MACRO ECONOMIC NEWS

RETHINK, RECREATE, AND REBOUND. WISHING A RECOVERING WEEK AHEAD.

Macro Economic News 16 May 2020

 

India is expected to produce a record 107 million tonnes of wheat this year. FM announced ₹1.5-lakh-cr booster targeting agriculture sector while a study finds more than 80% Indian households have already lost income during lockdown whereas ADB thinks global economy could witness losses worth up to $8.8 trillion due to Covid-19. U.S. House passes $3 trillion aid bill while Fed warns of significant hit to asset prices if crisis grows although Michigan sees budget gap twice as big as last recession’s. Industrial Production in U.S. fell by 11.2% in April, the steepest drop in records in more than 100 years. A current round of Brexit talks ended in a stalemate, adding another economic anxiety whilst Germany enters recession but fares better than neighbours leading to the Eurozone’s need to soften its rules and accept high-yield debt as collateral. China’s economic activity showed some signs of improvement though rising joblessness continued to weigh heavily on consumer spending. Record drops in spending and industrial output show the scale of economic disruption from lockdowns and soaring unemployment across geographies hurting women the  most while huge stimulus could lead to ‘red hot’ price rises over the longer term.

 

FINANCIAL TIMES

[I]  US escalates China tensions with tighter Huawei controls

[I]  Plunge in US industrial and retail activity in April laid bare

[I]  Brexit talks stall as UK resists EU demands on fair competition

[I]  German GDP shrinks by 2.2% in first quarter

[I]  Trump threatens to cut off relations with China

[I]  China industry rebounds in April from coronavirus lows

[I]  The ECB must shift to a wholesale acceptance of junk bonds 

 

REUTERS

[I]  U.S. House passes $3 trillion coronavirus aid bill opposed by Trump

[I]  Japan, U.S. to set up economic security dialogue: Yomiuri

[I]  Italy to allow travel to and from abroad from June 3

[I]  'We Are The World' to get an 'American Idol' alumni encore 

[I]  Indian farmers to harvest record rice, wheat crops this year

[I]  IMF's Georgieva urges tech firms to work on access to digital economy for all 

[I]  Argentina's creditors make counter offers as debt restructuring deadline nears

 

BLOOMBERG 

[I]  Fed Warns of Significant Hit to Asset Prices If Crisis Grows

[I]  U.S. Economy Adds to Grim Records, Signaling Yearslong Recovery

[I]  Michigan Sees Budget Gap Twice as Big as Last Recession’s

[I]  Argentina’s Top Creditors Submit New Debt Proposals

[I]  Australian Banks Defer Repayments on $98 Billion of Home Loans

[I]  France Outlook Revised to Negative by Fitch Amid Coronavirus

 

WALL STREET JOURNAL

[I]  Virus Drives Rapid Declines in Factory Output, Retail Sales

[I]  Industrial Production in U.S. Fell 11.2% in April

[I]  Coronavirus Employment Shock Hits Women Harder Than Men

[I]  Chinese Economy’s Recovery From Coronavirus Starts Off Slowly

[I]  Germany Enters Recession but Fares Better Than Neighbors

[I]  Brexit Talks Go Nowhere, Adding New European Economic Headache

 

BUSINESS LINE

[I]  Goods exports fall 60.28 per cent in April as virus takes its toll

[I]  Ending APMC monopoly: Centre bites the bullet at last

[I]  Atmanirbhar Bharat: Interest subvention to ease working capital crisis in dairy sector, says NDDB

[I]  Third tranche of ‘Aatmanirbhar Bharat Abhiyan’: Agriculture sector gets ₹1.5-lakh-cr booster

[I]  Monsoon may arrive over Kerala by June 5, says IMD

[I]  Global economy could witness losses worth up to $8.8 trillion due to Covid-19: ADB

 

ECONOMIC TIMES

[I]  PMO weighs SOP for labourers, district help desk

[I]  Skilled NRI returnees’ database planned

[I]  Govt's new MSME definition sows confusion

[I]  Forex reserves surge by $4.235 billion to $485.31 billion

[I]  Government can use the escape clause in the FRBM Act to monetise the deficit: Usha Thorat

[I]  Stimulus packages will have impact of Rs 1.29 lakh cr on fiscal deficit: SBI Report

[I]  Govt prepares a list of 10 mega clusters across nine states to attract global companies

 

BUSINESS STANDARD

[I]  Covid-19 crisis: Donald Trump may tax firms manufacturing outside US

[I]  A 'Jai Kisan' stimulus: FM Sitharaman pushes long-sought agri reforms

[I]  FM's Day 3 stimulus: Agriculture, allied activities get Rs 1.5-trn package

[I]  Exports fall at fastest pace in 25 yrs in April due to coronavirus lockdown

[I]  More than 80% Indian households lost income during lockdown, says study

 

Best Regards, ARBIND

16 May 2020