MACRO ECONOMIC NEWS

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Macro Economic News 25 Jun 2020

Companies agonize over reopening timetables as covid-19 spreads. Many large businesses are grappling with whether to close, stay open or find some in-between as the number of cases of Covid-19 increases. On the other side countries are facing the urgency of returning to full employment as recessions have contributed to long-run rise in inequality and undoing this one’s effects will be hard. Adding worries to woes, business layoffs remain elevated as weak demand persists after businesses reopened while ILO cautions that migrant workers need support, jobs at home after pandemic disruption. Economists at the International Monetary Fund now say the global economy will contract even more sharply than they expected in estimates released in April, which called for the steepest recession since the Great Depression. IMF slashes its forecasts for the global economy and warns of soaring debt levels. The IMF also downgraded its GDP forecast for 2021 and cautioned that the forecasts are surrounded with unprecedented uncertainty. The United States is expected to contract by 8% this year and Indian economy will contract by 4.5% this fiscal to a historical low. The Trump administration is considering expanding and raising tariffs on food imports from the European Union and U.K., part of a long-running dispute that faults European countries for subsidizing aircraft manufacturer Airbus.

FINANCIAL TIMES

[I]  Spain’s tight budget puts squeeze on coronavirus response

[I]  Air pollution rebounds in Europe’s cities as lockdowns ease

[I]  Trump eases environmental rules during pandemic

[I]  China expands coal plant capacity to boost post-virus economy

[I]  IMF slashes economic outlook and warns of public debt burden

[I]  Brussels signals compromise possible in ‘level playing field’ talks

REUTERS

[I]  U.S. layoffs remain elevated as weak demand persists after businesses reopened

[I]  Oil prices fall further on virus fears, U.S. crude stock build

[I]  U.S. agency prepares for massive staff cuts in blow to legal immigration system

[I]  England goes al fresco to help hospitality sector rebound

[I]  Migrant workers need support, jobs at home after pandemic disruption: ILO

[I]  Oil prices fall further on virus fears, U.S. crude stock build

[I]  Global housing markets ensnared by pandemic's high unemployment: Reuters poll

[I]  France to rein in reduced-time work scheme as covid crisis eases

BLOOMBERG 

[I]  IMF Downgrades, Pandemic Tightens Grip, U.S. Tariffs: Eco Day

[I]  Canada Eyes Longer-Term Debt to Sustain Borrowing Binge

[I]  Funding Markets Becalmed by Fed Turn to a Murky Third Quarter

[I]  Modi Looks Inward to Save Indian Economy as Crisis Bites

[I]  Timing Is Everything for Philippines Rate Cut: Decision Guide

WALL STREET JOURNAL

[I]  Companies Agonize Over Reopening Timetables as Covid-19 Spreads

[I]  The Urgency of Returning to Full Employment

[I]  IMF Downgrades Already-Glum Economic Outlook Due to Coronavirus

[I]  Tale of Quad Cities: Reopening Speed Sets Border Communities on Different Tracks

[I]  Tariffs on European Food Could Expand Under New U.S. Proposal

[I]  IRS to Pay Interest on Late Refunds, Even for Those Who Haven’t Filed Yet

[I]  Newsletter: Signs of Growth, Reasons for Caution

BUSINESS LINE

[I]  IMF scales down growth projection, says Indian economy will contract by 4.5% this fiscal

[I]  Tax saving investment for FY20 can be made till July 31

[I]  Relief for depositors: Ordinance brings cooperative banks under RBI supervision

[I]  Sale of non-essential goods on online platforms picks up

[I]  Cabinet approves participation of private sector in space sector

[I]  Women farmers seek to scale the mandi ‘glass ceiling’

ECONOMIC TIMES

[I]  Maha asks cos to start antibody tests on their staff

[I]  Reverse migration a bane for India? Think again

[I]  India looks inward to save economy as crisis bites

[I]  IMF projects sharp contraction of 4.5% in Indian economy in 2020; a historic low

[I]  India Ratings sees a historic slump in growth due to coronavirus

[I]  View: Time to shift focus from disinvestment to investments

BUSINESS STANDARD

[I]  Govt okays Ordinance to give more teeth to RBI over co-operative banks

[I]  Diesel costlier than petrol for first time in Delhi after 18 hikes in a row

[I]  Industry fears supply chain disruption amid curbs on Chinese imports

[I]  Kharif sowing: Labour shortage in Punjab, abundance in UP amid Covid-19

[I]  Draft e-commerce policy soon, to be stricter on data norms and discount

[I]  Govt approves 2% interest subvention scheme for small Mudra borrowers

[I]  India GDP could contract 5.3% due to coronavirus 'disorder': India Ratings

[I]  RBI pulls up banks, NBFCs for non-transparency in digital loans

MARKETS (09:30 am)

[I]  SGX NIFTY Fut: 10221;  USDINR DGCX: 75.7400;  DJIA Mini: 25262;  FTSE 100 Fut: 6072;  NIKKEI 225 Fut: 22290;  EUR-USD: 1.1242; Crude Oil (WTI): 37.88  Gold (Spot): 1764

Best Regards, ARBIND

25 Jun 2020