MACRO ECONOMIC NEWS

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Macro Economic News 17 Jun 2020

Federal Reserve Chair Jerome Powell thinks, a full U.S. economic recovery will not occur until the American people are sure that the novel coronavirus epidemic has been brought under control. Powell says despite signs of stabilization; risks of long-term economic damage are significant and sees the economy faces potentially significant long-term damage from higher unemployment and a wave of small business failures despite recent signs of an economic rebound. US banks paid nearly twice as much in dividends as they earned while Europe’s young feel chill of frozen labour market. Bank of Japan pledges $1tn in coronavirus loans whereas ‘Frugal four’ warn pandemic spending must be responsible. IMF sees 'profound uncertainty' about global recovery while A Thomson Reuters/INSEAD survey found that the business sentiment of Asian companies sank to an 11-year low in the second quarter, with some two-thirds of the firms polled flagging a worsening COVID-19 pandemic as the biggest risk over the next six months.

FINANCIAL TIMES

[I]  Powell warns of ‘significant uncertainty’ over US recovery

[I]  US banks paid nearly twice as much in dividends as they earned

[I]  Europe’s young feel chill of frozen labour market

[I]  Bank of Japan pledges $1tn in coronavirus loans

[I]  ‘Frugal four’ warn pandemic spending must be responsible

[I]  Tighter times mean tougher corporate choices

REUTERS

[I]  From historic summit to building destruction, North Korea unsettles U.S.

[I]  Asian business sentiment plunges to record low on virus effect: Thomson... 

[I]  Summer crop sowing speeding up as monsoon covers half of India

[I]  Green shoots welcome but recovery still a long road, Fed's Powell says

[I]  Japan manufacturers' mood turns gloomier as virus damage spreads 

[I]  Japan's exports fall most since 2009 as virus hits U.S. shipments

BLOOMBERG 

[I]  Powell Stays With Message of Uncertain Path for Recovery

[I]  China Inc. Leaving U.S. Market at Fastest Pace Since 2015

[I]  Kings of Controversial Debt Trades Cry Foul When on Other Side

[I]  Carry Trades Are Back in Focus, Especially for Indonesia’s Rupiah

[I]  Powell Modest Bounce, Trump Trillion, Lessons From Past: Eco Day

[I]  Chile Holds Key Rate at Record Low, Expands Stimulus Package

[I]  Five Charts That Show How Bad Things Are for Indian Consumers

[I]  One Month of Fed ETF Buying Redraws $4 Trillion Market Contours

WALL STREET JOURNAL

[I]  Powell Says Despite Signs of Stabilization, Risks of Long-Term Economic Damage Are Significant

[I]  Boats, Pools and Home Furnishings: How the Lockdown Transformed Our Spending Habits

[I]  U.S. Retail Sales Rose Record 18% in May

[I]  Fed Will Amass Corporate Bond Portfolio Using Index Approach

BUSINESS LINE

[I]  PM sees green shoots in the economy

[I]  Advance tax: 80% drop in first instalment collections from corporate assessees

[I]  NITI Aayog to NBFCs: Don’t frown on restructuring of customers loans

[I]  Sowing patterns indicate farmers conforming to regulated cropping

[I]  Why farm subsidies in India are far lower than in rich countries

ECONOMIC TIMES

[I]  Another relief package may be on the cards

[I]  Global banks' back offices embrace WFH

[I]  Gross tax collection falls 31% so far in June quarter

[I]  Indian companies pump $22 billion in US as FDI: CII Survey

[I]  India 9th largest recipient of FDI in 2019, will continue to attract investments: UN

[I]  India's employment rate improved by 3.3% for week ended June 14: CMIE

BUSINESS STANDARD

[I]  Centre relaxes payment mechanism for govt-funded highway contracts

[I]  India's contract labour laws are riddled with incentives for corruption

[I]  EPFO allows regional offices to settle PF claims from other centres

[I]  IMF sees 'profound uncertainty' about global recovery: Gita Gopinath

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 9843;  USDINR DGCX: 76.4000;  DJIA Mini: 26055;  FTSE 100 Fut: 6226;  NIKKEI 225 Fut: 22414;  EUR-USD: 1.1266; Crude Oil (WTI): 37.39;  Gold (Spot): 1726

Best Regards, ARBIND

17 Jun 2020