Major News impacting Markets Monday, 20 April, 2020 -------------------------------------------------------------------------------------------------------------------------- -Major News impacting Markets -Key International Events/Results -Key Domestic Events/Results Major News impacting Market • Oil Tanks, Dampens Risk Appetites after Back-to-Back Weekly Equity Gains • Spanish economy could shrink up to 12.4% in 2020: Bank of Spain • Thai business council calls for government support to ease virus impact • Hong Kong's January-March unemployment rises to 4.2%, highest in more than nine years • Big funds demand UK Plc coronavirus cash calls recognize retail • Japan Boosts Extra Budget to 25.7 Trillion Yen to Fund Handouts • A $1.2 Trillion Fund Says Skip Earnings Season, Buy U.S. Stocks • China says India's new FDI rules violate WTO principles, hopes for revision • Buy Stocks at Crisis ‘Epicenter’ as Lows Are In, Top Bull Says • Demand For Oil Has Plummeted, But Industry Keeps Building New Infrastructure Anyway • Uranium Surges 31% Amid Shutdowns to Become Year’s Top Commodity • OPEC’s No.3 Scrambles For Lifeline As Oil Income Tanks • Italy Calls for Joint Bonds in Preview of EU Summit Clash • Coronavirus takes toll on global M&A as $1 billion deals disappear • Alibaba to Invest $28 Billion Over Three Years in Cloud Services • Citi Sees India’s Budget Gap Widening the Most in Three Decades • Mnuchin, Democrats Close on Virus Aid Deal Nearing $500 Billion • Piers Morgan says his friend President Trump is 'failing the American people' • Debt Relief for Poor Nations Not an Easy Sell to Bondholders • Bondholders Pan Argentina Restructuring Offer, Gird for Battle • Why Deflation Is Poison for Virus-Plagued Economies • Market Movers Blog: Government launches Future Fund to bolster UK start-ups • Australia Shouldn’t Worry About Huge Government Debt, RBA’s Lowe Says • China Pledges More Stimulus as Banks Cut Lending Rates • Donald Trump’s latest attack on China over coronavirus ‘highlights challenge in repairing relations’ • Beijing foreign affairs office in Hong Kong hits back at governments for criticising arrests of pro-democracy figures • Rupiah Gyrations to Keep Foreign Bond Bulls at Bay • Argentina’s Economy Minister Backs Wealth Tax, Rejects Austerity • Germany signals more help for struggling businesses, workers • Hong Kong reports zero new coronavirus cases for 1st time since early March • Brazil set to start QE cautiously but may need to bring out 'bazooka' • Japan to boost stimulus to $1.1 trillion as virus threatens deeper recession • Kuwait, UAE continue repatriation of nationals stranded overseas amid coronavirus pandemic https://pace360.in/1 | Page [email protected] Major News impacting Markets 20-Apr-20 • Market Devouring Record Gulf Bonds Won’t Touch Oman, Bahrain • Ireland's debt to GDP ratio falls below 60 pct for first time in decade • Japan's exports drop to 3.5 year low in March as overseas demand hit by virus • US oil prices crash to their lowest level in over 21 years as storage runs out • US markets haven’t priced in a ‘significant second wave’ of coronavirus, says Citi Private Bank • The National Debt And Gold • Russia to raise as much debt for budget as possible but not at every price: finance ministry • The Stock Market Is Certainly Not Too Big For The Fed To Handle • As Africa Groans Under Debt, It Casts Wary Eye at China • Earnings are set for their biggest dive since late 2009 — and it gets worse from here • Sebi may scan Cayman, Singapore investment hubs for Chinese links • DPIIT, Finance Ministry locked horns before tweak in FDI guidelines • RBI moratorium: 10% provisioning may shave Rs 35,000 cr off bank profits • Only half of India’s household consumption will come through post covid • RBI’s moves may not snap banks’ wariness to lend • PE investment in real estate falls 89% to $222 million in January-March: Report • RBI's measures may not get desired results; pain unlikely to go away for NBFCs • Another Recession Gauge Signals Longest U.S. Expansion Has Ended • Hasenstab’s Global Bond Fund Posts a $4.3 Billion Drop in Assets • At mercy of banks, India's cash-tight shadow lenders face new turmoil • India's new FDI rules may open new flashpoint with China • Qatar And Russia Fight For LNG Supremacy As Prices Fall To Historic Lows • South Africa economy to shrink 4.9% in 2020, SARB to cut rates in May: Reuters poll • Brazil growth, inflation, rates outlook sink to new lows: central bank survey • Fitch Downgrades Hong Kong as Pandemic Poses Economic Shock • Cash Flow Is King • Oil: Winter Is Coming In The Shale Patch • QE Infinity: The Fed And Treasury Race To $2 Trillion • How The S&P 500 Became So Overrated • Bottom-Calling Bets on $4.3 Billion ETF Go Bad Amid Oil Plunge Oil Tanks, Dampens Risk Oil prices have collapsed to start the new week. The May contract, which Appetites after Back-to-Back expires now, is off over 20% to a little more than $14 and the June contact is Weekly Equity Gains off nearly 7% near $23.30. Falling demand and limited storage space continue to overwhelm output cuts from OPEC+ that are to start next month. Equities are struggling to extend the first back-to-back weekly gain in two months. The Nikkei fell by over 1%, and Australia's benchmark was off early 2.5% (liquified natural gas is priced off oil). Europe's bourses are mixed, leaving the Dow Jones Stoxx 600 treading water, while the US shares are clearly lower, and the S&P 500 is off almost 1%. Core bond yields are a little softer, but what stands out is the jump in peripheral yields, led by a 10 bp jump in Italy. Spain and Portuguese yields are 3-4 bp higher. The US benchmark is sporting a softer yield near 62 bp. The US dollar is mixed. The oil sensitive currencies, like the Norwegian krone and Canadian dollar, are the weakest of the majors (~- 0.40%), while among emerging markets, the Mexican peso (~-1.5%) and Russian rouble (~-0.80%) are bearing the brunt. Gold is extending last week's decline below $1700 and found a bid near $1672. Read More … Go to top https://pace360.in/2 | Page [email protected] Major News impacting Markets 20-Apr-20 Spanish economy could shrink up Spain's economy should shrink between 6.8% and 12.4% this year depending to 12.4% in 2020: Bank of Spain on whether its lockdown over the coronavirus, first imposed in mid-March, lasts eight or 12 weeks, the Bank of Spain said on Monday as it charted various economic scenarios. The Spanish central bank said the disruption suffered by the Spanish economy was, as in the case of other countries, of "considerable severity", although there was still great uncertainty. In any case, an upturn is expected to begin in the second half of the year, leading to a "remarkable recovery" in 2021, with a projected growth of between 5.5% and 8.5%, it said. Read More … Go to top Thai business council calls for Thailand's business advisory council will urge the government on Monday to government support to ease virus deploy support measures for farmers and small- and medium-sized businesses impact as the coronavirus pandemic drives Southeast Asia's second-largest economy toward a recession. The central bank has forecast the economy to shrink 5.3% this year for its the weakest performance since the 1998 Asian financial crisis, as the pandemic could bring losses of more than $40 billion and up to 10 million jobs.. Key steps include cash handouts of 15,000 baht ($461.82) for each farm household, a one-year moratorium on debt, and a fund of 50 billion baht to boost farm output, the panel of government and business agencies said in a statement. It will also push for lower social security contributions by smaller firms, three- time tax deductions on spending, and financial support for lay-offs, among other measures, it added. The measures are to be presented to the prime minister later on Monday, council chairman Thosaporn Sirisumphand, who also heads the state planning agency, told reporters. Read More … Go to top Hong Kong's January-March Hong Kong's seasonally adjusted unemployment rate rose to 4.2% in the unemployment rises to 4.2%, January to March period, the highest in more than nine years, as the highest in more than nine years coronavirus restricted activity in an economy already in recession, the government said on Monday. The jobless rate rose from 3.7% in the December-February period, government data showed. Read More … Go to top Big funds demand UK Plc Some of the top UK fund managers are demanding that companies respect the coronavirus cash calls recognize rights of retail investors after Britain's financial regulator relaxed the rules to retail speed up corporate fund raising in order to weather the coronavirus crisis. With Britain in lockdown, companies no longer need to approach all existing investors with their plans, to allow them first right of refusal on buying new shares or on seeing their existing stake diluted, so-called pre-emption rights. This leaves retail investors at a disadvantage, say signatories to a letter including Fidelity International Chief Executive Anne Richards, Schroders (LON:SDR) fund manager Andy Brough and AJ Bell founder Andy Bell. "While we recognize the need for businesses to raise equity capital in an expedited fashion, we are concerned that no protections are being afforded to retail investors," they wrote. Since the start of March, 2.7 billion pounds has been raised by companies on deeply discounted terms, with retail investors blocked from taking part, said the coordinator of the letter, PrimaryBid, a technology firm that works with the London Stock Exchange to help retail investors access equity placings.