MACRO ECONOMIC NEWS

MAGICAL MOMENT AND YOUR MAGNIFICENT MIND IS ABOUT TO MAKE MARVELLOUS MEMORIES. WISHING A REMARKABLE WEEK AHEAD.

Macro Economic News 04 May 2020

Supernatural event requires unnatural thinking giving rise to paranormal thinkers. Central banks and Govt. policy makers are in continuous quest for avoiding foreseeable financial duress that may be unleashed by the pandemic and efforts to prevent itself. Small businesses are being threatened to have hundreds of thousands of companies struggling to survive because of its limits on nonpayroll expenses whereas joblessness is expected to indicate that the pandemic inflicted one of the largest blow to the labor market on record. Strangely coordinated actions of global lockdown is exposing the folly of reckless financial strategies and economy and sustainable thinkers are needed to rise beyond comfort zones to deal with multi-faceted forces destabilising propensity to consume and inducement to invest with decreasing marginal efficiency of capital and diminishing multipliers. Previous pandemics depressed the equilibrium with people having less to save and less to spend as those affected financial ability more than cognitive ability whereas this one, what appears as of now, is fastening the process of wealth and dream concentrations; and this is detrimental to economic sustainability. In the current scenario, countries are taking different and diverse approaches but till now none seems to be yielding the desired results. May be a more prudent game theory needs to be developed to create an equilibrium out of disequilibrium – of debts, death and other demons. US may not rule out more money for states, small businesses while UK starting state-backed loans for smallest firms and Singapore looking to ramp up factory activities although distressed debt deals is expected to rise beyond 2008-09 levels.

FINANCIAL TIMES

[I]  Banks to book more than $50bn against bad loans

[I]  China tourism numbers bounce back during Labour Day holiday

[I]  Virus-hit economies brace for second wave of job losses

[I]  Russian cases surge as fears over extent of outbreak grow

[I]  Cost of vaccinating billions against Covid-19 put at more than $20bn

[I]  Lockdown is exposing the folly of reckless financial strategies

[I]  Economists need to abandon their comfort zones to deal with Covid-19

REUTERS

[I]  Indian bank bad debt could double in coronavirus crisis - sources

[I]  Trump says more needs to be done to ease economic hit of coronavirus pandemic

[I]  White House adviser will not rule out more money for states, small businesses

[I]  UK starts state-backed loans for smallest firms

[I]  U.S. processes over $500 billion in small business loans to stem coronavirus fallout

[I]  Singapore looks to ramp up factory activities as virus curbs ease

BLOOMBERG 

[I]  Hong Kong Set for Deeper Economic Slump as Companies Shed Jobs

[I]  Underachieving Currencies Key Threat to Emerging-Market Rebound

[I]  U.S. Reopens, Eye of the Storm, Inflation Speculation: Eco Day

[I]  U.K. Business Sentiment Plunges With No Snap Recovery in Sight

[I]  Distressed Debt Deals May Rise to 2009 Levels in Crisis-Hit Gulf

[I]  Australia’s Central Bank to Hold as It Enters Eye of the Storm

[I]  Jordan’s Economy to Shrink 3.4% as Virus Hits Revenue

[I]  Turkish Inflation Downswing Is Picking Up Pace in Shadow of Lira

WALL STREET JOURNAL

[I]  Jobs Report Likely to Show Record Unemployment Rate

[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

BUSINESS LINE

[I]  Timeline extended for responses on safeguard duties on solar cells

[I]  CII for greater industrial activities in districts with high economic performance

[I]  Lockdown shock: Residential, commercial consumers suffer high electricity bills in Delhi

[I]  IMD puts low-pressure area under extended watch of 7 days

[I]  Centre’s net direct tax collection up 36% in April

ECONOMIC TIMES

[I]  How will the recovery shape up? Likely scenarios

[I]  RCEP nations offer India package to return to negotiating table

[I]  Infra spending, MSME package on the cards: Nitin Gadkari

[I]  View: Adjusting to the new normal won't be easy

[I]  FDI: Government approval only above beneficial ownership cap

[I]  Government to set up panel to give clearances in 3-month time frame for businesses: Nitin Gadkari

[I]  GST audit guidelines need to be reviewed to include video conferencing: Experts

[I]  Commerce Ministry working to identify key sectors for making India a manufacturing hub

BUSINESS STANDARD

[I]  Private hospitals gasp for breath as occupancy slumps

[I]  IT clients fear data leak, question WFH feasibility amid Covid-19 crisis

[I]  India Inc plays safe, despite lockdown norms being eased

[I]  'Pay now, check in later': Hotels offer incentives to tide over Covid-19

[I]  Statsguru: Key indicators point to grim economic outlook amid lockdown

[I]  Govt stares at high payouts as gold prices double over the last year

[I]  Finance Ministry sees FY21 economic growth at 2-3% amid Covid-19 outbreak

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 9365;  USDINR DGCX: 75.9875;  DJIA Mini: 23390;  FTSE 100 Fut: 5677;  NIKKEI 225 Fut: 19490;  EUR-USD: 1.0946; Crude Oil (WTI): 18.48;  Gold (Spot): 1698

Best Regards, ARBIND

04 May 2020