MACRO ECONOMIC NEWS

SMILE FOR BEING A PIONEER OF THE FUTURE. WISHING A REVOLUTIONARY DAY AHEAD.

Macro Economic News 19 May 2020

 

The global economy will take much longer to recover fully from the shock initially expected, the head of the IMF said, and she stressed the danger of protectionism. A new paper by central bank economists sketches that governments simply giving people money is a more efficient way to keep them at home during pandemics to limit the spread of disease. The Federal Reserve is preparing to lend directly to middle-market businesses, and it is shaping up to be one of the trickiest things it has ever done. Fed study finds unemployment is likely to remain high through 2021. Bank of England revives negative rates talk and Germany and France call for €500bn EU recovery fund while EU demands tech giants hand over data on virus disinformation.

Economists think that the economy will shrink despite stimulus as it is more for supply and less for demand whereas Government is charting plan to map 10 million migrant workers although Govt withdraws order making wage pay mandatory during lockdown. India's capital New Delhi and some other state governments ordered the re-opening of public transport in a further easing of shutdown while Japan is concerned over fate of its companies in India.

 

FINANCIAL TIMES

[I]  Germany and France call for €500bn EU recovery fund

[I]  Coronavirus contact tracing apps struggle to make an impact

[I]  EU demands tech giants hand over data on virus disinformation

[I]  German car industry gets cold shoulder from Berlin

[I]  US and EU contemplate reshaping WTO after Azevêdo’s departure

[I]  Banks probe sales push linked to corporate loans

[I]  A basic income scheme for the developing world

   

 

REUTERS

[I]  New Delhi reopens public transport as nearby factory is hit by outbreak

[I]  Cash-strapped India's economic plan unlikely to soften coronavirus blow

[I]  Australia faces 'unprecedented' economic hit from coronavirus - RBA minutes

[I]  Bank of England not ruling out negative rates in future - Tenreyro

[I]  Bank of England, facing COVID slump, revives negative rates talk

[I]  Australia to consider going to WTO on China barley tariffs

 

BLOOMBERG 

[I]  China Is Days Away From Revealing If It Dumped Its GDP Growth Target

[I]  China Considers Further Relief as Deadline Nears on $211 Billion in Bad Debt

[I]  The World Has Too Much Wheat

[I]  M&A Legend Martin Lipton Warns of Coming Virus Lawsuit Wave

[I]  Mark Cuban on Why the Government Should Directly Hire Millions of People

[I]  ECB’s Lagarde Says QE to Continue Despite German Court Ruling

[I]  Unemployment Likely to Remain High Through 2021, Fed Study Says

 

WALL STREET JOURNAL

[I]  The Fed’s Big Challenge: Lending Directly to Businesses

[I]  Fed’s Powell Says Economy Faces Long, Uncertain Recovery

[I]  India’s Coronavirus Crisis Spurs a New Look at Self-Reliance

[I]  College-Town Economy Shudders as Coronavirus Cancels Graduations, Campus Classes

[I]  Newsletter: ‘You Wouldn’t Want to Bet Against the American Economy’

[I]  Economy Week Ahead: Japan, Cares Act, Purchasing

[I]  After Devastating Contraction, Glimmers of Growth Emerge

 

BUSINESS LINE

[I]  Full economic recovery is unlikely in 2021, warns IMF chief

[I]  Govt withdraws order making wage pay mandatory during lockdown

[I]  Traders’ body unhappy over lack of stimulus measures

[I]  Japan concerned over fate of its companies in India

[I]  Input tax credit is permissible on detachable sliding, stackable glass partitions, rules AAAR

 

ECONOMIC TIMES

[I]  World's economic pain is only getting worse with no relief in sight

[I]  FM's package may not save economy from collapse

[I]  NBFCs see opportunities opening up, prepare to give fresh loans in June

[I]  Government may monetise debt if fiscal overshoots: Official

[I]  Economy to shrink despite stimulus: Economists

[I]  The economic stimulus: More for supply, less for demand

[I]  Government charts plan to map 10 million migrant workers

 

BUSINESS STANDARD

[I]  New-look inter-creditor agreement on the cards as IBC process suspended

[I]  Borrowing limit raised, but states won't rush to make use of the chance

[I]  All for liquidity: Watch every rupee, chase dues, and refinance debt

[I]  Indian economy to contract 5-7% in FY21: Bernstein, Goldman Sachs

[I]  Govt accounts for nearly 94% of Rs 1,819 cr dues payable to MSMEs: CII poll

[I]  Evolution of farmer produce market from zonal to district, to national

 

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 8958;  USDINR DGCX: 75.8375;  DJIA Mini: 24422;  FTSE 100 Fut: 6025;  NIKKEI 225 Fut: 20440;  EUR-USD: 1.0905; Crude Oil (WTI): 31.94;  Gold (Spot): 1737

 

Best Regards, ARBIND

19 May 2020