MACRO ECONOMIC NEWS

CALMING IS THE COMFORTING TRUST. WISHING A UPLIFTING DAY AHEAD.

Macro Economic News 03 Jun 2020

The Trump administration is taking the initial step to prepare tariffs against a range of trading partners unless they back off proposals to impose taxes that would fall heavily on the major American internet companies. The U.S. economy could take the better part of a decade to fully recover from the coronavirus pandemic and related shutdowns, a U.S. budget agency said, as a series of surveys pointed to continuing weakness in global manufacturing. President Trump’s economic team wants to encourage the public to return to work and resume normal life, including going to restaurants and taking vacations, in its proposals for the next coronavirus relief package. Asian stocks jump to 3-month high as recovery hopes outweigh looming risks while Japan's service sector activity shrinks for fourth month in May and Australia's economy is in recession after first-quarter GDP contracts ending three-decade expansion. India launched a $6.65 billion plan to boost electronics manufacturing, saying it would start by offering five global smartphone makers incentives to establish or expand domestic production.

FINANCIAL TIMES

[I]  EU seeks to curb state-backed foreign rivals

[I]  Thailand tempts travellers with luxurious lockdown

[I]  US retailers step up security and close stores after looting

[I]  ECB set to expand bond-buying to soak up debt

[I]  Libya’s warring sides agree to restart ceasefire talks, says UN

[I]  Central Europe fears effects of German slowdown

[I]  IMF officials say Argentina can improve debt restructuring offer

REUTERS

[I]  Brent oil rises to $40 amid hopes for output cuts, recovery

[I]  G7 finance leaders to hold virus telecon on Weds, Japan's Jiji says

[I]  Australia's economy is in recession, Treasurer says after first-quarter GDP contracts

[I]  Asian stocks jump to 3-month high as recovery hopes outweigh looming risks

[I]  India launches $6.7 billion plan to boost electronics manufacturing

[I]  EU balks at adding Russia back into G7

[I]  Japan's service sector activity shrinks for fourth month in May - PMI

BLOOMBERG 

[I]  OPEC+ Edges Closer to Compromise to Extend Deepest Ever Cuts

[I]  Oil’s Comeback Encourages U.S. Shale and Complicates OPEC+ Task

[I]  Australia’s Economy Contracts, Ending Three-Decade Expansion

[I]  Brent Oil Rises Past $40 as OPEC+ Cut Extension Looks Likely

[I]  Bond Traders in Japan Can’t Stop Fretting Over Long-End Supply

[I]  China Takes First Steps Toward $3 Trillion REIT Market

WALL STREET JOURNAL

[I]  U.S. Economy Faces Long Recovery From Coronavirus Effects, Experts Say

[I]  White House Weighs Options for Next Stimulus Bill

[I]  U.S. Weighs Tariffs Against Nations Seeking to Tax Internet Firms

[I]  Census Bureau Says 60.5% of Households Responded to 2020 Count

[I]  Retailers and Restaurants Grapple With Damage, Just as Many Were Starting to Reopen

BUSINESS LINE

[I]  At 268 lakh tonnes, sugar production this year is higher than projected: ISMA

[I]  Will definitely get our growth back: Modi to India Inc

[I]  Tea exports likely to register a fall

[I]  Fruit and vegetable output set to cross record 320 mt

[I]  Lockdown exit: 2.1 crore jobs added in May

ECONOMIC TIMES

[I]  Cos with staff stuck in India may get tax relief

[I]  India set to re-enter UN Security Council

[I]  Want to make India a major electronic manufacturing hub: Ravi Shankar Prasad

[I]  Oil hits three-month high over hopes for output cuts

[I]  Another source of much-needed cash dries up for Indian firms

[I]  Tax relief likely on creation of ‘permanent establishment’

[I]  Five Indian states are leading economy to recovery from lockdown

BUSINESS STANDARD

[I]  Domestic capital goods companies seek price preference policy from Centre

[I]  External affairs, commerce ministries differ on invitation by RCEP nations

[I]  Govt launches Electronics Mfg Scheme 2.0, aims to get 5 top global players

[I]  SBI creates separate business vertical to drive MSME, agri finance

[I]  RBI seeks clarity from govt on Taiwan's foreign direct investment status

[I]  India Inc warns of social issues if growth does not revive soon

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 10073;  USDINR DGCX: 75.2775;  DJIA Mini: 25815;  FTSE 100 Fut: 6272;  NIKKEI 225 Fut: 22627;  EUR-USD: 1.1205; Crude Oil (WTI): 37.61;  Gold (Spot): 1725

Best Regards, ARBIND

03 Jun 2020