MACRO ECONOMIC NEWS

SMILE WITH TRUST FOR BLESSINGS. WISHING A DIVINE DAY AHEAD.

Macro Economic News 21 May 2020

 

Australia central bank governor says future remains 'unusually uncertain' and FED worries to financial stability and discussed plans to provide more economic support. Britain borrows at negative interest rate for first time while Singapore gets closer and closer to a sub-zero interest rate and RBNZ increases pressure on banks to lower mortgage lending rates. Federal Reserve officials began contemplating last month how to communicate their plans to keep interest rates near zero and to purchase Treasury securities to spur a stronger economic recovery. Nearly half of adults live in households that have lost income since the coronavirus pandemic led to a nationwide economic shutdown and more than a third expect to lose income over the next four weeks, the Census Bureau said. Major layoffs at big companies including Uber and Airbnb, as well a host of smaller startups, have shaken any sense that the tech industry is insulated from the broader employment destruction. While countries lift lockdowns despite surge in Covid-19 cases, economists feel RBI may need to aggressively cut rates alongside fiscal stimulus.

 

India allows airlines to begin some domestic flights from May 25. Icra warns of deep recession, GDP to contract 5 per cent in FY21 whereas an online study by CMEE finds Indians are more worried about economic crisis than virus. Bank credit grows 6.5% to Rs 102.5 trillion whereas net enrolments with EPFO dip to 5.72 lakh in March from 10.21 lakh in Feb.

 

FINANCIAL TIMES

[I]  UK set for new clash with Brussels over Northern Ireland Brexit plan

[I]  Frustrated sports punters turn to US stock market

[I]  Countries lift lockdowns despite surge in Covid-19 cases

[I]  Argentines take no chances as default fears grow

[I]  Chinese business pleads for more help from Beijing

[I]  Trump lashes out at states’ plans to expand mail-in voting

[I]  Spain’s moneyed classes step up anti-government protests

[I]  The eurozone’s bailout fund remains unfairly toxic

 

REUTERS

[I]  RBI may need to aggressively cut rates alongside fiscal stimulus - economists

[I]  Japan exports fall most since 2009 as pandemic wipes out global demand

[I]  Australia central bank governor says future remains 'unusually uncertain'

[I]  India to allow some domestic flights from May 25 - civil aviation minister

[I]  In cash-rich Japan, a fifth of firms now see risk of insufficient capital

 

BLOOMBERG 

[I]  Fed Worries Turned to Financial Stability in April Meeting

[I]  Singapore Gets Closer and Closer to a Sub-Zero Interest Rate

[I]  Wave of Dollar Liquidity Shrinks Japan, Korea Bond Returns

[I]  RBNZ Increases Pressure on Banks to Lower Mortgage Lending Rates

[I]  What to Watch as China Unveils Stimulus in Policy Meeting

[I]  Australia’s Recession-Busting Pillars Set to Topple Post-Virus

[I]  First 20-Year Treasury Sale in a Generation Is Well-Received

 

WALL STREET JOURNAL

[I]  Fed Discussed Plans to Provide More Economic Support

[I]  Nearly Half of Adults Live in U.S. Households That Lost Income Amid Lockdowns

[I]  What Unemployment Claims Tell Us About Virus Job Losses

[I]  Fed’s Bullard Doesn’t See Virus Second Wave as Major Threat

[I]  Virus Layoffs Remake Silicon Valley Job Market

[I]  U.S. Orders Breakup of Exoskeleton Firm’s Venture With Chinese Investors

[I]  Newsletter: Baby Busts and Slow Rebounds

 

BUSINESS LINE

[I]  Indians more worried about economic crisis than virus, says online study by CMEE

[I]  Icra warns of deep recession, GDP to contract 5 per cent in FY21

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

[I]  EPF contribution cut: Labour Ministry notification adds twist to the tale

[I]  Emergency credit for MSMEs: Interest rate capped at 9.25-14%

[I]  CBDT exempts some B2B transactions from deploying certain e-payment facilities

 

ECONOMIC TIMES

[I]  US needs H-1B visa holders more than ever

[I]  Britain borrows at negative interest rate for first time

[I]  Cabinet clears stimulus package for fisheries

[I]  Stimulus package lacks major near-term support for economy: Report

[I]  India Inc's foreign direct investment dips 62 pc to USD 976 mn in April

[I]  Govt to soon start pan-India helpline number for migrant workers

[I]  Debt woes derail India’s plan to deliver stronger fiscal support

 

BUSINESS STANDARD

[I]  Govt to use RBI money to support struggling NBFCs for just three months

[I]  Centre reverses stance, allows domestic flights to resume on May 25

[I]  MSMEs to get loans at 9.25% under Centre's Rs 3-trillion package

[I]  Resume operations, says FM Sitharaman; India Inc cites hurdles in way

[I]  Bank credit grows 6.5% to Rs 102.5 trillion, deposits rise 10.64%

 

MARKETS (09:15 am)

[I]  SGX NIFTY Fut: 9062;  USDINR DGCX: 75.7725;  DJIA Mini: 24357;  FTSE 100 Fut: 6031;  NIKKEI 225 Fut: 20580;  EUR-USD: 1.0961; Crude Oil (WTI): 33.70;  Gold (Spot): 1742

 

Best Regards, ARBIND

21 May 2020