JAKARTA (TheInsiderStories) – Good Morning! In the virtual meeting of Group of 20 (G20) on Thursday, the leaders agreed to mobilize funds US$4 billion from around the world to find the COVID-19 vaccines. The leaders also agreed to overcome the global supply chain, especially medical equipment and medical tools and prepares direct swap line to countries facing capital flight.
According to finance minister, Sri Mulyani Indrawati, International Monetary Fund, World bank and other multilateral agency also promised to restructure debt from highly indebtedness countries, relax the monetary and fiscal policy, and all efforts to curb the global economy from the pandemic.
In United States (US), President Donald Trump’ relief bill for the economy moves to the House of Representatives, after the Senate finally approved the US$2 trillion. A vote in the House is due today, after which it is likely to be signed into law immediately by Trump.
Last week, the number of Americans applying for initial unemployment benefits surged to a record 3.28 million. The US labor department continues the widespread measures to contain the coronavirus pandemic and unleashing a wave of layoffs.
In Europe, the leaders are set to press Germany and others to agree the common bonds issuances to finance the explosion in government spending and deficits caused by the COVID-19 outbreak. Nine leaders, including French President Emmanuel Macron and the prime ministers of Spain and Italy, published a direct appeal to European Council’ president, Charles Michel, for the “corona bonds”.
The European Central Bank also announces an emergency fund program that will eliminate bond buying limits. The Bank has almost unlimited ammunition to counter the impact of the coronavirus on the eurozone economy.
In Asia, Singapore government announced a package of aid for the community worth of S$48 billion (US$33.56 billion) in the midst of a public health crisis due to the virus outbreak and unprecedented economic shocks since the country was founded, said finance minister, Heng Swee Keat. Initial data showed Singapore’ economy shrank 2.2 percent during the first quarter.
To fund the aid package, the government will withdraw up to S$17 billion from the state savings. Tourism is one of the sectors hard hit by the spread of the coronavirus outbreak in Singapore in addition to the financial sector.
So far, the coronavirus has spread to 199 countries in the world with a total number of cases reaching 529,135 and 23,967 deaths. Of these, 123,380 people were declared recover, while 381,788 patients were still infected, with 19,506 of them in serious or critical conditions.
On Friday, the number of COVID-19 cases in US reached 82,206, followed by China with 81,285 cases, and Italy is in third place with 80,589 cases. In terms of fatalities, Italy recorded the largest number of victims which reached 8,215, Spain 4,365 deaths, and China with 3,287 deaths.
In the commodity market, crude oil prices continued its weaken after the head of the International Energy Agency warned global demand would plunge by 20 million barrels per day due to a virus outbreak. On Thursday, West Texas Intermediate closed down 7.7 percent to $22.60 per barrel while Brent crude oil surged 3.8 percent to as low as $26.34 a barrel.
IHS Markit has raised concerns about running out of storage space following falling demand. While, Goldman Sachs also warned of a massive contraction in demand that could not even be offset by supply cuts from the oil cartel producers. It said, any agreement to reduce supply among producers would not have much effect in the face of an unprecedented drop in demand.
On Monday, Indonesian Rupiah closed up 0.96 percent to 16,328 and the Jakarta Composite Index (JCI) jumped 10.19 percent to 4,338.90. Today the local currency have a room to strengthen and the stock index between 3937 – 4382.
Stocks to be watch for today are PT XL Axiata Tbk (IDX: EXCL), PT Telkom Indonesia Tbk (IDX: TLKM), PT Indosat Ooredoo Tbk (IDX: ISAT), PT Sri Rejeki Isman Tbk (IDX: SRTX), PT Unilever Indonesia Tbk (IDX: UNVR), PT Indofood CBP Sukses Makmur Tbk (IDX: ICBP), PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Bank Central Asia Tbk (IDX: BBCA), PT Kalbe Farma Tbk (IDX: KLBF), and PT Kimia Farma Tbk (IDX: KAEF).
May you have a profitable day!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia