MACRO ECONOMIC NEWS

REJOICE THE TENDERNESS WITH THE SMILE. WISHING AN ADORABLE DAY AHEAD.

Macro Economic News 28 May 2020

 

Businesses are witnessing early signs of recovery in recent week although economic activities continue to decline amid the pandemic whereas employers are making plans to allow many of their staffers to continue working remotely. EU proposed an $824 billion recovery plan and a $1.2 trillion budget over the next seven years, which, if approved, would deepen its economic union in a way that even the eurozone debt crisis failed to achieve. The stock market and consumer sentiment are telling different stories. Stocks have rebounded dramatically off their March lows, while consumer sentiment is hovering near the lowest level in nearly a decade. The divergence is one of many realities investors are struggling to reconcile. RBA negates the possibility of negative rates and extra QE in Australia as economy reopens.   

Former RBI governor opines India’s GDP growth may rebound to 5% in FY22, although the world’s biggest lockdown is expected to push 12 million into poverty whereas Jobseekers are hopeful despite the gloom. With migrants states are now focusing on job creation and Bihar is leading the way.

 

FINANCIAL TIMES

[I]  Brussels wants €750bn borrowing power to fund virus recovery

[I]  US drone delivery service takes flight to battle coronavirus

[I]  Coronavirus hit to eurozone set to dwarf financial crisis

[I]  Global energy spending to fall $400bn due to coronavirus crisis

[I]  ‘Lockdown generation’ faces sweeping job losses

[I]  British Land shows it’s retail landlords not office owners under threat

[I]  Business will be the loser in the US-China fight

 

REUTERS

[I]  Exclusive: India may need to pump $20 billion into coronavirus-hit state banks -sources

[I]  Worst might be over for UK hiring slump - survey

[I]  Negative rates, extra QE unlikely in Australia as economy reopens: RBA

[I]   Philippines task force backs easing one of world's toughest lockdowns

[I]  Australia economic downturn to be less severe than initially feared - RBA

[I]  U.S. businesses hammered by pandemic but see some green shoots, Fed says

[I]  U.S. weighs options 'across the spectrum' to punish China over Hong Kong

 

BLOOMBERG 

[I]  Fed Catalogs Devastation Wrought by Pandemic on U.S. Economy

[I]  A Radical Plan, and $2.6 Trillion, Brings Europe Back From Abyss

[I]  Bank of Korea Cuts Rates to Record Low in Bid for Recovery

[I]  Hong Kong Autonomy Revoked, Fed Yield Target, EU Rescue: Eco Day

[I]  U.K. Companies Can’t Afford to Top Up Furloughed Workers’ Pay

[I]  Stimulus Plans Crucial in European Race to Lure Investors

[I]  Mexico Risks Deepest Crash Since 1932, Central Bank Warns

[I]  BOE’s Bailey Says U.K. Faces Risk of Longer, Harder Recovery

 

WALL STREET JOURNAL

[I]  New York Starts Mapping Out the Road Back From Coronavirus—and It’s Long

[I]  U.S. Businesses See Few Signs of Recovery Through Mid-May

[I]  As Lockdown Rules Ease, Some Want to Keep Working From Home

[I]  Fed’s Williams: Economy May Be Bottoming As Fed Weighs Yield-Curve Control

[I]  EU Plans $2 Trillion Coronavirus Response Effort

[I]  The Stock Market and Consumer Sentiment Are Telling Different Stories

 

BUSINESS LINE

[I]  Medical masks, gloves, PPE makers pitch for resumption of exports

[I]  Exporters want to attract buyers from US, Europe who are moving away from China

GDP growth may rebound to 5% in FY22: Former RBI governor

[I]  Your demands are duly examined, Commerce Minister assures industry

[I]  Locusts threaten cotton crop in the North

[I]  Government considering to bring natural gas under GST: Petroleum Secretary

[I]  Arabian Sea to soon host twin low-pressure areas

 

ECONOMIC TIMES

[I]  World’s biggest lockdown to push 12 mn into poverty

[I]  Jobseekers are hopeful despite the gloom

[I]  Data in hand, Bihar moves to create jobs

[I]  Two more states opt out of PM crop insurance scheme

[I]  April manufacturing IIP to contract by 50-60 per cent: Report

[I]  Government tracks package rollout to gauge impact on ground

[I]  Donations by firms under PM-CARES to qualify as CSR activity

 

BUSINESS STANDARD

[I]  Govt to discontinue 7.75% taxable savings bonds scheme from May 28

[I]  FMCG capacity utilisation surges to 70-75% as lockdown curbs ease

[I]  Sebi unlikely to give result disclosure waiver to India Inc for Q1FY21

[I]  State Bank of India slashes FD rate by 40 bps, second cut in May

[I]  Labour pains: Thane's MSMEs operating at 10-15% capacity amid lockdown

 

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 9321;  USDINR DGCX: 76.0925;  DJIA Mini: 25682;  FTSE 100 Fut: 6195;  NIKKEI 225 Fut: 21810;  EUR-USD: 1.1012; Crude Oil (WTI): 31.74;  Gold (Spot): 1713

 

Best Regards, ARBIND
28 May 2020