummet

[I]  Ukraine shake-up throws future of reforms into doubt

[I]  Europe to unveil EU-wide hydrogen fuel partnership

[I]  Corporate supply chains vulnerable to coronavirus shocks

[I]  The eurozone is too complacent about the coronavirus threat

 

REUTERS

[I]  Oil plunges about 30% after Saudi Arabia slashes prices, opens taps

[I]  World shares trampled in coronavirus panic, oil prices plunge

[I]  Saudi Arabia locks down province, halts travel with nine nations over coronavirus

[I]  World shares trampled in coronavirus panic, oil prices plunge

[I]  India gold discounts at widest in five months

[I]  Saudi Arabia to hike oil output above 10 million barrels per day in April after OPEC+ deal collapse

[I]  Investor fears rise over recession, bear market as coronavirus spreads in U.S.

[I]  Japan's economy shrinks faster than estimated in fourth quarter as virus compounds recession risks

 

BLOOMBERG 

[I]  Gold Bursts Above $1,700 With Market Mayhem Stoking Haven Demand

[I]  JPMorgan Strategist Sees Early Signs of Credit-Market Stress

[I]  Coronavirus Could Cost the Global Economy $2.7 Trillion

[I]  India’s Chaotic Bank Rescue Sparks Worries on Spectrum of Things

[I]  Indonesia, Philippine Stocks Set for Bear Run on Panic Selling

[I]  Breakneck Speed of Sell-Off Puts Longest Bull Market in Jeopardy

[I]  Global Rout Threatens to End China’s Leverage-Loving Stock Binge

[I]  Frantic Treasury Rally Sees Whole Yield Curve Sink Below 1%

[I]  Japan’s Sharper Economic Slide Fuels Fears Over Virus Recession

[I]  Biggest Rescue of India Bank Will Deepen Lenders’ Funding Woes

[I]  Oil Drops 31% in Worst Loss Since Gulf War as Price Fight Erupts

 

WALL STREET JOURNAL

[I]  Companies That Got Out of China Before Coronavirus Are Still Tangled in Its Supply Chains

[I]  Coronavirus Epidemic Exacerbates Metals Glut

[I]  Coronavirus Risk Rises for U.S., Global Economies

[I]  China’s Exports Plunge Amid Coronavirus Epidemic

[I]  Coronavirus Spread Could Halt Robust U.S. Job Gains

[I]  Fed Stores Dollars Arriving From Asia as Coronavirus Precaution

[I]  Economy Week Ahead: Consumer-Price Data From China and the U.S.

 

BUSINESS LINE

[I]  Covid-19: China’s loss could be India’s gain

[I]  Statutory auditors get a breather on NFRA-2 form

[I]  India Inc in preventive mode: Issues travel advisories, cautions against infection

[I]  India submits ‘flexible’ proposal on fisheries sops at WTO

[I]  Govt reconstitutes platform for disaster risk reduction

 

ECONOMIC TIMES

[I]  Viral outbreak could cripple the US economy

[I]  RBI says your deposits are still safe

[I]  Govt boosts efforts to curb corporate fraud

[I]  Behind the scenes of India's virus fight

[I]  Default by some NBFCs on secured debentures pushes Sebi to introduce reforms

[I]  The truth is women make better investors. Here's the reason why

[I]  Bonds to extend rally on prospect of lower CPI, rate cuts

 

BUSINESS STANDARD

[I]  Pension market set for deep reforms; foreign funds to get more leeway

[I]  YES Bank fallout: RBI move casts shadow on Rs 1-trillion AT-1 bond market

[I]  Real estate and infrastructure drove buyouts in 2019, says report

[I]  Indian banks well capitalised, no reason to worry: CEA Subramanian

 

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 10646;  USDINR DGCX: 74.6000;  DJIA Mini: 24587;  FTSE 100 Fut: 6508;  NIKKEI 225 Fut: 19473;  EUR-USD: 1.1409; Crude Oil (WTI): 29.92;  Gold (Spot): 1687

 

Best Regards, ARBIND
09 Mar 2020