MACRO ECONOMIC NEWS

TRUST, THE HOPE WILL BE UPLIFTED. WISHING AN ELEVATED DAY AHEAD.

Macro Economic News 04 Jun 2020

The fallout from the pandemic and protests highlights the income and wealth gaps that leave black Americans vulnerable. The gap between economic strata is widening across the globe and fear of social issues from the vulnerable classes are being raised from the business and intellectuals. Cases reflect the vulnerabilities that workers and governments face in the midst of historically high levels of jobless related to the pandemic. Unemployment also rises in Europe as coronavirus ends labour market recovery while ECB prepares more aid for virus-stricken euro zone. Australian retailers suffer record sales slump, backs grim outlook for second-quarter GDP.

China’s bond traders brace for more pain as slump deepens while India's benchmark bond yield has fallen back to levels seen before the administration ramped up its annual borrowing target by more than half, as investors bet that the nation's central bank has more tricks up its sleeve. Corporate bond issues more than double in April- May whereas the services sector again faced extreme headwinds in May as the Purchasing Managers’ Index (PMI) clocked 12.6 in May. Moody's sounds another alarm for India after downgrading India's sovereign ratings, that the quality of retail and SME loans will also deteriorate while India Inc in no rush to bring back techies to office.

FINANCIAL TIMES

[I]  Unemployment rises in Europe as coronavirus ends labour market recovery

[I]  Covid-19 ends Australia’s run of record growth

[I]  US threatens to bar Chinese airlines

[I]  The outsourcers hoping to gain from the crisis

[I]  A divided America cannot compete in a superpower duel

[I]  Britain is out of step with its partners on quarantine

REUTERS

[I]  Australian retailers suffer record sales slump, backs grim outlook for second-quarter GDP

[I]  Euro holds firm as markets bet on ECB stimulus boost

[I]  ECB prepares more aid for virus-stricken euro zone

[I]  Sterling to take a pasting if UK seeks no extension for EU trade talks - Reuters poll

[I]  U.S. Senate passes bill lengthening coronavirus small-business loan terms

BLOOMBERG 

[I]  Merkel Seals $146 Billion Deal to Pull Germany Out of Crisis

[I]  Even Good ADP Report Isn’t Changing Bleak U.S. Payroll Forecasts

[I]  In RBI We Trust Is Bond Mantra as India Yields Remain Resilient

[I]  Singapore’s Challenge, Japan’s Spree, Merkel’s Billions: Eco Day

[I]  Australia to Bolster Housing Sector With A$688 Million Stimulus

[I]  ECB Told to Be Bold With More Cash for Recovery: Decision Guide

[I]  China’s Bond Traders Brace for More Pain as Slump Deepens

WALL STREET JOURNAL

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

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

[I]  Fed Expands Municipal-Lending Facility to More Localities

[I]  Unemployment Fraud Spreads Across U.S.

[I]  Coronavirus Stimulus Funds Are Largely Depleted

BUSINESS LINE

[I]  Modi, Morrison to discuss trade, health, education, defence in virtual summit

[I]  Services PMI at 12.6 in May as activities contract sharply due to pandemic

[I]  Nod for Ordinance to amend Insolvency Code

[I]  Telangana to set up three3 panels for crop regulation

[I]  More players may enter contract farming

ECONOMIC TIMES

[I]  Moody's sounds another alarm for India

[I]  India Inc in no rush to bring back techies to office

[I]  Corporate bond issues more than double in April- May

[I]  US to probe ‘Google tax’ among levies

[I]  The road ahead turns darker for India, Asia's virus hotspot

[I]  Service activity contracts again in May, PMI at 12.6

[I]  Government eyes $17 billion investment proposals to boost local manufacturing

BUSINESS STANDARD

[I]  Interest waiver will impact financial viability of banks: RBI to SC

[I]  Suspension of IBC can affect resolution efforts and shift focus to recovery

[I]  India IT spending to dip 8% in 2020 amid Covid-19 pandemic, says Gartner

[I]  Windfall for sugar mills as Centre allows export of alcohol-based sanitiser

[I]  India must shed its protectionist attitude: Ex-CEA Arvind Subramanian

[I]  After mobile phone devices, phased manufacturing push for AC makers

MARKETS (09:00 am)

[I]  SGX NIFTY Fut: 10052;  USDINR DGCX: 75.6700;  DJIA Mini: 26184;  FTSE 100 Fut: 6357;  NIKKEI 225 Fut: 22631;  EUR-USD: 1.1218; Crude Oil (WTI): 36.42;  Gold (Spot): 1703

Best Regards, ARBIND

04 Jun 2020