MACRO ECONOMIC NEWS

YOUR SMILE BRINGS CHEER TO EVERYONE AROUND. WISHING A PLEASANT DAY AHEAD.

Macro Economic News 07 May 2020

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. Strict safety rules, testing and contact tracing enabled the country to do something that has eluded most other major developed economies: keep manufacturing running without suffering major outbreaks. The eurozone economy is expected to suffer a sharp recession this year and only partially recover next year, with the global health emergency likely to send debt levels soaring and deepen divisions in the currency bloc. The nonfarm private sector in the U.S. lost about 20.2 million jobs from March to mid-April as much of the country’s economy ground to a halt during the coronavirus pandemic while BOJ's commercial paper holdings jump nearly 30%. Indian services PMI in April at all-time low of 5.4 whereas Nitin Gadkari assures about public transport resuming soon.

FINANCIAL TIMES

[I]  Brussels warns outbreak threatens eurozone’s stability

[I]  Cycling lanes, wider pavements: How EU cities rethink public transport

[I]  US looks to step up economic action against China

[I]  Putin to ease lockdown despite rise in Covid-19 cases

[I]  German court ruling casts doubt on European monetary policy

[I]  Spain’s parliament votes to extend lockdown powers

REUTERS

[I]  BOJ's commercial paper holdings jump nearly 30% as pandemic pain deepens

[I]  China's exports unexpectedly rise even as coronavirus batters global demand

[I]  Most New Zealand businesses to reopen if restrictions eased next week 

[I]  Virus lockdowns pummel global gas demand, force LNG output cuts

[I]  U.S. private payrolls dive by a record 20.2 million

[I]  Euro zone business activity ground to near-halt in April - PMI

BLOOMBERG 

[I]  U.S. Debt Sales to Hit Record With Deficit Headed to $4 Trillion

[I]  African Banks Find Solace in 12% Bond Yields as Lending Dries Up

[I]  China Considers Dropping Numerical GDP Growth Target for 2020

[I]  Oil Tankers Drag Out Sailing Time With Ports Clogged and Glutted

[I]  Argentina Says It’s Open to New Debt Offers From Creditors

[I]  Chile Holds Key Rate Near Zero to Stem Worst Slump Since 80s

[I]  Brazil Eyes ‘Unusually Large’ Stimulus After Bold Rate Cut

[I]  U.S. to Experience Uneven Retail Recovery, Industry Group Says

WALL STREET JOURNAL

[I]  How Germany Kept Its Factories Open During the Pandemic

[I]  Coronavirus Projected to Send Eurozone Into Steep Recession

[I]  Coronavirus Casts Deep Chill Over U.S.-China Relations

[I]  Treasury to Increase Auction Sizes of Longer-Dated Securities

[I]  U.S. Nonfarm Private Sector Lost 20.2 Million Jobs in April

[I]  ECB Faces Renewed Legal Pressure Over Bond Purchases

BUSINESS LINE

[I]  India’s edible oil imports dropped 34% in April

[I]  Lockdown impact: Services PMI in April at all-time low of 5.4

[I]  Public transport may resume soon: Gadkari

[I]  Sugar mills grappling with low demand, high inventory

ECONOMIC TIMES

[I]  Coming up next: A quarantine facility for country's toxic debt

[I]  India restarts; carmakers show the way

[I]  Migrants return: State govts prepare job opportunities

[I]  Govt to gain Rs 1.6 lakh cr this fiscal from record excise duty hike on petrol, diesel

[I]  EPFO, CMPFO merger on cards

[I]  Govt allows biz to verify monthly GST return through EVC

BUSINESS STANDARD

[I]  Private hospitals get a lifeline from Ayushman Bharat

[I]  SBI to grant moratorium to NBFCs on case-by-case basis amid Covid-19 crisis

[I]  Real estate firms bank on tech tools to generate sales amid lockdown

[I]  Govt working on reforms in sunrise sectors to make India export hub: NITI

[I]  Microfinance institutions on a knife-edge with collections taking a big hit

MARKETS (10:00 am)

[I]  SGX NIFTY Fut: 9225;  USDINR DGCX: 76.2700;  DJIA Mini: 23669;  FTSE 100 Fut: 5851;  NIKKEI 225 Fut: 19660;  EUR-USD: 1.0800; Crude Oil (WTI): 24.18;  Gold (Spot): 1692

Best Regards, ARBIND

07 May 2020