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Narendra Modi, India’s prime minister, has announced plans for a $266bn stimulus package to help the country’s stalled economy recover from the lockdown imposed to slow the spread of coronavirus.
In a television address on Tuesday, the prime minister said India had to seize the opportunity presented by the pandemic to overhaul its economy, undertake “bold reforms” and ensure this would be “India’s century”.
The package is equivalent to about 10 per cent of India’s gross domestic product. “Coronavirus is going to be part of our lives for a long time, but we can’t let our lives revolve around it,” he said. Mr Modi gave no precise details of the economic package, which he said would be unveiled by finance minister Nirmala Sitharaman in the coming days, starting from Wednesday.
Meanwhile, the global economic outlook has darkened further since the IMF forecast last month that it would suffer the worst blow since the 1930s as a result of the coronavirus crisis, according to its managing director Kristalina Georgieva. (FT)
Coronavirus digest
In the news
China suspends beef imports from 4 Australian abattoirs Analysts said the move was “politically motivated punishment” for Canberra’s call for an inquiry into the origins of Covid-19. After at first appearing to home in quickly on the source of the virus, now Beijing is stalling. (FT, Wall Street Journal)
US-China tensions President Donald Trump has ordered the main federal government pension fund not to invest its portfolio in Chinese companies, which his administration says pose a serious national security risk. US pressure over China has prompted Israel to review a $1.5bn bid from Hong Kong. (FT)
Luckin Coffee ousts CEO The Chinese company has dismissed its chief executive and chief operating officer after new evidence came to light about an accounting scandal at the company touted as China’s rival to Starbucks. (FT)
US Supreme Court divided over Trump’s financial records Supreme Court justices, who met via teleconference because of the pandemic, appeared split on the case and suggested the issue of the US president’s tax returns and bank documents being released could go back to the lower courts. (Washington Post)
Dozens killed in dual Afghan attacks Thirteen people were killed and 15 were injured on Tuesday when gunmen stormed Kabul hospital. Children and nurses were among the victims. A simultaneous attack was carried out at a police funeral, killing at least 24. (BBC News)
Transatlantic trade tensions Brussels has launched an attempt to end trade disputes with the US over issues ranging from aircraft subsidies to lobster tariffs and medical supply reserves. How the UK contends with Donald Trump could make or break the “Global Britain” agenda, writes former cabinet minister Ed Balls. (FT)
Exclusive interview with BP chief Bernard Looney told the FT that the Covid-19 crisis may have ushered in “peak oil” demand. “It’s not going to make oil more in demand. It’s gotten more likely to have oil be less in demand,” he said. Saudi Aramco on Tuesday reported a 25 per cent drop in first-quarter earnings. (FT)
Deals round-up Uber has approached Grubhub about a takeover, according to two people with direct knowledge, which would create the largest meal delivery company in the US. A $9bn acquisition of reinsurer PartnerRe collapsed, marking one of the largest transactions to break down since the start of the pandemic. (FT)
The day ahead
Federal Reserve Jay Powell will be in focus when he discusses the economic challenges facing the central bank during a webinar on Wednesday. (FT)
UK GDP report Results from the first quarter are set to show the lowest growth figures since the 2008 financial crisis. A drop of more than 2 per cent is expected. (FX Street)
As the pandemic prompts countries to put their own interests first, the fate of a long-awaited pan-Asian free trade agreement will be a powerful test. Read more in Trade Secrets, our daily briefing on the changing face of international trade and globalisation. Sign up here.
What else we’re reading
China’s ‘warrior wolf’ diplomats China’s diplomats have done away with diplomacy. In a quest to counter western accusations that coronavirus originated in their country, Beijing’s emissaries have over the past two months replaced courtesy with intimidation. (FT)
The history of market crashes The bear market is technically over even as the economic crisis caused by the pandemic deepens. Can the recovery rally last? To answer that, we need to compare this year’s turmoil with past crashes, writes Peter Oppenheimer, Goldman Sachs’ chief global equity strategist. (FT)
India turns in on itself to halt virus’ spread India’s states, districts and even upmarket residential areas bar entry to outsiders they fear could be infected. The arbitrary restrictions have disrupted both the provision of, and access to, healthcare services, writes Amy Kazmin. (FT)
German court decides to take back control with ECB ruling Future historians may mark this as the decisive turning point in Europe’s history towards disintegration, writes Martin Wolf. (FT)
Business cannot simply awake from this coma The pandemic will force many companies to change what they do and how they do it, writes professor of finance Raghuram Rajan. So what’s next? More than 200 CEOs weighed in on how their businesses will be transformed. (FT, Business Insider)
The emerging debt crises The kindling for another emerging markets debt crisis has been accumulating for years. But now its resolution may be tougher than in the past. Meanwhile, as the US Federal Reserve steps in to support the world’s largest debt market, fixed-income investors say the central bank has distorted markets. (FT)
Coronavirus hits senior homes — and their owners Investors have rushed into senior housing in recent years, spurred on by the greying of the baby boomer generation. But the senior care business has never been easy. With coronavirus, it is becoming far more difficult. (FT)
Our bookshelf obsession Whether you’re watching a global news broadcast, or a daily Zoom meeting with colleagues — chances are your eyes have been drawn to a background bookshelf. With all of our meetings made virtual, what do our book collections say about us? (New York Times Video)
Staying active while housebound is simple — if you know what to do or what to look for. FT staff share their favourite apps and online sessions for a good sweat, stretch and de-stress in small spaces.
FT Digital Dialogues: The Global Boardroom
In the first day of the FT’s Global Boardroom live online event, Ryanair chief executive Michael O’Leary attacked UK quarantine plans as “nonsense”, while IMF managing director Kristalina Georgieva warned that the global economic outlook is worse than the fund’s “pessimistic” projections last month. David Rubenstein, executive chairman of The Carlyle Group, urged viewers not to underestimate the likelihood of President Trump being re-elected if the US economy appears to be on an upswing by the time voters head to the polls.
Tomorrow, tune in to see Tony Blair, former British prime minister, assess the global response to the pandemic, in conversation with political editor George Parker, and former US vice-president Al Gore‘s views on how the world can move forward from Covid-19.
Register to watch for free, and if you missed today’s sessions they are available on demand here.
Podcast of the day
Behind the Money This was supposed to be a record year for the US meat industry. But when coronavirus hit the meatpacking plants, it exposed a vulnerable link in the supply chain. We take a look at how our meat gets from the farm to the supermarket, and ask what the fall in production could mean for the US-China trade truce.
