Week II March 2020 Latest Publisher and Economic Events Color the movement of regional and domestic markets in the past week. Dri summarizes a number of main points that are considered to affect market performance, as follows: On Thursday, March 12, 2020 WHO has announced Covid-19 as a pandemic, a infectious disease that has spread in the wider region and even almost the whole world. The announcement from the WHO resulted in the exchanges in the US, Europe and Asian regions, including the sharp corrected JCI. Covid-19 as of March 12, 2010 has spread to almost countries around the world where the worst countries are affected after China is Italy (12,462 cases), Iran (10,075 cases) and South Korea (7,869 cases). The government issued the second fiscal stimulus for Anticipating the Covid-19 effect on the economy with 4 tax relaxation. First, the relaxation of Article 21 Income Tax is borne by the Government (DTP) of 100% on income from workers with a magnitude of up to Rp 200 million specifically for the manufacturing industry sector for 6 months (April - September 2020). The first policy is taken so that the industrial sector workers earn additional income so that they can maintain their purchasing power. Second, the relaxation of the Income Tax Article 22 Import (Article 22 of Import) to 19 certain sectors amounted to Rp 8.15 trillion. This policy was taken to maintain cashlow for the industry as a result of the switching cost (cost of changing the country`s origin and export destination). Third, the Relaxation of Income Tax Article 25 (Article 25 Income Tax) given through the Scheme of Article 25 Income Tax reduction of 30% to 19 particular sectors with a total of approximately Rp. 4.2 trillion. Fourth, relaxation of Value Added Tax Restitations (VAT) for 19 particular sectors with an estimated total of Rp 1.97 trillion. Japanese economy From the Japanese economy, machine orders increased by 2.9% Mom in January 2020 after the previous month decreased by 11.9% Mom. An increase occurred in a temporary manufacturing order for non -manufacturing orders to decline. European economy From the European economy, the economic growth of the four -quarter Europe was 0.1%, the lowest since the contraction occurred in early 2013. The slowdown occurred in household consumption, government expenditure, and external demand, while for investment it has increased. European industry production increased 2.3% mom When compared with the previous month which decreased by 1.8%, this was the highest activity of the industrial sector in Europe since November 2017. Increased production in the industrial sector was driven by an increase in production in semi -finished goods, durable goods, goods not durable and capital goods .ECB still maintains an interest rate of 0% at a meeting in March 2020 with a marginal lending facility remains at a level of 0.25% and depocit facility of -0.50%. In addition, ECB also announced a stimulus package in the form of injections of funds for small and medium entrepreneurs. Chinese economy From the Chinese economy, China`s inflation rate dropped to 5.2% yoy in February 2020 from the previous level of 5.4% Yoy in January. Meanwhile for the monthly inflation rate slowed down 0.8% Mom from the previous month 1.4% Mom. The price increase occurred in food ingredients by 21.9% highest since April 2018, this was contributed by an increase in the price of pork by 135.2% from the previous 116.2% due to the spread of African pork flu and restrictions on transportation access due to COVID-19. Meanwhile, other components that have decreased prices are components of clothing, household equipment, education, health and others. Foreign Direct Investment (FDI) China dropped sharply by 8.6% yoy to USD 19.26 Bilion, monthly FDI China fell by 25.6% mom due The extension of the Chinese New Year holiday and the distribution of COVID-19. Produle Price Index (PPI) China dropped by 0.4% yoy in February 2020 after the previous month increased by 0.1% yoy. This happened because of the spread of Covid-19 in the country and paralyzed business activities. Since July 2018 amidst the spread of COVID-19. United States Economy (US) From the US economy, the Fed in his emergency meeting on March 15, 2020 cut the Fed Funds Rate (FFR) of 100 bps to 0%-0.25% and launched a quantitative easing program of USD 700 billion to protect the US economy from the COVID-19 impact. In addition, the Fed also cut interest rates for banking loans of 125 bps to 0.25% and extend the loan time to 90 days. US Inflation is stable at the 0.1% Mom level in February 2020. As annually US inflation is at 2.3% yoy more Low compared to January which is at the 2.5% level and is the highest level since October 2018. US retail sales increased 0.3% Mom in January 2020, slightly higher when compared to the previous month which increased by 0.2% Mom. Increased sales occur in motor vehicle sales and their parts, furniture, and other retail sales. On the other hand electronic sales and clothing have decreased high since March 2009. The price of US imported goods has fallen 0.5% Mom when compared to the previous month which has increased 0.1%, this is the biggest decline since August 2019. Meanwhile the price Exports (Export Prices) Decreased sharply 1.1% Mom in February 2020 after the previous month increased by 0.6% Mom. The decline that occurred was the highest since the 2015 Desenber month. USA: Retail Sales, Nahb Housing Market Index, Industrial Production, Housing Start, Initial Jobless Japan: Interest Rate, Balance of Trade, Inflation Rate (Yoy) China: House Price Index, Retail Sales, Industrial Production, Loan Prime Rate EU: Balance of Trade, Inflation (Yoy) Indonesia: Trade Balance, Interest Rates Source: Danareksa Research Institute Photo by Aditya Indrajaya