MACRO ECONOMIC NEWS

MY REFUGE, MY FORTRESS, MY GOD WHOM I TRUST. WISHING A REASSURING DAY AHEAD.

Macro Economic News 15 May 2020

The country-wide lockdown, introduced in late March, has led to a labour shortage across rural India, crimping the harvest and preventing the bagging and movement of it. India is aggressively pushing a state-backed contact tracing app to fight the spread of COVID-19, raising fears that the world's second-most populous nation is on its way to Chinese-style methods of high tech social control. The economic shock hit lower-income households first and immediately left them much worse off, according to a new survey from the Federal Reserve. Without federal help, frugal and profligate states alike will have to tighten their belts, deepening the recession and slowing the recovery. Japan lifts state of emergency in most prefectures as Covid-19 cases fall. ILO warns Indian states on scrapping of workers' rights while FM extends Rs 3.2-trillion stimulus to migrant workers and farmers. Indian farmers gather record wheat crop, but cannot move it due to labour shortage whereas Centre looks to nudge more MSMEs into manufacturing to reduce imports and Govt refashions 'One Nation One Ration Card' as relief measure for migrants.

FINANCIAL TIMES

[I]  US jobless claims rise to 36m since start of lockdowns

[I]  Banking: the great return to the office

[I]  Resilient builders lay foundation for German economy to outperform

[I]  WTO chief Roberto Azevêdo to step down early

[I]  Modi the reformer reappears as coronavirus hits India’s economy

[I]  Germany faces €82bn tax receipts shortfall because of coronavirus

[I]  Japan lifts state of emergency in most prefectures as Covid-19 cases fall

[I]  US airlines eye job cuts once bailout strings expire

REUTERS

[I]  Farmers gather record wheat crop, but cannot move it

[I]  ILO warns Indian states on scrapping of workers' rights

[I]  France defends equal access to any vaccine as U.S. eyes its own plans

[I]  China's top energy firms to grow gas output despite spending cuts

[I]  China healthcare investment booms on virus-related spending bets

[I]  China stats bureau expects economic recovery to continue

[I]  U.N. gathering of world leaders unlikely to be 'business as usual'

[I]  India follows China's lead to widen use of coronavirus tracing app

BLOOMBERG 

[I]  China Unveils Financial Support to Tie Hong Kong, Macau Closer

[I]  China Posts Better Industrial Data While Retail Remains Weak

[I]  Fed Buys $305 Million of ETFs at Launch of Historic Program

[I]  Cryptocurrency Market Is Becoming Even More Concentrated

[I]  Banks Refusing to Lend in India Prompt $62 Billion Rescue Deal

[I]  Mexico Stirs Confusion Over When the Auto Industry Can Reopen

[I]  Japan’s Recession to Be Confirmed With Worse Yet to Come

WALL STREET JOURNAL

[I]  Economic Shock of Virus Hit Lower-Income Households Harder, Fed Finds

[I]  Nearly Three Million Sought Jobless Benefits Last Week

[I]  Coronavirus Drives 75% of Small Businesses to Seek Federal Aid

[I]  Newsletter: ‘The Recovery May Come More Slowly Than We Would Like’

[I]  Powell Says Washington Will Need to Spend More to Battle Downturn

[I]  WSJ Survey: Coronavirus to Cause 17% Unemployment in June

BUSINESS LINE

[I]  In second tranche, FM puts migrants, farmers first

[I]  Covid-19 to have significant deflationary impact due to fading demand: CEA

[I]  WPI food inflation declines in April to 3.60 per cent

[I]  Electricity bills will come down by 25%, says Power Minister

[I]  Fiscal deficit to balloon to 7.9 per cent in FY21: Report

[I]  MGNREGA support: Work generated in coming days is the key

ECONOMIC TIMES

[I]  Consumer firms ready with jobs, but where are the workers?

[I]  Hindi heartland states gear up for spike in cases

[I]  PE, VCs eye slice of Rs 50k-cr MSME fund

[I]  Yields fall as bond street cheers enhanced credit flow

[I]  Kaushik Basu warns against overdependence on RBI for stimulus

[I]  Not create unnecessary trade barriers, allow essential cross-border travel: G-20 trade ministers

[I]  No TDS cut for salaried to avoid compliance burden: Finance Secy

BUSINESS STANDARD

[I]  FM extends Rs 3.2-trillion stimulus to migrant workers and farmers

[I]  Changes in consumer behaviour to drive brands to rethink positioning norms

[I]  Urge all states to take special loan, pass benefit to consumers: R K Singh

[I]  Work from home to be new normal for govt offices after lifting of lockdown

[I]  Centre looks to nudge more MSMEs into manufacturing to reduce imports

[I]  Govt refashions 'One Nation One Ration Card' as relief measure for migrants

[I]  Sebi relaxes 25% minimum public shareholding norms, deadline postponed

MARKETS (10:30 am)

[I]  SGX NIFTY Fut: 9075;  USDINR DGCX: 75.5400;  DJIA Mini: 23585;  FTSE 100 Fut: 5781;  NIKKEI 225 Fut: 20020;  EUR-USD: 1.0806; Crude Oil (WTI): 27.87;  Gold (Spot): 1732

Best Regards, ARBIND

15 May 2020