1) US producer price rose 10% YoY
Producer price index (PPI) for final demand has increased by 10% on an annual basis and 0.8% on a monthly count, according to data by the Labor Department. The January figure was revised upward by 1.2% on a monthly count. The rise in producer price is another sign, indicating that inflationary pressures remain intense at all levels of the economy.
2) Kyiv announces a 35-hour curfew
Kyiv announced a 35-hour curfew after several missile strikes by the Russian forces hitting buildings in the city.
Ukraine reported yesterday that Russian shells had hit apartment buildings in Kyiv and have claimed the lives of two people, according to reports from the city’s mayor and the emergency service on Tuesday.
Czech, Polish, Slovenian leaders were heading to Kyiv to show support and meet with Ukrainian leaders.
3) China Dongguan city enters a lockdown protocol
Covid-19 cases in China rose to a two-year high on Monday, the highest level since the easing lockdown in 2020. Yesterday, Dongguan city in the southern province of Guangdong locked down its residential areas and ordered employees of local businesses to work from home amid rising Covid-19 cases, while permitting only necessary activities such as buying groceries and taking Covid tests.
4) BofA expects Fed to hike rate by 25bps and trim growth due to geopolitical risks
The Bank of America expected a 25bps rate hike from the Federal Reserve this week. BofA updated its Summary of Economic Projections which will likely show inflation to remain higher for longer and hikes of 100-125bps in each of 2022 and 2023.
In addition, BofA stated that the Fed may also trim growth because of geopolitical risks.