MACRO ECONOMIC NEWS

PRAISE THE BLESSING AND WONDERFUL THINGS IN OUR LIVES. WISHING A CONFIDENT WEEK AHEAD.

Macro Economic News 25 May 2020

There is a growing divide between those celebrating the end of restrictions and those fearful of Covid-19’s re-emergence. The reopening is in some ways turning out to be more difficult than the shutdown. Consumer spending and inflation data are expected to show another big drop-off in household purchases and an emerging disinflationary trend at the same time higher costs to retaining workers and customers with suppressed demand, businesses are navigating through narrowing tunnels. Pockets of hiring indicates shifting of business as employers adapt to new working practices and changing consumer behaviour as availability of migrants’ skills and man-hour are set to change the urban concentration and geographical uneven development. Richest nations face $17tn government debt burden from coronavirus while Russia’s small businesses left out in the cold whereas Japan is looking to end Tokyo's state of emergency and UK authorises bailout to rescue strategically important companies.

FINANCIAL TIMES

[I]  China warns audit plans will drive companies from US exchanges

[I]  EU divisions laid bare by ‘frugal four’ recovery proposal

[I]  Richest nations face $17tn government debt burden from coronavirus

[I]  Russia’s small businesses left out in the cold by Covid-19

[I]  Companies line up to sell stock as US IPO market reopens

[I]  Insurance prices rise across the board as coronavirus hits

[I]  Britain’s unhealthy appetite for financial risk in essential services

[I]  China is pitting EU countries against each other

REUTERS

[I]  India domestic flights to resume, but coronavirus cases rise

[I]  Japan looking to end Tokyo's state of emergency, eyes fresh $930 billion stimulus

[I]  In China's auto market, worries grow that cashback deals and gifts presage damaging price war

[I]  UK's Sunak authorises bailout to rescue strategically important companies

[I]  China drops mention of GDP goal as parliament opens, virus slams economy

[I]  China must adhere to multilateralism, market forces: Xi

BLOOMBERG 

[I]  Economists See China Holding Stimulus in Check Amid Uncertainty

[I]  China Sets Yuan Fix at Weakest Since 2008 After Currency Drop

[I]  Cold War Warning, Relying on Science, Trade Tensions: Eco Day

[I]  U.S.-China Trade Tensions Are Back: Global Economy Week Ahead

[I]  China’s $941 Billion Sovereign Fund Seeks More Resilient Assets

[I]  Putin Orders Support for Russia’s Oil Industry Amid OPEC+ Cuts

[I]  China Asks Banks to Boost Manufacturing Loans: Securities News

WALL STREET JOURNAL

[I]  Economy Week Ahead: Consumer Confidence, Spending, Inflation

[I]  The Covid Surcharge: Companies Confront the Unforgiving Economics of Coronavirus

[I]  America Is Reopening for Summer, and Tensions Are High

[I]  Banks, Defense Firms Rush to Nab Newly Unemployed Workers

[I]  Summer Jobs Dry Up and Teens Face Highest Unemployment in Decades

[I]  State, Local Budget Woes Create Drag for Recovery Prospects

BUSINESS LINE

[I]  Retailers, small businesses not registered as MSME also to get guaranteed emergency credit

[I]  Lockdown 4.0: Ambiguity in local level interpretation of laws a challenge for retail industry

[I]  After 2 months of lockdown, domestic flights to take off with restrictions

[I]  Lockdown: Wholesale vegetable prices fall sharply by up to 60 per cent

ECONOMIC TIMES

[I]  NITI Aayog boss shares development mantra

[I]  NITI Aayog boss clears the air on labour laws

[I]  NBFCs face a litmus test on their bond liabilities

[I]  India may register recession in third quarter of this fiscal, shows report

[I]  Need to convert development into mass movement: Niti Aayog's Rajiv Kumar

[I]  Tamil Nadu government allows industrial estates in Chennai to resume work

BUSINESS STANDARD

[I]  Overseas investors once again step up selling as stimulus disappoints

[I]  How customer support agents are learning the ropes of work from home

[I]  Extension of moratorium may lead to credit indiscipline, say bankers

[I]  Need to create ecosystem to help pvt companies thrive: NITI Aayog CEO

[I]  Tier-II, III cities now preferred destinations for warehousing: Experts

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 9053;  USDINR DGCX: 75.8900;  DJIA Mini: 24499;  FTSE 100 Fut: 5996;  NIKKEI 225 Fut: 20640;  EUR-USD: 1.0889; Crude Oil (WTI): 33.26;  Gold (Spot): 1729

Best Regards, ARBIND

25 May 2020