MACRO ECONOMIC NEWS

MAY THE END OF MAY MAGNIFY MERRY MOMENTS. WISHING AN EXPANDED WEEKEND AHEAD.

Macro Economic News 30 May 2020

Protectionism spreads globally with coronavirus as leading market economies are erecting new walls against foreign investment and suspicious trade practices, spurred by coronavirus-triggered economic upheaval and China’s increasing assertiveness. U.S. consumer spending, the U.S. economy’s main engine, fell by a record 13.6% in April during coronavirus lockdowns, but there are signs suggesting damage from the crisis is starting to ease. FED ramps up deliberations on asset purchases to assist an economy in a deeper hole than it faced after the 2008 financial crisis at a time when their tools might have less zip. With the collapse in household spending Canadian economic output plunged by a near record 8.2% annualized rate in the first quarter, while Brazil’s first-quarter GDP falls 1.5%. Deflation fears as Eurozone price growth falls to four-year low and UK helps employers with slow phase-in of job shield costs.

India's economy grew 3.1% in the January-March quarter and 4.2% in FY20 compared with the same period last year, the slowest growth in at least eight years, while output of 8 core sectors contracts by 38.1% in April. Bank credit shrinks 1.2% in April with gross bank credit falling to Rs 91.53 trillion whereas GST hike in non-essential items is ruled out.

FINANCIAL TIMES

[I]  Powell says Fed ‘strongly committed’ to helping US economy

[I]  Sound the trumpet! Debt jubilees have arrived

[I]  Brazil’s first-quarter GDP falls 1.5% as Covid-19 cases climb

[I]  Sweden snubbed as Norway and Denmark open borders

[I]  Deflation fears as eurozone price growth falls to four-year low

REUTERS

[I]  India economy slows in March quarter, with worse to come

[I]  April infrastructure output contracted 38.1%

[I]  India's Foreign Ministry asks some officials to quarantine after two positive for virus

[I]  UK helps employers with slow phase-in of job shield costs 

[I]  Record drop in U.S. consumer spending as Americans stay home

[I]  Canada GDP in April fell a record 11% as COVID-19 shutters economy

BLOOMBERG 

[I]  Powell Says Fed Crossed Red Lines When Virus Demanded Action

[I]  U.S. Consumer Spending Plunges While Stimulus Boosts Incomes

[I]  Australia Will Urge States to Scrap Payroll Tax, Treasurer Says

[I]  Argentina Weighs Deadline Extension With Debt Positions Closer

WALL STREET JOURNAL

[I]  Consumers Spent a Lot Less, Saved More During April Lockdowns

[I]  Federal Reserve Ramps Up Deliberations on Asset Purchases, Rate Guidance

[I]  Fed’s Kaplan Says Strong Virus-Testing Regime Needed to Boost Confidence

[I]  Protectionism Spreads Globally With Coronavirus

[I]  Fed Discloses Holdings of $1.3 Billion in ETFs

[I]  Canada GDP Fell at Near Record 8.2%

[I]  Easing Unemployment Claims Show Slower Pace of Virus-Related Layoffs

[I]  White House Won’t Issue Economic Projections This Summer

BUSINESS LINE

[I]  GST hike in non-essential items ruled out

[I]  Pandemic pain: Output of 8 core sectors contracts 38.1% in April

[I]  Power Ministry prepares ₹3 lakh crore scheme for Discom reforms

[I]  Fiscal deficit for 2019-20 at 4.6%

[I]  Growth pangs: Q4 GDP growth slows to 3.1%; FY20 clocks 4.2%

[I]  Twin depression alert in Arabian Sea as monsoon draws closer

ECONOMIC TIMES

[I]  US ends relationship with WHO, fires first shot against China

[I]  Lockdown may be confined to 13 cities

[I]  Forex reserves soar to record high of $490.04 billion

[I]  Debt market’s love for G-Secs & PSU papers is here to stay

[I]  Invest India holds virtual panel discussion for global investors

[I]  India’s GDP growth in Q4 & FY20 sinks to 11-year low

[I]  GDP growth at 3.1% in Q4 drags full year FY20 growth to 4.2 per cent

BUSINESS STANDARD

[I]  Over to states as next phase of lockdown set to kick in

[I]  Agriculture, mining saved Indian economy in FY20; manufacturing bites

[I]  At 6.1%, growth in per capita income slows: Explained in numbers

[I]  Bank credit shrinks 1.2% in April, gross bank credit falls to Rs 91.53 trn

[I]  UK plans new 5G club of 10 democracies, including India, says report

Best Regards, ARBIND

30 May 2020