MODI AND MAMATA SURVEY THE DAMAGE

Prime Minister Narendra Modi on Friday flew down to Kolkata to take stock of

the situation in large swathes of West Bengal that were decimated by cyclone

'Amphan' and announced an advance assistance of Rs 1,000 crore for

restoration work, as the death toll due to the natural calamity mounted to

80.

Modi along with Chief Minister Mamata Banerjee and Governor Jagdeep Dhankhar

conducted an aerial survey of the cyclone-ravaged areas earlier in the day

and held a review meeting.

Prior to the meeting, Banerjee demanded that 'Amphan' be declared a national

disaster. She said the state had suffered losses to the tune of Rs 1 lakh

crore in the fiercest cyclone to hit the state in over 100 years.

"The prime minister has announced Rs 1,000 crore emergency fund... what is

the package I do not know. I have told him that we will give him the

details. It will take some time to assess the overall situation, but the

damage is worth more than Rs 1 lakh crore," she said. Banerjee said she

reminded the PM about Rs 53,000 crore the central government owed to the

state for various social security schemes.

The PM also announced an ex gratia of Rs 2 lakh each for families of the

deceased and Rs 50,000 for the injured.

Appreciating Banerjee's efforts in galvanising the state administration to

deal with the natural disaster amid the COVID-19 pandemic, Modi said the

whole country stands with West Bengal.

Meanwhile, eight more bodies were recovered from different parts of the

state since Thursday evening, raising the death toll to 80, officials said.

The number of fatalities is likely to go up as many places are still

inaccesible due to the devastation unleashed by the cyclone, officials said.

Large-scale damage to infrastructure, public and private property was

reported from North and South 24 Parganas, East and West Midnapore, Kolkata,

Howrah and Hooghly districts.

SPIRIT OF FEDERALISM 'FORGOTTEN': SONIA GANDHI AT OPPN MEET

Addressing a meeting of 22 opposition parties to discuss the situation

arising out of Covid-19 pandemic, Congress president Sonia Gandhi came down

heavily on the government and accused it of functioning unilaterally.

Stating that "the spirit of federalism, which is an integral part of our

Constitution, is all but forgotten", Gandhi said there is no indication

either as regards whether Parliament or its standing committees will be

summoned to meet to discuss the situation.

She also underlined that it is the duty of the opposition to offer

constructive criticism and suggestions. "It is in that spirit that this

meeting has been convened," she said, requesting the opposition leaders to

come forth with their considered views.

She alleged that the government has embarked on a "wild adventure" of

so-called reforms, including "a grand clearance sale of PSUs" and repeal of

labour laws. "We deplore these unilateral moves," she said.

Following the meeting, the opposition parties, in a joint statement, put

forth 11-point demand charter before the central government.

Direct cash transfer of Rs 7,500 per month to all families, outside the

income tax bracket, for six months.

Free distribution of 10 kg food grains to all needy individuals, each month

for the next six months. Increase the number of MGNREGA work days to 200.

Free transportation for all migrant workers to their native places.

Provide accurate and relevant information on Covid-19 infections and

goalposts vis-a-vis testing, infrastructure and containing spread.

Reverse all unilateral policy decisions particularly the annulment of labour

laws.

Procure immediately the rabi harvest at the MSP and provide assistance for

the produce to reach the market.

Release substantial funds to the state governments who are in the frontline

of combating the pandemic

Communicate in clear terms, the central government's exit strategy from the

lockdown, if any.

Restore Parliamentary functioning and oversight with immediate effect.

Present a clear and meaningful economic strategy focused on revival and

poverty alleviation instead of propaganda.

Consult state governments while allowing international/domestic flights

The leaders of 22 opposition parties, including West Bengal Chief Minister

and TMC supremo Mamata Banerjee, Maharashtra Chief Minister and Shiv Sena

chief Uddhav Thackeray, Jharkhand Chief Minister and JMM leader Hemant

Soren, NCP supremo Sharad Pawar, DMK leader M K Stalin and JD(S) leader HD

Deve Gowda, besides CPI-M's Sitaram Yechury and CPI's D Raja participated in

the meeting. Leaders of some other regional parties such as Sharad Yadav

(LJD), Omar Abdullah (NC), Tejashwi Yadav (RJD), Jitan Ram Manjhi (HAM),

Upendra Kushwaha (RLSP), Jose K Mani (KC-M), Badruddin Ajmal (AIUDF), Jayant

Chaudhary (RLD) and Raju Shetty (Swabhimani Paksha) also participated.

RBI FORECASTS ECONOMIC CONTRACTION, ANNOUNCES A SHARP 40-BP RATE CUT

Projecting a contraction in growth for the current fiscal year, the RBI on

Friday went for a further cut of 40 basis points in the policy repo rate

even as it warned that inflation, particularly in food, is on the rise

again.

The repo rate is the rate at which banks borrow from the RBI.

Das noted the MPC ( the six-member monetary policy committee ) had not

initially anticipated the impact of the pandemic to be as severe. And so,

judging that the risks to growth were acute while those to inflation were

likely to be short-lived, the MPC felt it was essential now to "instill

confidence and ease financial conditions further", in order to "facilitate

the flow of funds at affordable rates and rekindle investment impulses", Das

said.

The combined impact of demand compression and supply disruption will depress

economic activity in the first half of the year, Das said, adding that even

if economic activity got restored in a phased manner in the second half,

recovery would be gradual. "Given all these uncertainties, GDP growth in

2020-21 is estimated to remain in negative territory," Das said.

COVID-19 DASHBOARD - (Nos. IN INDIA / Nos. WORLDWIDE)

(Indian data from covid19india / and World Data from

worldometers.info/coronavirus/ )

Total Cases 1,24,787 (+6,568) / 53,04,340 (+1,10,130)

Total Deaths 3,726 (+142) / 3,40,004 (+5,383)

Total Recovered 51,824 (+3,271) / 21,58,569 (+77,603)

Active Cases 69,237 (+3,155) / 28,05,767 (+27,144)

Serious / Critical Cases (Not Available) / 44,582 (-1,038)

Top impacted nations so far: (And some of India's Neighbours)

Country / Total Cases / Deaths / Total Deaths per 1M Pop.

1 USA 16,45,094 / 97,647 / 295

2 Brazil 3,32,382 / 21,116 / 99

3 Russia 3,26,448 / 3,249 / 22

4 Spain 2,81,904 / 28,628 / 612

5 UK 2,54,195 / 36,393 / 536

6 Italy 2,28,658 / 32,616 / 539

7 France 1,82,219 / 28,289 / 433

8 Germany 1,79,713 / 8,352 /

100

9 Turkey 1,54,500 / 4,276 / 51

10 Iran 1,31,652 / 7,300 / 87

11 India 1,25,101 / 3,726 / 2.8

19 Pakistan 50,694 / 1,067 / 5.0

27 Bangladesh 30,205 / 432 / 2.7

102 Sri Lanka 1,068 / 9 / 0.4

Top 17 impacted Indian States so far: (Total No. of Confirmed case / No. Of

Deaths)

State / Confirmed Cases / Active Case / Recovered /

Deceased

Maharashtra 44,582 / 30,482 / 12,583 /

1,517

Tamil Nadu 14,753 / 7,526 / 7,128 /

99

Gujarat 13,273 / 6,591 / 5,880 / 802

Delhi 12,319 / 6,214 / 5,897 / 208

Rajasthan 6,494 / 2,661 / 3,680 /

153

Madhya Pradesh 6,170 / 2,809 / 3,089

/ 272

Uttar Pradesh 5,735 / 2,259 / 3,324 /

152

West Bengal 3,332 / 1,846 / 1,221 /

265

Andhra Pradesh 2,667 / 881 / 1,731

/ 55

Bihar 2,166 / 1,526 / 629 / 11

Punjab 2,029 / 143 / 1,847 / 39

Telangana 1,761 / 670 / 1,043 /

48

Karnataka 1,743 / 1,104 / 597 /

41

Jammu and Kashmir 1,489 / 749 / 720 /

20

Odisha 1,189 / 746 / 436 / 7

Haryana 1,067 / 345 / 706 /

16

Kerala 733 / 216 / 512 / 5

INTERNATIONAL AFFAIRS

======================

PASSENGER AIRCRAFT CRASHES IN KARACHI'S RESIDENTIAL AREA

Several people were feared dead after a Pakistan International Airlines

(PIA) carrying 90 passengers and eight crew members crashed in a residential

area near the Karachi Airport on Friday, Dawn reported. Two persons have

reportedly survived the crash.

The flight PK 8303 from Lahore was about to land in Karachi when it crashed

at the Jinnah Garden area near Model Colony, Dawn reported. According to PIA

chief executive officer Arshad Malik, the pilot had informed the control

room of facing a technical issue and then decided to go around rather than

land even though two runways were ready for landing.

Expressing shock over the incident, Pakistan Prime Minister Imran Khan said

rescue and relief teams were on the ground and an immediate inquiry would be

instituted. He also gave his condolences to the families of the deceased.

Indian Prime Minister Narendra Modi also offered his condolences to the

bereaved families of the deceased and wished a speedy recovery to those

injured.

Footage shared on social media shows smoke billowing from the site of the

crash. Ambulances and rescue officials have been pressed into service to

help residents. According to reports, several houses and cars have been

damaged in the area where the aircraft crashed. Videos from the crash site,

as per Dawn, showed bodies buried underneath rubble and residents gathering

in streets littered with debris.

CHINA MEASURE A 'DEATH KNELL' FOR HONG KONG AUTONOMY, SAYS POMPEO

Secretary of State Mike Pompeo on Friday condemned China's effort to take

over national security legislation in Hong Kong, calling it "a death knell

for the high degree of autonomy" that Beijing had promised the territory,

under a decades-old agreement known as the Sino-British Joint Declaration.

Pompeo called for Beiing to reconsider the move and warned of an unspecified

US response if it proceeds. Meanwhile, White House economic adviser Kevin

Hassett said China risked a major flight of capital from Hong Kong that

would end the territory's status as the financial hub of Asia. Shortly

afterward, the Commerce Department announced new restrictions on sensitive

exports to China.

Pompeo called the proposal an effort to "unilaterally and arbitrarily impose

national security legislation on Hong Kong."

UN EXPERT CALLS MOVE TO FORGIVE KHASHOGGI KILLERS CALLED A 'PARODY'

The decision of Jamal Khashoggi's family to forgive Saudis accused of his

murder was described as both shocking and anticipated by a United Nations

investigator who has said the former columnist was the victim of a "state

killing."

Khashoggi's family announced on Friday that they forgave the killers, a

decision likely to result in a legal reprieve to the five men sentenced to

death for the operation. "We, the sons of the martyr Jamal Khashoggi,

announce that we forgive those who killed our father as we hope and seek

reward from God Almighty," Salah Khashoggi, one of the writer's sons, wrote

on Twitter.

"All of us who, over the last 20 months, have reported on the gruesome

execution of Jamal Khashoggi, and absence of accountability for his killing,

expected this," Agnes Callamard, an expert on extrajudicial executions at

the office of the UN High Commissioner for Human Rights, said in a statement

Friday. "The Saudi authorities are playing out what they hope will be the

final act in their well-rehearsed parody of justice in front of an

international community far too ready to be deceived."

THE REST

========

INDIA AVERTED 29 LAKH CASES, 78,000 DEATHS WITH FIRST TWO LOCKDOWNS: GOVT

The Union Government, on Friday, said lockdowns were the right way forward

towards COVID-19 management and claimed that India had averted up to 29 lakh

cases and 78,000 deaths due to the first two spells of the lockdown, that

ended on May 15.

Sharing the details of mathematical modelling studies, which the Ministry of

Health ordered to assess the public health impact of lockdown one and two,

NITI Ayog Member Health VK Paul, on Friday, said: "Broad ranges covering the

estimates of lockdown impact by multiple models we got done show that we

averted 14 to 29 lakh cases and 37,000 to 78,000 deaths."

The government shared the average prediction of five sets of modelling it

commissioned to understand if the lockdowns helped. The assessment covered

the period until May 15.

CDC UPDATES CORONAVIRUS TRANSMISSION GUIDELINES

As we're learning more about COVID-19 and how it's spread, the CDC is

updating its guidelines now saying the virus "does not spread easily" by

touching surfaces or objects.

An important revision and reminder of how health officials say the virus is

mainly spread person to person. "The evidence is overwhelming, the most

important way this virus is transmitted is through droplets that come from

an infected person's nose and mouth," said UC Berkeley Clinical Professor

John Swartzberg.

He adds the Center for Disease Control has always warned it may be

"possible" to become infected with coronavirus by touching contaminated

surfaces but the science to back that up is incomplete.

"They're saying there's not a lot of evidence about hand transmission," said

Swartzberg. "We just don't know enough at this point."

ICMR FINDS HCQ EFFECTIVE IN PREVENTING CORONAVIRUS; ANOTHER STUDY SAYS NO

BENEFIT FOR COVID PATIENTS

The Indian Council of Medical Research (ICMR), the country's apex body in

the field, has found that consuming the drug hydroxychloroquine reduces the

chances of getting infected with Covid-19.

As a result, ICMR released an advisory Friday to expand the usage of HCQ -

an anti-malarial drug - as a preventive treatment against the novel

coronavirus.

The conclusion has been drawn on the basis of three studies conducted by the

ICMR.

The advisory suggests surveillance workers, paramilitary and police

personnel, as well as medical staff working in non-Covid hospitals and

blocks to start consuming the pill as "preventive therapy".

ICMR had issued an advisory to begin using HCQ in March, but it had drawn

criticism for lacking scientific evidence that the drug works against the

novel coronavirus.

Meanwhile, according to a large observational study, treatment for Covid-19

with hydroxychloroquine, either with or without the antibiotic azithromycin,

offers no benefit for Covid-19 patients, The research, published in the

journal The Lancet, analysed data from nearly 15,000 patients with Covid-19

who received chloroquine or its analogue hydroxychloroquine, taken with or

without the antibiotics azithromycin or clarithromycin, and 81,000 controls.

According to the researchers, including Mandeep Mehra from Brigham and

Women's Hospital in the US, Covid-19 patients on these drug regimens,

experienced an increased risk of serious heart rhythm complications. The

scientists said these drugs should not be used to treat Covid-19 patients

outside of clinical trials until results from randomised clinical trials are

available to confirm their safety and efficacy for Covid-19 patients.

SOME STATES ALLOW HOME DELIVERY OF LIQUOR

The Brihanmumbai Municipal Corporation (BMC) Friday allowed home delivery of

liquor in Mumbai, except in containment zones. The civic body, however, said

over-the-counter sale of liquor will not be allowed. This comes a week after

the Maharashtra government allowed liquor to be home delivered in the state

barring certain districts in Mumbai, Aurangabad and Beed.

As liquor shops witnessed long queues following the Union government's nod

to open the vends, a number of states - Jharkhand, Ounjab, Chhattisgarh,

West Bengal - decided to allow home delivery of liquor in order to avoid

crowding and ensure required social distancing amid Covid-19 pandemic. The

Supreme Court had also asked the states to explore the option of online sale

or home delivery of liquor to avoid crowding at the vends.

UK COURT ORDERS ANIL AMBANI TO PAY $717MILLION TO CHINESE BANKS

A UK court, on Friday, directed Reliance Group chairman Anil Ambani to pay

nearly $717 million to three Chinese banks pursuing the recovery of funds

owed to them as part of a loan agreement within 21 days.

At a remotely held hearing, in line with procedures in place for the

COVID-19 pandemic, Justice Nigel Teare ruled at the Commercial Division of

the High Court of England and Wales, London, that a personal guarantee

disputed by Ambani is binding on him.

"It is declared that the Guarantee is binding on the Defendant (Ambani),"

Justice Teare's order notes.

The banks - Industrial and Commercial Bank of China Limited, Mumbai branch;

China Development Bank, and Exim Bank of China - had taken their claim for a

summary judgment to the UK High Court and in February were granted a

conditional order, in effect a deposit to be paid into court pending a full

trial in the case.

According to the court order, the nearly $717 million to be paid by Ambani

comprises the principal amount outstanding under the Facility Agreement of

$550 million plus interest.

RBI EXTENDS EMI MORATORIUM FOR ANOTHER THREE MONTHS ON TERM LOANS

The extension of three-month moratorium on repayment of term loans by

borrowers means that they would not have to pay the loan EMI instalments

during the moratorium period.

The extension will provide relief to many individuals, especially the

self-employed, as they would have found it difficult to service their loans

such as car loans, home loans etc. due to loss of income during the lockdown

period from March 25, 2020. Missing an EMI payment would otherwise mean

risking adverse action by banks which can adversely impact one's credit

score.

The RBI has further clarified that such treatment will not lead to changes

in the terms and conditions of the loan agreements which is same as

announced in the previous moratorium period.

As per the policy statement, "As the moratorium/deferment is being provided

specifically to enable borrowers to tide over COVID-19 disruptions, the same

will not be treated as changes in terms and conditions of loan agreements

due to financial difficulty of the borrowers and, consequently, will not

result in asset classification downgrade.

INDICATORS

Sensex 30,673 (-260), Nifty 9,039 (-67), Trading Value NSE ,(Rs.crores)

48,925

Nasdaq 9,325 (+40) Dow 24,465 (-9), S&P 2,955 (+7)

US$-Rs. 75.27 GBP-Rs. 91.73, Euro-Rs. 82.12, UAE Dhm-Rs.20.49, Can$-Rs.

53.74, Aus$- Rs. 49.18

GBP 0.82 /US$, Euro 0.91 /US$, Jap.Yen 107.53 /US$, Aus$ 1.53 /US$, Sing

1.42 /US$, Bang Taka 83.38 /US$, Can$ 1.40 /US$, Mal Ring 4.35 /US$,

Pak Re 160.44 /US$, Phil Peso 50.75 /US$, Russian Rouble 71.48 /US$, NZ$

1.63 /US$, Thai Baht 31.85 /US$, Ukraine Hryvnia 26.51 /US$, Norway NOK

10.01 /US$

Bitcoin - USD 9,284

Dollar Index 99.80 Brent Crude 35.13 BDI 498

Gold world Spot Price USD/aoz 1,735 India (Rs. per gm 24k/22k) 4,725 / 4,625

Silver (Rs. Per KG) 48,250

THOUGHT FOR THE DAY

He who is too busy doing good, finds no time to be good. - Rabindranath

Tagore

OFF TRACK

A man gets upset when he sees his son busy stitching a button to the

trousers.

He says: "Son I got you married, now you have a wife for such things, I

can't believe that you still have to stitch a button on your pants".

The son replies, a tad sheepishly: "No dad, it's her pants"