MACRO ECONOMIC NEWS

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Macro Economic News 23 Apr 2020

The coronavirus pandemic battered Asian economies in April with social-distancing policies and business closures taking a particularly heavy toll on the region's service sector firms. In the US, the same is expected to weigh on the financial condition of Social Security, which is currently projected to pay benefits that exceed its income in 2021. Trump has ordered a temporary block on some foreigners from permanent residence in the United States, saying he wanted to protect American workers and jobs during the coronavirus pandemic. The coronavirus pandemic pushed South Korea's economy into its biggest contraction since 2008 in the first quarter, as self-isolation measures hit consumption and global trade slumped. Fannie Mae and Freddie Mac will be permitted to buy home loans for which borrowers have stopped making payments, but mortgage companies will have to pay a hefty fee to sell. European Central Bank to accept some junk-rated bonds as loan collateral as a latest action to ensure eurozone banks can access central bank cash during the coronavirus pandemic. Hedge funds suffer worst quarterly outflows since financial crisis while China struggles with sharp rise in unemployment and South Korea posts biggest GDP fall since 2008 as pandemic cripples demand whereas Britain is suffering worst peacetime downturn ever.

FINANCIAL TIMES

[I]  Remittance flows expected to plunge more than $100bn

[I]  International oil prices rebound following Trump warning

[I]  Restaurants, hotels and gyms face up to a future of social distancing

[I]  Hedge funds suffer worst quarterly outflows since financial crisis

[I]  US restaurant closings spur farmers to destroy food

[I]  Confidence evaporates among Europe’s crisis-hit consumers

[I]  China struggles with sharp rise in unemployment

[I]  India cannot simply spend its way out of a crisis

REUTERS

[I]  Special Report: India’s migrant workers fall through the cracks of the coronavirus crisis

[I]  Indian refineries scale back output as virus chokes demand

[I]  Global Economy: Pandemic throws Asia's services firms, factories into deeper decline 

[I]  South Korea posts biggest GDP fall since 2008 as pandemic cripples demand

[I]  Saudi Arabia may re-route tankers if U.S. imposes crude import ban - sources

[I]  Trump order temporarily limits U.S. immigration during coronavirus crisis

[I]  Japan's coronavirus shutdowns pummel service, factory sectors - PMIs

[I]  Britain suffering worst peacetime downturn ever; recovery may falter: Reuters poll

BLOOMBERG 

[I]  Oil Collapse to Worsen China’s Deflation, Open Path for PBOC

[I]  Good Budget News on U.S. Relief Package May Be Bad News for Economy

[I]  Hedge Funds Suffer Largest Quarterly Withdrawals Since 2009

[I]  Europe Inches Toward a $2.2 Trillion Plan That May Never Happen

[I]  Flood of Cheap Cash Lifts India Company Bond Sales To Record

[I]  China’s Banks Halt Oil Product Positions as Investors Burnt

[I]  Singapore Sees Sharper Economic Slump as Virus Spreads Globally

[I]  Fitch Warns of Credit Risks If Development Banks Pause Repayment

[I]  Drought Dominates Outlook for Australia’s Farms, Not the Virus

WALL STREET JOURNAL

[I]  Small-Business Loan Fund May Run Dry Again. Is There Another Way?

[I]  Small-Business Loans: Strip Clubs, Marijuana Stores Need Not Apply

[I]  Emergency Grants to Small Businesses Average $4,360

[I]  Social Security Costs Expected to Exceed Total Income in 2021

[I]  Oil Price Rout to Hit U.S. Regional Economies

[I]  Regulator Moves to Ease Crunch at Mortgage Companies

[I]  European Central Bank to Accept Some Junk-Rated Bonds as Loan Collateral

BUSINESS LINE

[I]  Covid-19 crushes micro and small enterprises

[I]  Railways offers incentives to freight customers

[I]  India to return to normalcy in 2-4 months: CT Group

[I]  Covid-19 impact: 36 per cent drop in Railways cargo in early April

[I]  Shipping ministry overrules port trusts to offer sops to users, PPP operators stung by the pandemic

[I]  Govt allows crew change of Indian seafarers at Indian ports

ECONOMIC TIMES

[I]  Flood of pink slips coming, warn startups

[I]  Virus will be with us for a long time: WHO chief

[I]  Lockdown impacted 40 mln internal migrants: WB

[I]  Labour migration likely to hurt Rabi, Kharif crop

[I]  NBFCs cast shadow on economic recovery

[I]  India notifies FDI policy change mandating prior nod for border-sharing nations

[I]  MCA allows companies to hold first AGM before September 30

[I]  The steps India has taken so far to contain economic fallout of Covid-19

BUSINESS STANDARD

[I]  Markets, economy take divergent paths amid Covid-19 uncertainties

[I]  NBFCs may fall by the wayside without a major forbearance package

[I]  Retailers want govt to allow sale of non-essentials amid Covid-19 lockdown

[I]  Coronavirus spread to weigh on domestic ports and logistics sectors

[I]  Another excise hike for petroleum products on cards to offset revenue loss

[I]  Covid-19: Global pvt wealth takes a hit; India sees 20% dip in Jan-March

[I]  Fundraising via corporate bonds shrinks 1.1% in FY20 as firms favour ECBs

MARKETS (11:30 am)

[I]  SGX NIFTY Fut: 9258;  USDINR DGCX: 76.1100;  DJIA Mini: 23377;  FTSE 100 Fut: 5761;  NIKKEI 225 Fut: 19360;  EUR-USD: 1.0830; Crude Oil (WTI): 15.50;  Gold (Spot): 1718

Best Regards, ARBIND

23 Apr 2020