MACRO ECONOMIC NEWS

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Macro Economic News 03 Jul 2020

 

The employment report, based on survey data largely collected in mid-June, doesn’t reflect recent government-mandated business closures and related layoffs as the U.S. unemployment rate fell to 11.1% in June. The two industries that suffered the most job loss because of the coronavirus pandemic and related shutdowns—hospitality and retail—saw the strongest gains the last two months as the U.S. economic engine restarted. According to projections released by the Congressional Budget Office, the jobless rate is expected to remain in double-digits through the end of the year, and the economy will shrink an estimated 5.9%. Trade between the U.S. and the rest of the world slowed further in a sign of the continuing toll that the pandemic was taking on the global economy. Unemployment in Europe rose only slightly in May, a testament to the success of government programs that pay the wages of workers put on furlough by their employers.

Nitin Gadkari says that India needs Rs 50-60 lakh cr foreign investments to bolster coronavirus-hit economy while Care Ratings forecasts India's GDP may contract by 6.4% in FY21 whereas rating firms seek to withdraw nearly half of India debt ratings. RBI asks banks to reclassify MSMEs as per revised criteria while bank credit grows 6.18% to Rs 102.5 trn, deposits up 11%.

 

FINANCIAL TIMES

[I]  Delistings threaten to spoil Singapore exchange’s challenge to HK

[I]  US jobless rate dropped to 11% in June before virus spike

[I]  Businesses in Hong Kong fear collateral damage from security law

[I]  Australia plans to offer a haven for Hong Kong residents

[I]  Data point to soaring US gun sales in June

[I]  Slowdown in EU job losses defies economists’ predictions

[I]  Irish finance minister urges EU not to give up on global tax talks

[I]  Merkel urges swift agreement on EU coronavirus recovery plan

 

REUTERS

[I]  Japan will not revive state of emergency as Tokyo COVID-19 cases rise

[I]  Asian shares hit four-month high as U.S., China recoveries gather pace 

[I]  German watchdog chief calls Wirecard scandal a 'massive criminal act'

[I]  U.S. job growth roars back, but COVID-19 resurgence threatens recovery

[I]  Gap in U.S. Black and white unemployment rates is widest in five years

 

BLOOMBERG 

[I]  OPEC Cuts Output to Lowest Since 1991 as Virus Slams Oil Demand

[I]  Currency Is Key in Contest Between Asia’s High-Yielding Bonds

[I]  China v U.S., India’s Bright Spot, Job Growth Optimism: Eco Day

[I]  China Buys More U.S. Corn and Cotton But Still Lags Deal Pledge

[I]  Chaos in Gold Markets Ripples to Other Precious Metals

[I]  World’s Fifth-Largest Reserves Buffer Gives India Some Comfort

[I]  German Parliament Backs ECB Bond-Buying After Court Standoff

 

WALL STREET JOURNAL

[I]  U.S. Unemployment Rate Fell to 11.1% in June

[I]  Businesses Hit Hard by Coronavirus Claw Back Jobs

[I]  CBO Sees Double-Digit Jobless Rate Through 2020, GDP to Shrink 5.9%

[I]  U.S. Trade Deficit Widened in May

[I]  Treasury Reaches Loan Agreements With Five Major Airlines

[I]  Europe Avoids Jobless Surge as Furlough Schemes Cushion Economic Decline

 

BUSINESS LINE

[I]  Insolvency regulator IBBI expands role of insolvency professional entities

[I]  India’s trade deficit with China reduces to $48.66 bn in FY’20

[I]  India discussing H-1B visa suspension with US: MEA

[I]  FCI’s burden to reduce with additional grains given out through PMGKAY

[I]  No GST on salary paid to expats working in Indian project

 

ECONOMIC TIMES

[I]  India has many data security time bombs to defuse

[I]  India needs Rs 50-60 lakh cr foreign investments to bolster coronavirus-hit economy: Nitin Gadkari

[I]  India's GDP may contract by 6.4% in FY21: Care Ratings

[I]  Rating firms seek to withdraw nearly half of India debt ratings

[I]  RBI asks banks to reclassify MSMEs as per revised criteria

 

BUSINESS STANDARD

[I]  PE-VC fundraising plunges 94% in Q1: outlook for second half remains bleak

[I]  Garib Kalyan Yojana to clear FCI's bulging stocks, but may hurt finances

[I]  Covid policy response: Rural spending skyrockets, defence bears the brunt

[I]  Bank credit grows 6.18% to Rs 102.5 trn, deposits up 11%: RBI data

[I]  India's first private train to be on track by April 2023: Indian Railways

[I]  IMD predicts heavy rainfall in Mumbai, issues orange alert for next 2 days

 

MARKETS (09:30 am)

[I]  SGX NIFTY Fut: 10580;  USDINR DGCX: 74.9175;  DJIA Mini: 25739;  FTSE 100 Fut: 6203;  NIKKEI 225 Fut: 22212;  EUR-USD: 1.1238; Crude Oil (WTI): 40.33  Gold (Spot): 1775

 

Best Regards, ARBIND

03 Jul 2020