MACRO ECONOMIC NEWS

DEEP IS THE SOURCE OF COMFORTING TRUST AND ASSURANCE. WISHING A PROMISING DAY AHEAD.

Macro Economic News 24 Jun 2020

Heightened uncertainty in India caused by the coronavirus pandemic has led to a surge in currency in circulation as people hoard cash or park money in accessible deposits to safeguard themselves against salary cuts or job losses. NBFCs are back to raise funds and bond sales by non-bank lenders have nearly doubled in the first quarter of FY21, indicating evident revival of investor confidence in suppliers of crucial credit to last-mile users despite the protracted lockdown. Fitch says that India's farm trade may rebound in second half of 2020 while CMIE highlights of unemployment rate falling to pre-lockdown level. FinMin picks out select indicators and assures that Indian economy is picking up. The global economy is gradually pulling out of its stall as businesses reopen after pandemic-induced lockdowns, with output contracting at a slower pace in the U.S., Europe and Asia this month. The downturn in European business activity slowed markedly in June as restrictions to contain the coronavirus crisis were eased, according to a closely watched survey that added to signs of a recovery in the region’s economy.

FINANCIAL TIMES

[I]  Relaxation of English lockdown ‘not risk-free’, warns chief adviser

[I]  Insurers join World Bank to help small businesses in poorer nations

[I]  Eurozone business downturn slows as virus restrictions ease

[I]  Digital ad market set to eclipse traditional media for first time

[I]  Distressed markets are masters of disguise

[I]  US complaints about global digital taxes should fall on deaf ears

REUTERS

[I]  India says it may allow some foreign flights to resume after U.S. criticism

[I]  India's oil imports in May sink to lowest in over 8 years - trade

[I]  France's Macron, Dutch PM Rutte make progress on EU budget: Elysee

[I]  IMF, Sudan reach agreement on macroeconomic policies structural reforms

[I]  India money supply surge signals pandemic-related uncertainty, not growth

[I]  India levies charge on some steel imports from China, Korea, Vietnam

BLOOMBERG 

[I]  China’s Growing Dollar Bond Defaults Reveal Depth of Stress

[I]  Junk Bonds Topple Monthly Sales Record in ‘Party Like No Other’

[I]  Crypto Market Stuck in Negative Trend With Bitcoin Below $10,000

[I]  U.K. Mall Landlords Expect Worst as $3.1 Billion Rent Comes Due

WALL STREET JOURNAL

[I]  Global Economy Shows Signs of Pulling Out of Its Slump

[I]  Coronavirus Job and Death Toll Is Widespread in Michigan

[I]  Lawmakers Ask Fed to Help Businesses Struggling to Make Mortgage Payments

[I]  Delivery Firm Got PPP Loan Even as Demand Rose During Pandemic

[I]  Job Recruitment Adopts Social Distancing

[I]  Newsletter: Raw Materials Rally Signals Quicker Recovery

BUSINESS LINE

[I]  Pick-up in discretionary spending unlikely as long as Covid uncertainty persists: CEA

[I]  Pharma exports up 19% in May

[I]  Shift in renewable energy strategy: Move towards peak, on-demand robust power supply

[I]  Trump move on non-immigrant visas may not hit Indian IT firms hard

[I]  India begins anti-dumping probe into aluminium foil imports

[I]  India could allow limited international flights with some countries

ECONOMIC TIMES

[I]  The danger of being an Indian HNI

[I]  India money supply surge signals pandemic-related uncertainty, not growth

[I]  NBFCs are back to raise funds, double bond sales

[I]  India's farm trade may rebound in second half of 2020: Fitch Solutions

[I]  Government to curb pharma imports from China

[I]  Unemployment rate falls to pre-lockdown level: CMIE

[I]  Inequality gap in India to narrow down post COVID-19: SBI report

BUSINESS STANDARD

[I]  No, thanks: Mobile device makers say to DoT on source code demand

[I]  US-India to create green corridor for resumption of international flights

[I]  Economy is picking up, says FinMin as it gives out select indicators

[I]  Sebi lays down operational framework for transactions in default debt

[I]  Petrol, diesel price gap narrows to just 36 paise; consumption picks up

[I]  Toll collection on recovery path as Gadkari looks at higher share of PPP

MARKETS (09:30 am)

[I]  SGX NIFTY Fut: 10487;  USDINR DGCX: 75.6525;  DJIA Mini: 26021;  FTSE 100 Fut: 6249;  NIKKEI 225 Fut: 22538;  EUR-USD: 1.1315; Crude Oil (WTI): 40.46  Gold (Spot): 1768

Best Regards, ARBIND

24 Jun 2020