MACRO ECONOMIC NEWS

HEAR THE WHISPER AND CHIRP AMIDST THE CALM. WISHING AN AMUSING DAY AHEAD.

Macro Economic News 08 Apr 2020

Hundreds of thousands of cash-starved Indian small businesses have either deferred or cut their workers' wages this month, say industrialists and union leaders. In the scramble to contain the coronavirus financial fallout, U.S. policy makers have embraced an ambitious big-government agenda that could redefine Washington’s role in the economy. Government officials and business leaders are turning their attention to a looming challenge in the fight against the new coronavirus: How to reopen a $22 trillion economy that has never been shut down like this before. The U.S. economy is in a contraction and could reopen in four to eight weeks. UK looks to learn from German mass tests in quest to end lockdown while Japan gambles on partial lockdown to control coronavirus although Economists are united in support of the coronavirus lockdown. A $100 billion REIT rout pulverizes family fortunes across Asia whereas social groups urge mass debt relief for poor countries hit by virus crisis. Lockdown beyond April 14 is possible after experts raise red flags and under pressure from states, Centre considering extension of lockdown. Economists revise India's growth forecast in less than a month due to uncertain impact of COVID-19 and interestingly while global crude oil prices are plummeting to historic lows, India’s storage tanks are only a little over half full.

FINANCIAL TIMES

[I]  Loss of working hours to equal 195m full-time jobs, UN agency warns

[I]  UK looks to learn from German mass tests in quest to end lockdown

[I]  Japan’s corporate cash-hoarders have moment in sun

[I]  Senior Africans propose ‘standstill’ on eurobond debt payments

[I]  Japan gambles on partial lockdown to control coronavirus

[I]  Economists are united in support of the coronavirus lockdown

[I]  ECB data show eurozone banks had weak profits before coronavirus

REUTERS

[I]  Small businesses struggle to pay wages amid lockdown

[I]  Social groups urge mass debt relief for poor countries hit by virus crisis

[I]  Australia's 'Big Four' banks see shares fall after regulator urges dividend deferral

[I]  Pandemic set to tip Japan into deep recession this year, BOJ seen easing again: Reuters poll

[I]  China orders Baidu to clean up low-brow content

[I]  Layoffs, closures to wipe out 6.7% of working hours worldwide

[I]  BOJ to scale back some operations amid coronavirus pandemic 

[I]  Japan's machinery orders rise unexpectedly but darker days seen ahead

BLOOMBERG 

[I]  A $100 Billion REIT Rout Pulverizes Family Fortunes Across Asia

[I]  U.S. Slashes 2020 Oil-Output Forecast Ahead of OPEC+ Meeting

[I]  Two Accounting Scandals in One Week Burn Investors in China Inc.

[I]  Japan’s Economy in Emergency Set to Shrink 25%, Goldman Says

[I]  RBNZ Open to Increasing QE in ‘Rapidly Evolving Situation’

[I]  China Debates Slashing Economic Growth Target Amid Virus Reality

[I]  China Braces for Wave of Soured Loans With New Bad-Debt Manager

WALL STREET JOURNAL

[I]  In Coronavirus Response, Republicans and Democrats Like Big Government

[I]  Attention Turns to Eventual Reopening of U.S. Economy

[I]  U.S. Economy Is in a Contraction, Says Larry Kudlow

[I]  Small Businesses’ Finances Highly Vulnerable to Coronavirus Crisis

[I]  Fannie, Freddie Unlikely to Aid Mortgage Companies, FHFA Chief Says

[I]  The Fed’s Intervention Is Widening the Gap Between Market Haves and Have-Nots

[I]  Newsletter: Crisis of Confidence

BUSINESS LINE

[I]  As crude prices plummet, India’s tanks are only half full

[I]  Coronavirus impact: Retailers expect around 80,000 job losses due to lockdown, says survey

[I]  CMIE estimates 23% spike in unemployment rate during lockdown

[I]  Covid fears hit demand for livestock feed, crashed prices: Anmol Feeds

[I]  Supply chain woes making food expensive

[I]  PE investments slump 39% YoY in Q1 of 2020: Report

[I]  Covid-19: Maharashtra farmers plan a ‘constructive campaign’

ECONOMIC TIMES

[I]  Lockdown beyond April 14 possible after experts raise red flags

[I]  Virus throws a wrench into divestment plans

[I]  Masala bonds less palatable after rate cut

[I]  28 states cleared to borrow up to Rs 3.2L crore

[I]  Economists revise India's growth forecast in less than a month due to uncertain impact of COVID-19

[I]  States get another lifeline from RBI to meet cash-flow mismatches

[I]  Commerce ministry creates online platform for issuance of 'certificate of origin' for exporters

BUSINESS STANDARD

[I]  Cash-starved and desperate, states borrow at steep rate in lockdown

[I]  Under pressure from states, Centre considering extension of lockdown

[I]  90% of trucks in India are now off roads amid coronavirus lockdown

[I]  Manufacturers will struggle to get labour back after lockdown is lifted

[I]  NBFC-MFIs seek clarity from RBI on 3-month moratorium on loans

MARKETS (10:30 am)

[I]  SGX NIFTY Fut: 8996;  USDINR DGCX: 76.3200;  DJIA Mini: 22727;  FTSE 100 Fut: 5668;  NIKKEI 225 Fut: 19300;  EUR-USD: 1.0874; Crude Oil (WTI): 25.21;  Gold (Spot): 1651

Best Regards, ARBIND

08 Apr 2020