MACRO ECONOMIC NEWS

SMILE ONCE AGAIN, ITS FRIDAY TODAY. WISHING A SUPERB DAY AHEAD.

Macro Economic News 22 May 2020

 

Chinese government wouldn’t set an economic target for 2020, in a stark acknowledgment of the challenges facing the world’s second-largest economy as it continues to grapple with the uncertainties around the coronavirus pandemic. Downturn in economic activity starts to ease across Eurozone although business activity and labor markets in the U.S., Europe and Japan continued to fall in May, though at a slower pace than in prior months, offering early signs that the global economy may have already experienced the worst of the damage. The Bank of Japan introduced new funding for banks that it estimated would reach $280 billion to help them make loans to companies affected by the coronavirus pandemic. Sales of previously owned homes plunged in April, as the coronavirus pandemic shut down much of the country’s economic activity and sellers and buyers stayed on the sidelines. U.S. Treasury Secretary Steven Mnuchin said there is a strong likelihood the U.S. will need another stimulus package, and said there is a need to fix a ‘quirk’ that enables some to earn more on unemployment than from a job. UN says that half a billion children miss out on education due to lockdowns while US health chief warns of virus flare-up this year.

 

FINANCIAL TIMES

[I]  China risks new Hong Kong protests by imposing security law

[I]  Half a billion children miss out on education due to lockdowns, says UN

[I]  Italy’s record casts shadow over hopes of post-Covid recovery

[I]  Downturn in economic activity starts to ease across eurozone

[I]  US health chief warns of virus flare-up this year

[I]  Brazil emerges as a top global coronavirus hotspot

[I]  UN experts probe dispatch of Russian-made warplanes to Libya

[I]  India and China trade accusations after Himalayan spats

 

REUTERS

[I]  U.S. to pull out of Open Skies treaty, Trump's latest treaty withdrawal

[I]  China drops GDP goal, vows spending as virus overshadows parliament

[I]  Bank of Japan launches its version of Fed's 'Main Street' lending scheme

[I]  Japan Finance Minister Aso welcomes BOJ's new loan scheme

[I]  GM gradually restarts in Mexico as Lear Corp readies for return

[I]  Hong Kong leads Asian shares lower as Beijing readies new security law

[I]  New Zealand discussing 'helicopter money' handouts to stimulate economy

[I]  Japan's elderly workers, once key to Abenomics, suffer as pandemic closes businesses

 

BLOOMBERG 

[I]  U.S. Jobless-Claims Data Become Much Trickier as Economic Gauge

[I]  Japan’s Corporate Profit Tumbles Most Since Financial Crisis

[I]  Bond Rally Creates a Dilemma for Africa Issuers Facing Debt Wall

[I]  Key Test Looms for Indonesian Bonds Amid Rising Debt Supply

[I]  Fed Has Purchased $1.8 Billion of Corporate-Bond ETFs So Far

 

WALL STREET JOURNAL

[I]  China Scraps GDP Target for 2020

[I]  Coronavirus Revives Debate Over Drug Pricing

[I]  Workers File 2.4 Million Unemployment Claims

[I]  Mnuchin: Strong Likelihood We’ll Need Another Stimulus Package

[I]  Global Business Activity Starts to Steady, but Recovery Looks Far Off

[I]  Bank of Japan Unveils New Funding for Banks

[I]  Fed’s Williams Optimistic for a Rebound, But Uncertain on Pace

[I]  U.S. Existing-Home Sales Dropped 17.8% in April

 

BUSINESS LINE

[I]  Sagarmala is passe; Government begins work on new maritime vision

[I]  Coronavirus pandemic pushes private healthcare industry into financial stress

[I]  Centre allows use of drones to control locusts

[I]  Finance Ministry issues norms for Partial Credit Guarantee Scheme 2.0

[I]  Gujarat may see surge in groundnut sowing

[I]  Farmers shun the fibre crop due to lower price, pest menace

 

ECONOMIC TIMES

[I]  The unease of doing business in a lockdown

[I]  Grocery bills are rising. Here's the culprit

[I]  Locusts from Pakistan threaten standing crops on 2 lakh hectare

[I]  Current account may turn surplus in FY21

[I]  Fruit, veggie exports fall 70% during lockdown

[I]  No restrictions on utilisation of additional borrowing by states: FinMin official

 

BUSINESS STANDARD

[I]  Labour Ministry to object to states' Ordinance plan on labour laws

[I]  Govt mulls faster drug approval process, regulatory system overhaul

[I]  Advertisers retune the gender pitch, show women as decision makers

[I]  PE firms express concerns over new FDI rules, say investments will get hit

[I]  IT firms seek higher volume of work from clients amid price discount demand

[I]  Income Tax department notifies safe harbour rates for fiscal year 2019-20

 

MARKETS (09:45 am)

[I]  SGX NIFTY Fut: 8983;  USDINR DGCX: 75.7800;  DJIA Mini: 24213;  FTSE 100 Fut: 5958;  NIKKEI 225 Fut: 20395;  EUR-USD: 1.0924; Crude Oil (WTI): 31.89;  Gold (Spot): 1726

 

Best Regards, ARBIND
22 May 2020