HAPPIEST MAKES THE BEST OF EVERYTHING LIKE YOU. WISHING A CHEERFUL
WEEKEND AHEAD.
Macro Economic News 02 May 2020
This
coronavirus crisis has things to teach us. We have clearly optimised the
economy for efficiency rather than resilience. Investors are looking to the
future, but should beware of over-optimism. Policymakers have eased stress in
debt markets, but with long-lasting implications and as a result currency
softens beyond key level as investors brace themselves for more interest rate
cuts. After rolling out trillions of dollars in support for the U.S. economy,
FED officials have begun warning of potentially lasting scars to the workforce
and productivity if the recovery is not handled well. ECB intends to counter
any surge in borrowing costs of Eurozone governments, indicating ECB will
support its members such as Spain and Italy. ECB further pushes banks to lend
to at ultra-low rates while Fed officials started to believe that an extended
shutdown of the U.S. economy to address the crisis was ultimately
unworkable—and could lead to lasting, deep damage whereas deluge of debt is
already making corporate America riskier for investors. WHO recommends countries
to lift lockdowns gradually, while still being "on the look-out" and
ready to restore restrictions though Europe and the US and Asian nations have
started relaxing restrictions. Singapore will start easing some curbs put in
place over the next few weeks. India extends its nationwide lockdown for
another two weeks allowing “considerable relaxations” in lower-risk districts
marked as green and orange zones. Investments in Indian start-ups has tumbled
85% YoY and Indian Industry demands Rs 6 lakh cr stimulus package to mitigate
impact of lockdown although farm incomes help beat EMI blues in rural India. Govt.
has relaxed district-level clearance norms for MSME and may extend interest
equalisation scheme for export sector although India may set to cap stimulus
package at $60 billion to protect credit rating.
[I]
[I]
[I]
Best
Regards, ARBIND
02 May 2020
