Pandemic will leave none unscathed!!

1. The eurozone saw some strengthening economic indicators in the manufacturing and services space, yet we observe large cash hoarding, which signals lack of consumer confidence and pessimism.

2. The US headed into this pandemic with a national average saving rate of 1.4%, which is typically lower than its normal average. Their savings have gone negative only once before, in 2009, to -1.8% when the budget deficit peaked to 10%. This time around, the figures are ravaging and scary, budget deficit average to around 15% and the expected savings rate to be nearly -7.5%. This raises concern on the investment potential of Americans, and this might bring a lot of foreign capital investment.

3. The big question is, will the foreign investors demand a concession to fund the savings short America?

4. It is very interesting to see the way government bailouts are incentivised to encourage socially and environmentally better practices. Central Banks and govts are laying strict conditions to the relief funds and support. Carbon emissions, min level employment, sustainable business models, climate change and public debt management can earn the company brownie points to access govt funds. This would change the course of business operations and thus its economics. Govt bailouts, though are short term measures but with a long term vision.

5. Govts and public institutions have never been this proactively engaged to maintain sanity in livelihood and business. This would mark a pivotal point to rethink the role of the state in the economy and their interaction with major stakeholders of the economy.

6. One of the key things to note in the 2020 rout was the concentration of the big five. The downside of going wrong was huge and especially if they did not manage to get the timing right, investors could lose.

7. UK firm and Bharti Airtel have come together to buy out One Web, a company into space exploration. They intend to provide broadband services by connecting users by a low Earth orbit constellation of satellites.

8. Although we have seen a series of landmark foreign business deals adding stake in Indian firms, India still does not appeal to a lot of foreign giants, given its inward looking policy. Foreign firms have preferred having passive stakes in local typhoons than to build their own establishments here.

9. China has lent heavy undisclosed debt to African countries making them subject to unfair conditions and suppressing them in international negotiations.

10. From the recent test conducted by Fed, they concluded that had the banks and financial institutions been in the same state as in 2008, they wouldn’t have survived long today. All credit goes to the robust and innovative regulations and risk control measures. Capital ratios of banks have shown super strength and helped the economy stabilize during this pandemic.