MACRO ECONOMIC NEWS

WORLD HAS JUST BECOME MORE CHARMING, LOVELY AND WONDERFUL. WISHING A PLEASANT WEEK AHEAD.

Macro Economic News 27 Apr 2020

PM Narendra Modi urged Indians to comply with a nationwide lockdown and social distancing measures, a day after some of the world’s toughest restrictions were eased slightly while cases of COVID-19 continued to mount. Leaders across Europe prepare to ease lockdown while private sector races to build virus apps to track employees whereas a survey finds that half of SMEs in UK will run out of cash in 12 weeks. Battered and bruised, supply chains shift to recover-and-survive mode in order to adjust with the new pattern of demands. The U.S. is expected to report on Wednesday the country just saw the biggest quarterly economic contraction since early 2009, and forecasters warn the GDP figures will likely provide a preview of worse to come. It is projected to trigger worst economic downturn since 1940s. Data inadequacy has become a global phenomenon and India has approached multilateral agencies including the IMF and World Bank to ascertain the practices elsewhere in the world to prepare economic indicators such as industrial production, retail inflation and economic growth. More people working from home may perhaps be the single-biggest and lasting change to emerge from the global lockdown. If you think this is hyperbole, Tata Consultancy Services is looking at having 75 per cent of its employees working from home by 2025. Even 5-days week may be the thing of past in coming years.

FINANCIAL TIMES

[I]  Leaders across Europe prepare to ease lockdown

[I]  Private sector races to build virus apps to track employees

[I]  Gates Foundation to concentrate on coronavirus

[I]  Qatar sovereign wealth fund seeks health and tech deals

[I]  Pandemic accelerates shift to meat substitutes

[I]  Global coronavirus death toll could be 60% higher than reported

[I]  Half of SMEs in UK will run out of cash in 12 weeks, finds survey

REUTERS

[I]  Modi urges citizens to follow lockdown as cases rise

[I]  Indian government brushes off Indian tax officers' proposal for coronavirus tax on super rich

[I]  Next wave of U.S. states set to reopen as coronavirus could push jobless rate to 16%

[I]  Back from COVID-19, Johnson urged to reveal UK lockdown exit strategy

[I]  Israel reopens some businesses and considers resuming school year

[I]  Fishing, surfing and hunting beckon for New Zealanders after coronavirus lockdown

[I]  Russia at risk of spike in coronavirus cases during May holidays - official

[I]  European carmakers restart production as coronavirus lockdowns ease 

[I]  German government divided over form of Lufthansa rescue deal

[I]  Egypt asking IMF for support during coronavirus crisis: PM

BLOOMBERG 

[I]  World’s Biggest Wheat Supply Dries Up When Some Want It Most

[I]  Chinese Firms Halt Dividends, Sell Equity to Ride Out Pandemic

[I]  Rich Asians Feel Pain on $10 Billion of Bond Bets After Crash

[I]  China Industrial Profits Dropped by More Than a Third in March

[I]  Investors Face Limited Escape Routes During Japan’s Long Holiday

[I]  Singapore Becomes Asia’s Most Infected Nation After China, India

[I]  Contagion Risks Build in India’s Credit Market After Fund Freeze

[I]  BOE Warns That Loan Charges Could Hurt Business Funding: FT

WALL STREET JOURNAL

[I]  Mnuchin Sees Third-Quarter Rebound for U.S. Economy

[I]  First-Quarter GDP Will Be Bad—With Worse to Come

[I]  Coronavirus Projected to Trigger Worst Economic Downturn Since 1940s

[I]  U.S. Durable-Goods Orders Drop as Economic Outlook Sours

[I]  Fed Allows Banks to Eliminate Limits, Fees on Monthly Withdrawals From Savings Accounts

[I]  Bankrupt Companies Shut Out of Stimulus Money

[I]  Economy Week Ahead: Central Bank Meetings, U.S. Consumer Spending

[I]  Newsletter: More Layoffs, Fewer Startups, Less Deodorant

BUSINESS LINE

[I]  Covid-19 may punch a big hole in petro-tax tank of Centre, States

[I]  FinMin terms IRS Officer’s report ‘ill-conceived’

[I]  Frontline essential sectors offer a ray of hope for all

[I]  Industry bodies seek clarification regarding opening of shops

[I]  Post-Covid, India will have V-shaped recovery: Subbarao

[I]  IT officers pitch for 40% tax on super rich, new Covid cess

ECONOMIC TIMES

[I]  Global supply chain risks: World shifts into survival mode

[I]  Exporters may get help but there's a catch

[I]  Govt mulls GST relief package to soothe Covid pain

[I]  India seeks IMF, World Bank help to deal with IIP, CPI data gaps

[I]  Raw material, movement of labour biggest hurdles: CII

[I]  No move to reduce retirement age of central government employees: Personnel Minister

BUSINESS STANDARD

[I]  More work from home, hot-desking: How India Inc will reboot after lockdown

[I]  NBFCs' foreign lenders face repayment risks as US dollar becomes stronger

[I]  Coronavirus and the ripple effects of force majeure on contracts globally

[I]  Force majeure to ban on transport of minerals, here're the key court orders

[I]  Finance Ministry likely to present new GDP, budgetary targets by July

[I]  IBA demands recast of loan accounts of small firms amid Covid-19 crisis

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 9243;  USDINR DGCX: 76.1700;  DJIA Mini: 23775;  FTSE 100 Fut: 5809;  NIKKEI 225 Fut: 19630;  EUR-USD: 1.0829; Crude Oil (WTI): 15.51;  Gold (Spot): 1723

Best Regards, ARBIND

27 Apr 2020