MACRO ECONOMIC NEWS

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Macro Economic News 23 Jun 2020

The European Union told China to make good on a promise to open up its economy and warned of "very negative consequences" if Beijing goes ahead with a new security law on Hong Kong that the West says will curtail basic rights. In the post-pandemic world, more economic activity will be designated vital to national security, accelerating pressures on globalization that existed before Covid-19 arrived. A funny thing has happened to the Federal Reserve’s overall holdings of bonds, cash and other assets: It just contracted even as central bank officials are still pledging a pedal-to-the-metal effort to keep the U.S. economy afloat during the coronavirus pandemic. Sales of previously owned homes dropped 9.7% in May from the prior month, as the coronavirus pandemic kept US shoppers indoors during the typically busy spring home-buying season. Japan rushes UK to agree first post-Brexit trade deal whereas Beige Book says China is in recession and heading for full-year decline.

Moody opines that global economy faces long, bumpy recovery and predicts India's GDP contracting 3.1% in 2020 whereas Fitch expects that India is very likely to announce another set of fiscal stimulus measures. MCA again extends timeline for creation of a deposit repayment reserve by 3 months while lending to real estate in India declined by 46% in FY20.

FINANCIAL TIMES

[I]  Japan rushes UK to agree first post-Brexit trade deal

[I]  Australian miners’ climate plan attacked over lack of targets

[I]  France shows Europe can keep Covid-19 in check after reopening

[I]  Berlin and ECB signal end to legal impasse over bond-buying

[I]  Putin aims for patriotic boost from victory parades

[I]  US Supreme Court limits SEC’s power to recover ill-gotten gains

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

REUTERS

[I]  Trump suspends entry of certain foreign workers despite business opposition

[I]  India's top court rejects power companies' bid to extend emissions deadline

[I]  U.S. accuses India of unfair practices on charter flights

[I]  Trump says 'China trade deal is fully intact'

[I]  Indian refiners crude processing in May recovers, up 7.3% from April 

[I]  EU presses China over trade, warns on Hong Kong law

[I]  U.S. home sales hit 9-1/2-year low; price growth cools

[I]  UK factories suffer worst quarter on record, CBI says

BLOOMBERG 

[I]  ‘Everything Is Expensive’ as Global Stock Valuation Debate Rages

[I]  China’s Economy Will Resume Growth This Quarter, Economists Say

[I]  India Insurers Boost Cash, Stress Test Stocks on Market Swings

[I]  Central Bank Reserves Can't Be Taken for Granted

[I]  India’s Own Version of Yield Curve Control Seen Already in Play

[I]  China in Recession and Heading for Full-Year Decline: Beige Book

WALL STREET JOURNAL

[I]  Job Recruitment Adopts Social Distancing

[I]  Economy Week Ahead: Housing, Factories and Consumer Spending

[I]  How the Coronavirus Will Reshape World Trade

[I]  Derby’s Take: Making Sense of a Contraction in the Fed’s Balance Sheet

[I]  May U.S. Home Sales Dropped 9.7%

BUSINESS LINE

[I]  Kerala becomes the first State to adopt second level verification for new GST registrations

[I]  Softening the Covid blow: MCA again extends timeline for creation of a deposit repayment reserve by 3 months

[I]  Covid-19 impact: As start-ups attempt to tide over cash crunch, valuations take a hit

[I]  Global economy faces long, bumpy recovery post Covid: Moody’s

[I]  Monsoon back with a bang in South; bides time in North

ECONOMIC TIMES

[I]  Donald Trump just suspended the Indian techie's favourite visa

[I]  Economic recovery won't be as 'V' expected

[I]  Can India become the world's big factory?

[I]  Mumbai's realty isn't immune to coronavirus

[I]  Large corporations hold back Rs 3.3 lakh crore payment to MSMEs: Study

[I]  India 'fast moving' economy, progressively taking steps to deepen trade ties: Australian trade minister

[I]  India's GDP to contract 3.1% in 2020: Moody's

[I]  India very likely to announce another set of fiscal stimulus measures: Fitch

BUSINESS STANDARD

[I]  Unlock 1.0: Essential shopping rebounds fastest to pre-lockdown levels

[I]  Galwan Valley clash: Govt plans to cap China FPI investments at 5%

[I]  China investment proposals on hold, not scrapped yet: Maharashtra minister

[I]  Lending to real estate in India declined by 46% in FY20, shows data

[I]  Bank deposits grow at 11.3% but credit growth moderates, shows data

MARKETS (08:30 am)

[I]  SGX NIFTY Fut: 10351;  USDINR DGCX: 76.0275;  DJIA Mini: 25956;  FTSE 100 Fut: 6233;  NIKKEI 225 Fut: 22622;  EUR-USD: 1.1273; Crude Oil (WTI): 40.46  Gold (Spot): 1751

Best Regards, ARBIND

23 Jun 2020