Overseas Headlines -June 2, 2020

United States:

U.S. Economy Is Opening Back Up, But the Covid-19 Fallout Will Linger

“The U.S. economy is slowly coming back to life as restrictions on businesses loosen in all 50 states, but the economic fallout of the coronavirus pandemic is far from over. Buoyed by the reopening of businesses across the country, most figures in Bloomberg Economics’s latest weekly dashboard of high-frequency, alternative and market-based data are showing slight but steady improvement from their weakest levels. Those include filings for unemployment benefits, mortgage applications, restaurant bookings and travel by air and public transit. Meanwhile, stocks have rebounded to levels not seen since early March.”



Merkel Lines Up as Much as 100 Billion Euros More Stimulus

“German Chancellor Angela Merkel will seek to broker a compromise Tuesday on a second stimulus package to help Europe’s biggest economy recover from the deep recession caused by the coronavirus. Merkel’s government launched an initial shot of stimulus and guarantees in March to cushion consumers and businesses from the impact of the outbreak. Officials are now focusing on trying to bring the economy back from a contraction expected to exceed 6% this year, the deepest since the aftermath of World War II.”



India Assets Take Moody’s Cut in Stride, Focus on RBI Support

“India’s rupee, sovereign bonds and stocks climbed as investors looked past the cut in the nation’s credit rating by Moody’s Investors Service to the lowest investment grade. The most-traded 6.45% 2029 bond yield was down 5 basis points to 6%, while the rupee gained 0.3% to 75.3562 per dollar. Equities posted their longest winning streak since November amid optimism that the easing of nationwide lockdown will help businesses.”



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