MACRO ECONOMIC NEWS

 The Universe is Coordinating For Care and Caress

Wishing A Considerate Day Ahead 

 

Best Regards

Arbind

 

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Macro-Economic News 28 Jan 2021

 

Various states and nations are easing out the covid restriction on the signs of hope. Asian economy also largely depends upon the consumer reluctance to spend. Indian cabinet clears policy on PSU privatization ahead of its Union Budget while expectation from budgets includes increased investment in infrastructure, simplification of taxation rules, and emphasis on digitization.

On the other side, the shape-shifting virus threatens cycles of illness and lockdowns. More-transmissible and potentially deadlier variants of Covid-19 - first identified in Britain, South Africa, and Brazil is spreading - just as the rollout of vaccines had raised hopes for a broad-based economic recovery.

U.K. high streets are emptying at the fastest pace on record while the carmakers coming off their worse year since 1984 with production plunging by nearly 30% compared with a year ago. IMF warns about the Covid complacency and raises concerns about excessive risk-taking potentially risking global financial stability since the investor expectations for economic recovery and continued government support have fuelled gains in asset prices.

The FED continued its easy-money policies while Powell said no bond taper for ‘some time’ as recovery moderates. FED expects that vaccine would heal the economy and until then continuing its effort to boost economic activities as much it can with short term lower rate and bond-buying to support borrowing, spending, investment, and hiring. 

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