MACRO ECONOMIC NEWS

SMILE, NATURE IS CHEERING WITH THE JOY. WISHING AN UNBOUNDED DAY AHEAD.

Macro Economic News 09 Jun 2020

New Zealand eliminates transmission of coronavirus. The U.S. officially entered a recession in February, marking the end of the 128-month expansion that was the longest in records reaching back to 1854 while The U.S. budget gap more than doubled in May, pushing the deficit for the fiscal year to near $2 trillion. Americans are growing more upbeat about what lies ahead for the economy, even as they brace for what they see as a rise in inflationary pressure, a new report from the Federal Reserve. UK and Japan aim for free trade deal this year. France's “temporary unemployment” scheme to avert mass bankruptcies and lay-offs as a result of the coronavirus crisis will be extended for up to two years.

World Bank sees darker days ahead for the global economy. Emerging Markets and Developing Economies (EMDEs) are expected to shrink by 2.5 per cent this year, their first contraction as a group in at least 60 years. Per capita incomes are expected to decline by 3.6 per cent, which will tip millions of people into extreme poverty this year. Asian companies at higher risk of default this year. World Bank predict India's economy to contract by 3.2 per cent in fiscal year 2020-21 while S&P sees it shrinking by 5% in FY21. India is mulling a new way to bring its bad loan burden under control while RBI plans to tweak norms for loan sales and proposes major changes in securitisation norms for robust market. India's tax-GDP ratio plunges to 9.88% in FY20, lowest in 10 years whereas CRISIL forecasts bank credit growth in FY21 hitting multi-decade low of 0-1%. Finance Minister indicated extending the deadline for availing 15 per cent corporate tax rate benefit on new investments by manufacturing units.

FINANCIAL TIMES

[I]  Emerging economies forecast to shrink for first time in 60 years

[I]  New Zealand eliminates transmission of coronavirus

[I]  France to extend crisis jobs scheme for up to two years

[I]  Nato chief urges nations to stand up to ‘bullying’ as China power rises

[I]  Brazil central bank chief resists using new QE powers

[I]  Americans spend billions to look good in lockdown

[I]  US states weigh exit from power market in clean-energy dispute

[I]  A new global crisis is looming in east Asia

REUTERS

[I]  Exclusive: India plans to hike edible oil import taxes to boost local supply, sources say

[I]  UK retailers report smaller drop in annual sales in May

[I]  WHO says pandemic 'far from over' as daily cases hit record high

[I]  Japan wants manufacturing back from China, but breaking up supply chains is hard to do

[I]  Fed eases terms of Main Street loans, says registration will begin soon

[I]  UK and Japan aim for free trade deal this year as negotiations begin

[I]  Fed eases terms of Main Street loans, says registration will begin soon

[I]  Asian companies at higher risk of default this year - data

BLOOMBERG 

[I]  China Supply Grip, U.S. Recession, Japan Job Concerns: Eco Day

[I]  U.K. Consumers, Retailers Hit Hard by Coronavirus Lockdown

[I]  Borrowing Costs for India’s Shadow Banks Finally Start to Fall

[I]  European Bank Dividends May Face Regulatory Curbs Until 2021

[I]  Europe’s Steel Industry Rips Into EU Revamp of Import Controls

WALL STREET JOURNAL

[I]  Recession in U.S. Began in February, Official Arbiter Says

[I]  Federal Budget Deficit Nears $2 Trillion

[I]  Fed Debates Whether to Reinforce Low-Rate Pledge With Yield Caps

[I]  Some Economists Question Strength of China’s Labor Market

[I]  Consumers ‘More Optimistic’ About Economy’s Future in May, New York Fed Says

[I]  Economy Week Ahead: Inflation, Federal Reserve and Jobless Claims

[I]  Newsletter: China’s Labor Market Is Worse Than It Looks

[I]  Evidence Grows of Lockdowns’ Toll on Employment

BUSINESS LINE

[I]  Govt may consider extending deadline for availing 15% corporate tax rate benefit

[I]  ‘Nil’ category GST assessees can file returns by SMS

[I]  Technology to help retailers get back on their feet

[I]  Govt extends oil block bid deadline to June 30

[I]  Petrol, diesel prices hiked again

[I]  Cotton makes early gains in kharif acreage

ECONOMIC TIMES

[I]  World Bank sees darker days ahead for the global economy

[I]  RBI plans to tweak norms for loan sales

[I]  India is mulling a new way to bring its bad loan burden under control

[I]  Prolonged growth slowdown likely to hit India's external sector: SBI report

[I]  India's economy to contract by 3.2 per cent in fiscal year 2020-21: World Bank

[I]  Covid-19 credit facility of Rs 3-lakh crore covers all companies and not just MSMEs: Nirmala Sitharaman

[I]  View: How countries can cope with the 'other' global digital divide

BUSINESS STANDARD

[I]  FM Sitharaman to review credit flow with public sector banks on Tuesday

[I]  Indian economy will shrink 5% in FY21, stimulus not enough: S&P Ratings

[I]  India's tax-GDP ratio plunges to 9.88% in FY20, lowest in 10 years

[I]  RBI proposes major changes in securitisation norms for robust market

[I]  Bank credit growth in FY21 to hit multi-decade low of 0-1%: CRISIL

MARKETS (06:30 am)

[I]  SGX NIFTY Fut: 10195;  USDINR DGCX: --;  DJIA Mini: 27532;  FTSE 100 Fut: 6483;  NIKKEI 225 Fut: 23021;  EUR-USD: 1.1297; Crude Oil (WTI): 38.65;  Gold (Spot): 1699

Best Regards, ARBIND

09 Jun 2020