Yeddy-Shobha married couples, says KJP chief; engine oil poured on him

Bengaluru, Apr 7: The Karnataka Government indicated today that it is too early to take a call now on lifting the nation-wide lockdown but said it’s in favour of its extension in COVID-19 hotspots in the country by at least an additional two weeks.

“We need to see for another few days before taking final call,” Medical Education Minister Sudhakar K, who is in-charge of all matters related to COVID-19, told news agency Press Trust of India when asked if the State is in favour of the rollback after the 21-day period ends on April 14.

The minister opined that the decision on its withdrawal should be based on the COVID-19 pandemic situation at the time in terms of number of cases and response to the outbreak.

When the lockdown is lifted, it has to be in a staggered and phased manner, and not at one go, Mr Sudhakar stressed.

“Where there are red alerts and zones, those zones, in my opinion, should continue to be in a lockdown situation at least for two weeks…till this month-end, I will request them (the Centre) to do this,” he said.

The Telananga Chief Minister K Chandrasekhar Rao on Monday appealed to the Prime Minister Narendra Modi to extend the 21-day national lockdown imposed to contain COVID-19 outbreak beyond April 14, saying it was essential to save lives.

Mr Sudhakar said the Karnataka government is facing financial challenges because of drastic fall in revenues due to the lockdown, adding, it would take “tough decisions” to cut expenditure.

The Finance Department is in the process of evaluating the state’s fiscal position.

“Finance department is gathering information…what is the need now, what should be the overall expenditure, how much we can save; financial support for unorganised and organised sector, along with stimulus to other sectors, we have to see where we stand financially,” the minister said.

“Based on that, we have to take certain steps for sure because after all the government runs on the exchequer money. Once the exchequer is stopped because of lockdown, we are not getting GST, no motor vehicle tax. No tax money is coming.”

Government also has to run right? he said.

He said commitment and obligations with regard to paying interest on loans taken at the national and international level would have to be met.

“So, there are some financial constraints, and financial challenges before the government. The Government will take tough decisions only after studying the entire finance (position of the State).”

The Telangana government last week announced pay cut for government employees.

The Union Cabinet on Monday approved a 30 per cent cut in salaries of all Members of Parliament and a two-year suspension of the MP Local Area Development (MPLAD) scheme.

Global oil markets remained under intense pressure on Tuesday, with Brent crude dropping below $20 per barrel for the first time in 18 years while other major benchmarks across the world tumbled. 

Brent, the international crude marker, slipped to $18.10, indicating that markets see no immediate let-up to the collapse in oil demand that sent some US oil benchmarks plunging under $0 for the first time on Monday, leaving producers paying for buyers to take their oil away while available storage is scarce.

Coronavirus has sent the oil sector into a state of crisis, with lockdowns implemented by authorities to smother the outbreak slashing demand for crude by as much as a third.

Contracts for the US benchmark West Texas Intermediate for delivery next month tumbled as low as minus $40 a barrel on Monday. Analysts at Citi warned that “if global storage worsens more quickly, Brent could chase WTI down to the bottom”.

The collapse in the May WTI contract was partly a technical product of the fact that it expires on Tuesday, meaning trading volumes were low and making the contract for June delivery more noteworthy, analysts said. That contract held above $20 a barrel on Monday but slid as much as 42 per cent on Tuesday to trade at lows of $11.79, suggesting the blowout in the May contract was more than a blip and that the entire global oil market faced challenges.

Goldman Sachs analysts said the June contact was likely to face downward pressure in the coming weeks, pointing to the “still unresolved market surplus”.

“As storage becomes saturated, price volatility will remain exceptionally high in coming weeks,” they said. “But with ultimately a finite amount of storage left to fill, production will soon need to fall sizeably to bring the market into balance, finally setting the stage for higher prices once demand gradually recovers.”

Warren Patterson, head of commodities strategy at ING, said it was likely that “storage this time next month will be even more of an issue, given the surplus environment”.

“And so in the absence of a meaningful demand recovery, negative prices could return for June,” he added.

European equities traded lower, partly dragged down by weaker energy stocks. The continent-wide Stoxx 600 was down 1.9 per cent, with its oil and gas sub-index dropping 3.3 per cent. In London the FTSE shed 1.7 per cent, while Frankfurt’s Dax slid 2.3 per cent. 

Equities were also broadly lower in Asia, with futures tipping US stocks to fall 1 per cent when trading in New York begins later.

On Wall Street overnight, the S&P 500 closed down 1.8 per cent, partly because of weakness in energy shares, but also due to increased pessimism over the time it will take for countries to emerge from lockdowns.

In fixed income, the yield on the 10-year US Treasury fell 0.03 percentage points to 0.585 per cent as investors retreated to the safety of the debt.