MACRO ECONOMIC NEWS

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Macro Economic News 20 May 2020

World Bank highlights, the coronavirus pandemic is causing a humanitarian emergency in the world’s poorest countries, and it won’t likely end until rich nations are able to safely reopen their economies, the head of the. The US top two economic policy leaders offered contrasting visions about the economic outlook, with Treasury Secretary Steven Mnuchin favoring a wait-and-see approach to more federal aid and Federal Reserve Chairman Jerome Powell suggesting more would be needed. The U.S. economy’s recovery from the current downturn is likely to drag on through the end of next year, with the labor market experiencing its sharpest deterioration since the 1930s.

Australia decides to relax some domestic travel curbs as it goes back to the 1980s with its economy closed to world while U.S. financial conditions are easing at fastest pace in history whereas Japan business mood sinks to decade low with even bleaker outlook. German investors’ optimism about economic outlook grows while Japan business chief warns of radical labour market shake-up. UK jobless claims jump to highest since 1996 whereas World Bank warns Virus will push up to 60m into extreme poverty.

India’s job crisis is only getting worse with persistently high population willing to work is unable to find jobs though Govt. says India will run more special trains and buses to allow millions of distressed migrant workers to leave big cities, as concerns grew in some states over rising infections from those returning home whereas Crisil opines Govt measures are unlikely to stimulate demand as package focussed on supply-side.

FINANCIAL TIMES

[I]  Lockdowns lead to ‘extreme’ — but temporary — fall in emissions

[I]  Private equity-owned companies miss out on bailout loans

[I]  Mnuchin says US ready to ‘take losses’ on $500bn bailout

[I]  Merkel and Macron make a bold bid to unlock recovery fund 

[I]  US backs away from WHO move on access to Covid-19 treatments

[I]  German investors’ optimism about economic outlook grows

[I]  Spain’s PM agrees accord to extend powers underpinning lockdown

[I]  Japan business chief warns of radical labour market shake-up

[I]  Virus will push up to 60m into extreme poverty, World Bank warns

REUTERS

[I]  India to help migrant workers leave cities, but infections mount

[I]  U.S. Labor Department permanently discontinues data lockups

[I]  Australia to relax some domestic travel curbs

[I]  Dutch schools, cafes and museums to reopen in June

[I]  Pandemic sinks Japan business mood to decade low, outlook even bleaker - Reuters Tankan 

[I]  Japan's March machinery orders fall as damage from pandemic spreads

[I]  Russian first quarter economic growth slows to 1.6% before sliding into contraction

[I]  UK jobless claims jump to highest since 1996 as COVID hits

BLOOMBERG 

[I]  Merkel and Macron Conjure Hamilton Moment to Fight Euro Break-Up

[I]  Housing Agency Sees Prices Falling Up To 18%, May Curb Underwriting

[I]  Neutral Powell, Closed Australia, G7’s $2.5 Trillion QE: Eco Day

[I]  U.K. Opens Fund to Help High-Growth Firms Weather Virus Crisis

[I]  Bank of Thailand to Inch Toward Lower Bound: Decision Day Guide

[I]  Chinese Revival Draws Rare Shipments of Alaskan, Canadian Oil

[I]  Argentina Debt Proposals Far Apart With Deadline Looming

[I]  Australia Goes Back to the 1980s With Its Economy Closed to World

[I]  U.S. Financial Conditions Are Easing at Fastest Pace in History

WALL STREET JOURNAL

[I]  Powell, Mnuchin Outline Contrasting Perils Facing Economy

[I]  U.S. Economic Recovery Will Drag On Through Next Year, CBO Says

[I]  Coronavirus Shutdowns Wreak Devastating Toll on Poorest Nations, World Bank Chief Says

[I]  Next Wave of Stimulus Payments Hinges on Reopening Economy

[I]  At Least 30 Public Companies Say They Will Keep PPP Loans

[I]  China Ramping Up Purchases of U.S. Farm Goods

[I]  Fed’s Rosengren Warns Premature Reopening of Economy Carries Risk

[I]  Newsletter: U.S. Companies Bet on China’s Economic Future

BUSINESS LINE

[I]  Recovery in steel demand to be delayed on lockdown extension

[I]  Govt to further revise criteria for classifying ‘medium’ enterprises under MSME definition, says Nitin Gadkari

[I]  India's fuel demand recovery gathers pace as lockdown eases

[I]  Covid-19: Eight most affected states account for 60 per cent of GDP

ECONOMIC TIMES

[I]  Capital gains: India Inc on a fundraising spree

[I]  Lessons of 2008-13 guided stimulus: FM

[I]  India’s job crisis is only getting worse

[I]  India's virus package may be way too little, too late

[I]  Finance firms stare at a new challenge

[I]  Gold at record high! Recession fears can send it soaring higher

[I]  Petrochem, Chemical imports likely to face 15% Covid tax

[I]  Govt measures unlikely to stimulate demand as package focussed on supply-side: Crisil

BUSINESS STANDARD

[I]  Turn on the lights: Non-essential retail back as govt eases lockdown norms

[I]  RBI refuses a dozen licences to NBFCs with investments from Mauritius

[I]  Door open for stimulus 6.0; govt with industry: FM Nirmala Sitharaman

[I]  Ending monopoly of mandis is good, but process could be problematic

[I]  Centre issues new guidelines for transportation of migrants between states

[I]  Financial firms' clout wanes after coronavirus-triggered market fall

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 8907;  USDINR DGCX: 75.6775;  DJIA Mini: 24320;  FTSE 100 Fut: 5983;  NIKKEI 225 Fut: 20600;  EUR-USD: 1.0940; Crude Oil (WTI): 32.10;  Gold (Spot): 1750

Best Regards, ARBIND

20 May 2020