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Macro Economic News 30 Jun 2020

India reported close to 20,000 fresh novel coronavirus cases for the second day, as the financial hub of Mumbai extended its lockdown by a month. India is drawing up an incentive scheme for the autos sector aimed at doubling exports of vehicles and components in the next five years. China's factory activity expanded at a stronger pace in June, as the economy continues to recover after the government lifted strict lockdowns and ramped up investment, but export orders remained weak as the global coronavirus crisis shatters demand. Federal Reserve Chairman Jerome Powell said the reopening of the U.S. economy has happened sooner than expected, but cautioned that the uptick in coronavirus infections poses challenges. With the Fed considering a new monetary policy tool to help hold interest rates low amid the downturn, clues to the tactic’s effectiveness can be found far away: in Australia. Governments roll back coronavirus trade barriers as governments around the world have already repealed more than a third of the export bans on medical products and other restrictions put in place as a response to the coronavirus. One in Four U.S. CEOs See Full Recovery Delayed Until After 2021 while Japanese factory output drops again even as emergency ends and Argentine economy plunges more than expected after lockdown.

FINANCIAL TIMES

[I]  Wall Street banks net record fees for pandemic fundraisings

[I]  Merkel offers olive branch to ‘frugal four’ over EU crisis fund

[I]  Emmanuel Macron touts green credentials after vote defeat

[I]  Latin America ‘to lose 20 years of progress’ in poverty reduction

[I]  US left off EU list of nations exempt from virus travel ban

[I]  Why private capital will benefit from the crisis

REUTERS

[I]  Daily coronavirus cases in India near 20,000 as Mumbai extends lockdown

[I]  China's June factory activity quickens, but exporters struggle amid pandemic

[I]  Nepal families face hunger, skip meals as pandemic hits remittances 

[I]  Exclusive: India plans incentives for auto companies to boost exports - sources

[I]  France to isolate COVID-linked debt in special structure - minister 

[I]  ECB stimulus plan meets court requirements - German finance minister 

[I]  U.S. home contracts post record jump, factory activity improves in Texas

BLOOMBERG 

[I]  Worst Yet to Come, WHO Says; Virtual APEC Forum: Virus Update

[I]  Powell Warns of Extraordinary Uncertainty, Urgency to Curb Virus

[I]  One in Four U.S. CEOs See Full Recovery Delayed Until After 2021

[I]  Chinese Stocks Haven’t Been This Calm Versus U.S. Since 2011

[I]  U.S. Hong Kong Sanctions Threaten $1.1 Trillion in China Funding

[I]  Japanese Factory Output Drops Again Even as Emergency Ends

[I]  Fed Becomes No. 3 Holder of World’s Biggest Corporate-Bond ETF

[I]  Argentine Economy Plunges More Than Expected After Lockdown
 

WALL STREET JOURNAL

[I]  Fed Chairman Says Economy Faces ‘New Challenges’ from Virus

[I]  Fed’s Daly Calls Economic Outlook ‘Uncertain’

[I]  Fed Looks Down Under for Rate Strategy

[I]  Fed Opens Lending Program for New Issuance of Corporate Debt

[I]  Governments Roll Back Coronavirus Trade Barriers

[I]  Automakers, Technology Firms Are Largest Components of Fed’s Corporate-Bond Purchases

[I]  Newsletter: How Will Consumers Respond to New Coronavirus Cases?

[I]  Economy Week Ahead: Factories, Inflation, Employment

BUSINESS LINE

[I]  Domestic flights may not see immediate rise

[I]  Centre allows ‘restricted’ exports of PPE coveralls

[I]  New portal to issue online defence clearances for energy sector launched

[I]  CBIC prepares common response to writs on transitional credit

[I]  What’s behind the increased acreage under kharif cultivation

[I]  Uncertainty clouds Equalization levy on non-resident e-comm cos; form and FAQs awaited

[I]  West Coast, Central India await heavy rain spell in early July

ECONOMIC TIMES

[I]  There could be more to Trump's visa ban than meets the eye

[I]  More relaxations in govt's 'Unlock 2' plan

[I]  Migrant workers are finding way back to cities

[I]  RBI announces OMO of simultaneous purchase and sale of govt securities

[I]  India's hiring activities holding up better than many economies: Report

[I]  Gross state domestic products to see sharp declines in FY21

[I]  Government to launch PMKVY-III with focus on industry 4.0: Mahendra Nath Pandey

[I]  Govt working on one-stop platform for all official data: Statistics minister

[I]  RBI seeks extension for Monetary Policy Committee members

BUSINESS STANDARD

[I]  Covid-19 impact: MNCs strike big rental deals despite work from home push

[I]  Govt eyes higher RBI surplus this year as Covid-19 decimates tax revenues

[I]  No goods from Chinese vendors is the new mantra for govt e-market place

[I]  MoSPI should end controversies related to GDP computation: Rangarajan

[I]  Digital sovereignty: Trai bats for local manufacturing of telecom equipment

MARKETS (08:00 am)

[I]  SGX NIFTY Fut: 10312;  USDINR DGCX: 75.7225;  DJIA Mini: 25543;  FTSE 100 Fut: 6207;  NIKKEI 225 Fut: 22367;  EUR-USD: 1.1241; Crude Oil (WTI): 39.43  Gold (Spot): 1771

Best Regards, ARBIND

30 Jun 2020