MACRO ECONOMIC NEWS

CARE WITH COURAGE AND CONFIDENCE. WISHING A BUOYANT DAY AHEAD.

Macro Economic News 12 May 2020

India has decided to put the much-awaited e-commerce policy, which seeks to set up a regulator for the sector, on hold for now in view of the Covid-19 pandemic and economic challenges whereas India's automakers have warned that total automobile sales could fall as much as 45% in the current fiscal year in a worst-case scenario as economic growth slumps due to the COVID-19 pandemic, and they are seeking government help through the crisis. Until recently, policy makers and corporate executives were hoping for a V-shaped economic recovery from the coronavirus pandemic: a short, sharp collapse followed by a bounce back to pre-virus levels of activity. Now, many expect a “swoosh” recovery.  Treasury Secretary Steven Mnuchin said he is looking at “technical fixes” to address problems in the forgivable-loan program to help small businesses weather the coronavirus pandemic, noting that such measures could target the restaurant industry. Decoupling between the US and Chinese economies shifted into overdrive in the first quarter of this year, as the commercial impact of coronavirus exacerbated what some analysts are calling a “cold war” chill in ties between the countries. Argentina extends $65 billion debt deadline as 'hardball' talks stoke risk of default while Thailand’s slump pushes spreads on risky bonds to a decade-high.

FINANCIAL TIMES

[I]  Paris, Texas, offers a cautionary tale on reopening America

[I]  France’s far west braced for economic fallout from pandemic

[I]  Twin shocks threaten Saudi crown prince’s reform plans

[I]  French government warns no return to normal yet as lockdown eases

[I]  German employers slash jobs as coronavirus lay-offs mount

[I]  US-China decoupling accelerates in first quarter

[I]  EU banking agency criticised over director’s move to lobby group

REUTERS

[I]  India's automakers warn of up to 45% sales drop as economy slumps

[I]  India to restart some passenger trains even though coronavirus infections jump

[I]  More U.S. banks, credit unions given remittance fee exemptions

[I]  Workers in U.S. auto industry return to jobs amid concerns of second virus wave

[I]  Argentina extends $65 billion debt deadline as 'hardball' talks stoke risk of default

[I]  Trump 'not interested' in reopening U.S.-China trade deal after report of Beijing discontent

[I]  UK should extend part of furlough scheme to end of year: think tank

[I]  U.S. consumers' expectations deteriorated sharply in April: New York Fed Survey

BLOOMBERG 

[I]  Fed Officials Push Back On Market View Rates May Go Negative

[I]  U.S. Credit Offers Best Value for Japan Funds, State Street Says

[I]  China’s Brokers Raise Record Short-Term Debt in Leverage Spree

[I]  Thailand’s Slump Pushes Spreads on Risky Bonds to a Decade-High

WALL STREET JOURNAL

[I]  Economists Expect Recovery Will Be More of a ‘Swoosh’ Than V-Shaped

[I]  Investment Between U.S. and China Falls

[I]  Nearly a Third of Kentucky Workers Seek Jobless Aid

[I]  Mnuchin Supports Changes to Small-Business Aid Program

[I]  Fed Survey Finds Big Deterioration in Consumer Views

[I]  Newsletter: From Furloughs to Factory Closings

BUSINESS LINE

[I]  ‘Economic activities to gather steam in coming days’

[I]  Power firms’ body calls for liquidity relief to clear Discom dues

[I]  ‘Mauritius is on a war-footing to comply with FATF’

[I]  Indian power sector adds more new capacity in FY20 vis-à-vis FY19

[I]  Rescue tobacco farmers from falling into debt trap, asks farmers’ body

[I]  Truck drivers are back at work — but not service centres

ECONOMIC TIMES

[I]  How cos are preparing for post-lockdown era

[I]  Second coronavirus stimulus could be unveiled this week

[I]  Extra borrowing: FY21 fiscal deficit likely at 5.8%, growth to slip to 0.5% says report

[I]  No increase in lease rent of SEZ units for 2020-21: Govt

[I]  View: The working person’s right to life

[I]  View: Yes, we will breach the deficit target. But demand growth can save the economy

[I]  E-commerce policy put on hold

BUSINESS STANDARD

[I]  Bad bank may start with Rs 60K-crore NPAs; govt may put in Rs 10K crore

[I]  Centre may extend lockdown beyond May 17 with easier norms for business

[I]  Pension funds, PE may invest in renewable projects, roads after lockdown

[I]  Economy in 'very bad' state, expect financial package in 2-3 days: Gadkari

[I]  Automotive sector needs to finalise digitisation roadmap post Covid-19: EY

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 9135;  USDINR DGCX: 76.0750;  DJIA Mini: 24003;  FTSE 100 Fut: 5900;  NIKKEI 225 Fut: 20320;  EUR-USD: 1.0804; Crude Oil (WTI): 24.34;  Gold (Spot): 1701

Best Regards, ARBIND

12 May 2020