Kaohoon Morning Brief – 24 May 2022

1) Euro soars 3% on Monday as ECB expects first rate hike since 2014

The Euro made a big gain yesterday with a rise as much as 3.4% from its multi-year intraday low of $1.0349 on May 13, while the dollar index fell on Monday. The surge in Euro came after the European Central Bank is expected to lift its deposit rate out of negative territory by the end of September and could raise it further if it sees inflation stabilizing at 2%.

The ECB’s deposit rate is currently -0.5%, meaning banks are charged to park cash at the central bank, and has been below zero since 2014 as the central bank fought too low inflation.


2) Malaysia to halt chicken exports from June

Malaysia will temporarily halt exports of 3.6 million chickens from June 1 for a month and scrap the approved permit requirement for importing wheat until production and prices stabilize, said Prime Minister Ismail Sabri Yaakob.


3) BlackRock cuts views on DM to neutral on risk of Fed’s over tightening policy

BlackRock cuts developed market equities to neutral on a risk of the Federal Reserve’s talking itself into over tightening policy and China adding to a weaker global outlook. The firm changes recommendations on the developed market, bearing on China and sees the EU going into recession.


4) Snap plunges 30% after hours as CEO says company will miss revenue and earnings

The share price of Snap plunged 30% in after hours trading on Monday after CEO Evan Spiegel warned in a note to employees that the company will miss its own targets for revenue and adjusted earnings in the current quarter.

“Today we filed an 8-K, sharing that the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month,” Spiegel wrote. “As a result, while our revenue continues to grow year-over-year, it is growing more slowly than we expected at this time.”