MACRO ECONOMIC NEWS

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Macro Economic News 09 Apr 2020

Goldman Sachs has made the steepest revision to its forecast of India’s GDP for financial year 2021 to 1.6 per cent from 3.3 percent previously. India is considering plans to seal off coronavirus hotspots in Delhi, Mumbai and parts of the south while easing restrictions elsewhere as a way out of a three-week lockdown that has caused deep economic distress. The U.S. economy is set for a deep slide in coming months with the coronavirus forcing businesses to shut and putting millions out of work, but Federal Reserve policymakers are also warning of a slugging recovery once the pandemic subsides. WSJ Survey finds the coronavirus pandemic will cause a severe economic contraction, 14.4 million job losses and a spike in the unemployment rate to 13% this spring, with an economic recovery starting the second half of the year. More than £52bn in dividend payments at risk in UK while Europe watches as countries slowly emerge from lockdown. World Bank says sub-Saharan Africa will enter recession in 2020 while it downgrades outlook for developing countries in Europe and Central Asia. After pandemic, Fed policymakers see slow U.S. recovery whereas U.S. companies are criticized for cutting jobs rather than investor payouts although world economy faces $5 Trillion hit that is like losing Japan. UN reports about 400 million workers in India may sink into poverty while FICCI says Industry needs stimulus package of Rs 9-Rs 10 lakh cr although Rs 1-trn stimulus package for MSMEs is on cards..

FINANCIAL TIMES

[I]  Opec has ‘disappeared’, says oil veteran Andrew Gould

[I]  Eurozone’s two biggest economies sink into historic recessions

[I]  Eurogroup fails to land deal on virus economic response  

[I]  Europe watches as countries slowly emerge from lockdown

[I]  EU carbon emissions tumble during lockdowns

[I]  Singapore fights third wave of coronavirus infections

[I]  More than £52bn in dividend payments at risk in UK

REUTERS

[I]  India considers narrowing lockdown to virus hotspots

[I]  India's inflation likely fell to a four-month low in March: Reuters poll

[I]  As delivery workers emerge as frontline soldiers, government warms to e-commerce

[I]  Trump thanks India for decision on anti-malaria drug

[I]  World Bank says sub-Saharan Africa will enter recession in 2020

[I]  World Bank downgrades outlook for developing countries in Europe, Central Asia 

[I]  After pandemic, Fed policymakers see slow U.S. recovery

[I]  Japan's economy faces 'extremely high' uncertainty on pandemic hit - central bank head 

[I]  U.S. companies criticized for cutting jobs rather than investor payouts

BLOOMBERG 

[I]  Private Equity Denied Access Again in Senate’s New Loan Bill

[I]  Vietnam May Extend Social Distancing Order If Outbreaks Occur

[I]  Philippine Economy’s Best-Case Scenario Is Zero Growth, Finance Chief Says

[I]  Bank of Korea Warns on Growth Hit From Pandemic, Holds Rates

[I]  World Economy Faces $5 Trillion Hit That Is Like Losing Japan

[I]  Reserve Drawdown of $105 Billion Signals Emerging Currency Risk

WALL STREET JOURNAL

[I]  Fed Minutes Reveal Alarm Over Virus’s Economic, Market Disruptions

[I]  WSJ Survey: Coronavirus to Cause Deep U.S. Contraction, 13% Unemployment

[I]  Trump Eyes Tariffs as Tool to Tame Oil Glut

[I]  Illinois, New York Residents Among First to See Bigger Virus Unemployment Payments

[I]  Fed Eases Wells Fargo’s Asset Cap to Lend to Small Businesses

BUSINESS LINE

[I]  Goldman Sachs makes steepest cut to India’s GDP at 1.6%

[I]  Time for gradual revival of farm activities

[I]  Cutting government ad spends will lead to job losses in broadcast sector: IBF

[I]  Tracking government’s steps to contain economic fallout of the coronavirus

[I]  Reverse migration to hit procurement operations at mandis

[I]  Govt caps expenditure for Ministries, Departments

ECONOMIC TIMES

[I]  Mumbai prepares for worst-case scenario

[I]  India's best bet now is to get back to work

[I]  Govt working on staggered easing of lockdown

[I]  RBI's forex move could shift overseas trades to India

[I]  Priority to keep exports open: Piyush Goyal

[I]  About 400 million workers in India may sink into poverty: UN report

[I]  Industry needs stimulus package of Rs 9-Rs 10 lakh cr: FICCI

BUSINESS STANDARD

[I]  Coronavirus lockdown: Rs 1-trn stimulus package for MSMEs on cards

[I]  Firms weigh measures, protocols to adapt to post-coronavirus world

[I]  Hit by coronavirus lockdown, residential builders stare at a bleak 2020

[I]  I-T Dept to release all pending tax refunds up to Rs 5 lakh immediately

[I]  Govt unlikely to grant any package for industry to pay workers' salaries

[I]  Global trade likely to fall by 13-32% in 2020 amid Covid-19 outbreak: WTO

MARKETS (10:30 am)

[I]  SGX NIFTY Fut: 8999;  USDINR DGCX: 76.5975;  DJIA Mini: 23313;  FTSE 100 Fut: 5697;  NIKKEI 225 Fut: 19230;  EUR-USD: 1.0864; Crude Oil (WTI): 25.82;  Gold (Spot): 1648

Best Regards, ARBIND

09 Apr 2020