Overseas Headlines – July 3, 2020

United States:

Fed Mulls Explicit Forward Guidance, Stays Wary of Yield Targets

“Federal Reserve officials showed no readiness at their June meeting to commit to yield-curve control, but did reveal an eagerness to provide more guidance in coming months on the future path of interest rates and asset purchases. “Many participants remarked that, as long as the committee’s forward guidance remained credible on its own, it was not clear that there would be a need for the committee to reinforce its forward guidance with the adoption of a YCT policy,” minutes published Wednesday of the June 9-10 Federal Open Market Committee meeting showed.”



Europe Extends Key Crisis Aid to Avoid Economic Calamity

“European governments are fast learning that they’ll have to live with aid programs to save jobs and businesses longer than thought to keep the economy from falling off a cliff. Across the continent, furlough programs that shielded close to 50 million jobs at the height of lockdowns, as well as tax deferrals and loan moratoriums, are being extended even as restrictions on movement are lifted. That’s because the sustainability of the economic bounce back is uncertain, with many businesses still closed or serving fewer customers than before.”



India Seeks to Halt $2.8 Billion of Power Gear Import From China

“India will stop power equipment imports from China, power minister Raj Kumar Singh said, amid simmering border tensions between the two neighbors. The South Asian nation has the capability to manufacture all kinds of electricity equipment, Singh said at a meeting with energy officials of states, encouraging them to promote local procurement. China accounted for 210 billion rupees ($2.8 billion) of the total 710 billion rupees of equipment for non-renewable power projects imported in the year ended March 2019, according to Singh. Shares of state-run Bharat Heavy ELectricals Ltd., the country’s largest power-equipment maker, surged as much as 5.3% after Singh’s comments.”




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