MACRO ECONOMIC NEWS

TRUST IS LIKE WATER; LIFE IS TO BE WITH IT, FLOW WITH IT. WISHING A SPIRITED DAY AHEAD.

Macro Economic News 20 Mar 2020

U.S crude oil prices edged higher, extending gains after a 24% jump the previous day, buoyed by hints from U.S. President Donald Trump he may intervene in the price war between Saudi Arabia and Russia at an "appropriate time." The Federal Reserve is likely to significantly boost its government-bond purchases beyond the $500 billion minimum it committed Sunday to buy amid market strains that sent interest rates higher in recent days. The BOE cut its benchmark interest rate to a record low and said it would buy $232 billion of U.K. government bonds, in the latest push by a major central bank to combat the economic damage from the coronavirus. Italy’s PM urges Brussels to unleash €500bn rescue fund while China reports no new cases of local transmission for first time. US oil companies race to restructure debt while China keeps lending benchmark unchanged but stimulus needed as virus hit worsens. Virus-hit India mulls easier loan and tax rules while cash dash has dollar set for best week since 2008 crisis and Indian Rupee breaches 75 as FPIs dump stocks on redemptions. India Inc seeks stimulus to tackle coronavirus and Government considers tax compliance breather.

FINANCIAL TIMES

[I]  Italy’s PM urges Brussels to unleash €500bn rescue fund

[I]  US set to be inundated with jobless claims

[I]  Top ECB officials divided over Lagarde’s bond-buying plan

[I]  China reports no new cases of local transmission for first time

[I]  US oil companies race to restructure debt

[I]  ECB and Bank of England deploy their big bazookas

REUTERS

[I]  India to halt international flights; Modi urges citizens to stay home as virus spreads

[I]  IMF expedites U.S. Treasury official's appointment to No. 2 job

[I]  Asia shares bounce after rout, rush for dollars causing stress

[I]  China keeps lending benchmark unchanged but stimulus needed as virus hit worsens 

[I]  POLL: Global economy already in recession on virus devastation

[I]  U.S. crude climbs after White House comments on Saudi-Russia dispute

BLOOMBERG 

[I]  The Five Days When World Economy’s Guardians Fought Virus and Market Turmoil

[I]  India Fund Managers Hunt for Spreads, Liquidity Amid Credit Woes

[I]  The Idea of Negative Oil Prices Is More Realistic Than You Think

[I]  ‘Warp Speed Stimulus,’ Market Crunch, Merkel Powers: Eco Day

[I]  Oil Extends Record Gain in Wild Week as Trump Wades Into Tussle

[I]  Philippine Stocks Veterans See More Pain After Record Plunge

[I]  High-Grade Bond-Fund Outflows Hit $35.6 Billion, Smashing Record

[I]  Lagarde Says ECB Will Explore All Options to Support Economy

[I]  New Zealand Moves to Soothe Market Tensions With Term Loans to Banks

[I]  Distressed Debt in U.S. Doubles to $500 Billion in Two Weeks

WALL STREET JOURNAL

[I]  Fed Ramps Up Bond Buys, Indicating Much Larger Purchases Are Likely

[I]  IMF Approves Top Mnuchin Ally, Geoffrey Okamoto, as No. 2 Official

[I]  Jobless Claims Rise Sharply

[I]  McConnell Unveils GOP Stimulus Plan Amid Coronavirus Crisis

[I]  Bank of England Cuts Rates Further, Restarts Bond Purchases

[I]  Coronavirus Hits State and City Budgets

BUSINESS LINE

[I]  Uncertainty looms as jewellers down shutters amid coronavirus scare

[I]  Covid-19: Crisil cuts GDP growth forecast to 5.2% for 2020-21

[I]  Don’t lay off employees: CII tells member companies

[I]  Maharashtra: After coronavirus, rain and hailstorms destroy rabi crops

[I]  Centre prohibits export of all ventilators, surgical masks, raw material

[I]  Savings in cost, reliable supply to boost rooftop solar power

ECONOMIC TIMES

[I]  Hikes, bonuses put on quarantine as IT firms prepare for slump

[I]  India is changing rules for Covid testing

[I]  Virus-hit India mulls easier loan, tax rules

[I]  Cash dash has dollar set for best week since 2008 crisis

[I]  Re breaches 75 as FPIs dump stocks on redemptions

[I]  Prices of agricultural commodities drop 20% post COVID-19 outbreak

[I]  Work from home raises unique tax challenges

[I]  India Inc seeks stimulus to tackle coronavirus

[I]  Government considers tax compliance breather

BUSINESS STANDARD

[I]  NPA norms may be eased, tax deferment likely in coronavirus healing touch

[I]  Janata curfew, economic task force: Modi scales up coronavirus fight

[I]  Govt bans international flights for a week from Sunday as virus spreads

[I]  India to offer unemployment benefits to workers affected by coronavirus

[I]  PMS players take a hard knock to their portfolios amid market volatility

[I]  Coronavirus pandemic burns Rs 1.9 trillion hole in LIC's investments

MARKETS (10:00 am)

[I]  SGX NIFTY Fut: 8301;  USDINR DGCX: 75.1500;  DJIA Mini: 19952;  FTSE 100 Fut: 5233;  NIKKEI 225 Fut: 17030;  EUR-USD: 1.0755; Crude Oil (WTI): 26.33;  Gold (Spot): 1483

Best Regards, ARBIND

20 Mar 2020