MACRO ECONOMIC NEWS

SUBSTANTIAL IS THE SMILE ON THY FACE. WISHING A SIGNIFICANT DAY AHEAD.

Macro Economic News 06 May 2020

The United States and Britain launched formal negotiations on a free trade agreement, vowing to work quickly to seal a deal that could counter the massive drag of the pandemic on trade flows and the two allies' economies. FED officials indicated that the U.S. economy could start to recover in the second half of the year after what is shaping up to be the worst recession in decades, but growth is likely to be slow and uneven. Germany’s highest court conditionally approved a bond-buying program launched five years ago by the ECB but demanded more information about its economic justification, in a move that could set limits on the bank’s firepower. India late on Tuesday increased its taxes and duties on petrol and diesel instead of passing on the benefit of lower crude oil prices to consumers, as the government moves to raise revenues in an economy that ground to a halt in coronavirus crisis. Abhijit Banerjee believes India should put in large enough stimulus package to revive demand while India's unemployment rate soars to 27.11% as per CMIE.

FINANCIAL TIMES

[I]  German court calls on ECB to justify bond-buying programme

[I]  Swiss National Bank’s swollen balance-sheet poses risk to ‘credibility’

[I]  EU industrial supply lines need strengthening, commissioner warns

[I]  Argentina ready to consider ninth sovereign default, says Guzmán

[I]  South Africa’s mass screening helps stem the coronavirus tide

[I]  German court has set a bomb under the EU legal order

[I]  Business suffers from lack of trust in its virus response

REUTERS

[I]  India hikes taxes on petrol, diesel; says consumers will be unaffected

[I]  ECB committed to easy policy even after court ruling

[I]  White House to wind down coronavirus task force as focus shifts to aftermath: Trump

[I]  Fed policymakers see slow, uneven U.S. recovery after coronavirus downturn

[I]  U.S., UK launch trade talks, pledge quick deal as virus ravages global economy

[I]  ECB committed to easy policy even after court ruling

BLOOMBERG 

[I]  Trump Says U.S. Must Reopen Even If More Americans Get Sick, Die

[I]  Defiant ECB Pledges Full Commitment After German Ruling on QE

[I]  Australian Homes Loading Up for Lockdown Sent Retail Soaring

[I]  Most U.K. Firms Can Be Ready to Reopen Days After Lockdown Lifts

[I]  India’s Ailing Credit Market Shows the Limits of Central Bankers

WALL STREET JOURNAL

[I]  U.S. March Trade Deficit Widened as Coronavirus Disruptions Spread

[I]  Tax Deductions Tied to Forgiven Small Business Loans Draw Support

[I]  U.S.-U.K. Trade Talks Open on a Friendly Note

[I]  Lawmakers Question Trump Nominee to Oversee Stimulus

[I]  Why Home Prices Are Rising During the Pandemic

[I]  Services Businesses See Biggest Drop in Activity Since Last Recession

[I]  ECB Faces Renewed Legal Pressure Over Bond Purchases

BUSINESS LINE

[I]  ‘A series of medium-sized packages, calibrated approach needed to revive the economy’

[I]  Chennai MSMEs allege bias in permission given to restart operations

[I]  Kirana stores record steep increase in sales of essentials: Study

[I]  Centre hikes excise duty on petrol and diesel

[I]  Cash-strapped States/UTs increase tax on fuel, liquor

ECONOMIC TIMES

[I]  RBI clears fog on special provisioning

[I]  Sovereign perpetual bonds: An idea whose time has come

[I]  Summer crop sowing in full swing, procurement picks up

[I]  Export sops likely to continue till March 2021

[I]  Govt gives relaxations to taxpayers for GST compliance for filing annual returns and audits

[I]  India should put in large enough stimulus package to revive demand: Abhijit Banerjee

BUSINESS STANDARD

[I]  Private equity players see new business opportunities in post-Covid world

[I]  India set to bring home 250,000 stranded abroad; 64 flights deployed

[I]  Banks park Rs 8.42 trn of surplus funds with RBI, hinting lending pause

[I]  Centre raises excise duty on petrol by Rs 10 per litre, diesel by Rs 13

[I]  India's unemployment rate soars to 27.11% amid Covid-19 crisis: CMIE

MARKETS (09:30 am)

[I]  SGX NIFTY Fut: 9136;  USDINR DGCX: 76.0175;  DJIA Mini: 23755;  FTSE 100 Fut: 5797;  NIKKEI 225 Fut: 19490;  EUR-USD: 1.0835; Crude Oil (WTI): 24.42;  Gold (Spot): 1702

Best Regards, ARBIND

06 May 2020