MACRO ECONOMIC NEWS

THE GRACE, THE GLORY AND THE GRATITUDE – THE GATEWAY TO GOD. WISHING A SACRED DAY AHEAD.

Macro Economic News 30 Apr 2020

The head of the Federal Reserve dashed lingering hopes for a fast rebound from the pandemic, saying the U.S. economy could feel the weight of consumer fear and social distancing for a year or more in a prolonged climb from a deepening hole. The U.S. economy shrank at a 4.8% pace in the first quarter, the steepest contraction since the last recession. Factory activity in China expanded for a second straight month in April as more businesses resumed work from the shutdowns, but a worsening slump in export orders pointed to a long road to recovery for the embattled economy. Investors expect the European Central Bank to scale up its giant bond-buying program, possibly as soon as Thursday, as it seeks even more firepower to help support eurozone governments blunt the economic damage. UN warns more than 1bn informal workers face poverty while South Africa cut deeper into junk by S&P and as per Nomura India faces downgrade by Moody’s, change in outlook to negative by Fitch. The task force on National Infra Pipeline (NIP) submitted its final report to finance minister Nirmala Sitharaman, projecting total infrastructure investment of Rs 111 lakh crore during 2019-20 to FY25. Centre allows movement of stranded migrant workers, tourists and students. Nitin Gadkari says that Government is considering packages for sectors facing distress while Govt eyes ordinance route for Companies Act amendments and RBI may raise promoter cap in private banks.

FINANCIAL TIMES

[I]  UN warns more than 1bn informal workers face poverty

[I]  SEC abandons key plank of proposal to curb proxy advisers

[I]  Wind power boom under threat as coronavirus hits supply chains

[I]  US GDP falls 4.8% in worst economic decline since 2008

[I]  European economies show signs of post-lockdown activity

[I]  Saudi central bank’s foreign assets fall by most in two decades

[I]  EU grapples with melding pandemic recovery and climate agenda

REUTERS

[I]  Dollar weaker on chances for more Fed easing, anti-virus drug trial

[I]  Crime crumbles in coronavirus hit Italy, but loan-sharking jumps 

[I]  China's factory activity expands for second month, but slump in export orders deepens

[I]  U.S. economy faces hard slog back from pandemic, Fed chief says

[I]  Big U.S. banks cry foul over temporary exclusion from small business lending program 

[I]  Why all eyes will be on the expiry of Brent oil futures this week 

[I]  China committed to Phase 1 trade deal despite pandemic - U.S. official

BLOOMBERG 

[I]  Powell Says More Action Needed to Shield U.S. Economy From Virus

[I]  JPMorgan Asset Sees Strong Era for Private Equity, Hedge Funds

[I]  China Factory Data Shows Global Slump Undercut Nascent Recovery

[I]  The Philippine Peso’s Resilience Is a Risk to the Economy

[I]  Norway Joins Oil Production Cuts for First Time Since 2002

[I]  South Africa Cut Deeper Into Junk by S&P as Pandemic Hits Growth

[I]  Mountain of Bad Loans Leaves Indonesian Banks Craving Stimulus

WALL STREET JOURNAL

[I]  U.S. Economy Shrank at 4.8% Pace in First Quarter

[I]  Fed’s Powell Says More Spending Will Be Needed From Congress

[I]  Lawsuits Mount as Bankrupt Firms Shut Out of Coronavirus Funds

[I]  Mnuchin Says U.S. Aims to Get Back Its Money From Fed Programs

[I]  Boeing and Airbus Brace for Prolonged Downturn

[I]  Trump Administration Remains Hopeful on China Trade Pact as Doubts Grow

[I]  Parsing the Fed: How the April Statement Changed From March

[I]  Newsletter Special Edition: The Expansion Is Over

[I]  Newsletter: Economy Contracts, Confidence Plunges

[I]  After Firing Its Bazooka, ECB Could Reload

BUSINESS LINE

[I]  Big infra push: ₹111 lakh-crore investment in the pipeline

[I]  Centre allows movement of stranded migrant workers, tourists and students

[I]  Rise in supplies, weak demand hit onion prices; exports yet to resume

[I]  Global passenger traffic drops 53 per cent in March this year

[I]  Agricultural growth to be 3 per cent this year

[I]  FPIs pull out of IT stocks for second year in a row

ECONOMIC TIMES

[I]  RBI may raise promoter cap in private banks

[I]  Farming sector will not be impacted by Coronavirus: Agriculture minister

[I]  India Inc wants the sum of its parts to be 'China Plus One'

[I]  India faces downgrade by Moody’s, change in outlook to negative by Fitch: Nomura

[I]  Panel projects Rs 111 Lakh Cr infra investments for year 2020-25

[I]  Curtailed movement, suspension of tolling to see toll revenues dipping 8.5%: Crisil

[I]  Government considering packages for sectors facing distress: Nitin Gadkari

[I]  Time for action to make India a global manufacturing hub: Experts

[I]  Govt eyes ordinance route for Companies Act amendments

BUSINESS STANDARD

[I]  Real estate majors rule out price cuts after lockdown

[I]  Global business bodies nudge FM Sitharaman to defer equalisation levy

[I]  Order inflow a concern for capital goods, construction companies

[I]  Farm-to-fork fails to take off as dependence on mandis continues

[I]  Sell unsold units at 'no-profit-no-loss' to boost liquidity: Nitin Gadkari

[I]  Govt may allow EMIs for Vivad se Vishwas scheme amid Covid-19 crisis

MARKETS (10:00 am)

[I]  SGX NIFTY Fut: 9796;  USDINR DGCX: --;  DJIA Mini: 24770;  FTSE 100 Fut: 6175;  NIKKEI 225 Fut: 20320;  EUR-USD: 1.0859; Crude Oil (WTI): 17.28;  Gold (Spot): 1713

Best Regards, ARBIND

30 Apr 2020