MACRO ECONOMIC NEWS

SPLENDID IS YOUR SUPERB SMILE. WISHING A MAGNIFICENT WEEKEND AHEAD.

Macro Economic News 23 May 2020

IMF chief suggests to halt bank dividends and buybacks now while US Job losses were sudden and swift. At first, workers and employers thought they would be temporary. For many, that is starting to look like wishful thinking while facing higher costs to keep workers and customers safe and an indefinite period of suppressed demand, businesses are navigating an ever-narrower path to profitability. There is a growing divide between those celebrating the end of restrictions and those fearful of Covid-19’s re-emergence. The reopening is in some ways turning out to be more difficult than the shutdown whereas European Central Bank officials are ready to step up bond purchases next month if they consider such a move necessary to combat the economic fallout and Bank of Japan shows ‘Whatever It Takes’ attitude with $700 billion plan. UK Central bank’s stimulus programme could increase from current €750bn level rising to the highest level for 57 years as public finances deteriorate. Many believe a no-deal Brexit amid the pandemic would be disgraceful while the wisest thing to do would be to reach a comprehensive free trade agreement with the EU.

FM urges lenders to ease flow of credit to MSMEs whilst 35% rise in sowing a silver lining in agriculture for RBI whereas Moody predicts Indian economy contracting in FY21 as India runs out of options, first full-year contraction in 4 decades all set to be reality along with RBI Governor predicted, during his announcement of a sharp 40-bp rate cut, GDP growth in 2020-21 likely to be negative.

FINANCIAL TIMES

[I]  ECB fuels investor expectations that bond-buying will rise in June

[I]  Top of Form

IMF agrees $5bn loan for Ukraine

[I]  UK government borrowing and debt surge

[I]  Top of Form

Bank of England pivots and starts to contemplate negative rates

[I]  A no-deal Brexit amid the pandemic would be disgraceful

[I]  The wisest thing to do would be to reach a comprehensive free trade agreement with the EU

[I]  Top of Form

IMF chief: halt bank dividends and buybacks now

REUTERS

[I]  Exclusive: U.S. accuses China of blocking U.S. flights, demands action

[I]  China's planned security agencies for Hong Kong a 'death knell' for autonomy - Pompeo

[I]  Organizers cancel 2020 New York auto show

[I]  Exclusive: Argentine debt talks could reach a breakthrough in days - source

[I]  Dozens of Chinese companies added to U.S. blacklist in latest Beijing rebuke

[I]  Argentina defaults on bond payments as debt talks heat up

BLOOMBERG 

[I]  Charting the Global Economy: Nations Pushing Envelope on Relief

[I]  U.S. Warns New China Law Jeopardizes Hong Kong’s Special Status

[I]  Argentina to Rework Debt Offer After Missing Interest Payment

[I]  Oxford Economics Sees Exodus of Expat Workers From Across Gulf

[I]  Why Delisting Chinese Firms Has Gained Traction in Washington

[I]  Steel Output Slumped by Most in a Decade in April Amid Virus

WALL STREET JOURNAL

[I]  The Job Market’s Long Road Back

[I]  State Jobless Rates for April Show Uneven Impact of Pandemic

[I]  The Covid Surcharge: Companies Confront the Unforgiving Economics of Coronavirus

[I]  ECB Is Ready to Expand Stimulus Program, Minutes Show

[I]  America Is Reopening for Summer, and Tensions Are High

[I]  Bank of Japan Shows ‘Whatever It Takes’ Attitude With $700 Billion Coronavirus Plan

BUSINESS LINE

[I]  Need to ensure that liquidity issues don’t turn into insolvency crisis, says DK Joshi

[I]  Karnataka working on quarantine procedures for domestic air travellers

[I]  Committee to reform drug regulatory system to table report in a month

[I]  More measures to deal with Covid-19 crisis soon, says Anurag Thakur

[I]  FPIs from China, Hong Kong to come under close scrutiny

ECONOMIC TIMES

[I]  RBI fortifies its war room as virus rages on

[I]  Migrants bank on lenders for work back home

[I]  India Inc wants govt to do more for economy

[I]  FM urges lenders to ease flow of credit to MSMEs

[I]  Sowing up by 35%, RBI sees silver lining in agriculture

[I]  Indian economy to contract in FY21, says Moody's

[I]  India runs out of options, first full-year contraction in 4 decades all set to be reality

[I]  GDP growth in 2020-21 likely to be negative: RBI Governor

BUSINESS STANDARD

[I]  Retail, MSME loans to get cheaper as RBI cuts repo rate in surprise action

[I]  RBI forecasts economic contraction, announces a sharp 40-bp rate cut

[I]  Job cuts in IT sector likely if biz climate doesn't improve soon: Nasscom

[I]  Restaurants urge FM for support as job losses across 500,000 outlets loom

[I]  RBI breather for trade: Higher export credit, more time to pay import bills

Best Regards, ARBIND

23 May 2020