Kaohoon Morning Brief – 22 April 2022

1) Powell says 50bps rate hike in May is appropriate to tackle inflation

The U.S. Federal Reserve Chair Jerome Powell said yesterday that the central bank is committed to bring down inflation currently at 40-year high, while adding that aggressive rate hikes are possible as soon as next month.

“It is appropriate in my view to be moving a little more quickly,” said Powell. “I would say 50 basis points will be on the table for the May meeting.”


2) US jobless claims hold at 1960s low

The number of Americans filing for unemployment benefits dropped by 1,000 for the week ended April 16, compared to the week before that. Initial claims were 184,000 for the week, which was the lowest level since the 1960s, while also slightly above market expectations of 182,000.


3) 17 Chinese listed companies in the U.S. added to delisting list by SEC

Another 17 Chinese listed companies in the U.S. were added into the delisting warning list by the US Securities and Exchange Commission (SEC). This is the fifth time that Chinese listed companies have been added to the list. They have until May  to submit evidence to the SEC that they are not eligible for delisting.


4) Norwegian Sovereign Fund lost $74 billion in 1Q on global volatility

Norway’s $1.3 trillion sovereign wealth fund lost $74 billion in the first quarter of 2022 after Russia’s invasion of Ukraine, Shanghai lockdowns and the rise of inflation that roiled markets.

The Norwegian Sovereign Fund lost 5.2% on stocks and 4.8% on its fixed-income investments. Its unlisted real-estate holdings gained by 4.1%.