MACRO ECONOMIC NEWS

TAKING RESPONSIBILITY IS THE BEGINNING OF TAKING CHARGE. WISHING A SENSIBLE WEEK AHEAD.

Macro Economic News 20 Apr 2020

Indian Govt issues regulations for movement of migrant labour while RBI buys govt bonds in secondary market signalling debt monetisation whereas India amends FDI rules with national security in focus. Maharashtra allows a limited number of sectors to resume business, after a weeks-long shutdown to slow the spread of coronavirus left millions out of work. The Black Death and other pandemics pushed wages higher, but the impact will likely be different this time, economists say. ECB pushes for eurozone bad bank to clean up soured loans as pandemic threatens livelihoods of 59m European workers whereas Italy is in more danger than the eurozone knows. Britain is not considering lifting its lockdown imposed almost four weeks ago to control the coronavirus outbreak given "deeply worrying" increases in the death toll. The federal government is spending $2.2 trillion to aid American businesses and households amid the coronavirus outbreak. But efforts to monitor how the money gets spent are off to a slow start, in part because of the pandemic itself.

FINANCIAL TIMES

[I]  Creditors push back on G20 debt relief plea for emerging markets

[I]  Germany cracks down on coronavirus aid fraud

[I]  ECB pushes for eurozone bad bank to clean up soured loans

[I]  Coronavirus pandemic threatens livelihoods of 59m European workers

[I]  Trump and Congress near deal on small business aid

[I]  Coronavirus has shaken our laid-back attitude to financial risk

[I]  Italy is in more danger than the eurozone knows

REUTERS

[I]  Maharashtra allows some economic activity as national coronavirus cases top 15,000

[I]  Indian steel demand expected to drop 7.7% in 2020: industry body

[I]  China cuts benchmark rate for second time this year, as widely expected

[I]  Japan stimulus package boosted to $1.1 trillion due to cash payouts: draft

[I]  Food crisis will not take place in China: agriculture minister

[I]  Dollar firm as caution on economic re-start returns

[I]  With economy in crisis, U.S. lets importers delay some tariff payments

[I]  UK not thinking of easing virus lockdown measures yet: minister

[I]  G20 health ministers hold virtual meeting on coronavirus

[I]  Italy PM calls for EU solidarity in support of coronabonds

BLOOMBERG 

[I]  Oil Drops to 21-Year Low With Storage Filling as Demand Shrivels

[I]  Goldman Sees Record U.S. Corporate Cash Spending Cuts This Year

[I]  Australia Shouldn’t Worry About Huge Government Debt, RBA’s Lowe Says

[I]  A $1.2 Trillion Fund Says Skip Earnings Season, Buy U.S. Stocks

[I]  India’s State Borrowers Are Crowding Out Cash-Strapped Companies

[I]  Bond Market Devouring Record Gulf Debt Won’t Touch Oman, Bahrain

[I]  Never Mind the Bumpy Ride. Emerging-Market Investors Are Back

WALL STREET JOURNAL

[I]  How the Coronavirus Might Reduce Income Inequality

[I]  The Year Tax Day Turned Upside Down

[I]  Spending Overseers Are Sidelined as Stimulus Checks Roll Out

[I]  China’s First-Quarter GDP Plunges on Coronavirus

[I]  New York Fed’s Williams Says Recovery Unlikely to Be Swift

[I]  Pandemic Makes U.S.-China Economic Breakup More Likely, U.S. Businesses in China Say

[I]  Economy Week Ahead: Jobless Claims, U.S. Home Sales, PMI

BUSINESS LINE

[I]  I-T return forms to be modified

[I]  Govt issues regulations for movement of migrant labour

[I]  Government makes U-turn; says no to non-essentials sales by e-commerce companies

[I]  Exporters say RBI steps to help small units, but bigger ...

[I]  Retailers, e-commerce platforms turn to private label brands

ECONOMIC TIMES

[I]  Lockdown brings farmers in touch with big buyers

[I]  You might not have to pay for your PF soon

[I]  Economy cranks up but Centre to keep tight vigil

[I]  Investments via Hong Kong under a cloud, PE funds in a scramble

[I]  RBI buys govt bonds in secondary market, signals debt monetisation

[I]  Group of non-bank lenders to issue pooled debt instruments

[I]  RBI measures for NBFCs unlikely to boost credit flow to broader economy: Moody's

[I]  Government may take up PF for companies with 100+ staff

[I]  National security in focus as India amends FDI rules

BUSINESS STANDARD

[I]  Sebi may scan Cayman, Singapore investment hubs for Chinese links

[I]  Govt backtracks on non-essential items' sale by e-tailers

[I]  Coronavirus lockdown keeps companies' yearly, quarterly results in limbo

[I]  RBI may cap reverse repo rate to ensure liquidity translates into credit

[I]  Stranded labour can work during lockdown, but conditions apply

[I]  India could use 3-5% of GDP stabilising economy: World Bank economists

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 9282;  USDINR DGCX: 76.5925;  DJIA Mini: 24083;  FTSE 100 Fut: 5817;  NIKKEI 225 Fut: 19630;  EUR-USD: 1.0861; Crude Oil (WTI): 15.52;  Gold (Spot): 1680

Best Regards, ARBIND

20 Apr 2020