MACRO ECONOMIC NEWS

GOOD GOD GUIDES GOOD WORK FOR GOOD WORLD. WISHING A CARING DAY AHEAD.

Macro Economic News 28 Apr 2020

Australia relaxes some restrictions on movement, as beaches reopened amid hopes. More than 500 garment factories in Bangladesh reopened after a month-long shutdown, while India considered ways to scale back its vast lockdown to reduce economic pain. Hong Kong is preparing to re-open public facilities as some countries tiptoe out of lockdowns, but UK sits tight. Pandemic triggers a wave of distress, bankruptcy in corporate America as stay-at-home orders and the shutdown of nonessential business have driven broad swaths of the economy into panic mode. Japan’s central bank said it would nearly triple its holdings of corporate debt to $186 billion and it forecasts a sharp contraction in the country’s economy this fiscal year. By lending widely to businesses, states and cities, the Fed is breaking taboos about who gets money to prop up a frozen U.S. economy, risking a political backlash down the line. The federal government is again taking loan applications from businesses hit hard by the pandemic, and again the process is bumpy. The Federal Reserve said it would broaden the number of local governments from which it will buy debt through a forthcoming lending program. India Inc’s overseas borrowing touches all-time high of $45 billion in FY20. India plans Rs 3 trillion booster dose for Covid-choked MSMEs and considers proposal to guarantee small-business loans while RBI opens Rs 50,000-crore special liquidity window to support mutual funds.

FINANCIAL TIMES

[I]  US crude prices tumble as largest oil ETF cuts stake

[I]  Norwegian says aircraft likely to remain grounded until 2021

[I]  German U-turn over coronavirus tracking app sparks backlash

[I]  US and Chinese researchers team up for hunt into Covid origins

[I]  Asia’s emerging markets brace for economic fallout of coronavirus

[I]  Nations struggle to measure inflation as virus disrupts shopping

[I]  Fed under pressure to be clearer on coronavirus outlook

[I]  Coronavirus set to push 29m Latin Americans into poverty

REUTERS

[I]  Bangladesh garment factories reopen, while India looks to ease its lockdown

[I]  Some countries tiptoe out of lockdowns, but UK sits tight

[I]  Argentina imposes toughest travel ban in the Americas, sparking outcry

[I]  Australia permits home visits, opens beaches as coronavirus lockdown eases

[I]  Hong Kong hotels on cliff edge from protest, pandemic pain

[I]  Australia Treasury says not working on any new economic packages at moment

[I]  U.S. wireless firms extend concessions for coronavirus-hit till June 30

[I]  Europe restarts car factories amid uncertain demand

BLOOMBERG 

[I]  Hong Kong Preparing to Re-Open Public Facilities, Leader Says

[I]  Fed Expands Muni-Debt Program to Cover Smaller Cities, Counties

[I]  RBI Data Show Central Bank Buys Debt Just as Government Sells It

[I]  Euro Area’s Seven Years of Growth Give Way to Record Slump

[I]  Fed Has Big Decision to Make About Giving More Guidance on Rates

[I]  Debt Monetization Creeps Closer in Asia, Reshaping Bonds

[I]  Recovery Tracker Dials Up Faster Data to Gauge Depth of Downturn

WALL STREET JOURNAL

[I]  The Federal Reserve Is Changing What It Means to Be a Central Bank

[I]  Small-Business Loan Program Resumes With Reports of Delays

[I]  Fed to Extend Loans to More Cities, Counties

[I]  Pandemic Triggers a Wave of Distress, Bankruptcy in Corporate America

[I]  To Help Businesses Borrow, Bank of Japan Will Pile On the Corporate Bonds

[I]  Newsletter: Data Going from Bad to Worse

BUSINESS LINE

[I]  India Inc’s overseas borrowing touches all-time high of $45 billion in FY20

[I]  Start-ups partner with local retailers and distributors to supply essential goods

[I]  Carmakers look to beat lockdown sales blues via online platforms

[I]  India Ratings lowers GDP growth rate further to 1.9%, a 29-year low

[I]  IMD upgrades watch in Bay to depression, maintains Myanmar track

[I]  India’s storage tanks to be full in third week of May

ECONOMIC TIMES

[I]  India plans Rs 3 trillion booster dose for Covid-choked MSMEs

[I]  Das bats for fiscal boost to prop up economy

[I]  Litmus test for NBFCs tapping bond market

[I]  Over 80% wheat crop harvested, about 2,000 wholesale markets are operational: MHA

[I]  Shaktikanta Das calls for fiscal support to economy

[I]  India considers proposal to guarantee $39 billion of small-business loans

BUSINESS STANDARD

[I]  RBI opens Rs 50,000-crore special liquidity window to support mutual funds

[I]  Signal from PM Modi to CMs: Covid-19 lockdown may continue beyond May 3

[I]  In a locked-down world, investment bankers ensuring the show goes on

[I]  GST, GAAR reporting delayed till March 2021 amid coronavirus outbreak

[I]  CRISIL pegs India's FY21 economic growth rate at 1.8% from 3.5%

[I]  Carmakers change track to online sales, contactless delivery

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 9349;  USDINR DGCX: 76.1725;  DJIA Mini: 23931;  FTSE 100 Fut: 5826;  NIKKEI 225 Fut: 19680;  EUR-USD: 1.0825; Crude Oil (WTI): 11.15;  Gold (Spot): 1698

Best Regards, ARBIND

28 Apr 2020