MACRO ECONOMIC NEWS

WONDERFUL IS THY CONFIDENT STEP FORWARD. WISHING A SPLENDID DAY AHEAD.

Macro Economic News 27 May 2020

 

Economist and policy makers believe reviving of economy starting soon and worst of Coronavirus shutdowns may be over as early signs of economic activities are being witnessed across economies while in contrast a Reuters poll finds world economic prospects darkening with delayed rebound. Europe is subsidizing millions of pay-checks and companies want to keep it that way, for now. Europe’s strategy of placing tens of millions of workers on paid leave has so far succeeded in stemming the widespread unemployment that has been seen in the U.S., but now governments across the continent are grappling with how to wean companies and workers off the support. The world’s developed economies are beginning to work around to get over the largest fall in output since the global financial crisis in the first three months of the year. EU to expected to unveil massive stimulus plan for post-coronavirus recovery although ECB warns of challenge for eurozone from soaring public debt while global top-rated companies raise $1tn to fill ‘war chests’ and Japan eyes fresh $1.1 trillion stimulus to combat pandemic pain.

Leading research houses see India economy shrinking in FY21. SBI Research finds economy may contract by over 40% in Q1 while Fitch projects Indian economy to contract 5% this fiscal and Crisil says India facing its worst recession in current fiscal. India's unemployment rate continues to hover above 24% whereas lockdown puts India’s animal spirits to sleep.

 

FINANCIAL TIMES

[I]  ECB warns of challenge for eurozone from soaring public debt

[I]  Top-rated companies raise $1tn to fill ‘war chests’

[I]  Australia given short shrift by China over US ties and virus stance

[I]  German ECB executive shrugs off court ruling against bond-buying

[I]  Germany set to allow European travel from mid-June

[I]  China-US rivalry and threats to globalisation recall ominous past

 

REUTERS

[I]  ECB's Schnabel says Germany's top court ruling doesn't directly affect us: FT

[I]  Japan eyes fresh $1.1 trillion stimulus to combat pandemic pain

[I]  White House says late-June G7 summit would be great reopening example

[I]  Decline in China's industrial profits slows in April, outlook still gloomy

[I]  World economic prospects darken, rebound delayed

[I]  EU to unveil massive stimulus plan for post-coronavirus recovery

[I]  Global energy investment expected to tumble 20% in 2020 due to COVID crisis - IEA

 

BLOOMBERG 

[I]  China’s Economy Is Inching Out of Virus Slump, Early Data Show

[I]  Japan to Unveil Another $1 Trillion in Stimulus, Document Shows

[I]  Hedge Funds Plan Extreme Lengths to Protect Staff After Lockdown

[I]  Debt Downgrades Can Push India Bank Fund Raising to $20 Billion

[I]  ECB Can Boost Stimulus If Outlook Warrants, Schnabel Says

[I]  Latest India Rate Cut Is Adding to Record Corporate Bond Sales

[I]  Mothers Leaving Work in Lockdown Could Widen Gender Pay Gap

 

WALL STREET JOURNAL

[I]  For Economy, Worst of Coronavirus Shutdowns May Be Over

[I]  U.S. Home-Price Growth Accelerated in March

[I]  Europe Is Subsidizing Millions of Paychecks. Companies Want to Keep It That Way, for Now.

[I]  As Its Economy Slows, China Embraces a Weaker Currency

[I]  Western Economies See Biggest Slump Since Financial Crisis

[I]  Mortgage Credit Tightens, Creating Drag on Any Economic Recovery

[I]  Newsletter: The Worst May Be Over

[I]  Steep Drop in Trade Flows Shows Pitfalls of Cross-Border Supply Chains

 

BUSINESS LINE

[I]  GDP growth seen at 1.2 per cent for Q4 FY20: SBI report

[I]  India Ratings estimates States to borrow ₹8.25-lakh cr in FY2020-21

[I]  Economy set to fall off a cliff

[I]  Locusts shift gear, spread to new areas

[I]  Resolution of stressed thermal power assets set to trip

 

ECONOMIC TIMES

[I]  June is going to give India a heart attack, warns SBI's note

[I]  Lockdown puts India’s animal spirits to sleep

[I]  SC intervenes, takes note of migrants' plight

[I]  New laws on agriculture trade and contract farming in the works

[I]  Economy may contract by over 40% in Q1: SBI Research

[I]  Fitch projects Indian economy to contract 5% this fiscal

[I]  India facing its worst recession in current fiscal, says Crisil

[I]  India's unemployment rate continues to hover above 24%

 

BUSINESS STANDARD

[I]  Lockdown 4.0: Stand-off between retailers and malls over rentals worsens

[I]  Indian consumers top anxiety list, show maximum wariness about health, job

[I]  Fitch Ratings, CRISIL, SBI Research see India economy shrinking in FY21

[I]  Supply chain blocks, lack of labour push MSMEs in Chennai to the brink

[I]  Indian gaming biz growing at 41%, to be valued at $3.75 bn by 2024: Report

 

MARKETS (10:30 am)

[I]  SGX NIFTY Fut: 9046;  USDINR DGCX: 75.5975;  DJIA Mini: 25171;  FTSE 100 Fut: 6093;  NIKKEI 225 Fut: 21446;  EUR-USD: 1.0957; Crude Oil (WTI): 34.23;  Gold (Spot): 1708

 

Best Regards, ARBIND
27 May 2020