European Economics Preview: Germany Ifo Business Confidence Data Due

Recipes for Memorial Day

By Sam Sifton

Good morning. Here’s Oliver Wendell Holmes Jr. on Memorial Day, from an 1884 address he gave in Keene, N.H., “in the full tide of spring, at the height of the symphony of flowers and love and life.” It’s worth recalling before anyone heads out into a yard or park today to grill with friends, a reminder of the purpose and import of the day.

Overall impact of second pandemic wave on economy not likely to be large, says CEA

On inflation, the Chief Economic Adviser said it is expected to be range-bound and should not exceed the prescribed level.

Chief Economic Adviser K.V. Subramanian on Monday said the overall impact of the second wave of COVID-19 on the country’s economy is not likely to be large but cautioned about an uncertainty surrounding the pandemic going ahead.

He further said that given the circumstances due to the pandemic, it is difficult to forecast if the country would achieve a double digit growth in the current fiscal.

The Economic Survey 2020-21 released in January this year had projected GDP growth of 11% during the current financial year ending March 2022.

Mr. Subramanian said it would be “difficult to predict exact growth number that the country may achieve as the path for pandemic still remains uncertain”.

He, however, said, “The overall economic impact of the second wave is not likely to be large.” Going forward, fiscal and monetary support will be important for economy, the CEA added.

Observing that there is a need to enhance pace of vaccination, Mr. Subramanian said it would help in lowering likelihood of another COVID-19 wave.

On inflation, he said it is expected to be range-bound and should not exceed the prescribed level.

The CEA further said that food grains production is projected to be at record levels this fiscal amid expectation of normal monsoon.

Biden commemorates war dead at Arlington National Cemetery

ARLINGTON, Va. — President Joe Biden honored America’s war dead at Arlington National Cemetery on Memorial Day by laying a wreath at the hallowed burial ground.

The president was joined on Monday by first lady Jill Biden, Vice President Kamala Harris and second gentleman Doug Emhoff in a somber ceremony at the Virginia cemetery’s Tomb of the Unknown Soldier, which is dedicated to the fallen U.S. service members whose remains have not been identified.

After approaching the wreath, Biden bowed his head before the wreath and made the sign of the cross. Later, he delivered a Memorial Day address and called on Americans to honor their fallen heroes by remembering their sacrifices.

“All those we honor today gave their lives for the country, but they live forever in our hearts,” he said.

On Sunday, Biden addressed a crowd of Gold Star military families and other veterans in a ceremony at War Memorial Plaza in New Castle, Delaware. Earlier in the day, he and other family members attended a memorial Mass for his son Beau Biden, a veteran who died of brain cancer six years ago to the day.

Last year, Biden, then a presidential candidate, chose Memorial Day to make his first public appearance in the two months after the coronavirus pandemic closed down the nation.

April core sector output jumps 56.1%, base buoys

Cement, steel hint at lockdown impact

The output of eight core sectors jumped by 56.1% in April mainly due to a low base effect and uptick in production of natural gas, refinery products, steel, cement and electricity, official data showed on Monday.

The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity had contracted by 37.9% in April 2020 due to the national COVID-19 lockdown.

Production of natural gas, refinery products, steel, cement and electricity jumped by 25%, 30.9%, 400%, 548.8% and 38.7% in April, as against (-) 19.9%, (-) 24.2%, (-) 82.8%, (-) 85.2% and (-) 22.9% in April 2020.

“The improvement was fairly broad-based, with an expected spike in the growth of cement and steel production, although both lagged our projections suggesting some impact of the regional lockdowns on activity,” said ICRA Chief Economist Aditi Nayar.

King’s Command Recalls Meat And Poultry Meatballs And Pork Pattie Products

Kent, Washington-based King’s Command Foods LLC., has announced a recall of about 20,025 pounds of meat and poultry meat balls and pork patties due to misbranding and undeclared allergens.

According to the company, the recalled product contains egg, milk, and/or wheat, known allergens, which is not declared on the product label.

The fully cooked, not shelf stable meat and poultry items were produced January 08, 2021, January 15, 2021, and March 03, 2021. The full list of the recalled products is available on the U.S. Department of Agriculture’s Food Safety and Inspection Service’s website.

These items were distributed for food service use in California, Idaho, Illinois, Minnesota, Missouri, North Carolina, Oregon, Texas, Virginia, and Washington.

The issue was found when the company determined that allergen-containing ingredients may have been mixed with the recalled products that do not normally contain the identified allergens.

There have been no confirmed reports of adverse reactions due to consumption of these products.

European Economics Preview: Germany Ifo Business Confidence Data Due

Business confidence and revised GDP from Germany are due on Tuesday, headlining a light day for the European economic news.

At 2.00 am ET, Destatis is scheduled to issue Germany’s revised GDP data for the first quarter. According to preliminary estimate, gross domestic product fell 1.7 percent sequentially, in contrast to the 0.5 percent growth seen in the fourth quarter.

Also, April public sector finance data is due from the UK.

At 3.00 am ET, Spain’s producer price data is due. In the meantime, industrial production from Austria and manufacturing sentiment from Turkey are due.

Half an hour later, Statistics Sweden is slated to release producer prices for April.

At 4.00 am ET, Germany’s ifo business confidence survey data is due. Economists forecast the business confidence index to rise to 98.2 in May from 96.8 in April.

At 6.00 am ET, the Confederation of British Industry is set to issue UK Distributive Trades survey results for May. The retail sales balance is seen rising to 30 percent in May from 20 percent in April.

At 8.00 am ET, Hungary’s central bank announces its interest rate decision. The bank is seen holding the rate at 0.60 percent.