MACRO ECONOMIC NEWS

NATURE HAS PAINTED THE BEST ENVIRONMENT FOR US. WISHING A SOOTHING DAY AHEAD.

Macro Economic News 05 Jun 2020

U.S. exports and imports both posted their largest monthly decreases on record amid coronavirus-related shutdowns around the world. The number of workers applying for and receiving unemployment benefits was historically high but eased at the end of May, indicating the U.S. labor market has weathered the worst of the economic fallout from the coronavirus pandemic. The European Central Bank scaled up its bond-buying program in a bold move that puts the ECB’s stimulus effort in line with that of the Federal Reserve, while U.S. unemployment and trade data pointed to a rocky recovery from the pandemic shutdowns that crippled the global economy. U.K. consumer outlook becomes bleaker even as lockdown eases and Japan's household spending falls at record pace as virus stalls economy while Singapore bank deposits jump as Hong Kong, virus sow uncertainty although PBOC says it supports Hong Kong’s role as a financial center.

India's mass exodus from cities triggers village property disputes while the Govt data shows around 26 lakh migrant labourers are stranded. RBI survey finds that consumer confidence collapses and economy may contract by 1.5 per cent in FY21 expecting Bank NPAs may worsening to 11.6 pc by end of this fiscal. India's policy uncertainty at 81-month high as index rises 4 months on trot and Centre says to SC that Employers claiming incapacity in paying wages must place balance sheets in court.

FINANCIAL TIMES

[I]  ECB boosts bond-buying stimulus package by €600bn

[I]  German stimulus aims to kick-start recovery ‘with a ka-boom’

[I]  US jobless claims ease as economy struggles to reopen

[I]  Pandemic hits black voters’ incomes hardest, FT poll shows

[I]  CO2 levels in atmosphere hit new highs despite lockdowns

[I]  Donors pledge $8.8bn for global vaccination programmes

REUTERS

[I]  Japan's household spending falls at record pace as virus stalls economy

[I]  Euro holds gains, dollar soft after ECB expands stimulus

[I]  Singapore bank deposits jump as Hong Kong, virus sow uncertainty

[I]  India's mass exodus from cities triggers village property disputes

[I]  OPEC+ to meet on Saturday to discuss extending oil output cuts

BLOOMBERG 

[I]  OPEC+ Set to Extend Cuts After Breakthrough With Iraq

[I]  PBOC Says It Supports Hong Kong’s Role as a Financial Center

[I]  Global Recovery Hope Erases Pandemic Losses in Indonesian Assets

[I]  U.K. Consumer Outlook Becomes Bleaker Even as Lockdown Eases

[I]  Euro Flashes Warning Signs Amid Longest Rally in Almost a Decade

[I]  U.K. Urged to Scrap BOE Inflation Target in Favor of Growth

WALL STREET JOURNAL

[I]  U.S. Exports, Imports Fell Sharply Amid Coronavirus Disruptions

[I]  Unemployment-Claims Report Signals Pace of Coronavirus Job Losses

[I]  ECB Ramps Up Stimulus Program Beyond $1.5 Trillion

[I]  Americans Are Saving More, but How Long Can It Last?

[I]  Coronavirus Pandemic Drives Unemployment Up Across U.S. Metro Areas

[I]  A Painful Economic Reversal of Fortune for African-Americans

[I]  Newsletter: The Slow Process of Healing the Economy

BUSINESS LINE

[I]  To revive economy, India has to focus on sectors with ‘pull effect’: Suresh Prabhu

[I]  IMD forecasts fresh low-pressure area in Bay by Monday

[I]  Delhi petrol pump dealers seek lowering of Value Added Tax

[I]  Monsoon eyes next major break over N-E India

[I]  Power demand witnesses decline for second consecutive month

[I]  Cargo volumes at state-owned ports decline 22% in April-May

ECONOMIC TIMES

[I]  You can go out again. But, conditions apply

[I]  26 lakh migrant labourers stranded: Govt data

[I]  Interest subvention on crop loans extended till August 31

[I]  Double whammy for service companies: Required to pay GST on defaults, bad debts

[I]  Consumer confidence collapses, economy may contract by 1.5 per cent in FY21: RBI surveys

[I]  Bank NPAs may worsen to 11.6 pc by end of this fiscal due to coronavirus pandemic: Report

[I]  View: Time for an Urban Employment Guarantee Programme

[I]  Employers claiming incapacity in paying wages must place balance sheets in court: Centre to SC

[I]  Economists demand a plan to turn crisis of reverse migration into an opportunity

BUSINESS STANDARD

[I]  India's edible oil import falls 40% in May, lowest since 2011: SEA

[I]  Modi-Morrison online summit: India, Australia ink landmark defence pact

[I]  Bank of Mauritius approaches RBI to clear the air on NBFC impasse

[I]  Credit funds could see unlisted exposure rise over high redemptions

[I]  India's policy uncertainty at 81-month high as index rises 4 months on trot

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 10066;  USDINR DGCX: 75.5900;  DJIA Mini: 26370;  FTSE 100 Fut: 6357;  NIKKEI 225 Fut: 22617;  EUR-USD: 1.1334; Crude Oil (WTI): 37.36;  Gold (Spot): 1708

Best Regards, ARBIND

05 Jun 2020