MACRO ECONOMIC NEWS

A MIRACULOUS MOMENT IS AROUND. WISHING A HAPPY FRIDAY AHEAD.

Macro Economic News 26 Jun 2020

Fed caps bank dividends, bans buybacks through September while U.S. labor market, economy struggle despite reopening of businesses. The number of Americans filing claims for unemployment benefits fell moderately last week as a second wave of layoffs partially offset hiring by businesses reopening, suggesting the labor market could take years to recover from the COVID-19 pandemic. As per a report leadership at the Federal Reserve’s 12 regional banks continues to suffer from a lack of racial, gender and economic diversity. A Government Accountability Office report has found that the $670 billion Paycheck Protection Program faces a significant risk of fraud because of confusing rules and lack of safeguards. The White House is now considering raising levies on wine from the European Union to 100% from 25% citing a lack of progress in negotiations over an Airbus-Boeing dispute. India pushes up cost of fuel to boost revenues whereas NCAER reports that India is expected to grow at 1.3% in the current fiscal. Centre looking at one-time loan restructuring plan for non-MSME businesses and a one-time loan recast for India Inc may come up at RBI board meet while Industry urges MSMEs may need massive restructuring post moratorium.

FINANCIAL TIMES

[I]  Texas puts reopening on hold in face of new outbreak

[I]  Human genetics provides clues about mysteries of coronavirus

[I]  IMF reports $49bn losses at Lebanon central bank as bailout talks drag

[I]  House nears vote to approve statehood for Washington, DC

[I]  ECB seeks to defuse row with German court over bond-buying

[I]  India pushes up cost of fuel to boost revenues

[I]  India holds up Chinese imports after deadly border clash

[I]  EU competition chief urges more cross-border M&A

REUTERS

[I]  India's auto, pharma sectors not ready to wean off China

[I]  New Delhi readies vast quarantine centre as coronavirus cases mount

[I]  U.S. House passes Democratic police reform bill as impasse deepens

[I]  U.S. aviation unions ask Congress for another $32 billion bailout

[I]  Satellites reveal major new gas industry methane leaks 

[I]  Oil firms slam brakes on return-to-work as virus cases soar 

[I]  No breakthrough yet from plodding global recovery outlook: Reuters poll 

[I]  Central banks have thrown many tools at coronavirus. What do they have left? 

[I]  U.S. labor market, economy struggle despite reopening of businesses

BLOOMBERG 

[I]  Fed Caps Bank Dividends, Bans Buybacks Through September

[I]  Venezuela Oil Crisis Deepens With India Refiners Halting Imports

[I]  Top End of Sydney, Melbourne Markets Lead Property Declines

[I]  Bond Bulls Face Reckoning in Thailand as Debt Supply Escalates

[I]  U.K. Policy Risks Pensions Outstripping Wage Growth Through 2022

[I]  Fleeing Chinese Buyers Leave Hong Kong’s Office Market Lifeless

WALL STREET JOURNAL

[I]  U.S. Initial Unemployment Benefits Steady at 1.5 Million in June

[I]  Fed Has Made Little Progress Diversifying Leadership, Report Says

[I]  Small-Business Aid Program Has Significant Fraud Risk, GAO Says

[I]  Battered U.S. Wine Importers Brace for Higher Tariffs

[I]  Fed's George: Unclear What Fed Policy Will Need to Do Next

[I]  Newsletter: New Restrictions, Unexpected Delays

BUSINESS LINE

[I]  Pile-up of Chinese goods at Indian ports: Exporters fear retaliation

[I]  Centre looking at one-time loan restructuring plan for non-MSME businesses

[I]  Exports fall this fiscal may be limited to 10%: FIEO

[I]  Diesel price on fire: Soaring truck rentals pose inflation risk

[I]  Customs move to re-check Chinese imports aimed at plugging “under-valuation”

[I]  Mumbai Port emerges top spot for crew change in India

ECONOMIC TIMES

[I]  EPFO payout of 8.5% unlikely as kitty dips

[I]  Sugar output to rise 12% in 2020-21 season: Trade body

[I]  Loans worth Rs. 738.44 crore for MSMEs sanctioned in Assam

[I]  Slowdown in cash demand: Signs of economic revival

[I]  India plans list of substitute nations for critical imports

[I]  India is expected to grow at 1.3% in the current fiscal: NCAER Report

[I]  Five more sectors may get output-linked incentives

BUSINESS STANDARD

[I]  One-time loan recast for India Inc may come up at Friday's RBI board meet

[I]  Sebi relaxes pricing norms for preferential issues of listed companies

[I]  Delisting spree: Investors in India betting on which companies will be next

[I]  Diesel car models see downhill trend as gap between prices of fuels narrows

[I]  MSMEs may need massive restructuring post moratorium, says industry

[I]  Indian banks' overseas business grows 7.5-43.1% in FY20, shows data

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 10221;  USDINR DGCX: 75.7400;  DJIA Mini: 25531;  FTSE 100 Fut: 6172;  NIKKEI 225 Fut: 22475;  EUR-USD: 1.1220; Crude Oil (WTI): 39.15  Gold (Spot): 1763

Best Regards, ARBIND

26 Jun 2020