MACRO ECONOMIC NEWS

BLESSED ARE YOU WITH AN ETERNAL AND EVERLASTING SMILE. WISHING A GENEROUS WEEKEND AHEAD.

Macro Economic News 09 May 2020

Resiliency and sustainability are something we are missing amidst the mad rush for growth since industrial revolution. The current coronavirus risks, for the most part, is unravelling deep concerns but we need a new social compact while economic hit exacerbating divergence. Markets should beware this morally hazardous approach to policymaking of central banks repeatedly setting the stage for the next boom and bust cycle, fuelled by growing debt while ironically with no productive use of liquidity, money is going into market speculation driving asset prices. In recent years, the only jobs many unskilled workers could find that weren’t vulnerable to automation and outsourcing involved manual labor, personal contact, and low pay and now, even those havens are being blown apart. The unemployment rate rose to a record as employers shed millions of jobs, evidence of the economic destruction wrought by the coronavirus pandemic. Unemployment is hitting post-war highs. The coronavirus pandemic is exacting an expanding toll on China’s standing in the West, with U.S. and European views on cooperation with Beijing dimming. Trust between US and China, which are edging towards a new type of cold war, has deteriorated during pandemic and is close to lowest point since 1979. The Indian government announced raising its borrowing by over 50 per cent of Budget Estimate during the current fiscal which may lead fiscal deficit during the current fiscal up by 200 basis points. 10-year benchmark bond yields fall to 2009 level, may reverse on higher borrowing plan while Moody believes Indian economy may be in 'deep freeze' and Nomura predicts Indian GDP to contract by 5.2% in FY21, more rate cuts.

FINANCIAL TIMES

[I]  Risk sentiment whistles past an appalling jobs report

[I]  US and China: edging towards a new type of cold war?

[I]  Top of Form

Unemployment in US hits postwar high of 14.7%

[I]  Top of Form

Brexit and coronavirus have prompted drive for improving trade resilience

[I]  Top of Form

Lagarde urges eurozone to launch joint fiscal stimulus

[I]  Top of Form

It’s the end of globalism as we know it (and I feel fine)

[I]  Top of Form

US and China say trade talks on track despite coronavirus tensions

[I]  Too much cash is chasing too few desirable assets

[I]  Top of Form

Markets should beware this morally hazardous approach to policymaking

Top of Form

REUTERS

[I]  Coronavirus inflicts huge U.S. job losses as pandemic breaches White House walls

[I]  India's fuel demand nearly halves in April amid lockdown

[I]  India government sharply increases borrowing, markets watch RBI

[I]  India’s mutual fund inflows fall 47% in April on virus fears

[I]  Argentina's $65 billion debt deadline hits as officials push further talks

[I]  Mexico to unveil economic restart next week after coronavirus lockdown 

[I]  Working women, and especially single moms, are hit hard by coronavirus downturn

BLOOMBERG 

[I]  Drilling Sinks to Record U.S. Low With Oil Sector in Retreat

[I]  U.S. April Jobs Report Was Full of Records -- the Bad Kind

[I]  Trump in ‘No Rush’ on New Relief Bill After 20 Million Jobs Lost

[I]  Fed Slows Treasury Buying Again to $7 Billion a Day Next Week

[I]  Dead, Delayed, Renegotiated: Deals and Fights Over Them Pile Up

WALL STREET JOURNAL

[I]  April Jobs Report Shows Record Unemployment

[I]  Health-Care Workers See Steep Job Losses

[I]  U.S. Budget Deficit Hit $737 Billion in April, CBO Says

[I]  A Bleak Landscape for Lowest Paid Workers

[I]  IRS Reverses Itself, Allows Tax Credit for Benefits Paid to Furloughed Workers

[I]  Demand for Small-Business Loans Cools

[I]  As Pandemic Spreads, Regard for China Recedes in West

[I]  Formal Talks Paused on Next Stimulus Package, Trump Adviser Says

BUSINESS LINE

[I]  Centre to borrow ₹4.20-lakh crore more; fiscal deficit may widen to 5.4%

[I]  Covid-19: Commerce Ministry working on export package

[I]  Global economic outlook worsened since forecast in April, says IMF

[I]  Moody’s slashes India’s GDP growth to `zero' in FY21

[I]  Financial package for infrastructure sector may be announced

[I]  MCA extends timeline for independent directors to register themselves

ECONOMIC TIMES

[I]  Will India do enough to lead new world order?

[I]  India's forex reserves up $1.62 mn at $481.08 bn

[I]  10-year benchmark bond yields fall to 2009 level, may reverse on higher borrowing plan

[I]  Covid alters India's borrowing plan, target now raised to Rs 12L cr

[I]  Indian economy to be in 'deep freeze': Moody’s

[I]  Retail inflation eased to five-month low in April: Poll

BUSINESS STANDARD

[I]  Covid-19: Relief for NRIs, foreign visitors as tax residency rules eased

[I]  State govts likely to raise more money using bonds

[I]  Nomura predicts Indian GDP to contract by 5.2% in FY21, more rate cuts

[I]  Jobs as memory: Don't invite new anarchies on top of that wrought by Covid

[I]  MSME sector's bad loan ratio at 12.5% as of January, shows report

Best Regards, ARBIND

09 May 2020