- At opening of BRICS conference, President Xi says “We will step up macroeconomic policy adjustment, and adopt more forceful measures to deliver the economic and social development goals for the whole year and minimize the impact of COVID-19”.
- Germany fears Russia to cut off replacement gas during regular summer maintenance period for Nord Stream I.
- Zuckerberg envisages a billion people in the Metaverse.
- American Airlines to stop flying to four cities due to pilot shortage.
- Amazon demonstrates Alexa using voice of deceased relative.
- Singapore headline inflation 5.6% against expected 5.0%.
- Myanmar blocks luxury good imports.
- Singapore Chief FinTech Officer warns of “brutal and unrelentingly hard” response to “market bad behaviour” in cryptocurrencies.
US stock markets trod water while Asian markets were mixed. Today brings PMIs, the Norges Bank, Powell switching to the House and Boris’ next electoral test, the two key by-elections. One red wall and one blue-ish wall seat both look to be lost, but until the PM faces a Cabinet challenger he will cling on to his position.
1. The Fed
Powell got tough with the markets last week but this week he faces his toughest audience – Congress. With the mid-term elections less than six months away, the politicians will be challenging him over how the economy can hope to avoid a hard landing now that interest rates are climbing at the same time as inflation. This is why the third sentence of Powell’s opening statement was “We at the Fed understand the hardship high inflation is causing”. Expect more of this when he is interrogated by the Senate on Wednesday and . . .
On this day in 1926 the first SAT exam was administered by the College Board.