MACRO ECONOMIC NEWS

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Macro Economic News 02 May 2020

This coronavirus crisis has things to teach us. We have clearly optimised the economy for efficiency rather than resilience. Investors are looking to the future, but should beware of over-optimism. Policymakers have eased stress in debt markets, but with long-lasting implications and as a result currency softens beyond key level as investors brace themselves for more interest rate cuts. After rolling out trillions of dollars in support for the U.S. economy, FED officials have begun warning of potentially lasting scars to the workforce and productivity if the recovery is not handled well. ECB intends to counter any surge in borrowing costs of Eurozone governments, indicating ECB will support its members such as Spain and Italy. ECB further pushes banks to lend to at ultra-low rates while Fed officials started to believe that an extended shutdown of the U.S. economy to address the crisis was ultimately unworkable—and could lead to lasting, deep damage whereas deluge of debt is already making corporate America riskier for investors. WHO recommends countries to lift lockdowns gradually, while still being "on the look-out" and ready to restore restrictions though Europe and the US and Asian nations have started relaxing restrictions. Singapore will start easing some curbs put in place over the next few weeks. India extends its nationwide lockdown for another two weeks allowing “considerable relaxations” in lower-risk districts marked as green and orange zones. Investments in Indian start-ups has tumbled 85% YoY and Indian Industry demands Rs 6 lakh cr stimulus package to mitigate impact of lockdown although farm incomes help beat EMI blues in rural India. Govt. has relaxed district-level clearance norms for MSME and may extend interest equalisation scheme for export sector although India may set to cap stimulus package at $60 billion to protect credit rating.

FINANCIAL TIMES

[I]  ECB in fresh push to lend to banks at ultra-low rates

[I]  Top of Form

Britain demands EU give ground to save talks on future relationship

[I]  Central banks are storing up problems in fight to shield credit

[I]  Stumbling into May after running too fast 

[I]  Markets are out of step with economic reality

[I]  Top of Form

Top of Form

Capitalism is not to blame, it’s our escape route

[I]  Top of Form

Turkish lira succumbs to pressure and weakens past 7 to dollar

REUTERS

[I]  India extends lockdown by two more weeks, to allow some relaxations

[I]  Exclusive: India set to cap stimulus package at $60 billion to protect credit rating - sources

[I]  Americans begin to surface from isolation as states ease clamp-downs

[I]  Singapore prepares to ease some coronavirus curbs

[I]  Fed officials worry about lasting economic scars from crisis 

[I]  Countries must ease lockdowns slowly, be ready for virus to jump back: WHO

[I]  U.S. manufacturing activity plunges to 11-year low as orders sink

BLOOMBERG 

[I]  Charting the Global Economy: ‘Contraction’ Becomes Common Theme

[I]  More ECB Bond Buying Is a Matter of Time as Debt Balloons

[I]  Fed Rebuked Over Loan Terms That Don’t Explicitly Bar Layoffs

[I]  Private Equity Poised to Face a Reckoning After Gilded Decade

[I]  Another Week, Another Risk That Weighs on Italy’s Battered Bonds

[I]  China’s Total Services Trade Plunges 10.8% in First Quarter

[I]  Australia’s Largest State Mulls Major Property Tax Reform

[I]  Saudi Outlook Cut to Negative at Moody’s as Reserves Tumble

[I]  Deluge of Debt Is Making Corporate America Riskier for Investors

WALL STREET JOURNAL

[I]  Coronavirus Prompts Biggest U.S. Manufacturing Pullback Since Last Recession

[I]  Powell Calendar Shows Meetings During a Critical Interval

[I]  For Small Businesses With High Rents, Coronavirus Aid Falls Short

[I]  As Europe’s Economy Founders, ECB Signals Readiness to Act

[I]  New Measures of Social Distancing Could Be This Generation’s GDP

[I]  Fed's Bullard Warns Shutdown Could Lead to Lasting Economic Damage

[I]  Newsletter: Fewer Jobs, Less Spending, More Pain

[I]  Federal Reserve Expands Business Lending Program

[I]  Record Contraction in the Eurozone Bodes Ill for Quick Global Rebound

BUSINESS LINE

[I]  Auto industry post Covid-19: Stewardship of cash and capital

[I]  As MNCs head for the exit door in China, India has to make its move

[I]  India weighing RCEP’s fresh proposal to re-join talks

[I]  As MNCs head for the exit door in China, India has to make its move

[I]  LPG price cut by Rs 170 a cylinder across metros

[I]  Weather: Low-pressure area forms in Bay, but IMD puts it on slow burn

[I]  Investments in start-ups tumble 85% YoY to $0.12 billion

ECONOMIC TIMES

[I]  For India's businesses, partial lifting barely moves the needle

[I]  India shut for 2 more weeks, split into virus zones

[I]  Sugar output falls 20 per cent in October-April; last 2 months sales dip by 10 lakh tonne

[I]  Farm incomes help beat EMI blues in rural India

[I]  Govt may extend interest equalisation scheme for export sector

[I]  District-level clearance norms for MSME scheme relaxed

[I]  Industry demands Rs 6 lakh cr stimulus package to mitigate impact of lockdown

[I]  PM Modi signals push to attract firms that exit China to India

BUSINESS STANDARD

[I]  Sebi may tweak pay structure of top MF executives

[I]  From airlines to automobiles, businesses see washout in April amid lockdown

[I]  Lockdown 3.0 opens livelihood door; travel by air, rail remains prohibited

[I]  May Day gift for migrants as trains take them home amid Covid-19 lockdown

[I]  PMS debt assets double since FY15; investors seek reassurance on holdings

[I]  Global energy demand will fall 6% in 2020: International Energy Agency

Best Regards, ARBIND

02 May 2020