MACRO ECONOMIC NEWS

AN OLD FRIEND IS AWAITING TO ADD HAPPINESS. WISHING A JOYOUS WEEK AHEAD.

Macro Economic News 29 Jun 2020

Reforms to stop the world’s largest banks being “too big to fail” have made the lenders more resilient and less susceptible to risky behaviour than before the 2008 financial crisis, but gaps remain in the new regulatory regime, according to the Financial Stability Board. The German government plans to terminate its contract with the country's accounting watchdog after payments company Wirecard filed for insolvency last week in one of Germany's biggest fraud scandals. Americans increased spending at a record pace in May, helping the economy dig out of a severe recession, but a new rise in virus infections threatens the nascent recovery. In its annual stress test, the Fed said the nation’s biggest banks are healthy but could suffer 2008-style losses if the economy languishes. It ordered them to cap dividends and halt buybacks to guard against soured loans. Beijing has begun quietly delivering a message to Washington: U.S. pressure over matters China considers off limits could jeopardize Chinese purchases of farm goods and other U.S. exports under the “Phase One” trade deal. The Bank of Mexico cut interest rates, citing substantial risks to the economy as a result of the coronavirus pandemic.

FINANCIAL TIMES

[I]  Germany to overhaul accounting regulation after Wirecard collapse

[I]  Hedge funds eye new corporate structure in Singapore

[I]  European economy faces ‘long and bumpy’ recovery

[I]  ‘Too big to fail’ banking reforms hailed by Financial Stability Board

[I]  ‘Large demand gap’ looms for US government bonds

[I]  EU warns China that investment talks are entering ‘critical stage’

REUTERS

[I]  Japan's retail sales extend slump as coronavirus curbs keep shoppers away

[I]  Japanese bank predicts years of gloom for tourist hub Osaka

[I]  Vietnam second-quarter GDP growth slows to 0.36% due to coronavirus pandemic

[I]  Lucky no more? Australia's golden economy faces long road to virus recovery 

[I]  Germany to sever ties with accounting watchdog after Wirecard scandal

[I]  All tangled up: China confusion leaves scrap metal stranded overseas

[I]  Euro zone needs loose monetary policy until inflation goal near, says Villeroy

BLOOMBERG 

[I]  The Toughest Times May Be Over for Asia’s Worst-Performing Currency

[I]  Reckoning Looms for Emerging Markets as Economic Clouds Darken

[I]  South Korea Finance Minister Sees Third Extra Budget as Last

[I]  The U.S.-China Feud Gets Nasty

[I]  Vietnam’s Economy Unexpectedly Expands Amid Virus Outbreak

[I]  China Oil Titans Plan Joint Crude Buying to Add Bargaining Power

[I]  Millions of Workers Fled India’s Cities and Don’t Want to Return

[I]  Amateur Traders Pile Into Asian Stocks, Making Pros Nervous

[I]  Yield Curve in Japan Keeps Steepening With BOJ Holding Back 

WALL STREET JOURNAL

[I]  May Consumer Spending Rebounded

[I]  China Message to U.S.: Crossing ‘Red Lines’ Could Put Trade Deal at Risk

[I]  Fed Stress Test Finds U.S. Banks Healthy Enough to Withstand the Coronavirus Crisis

[I]  Small Businesses Raced to Spend PPP Funds but Pandemic Drags On

[I]  Bank of Mexico Cuts Interest Rates for Fifth Time This Year

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

[I]  Economy Week Ahead: Factories, Inflation, Employment

BUSINESS LINE

[I]  Discoms’ outstanding dues to power gencos rise 63 per cent to Rs 1.23 lakh crore in April

[I]  Labour shortage hinders growth of rooftop solar projects

[I]  India among Switzerland’s top-3 partners for info exchange on tax matters: Global Forum

[I]  CBDT notifies certain exemptions to employees opting for lower I-T regime

[I]  Maharashtra banks unable to offer fresh crop loans to defaulting farmers

[I]  India to block Chinese Taipei, Japan’s WTO panel request in ICT tariff case

ECONOMIC TIMES

[I]  Trump's visa ban may set an awful precedent

[I]  WFH has made bankers in India more productive

[I]  Maha lockdown to continue after June 30: CM

[I]  India Inc reports pressure on profits and profitability in Q4

[I]  View: Trump’s inaction makes oil market management harder

[I]  Missing old data makes online tax payment tough

[I]  Chinese companies' imports may stay stuck

[I]  India’s commercial investment transaction volumes shrunk by 94%

[I]  Aadhaar-based farmer database in the works

BUSINESS STANDARD

[I]  FMCG firms start hiring in small towns as markets show signs of revival

[I]  Govt may get RBI to monetise fiscal deficit in second half of FY21

[I]  RBI's one-time restructuring scheme may be limited to Covid-hit sectors

[I]  India lags China in South Asian trade despite Free Trade Agreements

[I]  Sebi, staffers at odds again over external executive director appointment

[I]  Struggling realtors resort to layoffs, pay cuts as Covid-19 hits sales

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 10242;  USDINR DGCX: 75.8500;  DJIA Mini: 24928;  FTSE 100 Fut: 6100;  NIKKEI 225 Fut: 22215;  EUR-USD: 1.1239; Crude Oil (WTI): 37.73  Gold (Spot): 1773

Best Regards, ARBIND

29 Jun 2020