MACRO ECONOMIC NEWS

MAY THE BLISSFUL EXUBERANCE SPREAD ALL AROUND. WISHING A RELISHING DAY AHEAD.

Macro Economic News 16 Jun 2020

The Federal Reserve launched its Main Street Lending Program which also included non-profit organizations, the most complex program undertaken yet by the U.S. central bank to help keep the backbone of the economy from buckling under the strains of the coronavirus pandemic. In the U.S. and elsewhere, government debt is set to soar this year. Some people thinking about how to pay down the debt are looking at an approach used after World War II: financial repression. Chinese consumers stepped up to make big-ticket purchases, pushing up home prices and auto-sales numbers and prompting economists to increase their growth outlook for the world’s second-largest economy. Reserve Bank of Australia finds Australia's economic downturn possibly shallower than previously thought. Crisil opines Indian MSMEs’ revenues to fall by a fifth while CII report finds 155 Indian companies create nearly 125000 jobs in US.

FINANCIAL TIMES

[I]  Coronavirus could infect human brain and replicate, US study shows

[I]  EU to relax state aid rules that hindered support for start-ups

[I]  Jakarta to use QE for as long as needed to tackle pandemic

[I]  Japan’s army of insurance saleswomen feel threat of digital revolution

[I]  The UK’s fight for free trade cannot be fudged

[I]  China is setting itself up to win cold war 2.0

REUTERS

[I]  India's election-bound Bihar state records nearly double national jobless rate

[I]  Bank of Japan keeps policy steady, eyes recovery from pandemic

[I]  Fed launches long-awaited Main Street lending program, seeks to reach nonprofits

[I]  Australia's economic downturn possibly shallower than previously thought - RBA

BLOOMBERG 

[I]  Fed Will Begin Buying Broad Portfolio of Corporate Bonds

[I]  OPEC+ Deal Will Bring Oil Back to ‘Normal’ as Producers Commit

[I]  RBI Seen Deploying Hybrid Playbook to Keep Bond Traders Guessing

[I]  Fed Corporate QE, Outlook Less Bleak, EU Counters China: Eco Day

[I]  BOE’s Toolkit May Include a Bond Buying Policy Made in Japan

[I]  Japan to End Longest IPO Drought Since 2009 With Three Listings

WALL STREET JOURNAL

[I]  Chinese Consumers Add Fuel to Factory-Led Economic Recovery

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

[I]  Expanded Tax Break for Charitable Gifts Gains Support in Congress

[I]  Dallas Fed’s Kaplan Says Rebound Likely in Second Half

[I]  Kudlow Urges Replacing Unemployment-Benefit Boost With Return-to-Work ‘Bonus’

[I]  Governments May Revisit Postwar Playbook as They Tackle Huge Debts

[I]  Fed Outlines Proposal to Lend Money to Nonprofits

BUSINESS LINE

[I]  WPI inflation falls 3.21 per cent in May

[I]  Exports fall 36.47 per cent in May, trade deficit narrows to $3.15 billion

[I]  Monsoon active over West, Central, East India

[I]  MSMEs’ revenues to fall by a fifth: Crisil

[I]  Pesticide exports exempted from proposed ban

[I]  Global trade logjam looms as deadline set by unions for crew change ends

ECONOMIC TIMES

[I]  Banks approach FinMin, RBI to ease ECB rules

[I]  Record harvest likely as southwest monsoon makes swift progress

[I]  GST mop-up hit by Covid, 'act of God': Centre

[I]  May wholesale prices fall signals deflation

[I]  India’s falling prices give RBI room to ease policy further

[I]  155 Indian companies create nearly 125000 jobs in US: CII report

[I]  With work from home comes pay for home

BUSINESS STANDARD

[I]  Slower data speeds: Worst might be over, but only temporarily

[I]  Maharashtra govt signs Rs 16,000-crore investment pacts with 12 firms

[I]  Solar to eclipse thermal power by 2030 in India's overall energy mix

[I]  Widening gap between wholesale and retail food inflation? Blame lockdown

[I]  Farmers expand area under cotton by 24% on price increase, MSP hike

[I]  In nine hikes, petrol price goes up by Rs 5 per litre, diesel by Rs 4.87

[I]  Widen MSME scheme ambit: Private lenders to FM Nirmala Sitharaman

MARKETS (09:45 am)

[I]  SGX NIFTY Fut: 10009;  USDINR DGCX: 75.9875;  DJIA Mini: 26154;  FTSE 100 Fut: 6218;  NIKKEI 225 Fut: 22372;  EUR-USD: 1.1337; Crude Oil (WTI): 36.88;  Gold (Spot): 1728

Best Regards, ARBIND

16 Jun 2020