MACRO ECONOMIC NEWS

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Macro Economic News 05 May 2020

India lifts alcohol ban to ease coronavirus funds crunch while India’s budget gap for FY 19-20 breaches estimate on poor tax collection whereas India's April gold imports plunge 99.9% to three-decade low. RBI could be extending your loan holiday while India has a jobs bloodbath as unemployment rate shoots up to 27.1%, a survey finds 54% facing loss in income and 67% cutting expenditure whereas manufacturing PMI in April slumps to record low of 27.4. Europe prepares to exit lockdown amid business and labour concerns. Italy and the United States were among a slew of countries tentatively easing lockdowns to revive economies as global deaths surpassed a quarter of a million. Manufacturing output plummeted across Asia and Europe during April, as efforts to limit the spread of the coronavirus dealt a blow to the global economy that has few precedents in its breadth and abruptness. U.S. factory orders posted a record drop in March as efforts to contain the new coronavirus disrupted supply chains and quashed demand. As per a FED research paper, Nazis rose to power in Germany in part because of dislocations caused by a mass-death pandemic. Those events are back in the world’s consciousness amid the current coronavirus crisis.

FINANCIAL TIMES

[I]  Norwegian investors back debt-for-equity swap to unlock rescue

[I]  Europe prepares to exit lockdown amid business and labour concerns

[I]  EU-led coronavirus funding drive nears initial €7.5bn target

[I]  Australia and New Zealand look to create ‘trans-Tasman travel bubble’

[I]  Spain set on collision course over lockdown plans

[I]  France and Netherlands call for tougher EU trade conditions

[I]  India lifts alcohol ban to ease coronavirus funds crunch

REUTERS

[I]  Italy starts slow return to normality, fears resurgence of coronavirus

[I]  U.S. mortgage firms push for support as borrowers halt payments

[I]  Commodity currencies creep back, but Sino-U.S. tensions temper mood

[I]  U.S. banks tightened loan standards in first quarter as coronavirus outbreak took hold

[I]  Foreign workers feel the pain of 'corona job cuts' in Japan 

[I]  Masked and standing apart, the world tiptoes out of lockdown

[I]  More countries ease lockdown restrictions

[I]  Remittances to Mexico surge to record high in March

[I]  U.S. factory orders post record drop; orders, inventories shrinking

BLOOMBERG 

[I]  Trade War Fears Are Returning to a Virus-Lashed Wall Street

[I]  Hedge Fund Stock Exposure Is the Highest in at Least Three Years

[I]  Big Banks Pull Ahead in U.S. Small-Business Aid After Stumbles

[I]  Why There’s a Looming Debt Crisis in Emerging Markets

[I]  Malaysia Is Set for Bigger-Than-Usual Rate Cut

[I]  As Hong Kong Economy Sinks, Scant Liquidity Underpins Dollar

[I]  Business Loans in Canada Surge Most in 40 Years

[I]  Fed Survey Shows Banks Tightened Loan Standards as Virus Spread

WALL STREET JOURNAL

[I]  U.S. Factory Orders Plunged in March

[I]  Small Businesses Were at a Breaking Point. Small Banks Came to the Rescue.

[I]  Global Factory Output Plunges, With Slow Rebound Projected

[I]  Stimulus Leaves Out Millions of Student-Loan Borrowers

[I]  New York Fed Paper Finds Pandemic a Century Ago Fueled Nazi Rise

BUSINESS LINE

[I]  Enhancing audit independence: Ministry sets up 7-member panel

[I]  Low pressure idles in Bay, thunderstorms raid mainland

[I]  With locks down, State revenues may get a ‘high’ from liquor sales

[I]  Indian seafarers fear job loss as government dithers on crew change in foreign waters

[I]  Centre blinks; Railways, States will pick up the tab for migrant trains

ECONOMIC TIMES

[I]  Fiscal deficit, the other casualty of Covid-19

[I]  RBI could be extending your loan holiday

[I]  India’s budget gap for FY 19-20 breaches estimate on poor tax collection

[I]  54% face loss in income, 67% cut spends: Survey

BUSINESS STANDARD

[I]  Manufacturing PMI in April slumps to record low of 27.4 amid lockdown

[I]  Little-known brands nudge their way into the mainstream amid lockdown

[I]  Centre owes Rs 3 trillion to states and industry amid Covid-19 outbreak

[I]  Govt may soon allow firms to delay EPF contributions or pay in installments

[I]  India has a jobs bloodbath as unemployment rate shoots up to 27.1%

[I]  Payment must be made against accepted bill of exchange: Expert

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 9388;  USDINR DGCX: 75.9600;  DJIA Mini: 23747;  FTSE 100 Fut: 5807;  NIKKEI 225 Fut: 19490;  EUR-USD: 1.0908; Crude Oil (WTI): 21.89;  Gold (Spot): 1699

Best Regards, ARBIND

05 May 2020