MACRO ECONOMIC NEWS

TRANQUIL IS THY PLACID SMILE. WISHING A GENTLE DAY AHEAD.

Macro Economic News 14 May 2020

India’s government has redefined MSMEs and said it will offer nearly $60 billion of loan guarantees for small businesses, shadow banks and power companies as part of measures to combat the economic damage caused by the novel coronavirus pandemic. Poor, farm sector are likely to be FM Nirmala Sitharaman's next focus while ASSOCHAM is hopeful to see around 4% growth if PM Modi’s package is pumped into economy. A monthly WSJ survey found economists expect gross domestic product to shrink 6.6% this year, and the unemployment rate to hit 17% this June. FED Chairman Jerome Powell urged to spend more money to ensure their initial response to the coronavirus-induced economic contraction isn’t wasted amid evidence that recovery will take longer than first thought. European holidaymakers hoping to catch a plane this summer will have to wear masks and travel light under guidelines set out by the European Commission. Workers stoical as easing spurs fears of overcrowding although European investment plunge raises fears for future growth. People's Daily writes, China needs more active fiscal policy as pressure on economy increasing whereas Hong Kong’s economic crisis just keeps getting worse. Australia employment slumps by record number while farmers’ hopes are dashed in Australia on souring of china ties.

FINANCIAL TIMES

[I]  Fiscal stimulus ‘worth it’ to tackle pandemic, says Fed chief

[I]  Workers stoical as easing spurs fears of overcrowding

[I]  European investment plunge raises fears for future growth

[I]  EU damps hopes of business as usual for holidaymakers

[I]  German judge warns EU over ‘very difficult to resolve’ legal crisis

[I]  ECB rebuffs bank complaints on negative interest rates

[I]  Lockdown reveals a US civil fabric healthier than many thought

REUTERS

[I]  India unveils $60 billion credit line for small businesses and lenders

[I]  In nod to grim U.S. outlook, Fed's Powell calls for more fiscal support

[I]  China needs more active fiscal policy as pressure on economy increasing - People's Daily

[I]  Less than zero? Powell shows no love for negative rates

[I]  Australian employment plunges, jobless rate at five-year high on pandemic...

[I]  Treasury's Mnuchin says U.S. will slowly reopen economy

[I]  New Zealand unveils record spending to deal with pandemic shock

[I]  Travel light with a mask: Europe unveils plans to get planes back in sky

[I]  Sun, sea, silence: lack of tourist dollars crushes small economies

BLOOMBERG 

[I]  Powell Warns of Broad Virus Danger, Bats Down Negative Rates

[I]  Tepper Piles on to Bank Woes, Calling Them ‘Tough’ Investments

[I]  Vast Numbers of Unemployed Will Undermine China’s Recovery

[I]  Hong Kong’s Economic Crisis Just Keeps Getting Worse

[I]  Australia Employment Slumps by Record 594,300

[I]  Hong Kong Land Auction Fails in Rare Property Market Setback

[I]  U.K.’s Housing Revival Plan Seen Unlocking $100 Billion of Deals

[I]  Farmers’ Hopes Are Dashed in Australia on Souring of China Ties

[I]  Hong Kong’s Small Brokers Are Disappearing at a Record Pace

WALL STREET JOURNAL

[I]  WSJ Survey: Coronavirus to Cause 17% Unemployment in June

[I]  Abbott’s Coronavirus Test Falls Short of Rival Device

[I]  Powell Says Washington Will Need to Spend More to Battle Downturn

[I]  Coronavirus Lockdowns Trigger Big Drop in Consumer Prices

[I]  Newsletter: Has the Economy Bottomed Out?

[I]  Fed Survey Finds Big Deterioration in Consumer Views

BUSINESS LINE

[I]  21 States staring at ₹97,100-crore revenue hit in April: Ind-Ra

[I]  Equalisation levy on e-commerce companies may be deferred to second half of FY 2020-21

[I]  Cost of packaging material to shoot up post-Covid-19 lockdown

[I]  Transporters to get higher liquidity on account of lesser TDS

[I]  Electricity demand down by a quarter in April: Crisil

ECONOMIC TIMES

[I]  The anatomy of FM's first tranche of Rs 20L cr Covid package

[I]  Bharat is fighting a dual battle for survival

[I]  MSMEs redefined: Here is what it means now

[I]  Collateral-free automatic loans for MSMEs

[I]  Rs 20 lakh crore Atmanirbhar Bharat package: What’s in it for MSMEs

[I]  Atmanirbhar Bharat Abhiyan: FM Nirmala Sitharaman on EPF contributions' relief

[I]  Will see around 4% growth if PM Modi’s package is pumped into economy: ASSOCHAM

BUSINESS STANDARD

[I]  Poor, farm sector likely to be FM Nirmala Sitharaman's next focus

[I]  Govt likely to purchase gold from households without seeking the source

[I]  Bigger reforms coming, we'll see a V-shaped recovery: CEA Subramanian

[I]  India to grow at 1.2% in CY20, global GDP to shrink by 3.2%, says UN

[I]  Without more stimulus, India's GDP may contract 9% in FY21: Pronab Sen

[I]  India's window of opportunity for attracting companies is closing

[I]  Labour law changes in India should adhere to global standards, says ILO

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 9260;  USDINR DGCX: 75.3700;  DJIA Mini: 23184;  FTSE 100 Fut: 5839;  NIKKEI 225 Fut: 20110;  EUR-USD: 1.0814; Crude Oil (WTI): 25.47;  Gold (Spot): 1715

Best Regards, ARBIND

14 May 2020