MACRO ECONOMIC NEWS

CHEERFUL DAY AWAITS YOUR SMILE. WISHING A JOVIAL DAY AHEAD.

Macro Economic News 13 May 2020

 

PM Modi announced a 20 trillion rupee ($266 billion) support package for India's economy to help mitigate the damage caused by the lockdown it has triggered. U.S. consumer prices dropped by the most since the Great Recession in April, weighed down by a plunge in demand for a wide array of goods and services whereas leading U.S. infectious disease expert Anthony Fauci warned Congress that a premature lifting of lockdowns could lead to additional outbreaks of the deadly coronavirus. The US budget deficit soared to a record $1.935 trillion in the 12 months through April as the U.S. ramped up spending and cut taxes to counter the economic slowdown. China economic data indicate V-Shaped recovery is unlikely while Fed officials say that economy has likely bottomed and it is poised for rebound in contrast to IMF saying global economic outlook still worsening. German business body calls for European fiscal solidarity while U.K. lockdown sent retail sales plunging almost 20% in April. Indian lenders pitch for government-funded 'bad bank' whereas Indian companies are getting downgraded like never before. Japanese banks set to face highest bad-loan costs since crisis while Philippines forecasts GDP contraction of 2% to 3.4% this year and South Korea sees biggest job losses since 1999.

 

FINANCIAL TIMES

[I]  Global economic outlook still worsening, says IMF

[I]  Global nutrition crisis puts millions more at risk from coronavirus

[I]  German business body calls for European fiscal solidarity

[I]  US small business rescue fund sees slowing demand

[I]  Modi unveils $266bn stimulus to revive Indian economy

[I]  Singapore takes first steps to reopening economy

 

REUTERS

[I]  Indian lenders pitch for government-funded 'bad bank': sources

[I]  Mexico signals auto industry return on eve of restart plan

[I]  Germany must help other EU states get back on their feet - Merkel

[I]  Early end to U.S. state lockdowns could cause needless 'suffering and death' - Fauci

[I]  Coronavirus crisis leads to largest U.S. consumer price decline since 2008

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

[I]  UK leaves coronavirus lifeline for workers in place for 4 more months

[I]  Coronavirus could hit banks hard, EU warns

 

BLOOMBERG 

[I]  Japanese Banks Set to Face Highest Bad-Loan Costs Since Crisis

[I]  RBNZ Unleashes More Stimulus as Economy Slumps on Lockdown

[I]  Philippines Forecasts GDP Contraction of 2% to 3.4% This Year

[I]  U.K. Lockdown Sent Retail Sales Plunging Almost 20% in April

[I]  South Korea Sees Biggest Job Losses Since 1999 Amid Outbreak

[I]  Indian Companies Are Getting Downgraded Like Never Before

[I]  RBA Owns Nearly 7% of Australian Government Bond Market

 

WALL STREET JOURNAL

[I]  Coronavirus Lockdowns Trigger Big Drop in Consumer Prices

[I]  U.S. Budget Deficit Widened to $1.935 Trillion in 12 Months Through April

[I]  China Economic Data Indicate V-Shaped Recovery Is Unlikely

[I]  Economy Has Likely Bottomed, Poised for Rebound, Says Fed’s Barkin

[I]  Fed's Mester Expects Economy to Rebound Some in Second Half of 2020

 

BUSINESS LINE

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

[I]  Carmakers on “welcome back” drive with attractive financing options for buyers

[I]  Weather: IMD sees fresh low-pressure area in Bay over next two days

[I]  Mystery virus attacks tomato crop in Maharashtra

[I]  MSMEs need immediate relief from banks, govt: CARE report

 

ECONOMIC TIMES

[I]  A third of Indian homes can only stretch for another week

[I]  RIP 'no-cost EMI', zero down payment plans

[I]  Haryana, Punjab push non-paddy cultivation

[I]  I-T liability exists even when salaries, payments deferred

[I]  US, India and five other nations talk post-covid trade

[I]  27 million youth in age group of 20-30 years lost jobs in April: CMIE

 

BUSINESS STANDARD

[I]  Haryana allows select firms to deploy 100% workforce in multiple shifts

[I]  Record fall in March as IIP crashes to 16.7%, FY20 growth squeezed to 0.7%

[I]  Govt plans tax holiday for new investments amid Covid-19 outbreak

[I]  Realtors may defer launches to next quarter to cash in on festive season

[I]  Used car market heads for boom post-lockdown as demand may pick up pace

[I]  Sebi trains guns on Greater China, wants beneficial owners of FPIs named

 

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 9513;  USDINR DGCX: 75.3325;  DJIA Mini: 23589;  FTSE 100 Fut: 5911;  NIKKEI 225 Fut: 20180;  EUR-USD: 1.0850; Crude Oil (WTI): 25.58;  Gold (Spot): 1703

 

Best Regards, ARBIND
13 May 2020