MACRO ECONOMIC NEWS

CHEER THE MONSOON - THE HOPE FOR EVERYONE. WISHING A REASSURING DAY AHEAD.

Macro Economic News 02 Jun 2020

India's annual monsoon arrived on the Kerala coast, an official at the state-run weather office said, marking the start of the four-month rainy season that is crucial for the country's farm-dependent economy. India has raised the price at which it could buy new-season summer crops, including rice by up to 50%. There is unease of doing business in India as Mumbai is on the verge of a nervous breakdown and 35% MSMEs are shutting down. After a month of zero sales in April, the automobile manufacturers reported a sharp decline in their year-on-year sales numbers in May.

Economic results released in Brazil, Turkey and India highlight the struggles of many developing-world economies even before the coronavirus pandemic caused governments to order lockdowns in late March that have since cost hundreds of millions their jobs. 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. Rising tensions between the U.S. and China over Hong Kong have American businesses caught in the crossfire amid a fight that they fear could disrupt their operations and that casts doubt over their long-term future in the city. More and more Chinese factories have reopened for work in the past three months as authorities have eased their once-aggressive coronavirus measures. But now they are facing the dire reality of falling orders from overseas customers.

FINANCIAL TIMES

[I]  Ireland plunged back into fight against deficit and job losses

[I]  China blasts Trump over his response to US unrest

[I]  Saudi foreign reserves fall as sovereign wealth fund spends overseas

[I]  Johnson heading for crunch Brexit talks with von der Leyen

[I]  Davos aims to coax elite out of isolation in January

[I]  US online grocery shopping jumps as chains rush to add capacity

[I]  For Johnson, Covid-19 is now an economic crisis

REUTERS

[I]  Indian states rush to identify high-risk zones to remain in lockdown

[I]  Moody's cuts India's rating to lowest investment grade with negative outlook

[I]  Dollar on defensive as markets pin hopes on global economic recovery

[I]  Japan talking with South Korea about export controls: trade minister 

[I]  Rich world's jobs crisis jolts money flows to millions

[I]  India raises local purchase price for summer crops by 50%

[I]  Monsoon rains arrive on Kerala coast: government official

[I]  South Korea to stabilise financial markets if U.S.-China tension spurs volatility

[I]  U.S. manufacturing activity crawls off 11-year low

[I]  Sanctions, economic dive would hit Hong Kong credit rating - S&P Global

BLOOMBERG 

[I]  China’s Digital Currency Could Challenge Bitcoin and Even the Dollar

[I]  A Tug-of-War Between Bulls and Bears Is Muddling Risk Indicators

[I]  China Pausing Purchases, India Rating Cut, PBOC Credit: Eco Day

[I]  Traders Pin Hopes on RBI Support After Moody’s Cuts India Rating

[I]  The Euro’s Rebound May Be a Positive Sign for Risk Everywhere

[I]  Indonesia Pushes to Reopen Economy to Curb Mounting Job Losses

[I]  IMF Sees Little Scope for Argentina to Boost Debt Offer

[I]  India’s Sovereign Rating Cut at Moody’s Citing Policy Risks

WALL STREET JOURNAL

[I]  U.S. Economy Faces Projected 10-Year Recovery From Coronavirus Effects

[I]  Denver Was Booming Before the Pandemic. Now It Hopes to Bounce Back.

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

[I]  China’s Barely Begun Economic Recovery Shows Signs of Stalling

[I]  Economic Fallout From Coronavirus Begins Across Developing World

[I]  U.S. Businesses Brace for Damage as Tensions Grow Over Hong Kong

[I]  CBO: Economy Could Take Nearly 10 Years to Catch Up After Coronavirus

[I]  Newsletter: Long, Slow Recovery

[I]  Economy Week Ahead: Manufacturing and Unemployment Data

BUSINESS LINE

[I]  Auto sales crash in May on lockdown woes

[I]  Retailers want uniform operating rules for all retail shop formats

[I]  Weather: Cyclone brewing in Arabian Sea; headed for Mumbai coast

[I]  Farmers in South opt for dragon fruit cultivation to juice up profits

ECONOMIC TIMES

[I]  There is unease of doing business in India

[I]  Mumbai is on the verge of a nervous breakdown

[I]  35% MSMEs are shutting down

[I]  Govt proposes power tariff reforms for consumers

[I]  Govt to give credit card to 15 million dairy farmers

[I]  Lockdown extension to have deep impact on Indian economy: Report

[I]  India's May jobless rate at 23.48%, says private think-tank CMIE

[I]  Cabinet approves MSME, farm support measures

BUSINESS STANDARD

[I]  Moody's cuts India's rating to 'Baa3', maintains negative outlook

[I]  Centre raises MSP of 17 kharif crops; further revises MSME definition

[I]  Retailers, mall owners now willing to resolve differences over rentals

[I]  Event risk, fiscal worries: How are a country's sovereign ratings decided?

[I]  Factory slump deepens in May, job cut gathers pace: PMI data

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 9813;  USDINR DGCX: 75.7175;  DJIA Mini: 25336;  FTSE 100 Fut: 6175;  NIKKEI 225 Fut: 22248;  EUR-USD: 1.1126; Crude Oil (WTI): 35.51;  Gold (Spot): 1739

Best Regards, ARBIND

02 Jun 2020