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On June 18th, local time, 36 satellites belonging to Amazons Low Earth Orbit (LEO) satellite program were successfully launched from the Kourou Space Centre in French Guiana on the morning of June 17th. Approximately two hours later, all satellites were successfully deployed into their designated orbits. The launch was carried out by a European Ariane 6 launch vehicle. According to the contract, the Ariane 6 will carry out 18 launches to deploy the Amazon LEO satellites; this was the third launch.On June 18th, OCBC Group Research analysts stated in a report that the Central Bank of Indonesia and the Central Bank of the Philippines are likely to raise interest rates by 25 basis points each later on Thursday. The Federal Reserves decision to maintain interest rates likely indicates that these Southeast Asian central banks believe short-term capital flow volatility will persist, and in this context, their policy decisions will remain primarily driven by inflation and macroeconomic stability factors. OCBC noted that the expected rate hike by the Central Bank of Indonesia will be consistent with its policy objective of preventing further deterioration of market sentiment.On June 18th, Federal Reserve officials hinted on Wednesday that they may soon need to raise interest rates rather than cut them, a sharp shift in thinking against the backdrop of rapidly rising inflation. Krishna Guha, an analyst at Evercore ISI, said that the decline in energy prices could provide some relief in the coming months. However, he warned that the interest rate outlook has decoupled from oil prices, suggesting a deeper uncertainty about whether underlying inflation will cool enough that the Fed will not ultimately have to raise rates. Guha stated that in addition to energy, two other pressures remain: the continued transmission effects of tariffs and the cost spillover from the investment boom in artificial intelligence infrastructure. Claudia Sam, chief economist at New Century Advisors and a former Fed economist, said that she has not yet seen the conditions that would typically prompt the Fed to respond to supply-driven inflation—an overheated labor market or a loss of anchor in inflation expectations. But she acknowledged that the case for action is accumulating. “I can understand the view that the Fed should be prepared to intervene and raise rates if things worsen,” she said. The Fed may act faster than it did during the pandemic when inflation surged because “they are already having this debate.”According to TASS, the local mayor said that drones attacked a Moscow oil refinery.On June 18th, at the opening of the 2026 Hong Kong Auto Show, Geely Remote New Energy Commercial Vehicle and Cao Cao Mobility (02643.HK) reached a strategic cooperation agreement to jointly promote the large-scale deployment of Robovans. According to the plan, by 2030, the two companies will have deployed a total of 100,000 Geely Remote Robovan Prodigy T6 vehicles. Guided by the "One Geely" strategy, the two companies will accelerate the construction of an intelligent logistics network for the AI era through deep collaboration in the operation of new energy commercial vehicles and logistics scenarios, jointly creating a comprehensive green and intelligent transportation new energy ecosystem solution.

US Inflation Cools to 8.3% but Eases Less than Forecast, Nasdaq 100 Sinks as Yields Rise

Cory Russell

May 12, 2022 10:40

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Inflation in the United States decreased in annual terms last month, but remained at multi-decade highs and more than four times the Federal Reserve's 2 percent goal, according to Labor Department statistics published on Wednesday.


According to the latest report from the agency, the consumer price index increased 0.3 percent in April after rising 1.2 percent in March, bringing the 12-month reading to 8.3 percent from 8.5 percent, indicating that inflationary pressures reached their peak at the end of the first quarter but are still struggling to cool materially. CPI was expected to grow 0.2 percent month over month and 8.1 percent year over year, according to analysts polled by Bloomberg News.


When looking at the monthly drivers of the headline statistic, food costs increased by 0.9 percent, keeping pace with previous rises in this category. Meanwhile, energy expenses declined by 2.7 percent after rising by 11% in March due to rising oil prices after Russia's invasion of Ukraine. This is a good sign since it means the worst of the commodities market shock may have passed.


Excluding food and energy, the core CPI rose 0.6 percent on a seasonally adjusted basis and 6.2 percent year over year, reducing transient noise and reflecting longer-term economic trends. The decrease in the annual number, which fell from 6.5 percent, tends to support the hypothesis that the core gauge peaked in March as well.

 

The shelter index gained 0.5 percent in monthly contributions for the core indicator, mirroring the previous two months' growth, despite a tight rental market. Meanwhile, transportation increased by 3.1 percent, indicating a shift in household demand toward service spending. Used automobiles and trucks, on the other hand, continued to tumble, down 0.4 percent after losing 3.8 percent in March due to cooling demand and lowering durable-goods prices.


With inflation decreasing but not falling much, it's unclear if we've hit the apex of central bank policy hawkishness. In this environment, yields may continue to rise on anticipation of a more aggressive tightening reaction. This scenario might heighten worries that the Fed's rate hikes would lead to a recession, depressing confidence and hindering the stock market's rebound.


U.S. Treasury rates surged immediately after the CPI statistics were released, causing the Nasdaq 100 futures to lose all of their pre-market gains and fall more than 1% into negative territory. Officials from the Federal Reserve have said that they support interest rate rises in half-percentage-point increments, but have shown little taste for greater changes. At the face of persistent inflation, the bank may opt for large 75-basis-point rises in upcoming sessions in order to get monetary policy closer to neutral sooner. Stocks are at danger as a result of this.

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