MACRO ECONOMIC NEWS

FAITH - THE CURE FOR EVERYTHING - YOU ARE BLESSED WITH. WISHING A LOVING DAY AHEAD.

Macro Economic News 19 Jun 2020

As many companies across the U.S. explore ways to promote more racial equality in hiring, new research suggests banning salary history questions for job applicants provides considerable benefits for African-Americans and women. The surge in skipped payments on debts including student loans suggests that the layoffs related to the coronavirus have taken a severe economic toll. President Donald Trump renewed his threat to cut ties with China, a day after his top diplomats held talks with Beijing and his trade representative said he did not consider decoupling the U.S. and Chinese economies a viable option. Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell defended policy choices to invest in debts of riskier companies through emergency lending programs and to provide loans without conditions that firms maintain payroll, in a letter to congressional overseers. Mnuchin Declares Global Corporate-Tax Talks at an Impasse while more than 100 countries have been working for years to reshape the rules for how nations divide up the taxes paid by multinational companies.

India is expected to join June 23 trilateral meeting with Russia, China while India rethinks strategic ties following border clashes with China. India is to launch new rural job programme for migrants whereas India Inc pre-tax profit falls 26% in Q4. PM modi says that the economy returning to pre-lockdown levels although Fitch revises outlook on India to negative and ADB sees Indian economy shrinking 4% in FY21 after growth call earlier.

FINANCIAL TIMES

[I]  Supreme Court thwarts Trump’s push to end ‘Dreamers’ protection

[I]  US retail recovery delivers $28bn blow to short sellers

[I]  Chanel forecasts ‘difficult’ two years for luxury amid Covid-19

[I]  Europeans vow to pursue digital tax plans after US ‘provocation’

[I]  African business steps up in global scramble for virus test kits

[I]  Merkel issues stark warning on urgency of EU coronavirus recovery fund

[I]  Banks rush to borrow record €1.3tn at negative rates from ECB

[I]  India rethinks strategic ties following border clashes with China

REUTERS

[I]  Exclusive: India plans extra tariffs, trade barriers on 300 imported products - sources

[I]  India to launch new rural job programme for migrants

[I]  Japan lifts coronavirus travel curbs to help economy bounce back

[I]  U.S. Fed's balance sheet shrinks for first time since February

[I]  OPEC+ pushes for compliance, undecided on oil cut extension 

[I]  Sharp learning curve for bosses as WFH goes global

[I]  Trump renews threat to cut ties with Beijing, a day after high-level U.S.-China talks

[I]  Japan's deflation gathers pace as prices extend declines

[I]  U.S. labor market improvement stalling; second wave of layoffs seen

[I]  Bank of England slows bond purchases as it sees some recovery signs

[I]  India says to join June 23 trilateral meeting with Russia, China

BLOOMBERG 

[I]  Goldman Warns of Declines for U.S. Stocks With High China Sales

[I]  Australians Come Out of Lockdown And Spend Like Never Before

[I]  Downgrade Risks With Snap Polls Looming Roil Malaysia’s Bond

[I]  We Will Be Living With the Coronavirus Pandemic Well Into 2021

[I]  There’s a Flood of Japanese Money Rushing Into Dollar Assets

[I]  China’s $3.5 Trillion Wealth Product Market Shows First Losses

WALL STREET JOURNAL

[I]  U.S. Unemployment Claims Edge Lower but Remain Historically High

[I]  Mnuchin, Powell Defend Borrower Requirements Under Emergency Lending Programs

[I]  Study Finds Salary-History Bans Boost Pay for African-Americans, Women

[I]  Former Fed Economists Urge Easier Terms for ‘Main Street’ Loans

[I]  Americans Skip Millions of Loan Payments as Virus Exacts Toll

[I]  Mnuchin Declares Global Corporate-Tax Talks at an Impasse

BUSINESS LINE

[I]  Used-cars segment sees renewed buyer interest

[I]  Railways pushes ahead with wooing traffic from roads through higher use of boxes

[I]  Pharma API imports from China: India moving towards self-reliance

[I]  Bucking Covid-19 slowdown: Tractor sales, production increase in May

[I]  Fertiliser subsidy dues likely to cross a record ₹60,000 crore in FY21

[I]  Economy returning to pre-lockdown levels, says PM Modi

[I]  Fitch revises outlook on India to negative

ECONOMIC TIMES

[I]  India wants a great wall against Chinese firms

[I]  China-linked FDIs look for gaps to stay below radar

[I]  BoE boosts bond buying by $125 billion to counter virus crisis

[I]  Mauritius tax: A 30-yr-old treaty India still can't finalise

[I]  Liquidator has overriding right on company’s assets over tax department: NCLT

[I]  10 states seek extension of free grains scheme

[I]  FSDC sub-committee resolves to do whatever it takes to revive economy

[I]  Chinese stakes under lens, govt to review stakes in infra projects

BUSINESS STANDARD

[I]  Whirlpool of India pre-tax profit falls 26% in Q4; revenue dips marginally

[I]  India's slow climb to $500-billion foreign exchange reserves fortune

[I]  Regulators, top govt officials meet to pull economy out of crisis

[I]  ADB sees Indian economy shrinking 4% in FY21 after growth call earlier

[I]  Surge in bank deposits due to govt borrowings, not savings: India Ratings

[I]  Participatory notes investments rise to over Rs 60,000 cr till May

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 10037;  USDINR DGCX: 76.3475;  DJIA Mini: 25957;  FTSE 100 Fut: 6223;  NIKKEI 225 Fut: 22380;  EUR-USD: 1.1212; Crude Oil (WTI): 39.24;  Gold (Spot): 1726

Best Regards, ARBIND

19 Jun 2020