MACRO ECONOMIC NEWS

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Macro Economic News 02 Mar 2020

Govt. aims at making India among top three world economies by 2025 although bank credit growth dips to 8.5 per cent in January. Most large Indian firms across sectors have opted for new rate while those enjoying tax holidays, or having accumulated losses, have stuck to old regime. Indian automakers said their supply of parts from China had been hit. China's factories were dealt a devastating blow in February having the sharpest contraction in activity on record. Britain and the European Union kick off talks on how their relationship will shape up after Brexit, with half a trillion euros worth of annual trade and close security ties at stake in what are bound to be tense talks. FED Chairman Jerome Powell signalled the central bank was prepared to cut interest rates if needed to cushion the economy against the effects of a widening global slowdown. ‘Fear Factor’ is running high with global rate-cut bets mounting. Central banks urge G20 to back cheaper payments `roadmap' while negative U.S. yields are in sight with market expectation of 50 bps Fed cut in March with possible coordination with other central banks. RBA is almost certain to cut key rate whereas China offers relief to shield trillions of Yuan in bad debt. The epidemic is sending ripples through every corner of the global economy, slashing revenues, roiling supply chains and wiping out trillions in market value.

FINANCIAL TIMES

[I]  Italy unveils €3.6bn stimulus to tackle coronavirus

[I]  EU calls emergency meeting on Turkey-Syria crisis

[I]  US-Taliban deal brings hope of end to Afghan war

[I]  Ireland’s central banker rejects homes spending spree

[I]  Calls for policymakers to act to prevent ‘doom loop’

[I]  UK draws up ‘battle plan’ to beat coronavirus

[I]  Pence backs US school closures in coronavirus fight

REUTERS

[I]  India automakers say virus outbreak hitting parts supply

[I]  Malaysia and India aim to repair soured ties that hit palm trade

[I]  Britain vows to drive hard bargain in U.S. trade talks

[I]  Recession, record violence hit support for Mexico president - poll

[I]  Talking about life after the divorce: EU and Britain set for new talks

[I]  China factory activity dives to worst on record as coronavirus paralyses economy - PMI

[I]  U.S. officials talk down coronavirus market panic, tout economic strength

[I]  Virus uncertainty rules, but markets functioning OK - BIS

[I]  Central banks urge G20 to back cheaper payments `roadmap'

BLOOMBERG 

[I]  China Economy Seen Headed for Deeper Contraction on Factory Drop

[I]  China’s Push to Jump-Start Economy Revives Worries of Fake Data

[I]  Negative U.S. Yields Are in Sight as Virus Spurs Recession Bets

[I]  Few See End of Rout as Central Bank Effectiveness Doubted

[I]  Virus Drives China PMIs to Record Lows, Hurting Output in Asia

[I]  Goldman Sees 50 bps Fed Cut in March, Coordination Possible

[I]  RBA Is All-But Certain to Cut Key Rate, Money Markets Show

[I]  China Gives Relief to Shield Trillions of Yuan in Bad Debt

[I]  ‘Fear Factor’ Running High With Global Rate-Cut Bets Mounting

WALL STREET JOURNAL

[I]  Fed: Will ‘Act as Appropriate to Support the Economy’

[I]  China Purchasing Indexes Drop to Record Lows

[I]  By the Numbers: How the Coronavirus Epidemic Is Hitting Businesses Around the World

[I]  Jitters About Market, Virus Followed January Bump in Income

[I]  Fed’s Bullard Open to Rate Cut, But Leans Against It

[I]  Economy Week Ahead: U.S. Jobs Report, Global Manufacturing Data

[I]  Immigration Is Helping Shield Canada From Global Slowdown

BUSINESS LINE

[I]  India Inc makes the most of corporate tax cut in Dec quarter

[I]  February GST mop-up at ₹1.05-lakh cr

[I]  Aviation fuel prices drop by 10%, but airfares may not decline

[I]  Bank credit growth dips to 8.5 per cent in January: RBI data

[I]  Independent directors: ‘Listed body corporates’ brought under proficiency test exemption criteria

[I]  Covid-19, transition to BS-VI drive down auto sales in February

ECONOMIC TIMES

[I]  A Rs 2.5 lakh cr bomb is about to blow up

[I]  India can fill up export market space vacated by China due to coronavirus: Assocham

[I]  Govt aims at making India among top three world economies by 2025: Anurag Thakur

[I]  CBDT to link field officers' annual appraisals, postings with 'Vivad se Vishwas' mop-ups

[I]  Bill to bring cooperative banks under RBI regulation to get Parliament nod during Budget session

[I]  Labour ministry keen to retain 8.65% interest rate on EPF deposits for 2019-20

BUSINESS STANDARD

[I]  BS-VI transition, supply disruption due to virus put car sales in slow lane

[I]  Markets on edge: Weak economic data, Coronavirus spook investors further

[I]  Coronavirus outbreak: IT services companies widen travel restrictions

[I]  We have saved Rs 1 trn through DBT by using tech efficiently: Sitharaman

[I]  Coronavirus outbreak: Market valuations may fall further, say experts

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 11292;  USDINR DGCX: 72.6100;  DJIA Mini: 25409;  FTSE 100 Fut: 6580;  NIKKEI 225 Fut: 21378;  EUR-USD: 1.1058; Crude Oil (WTI): 46.21;  Gold (Spot): 1597

Best Regards, ARBIND

01 Mar 2020