1) The tsunami in Japan could impact supply chain in Asia
The tsunami in Japan on Sunday morning caused no major damage after the government ordered nearly 230,000 citizens to evacuate. Mr. Koraphat Vorachet, Capital Nomura Securities’ strategist, stated that the tsunami could have an impact on the supply chain for exports in Asia, but will need to evaluate the situation again.
2) China’s central bank cuts rate by 10bps
The People’s Bank of China (PBOC) on Monday cut the borrowing costs of its medium-term loans to some financial institutions for the first time since April 2020 by 10 basis points from 2.95% to 2.85% to support any economic slowdown. The central bank also lowered the borrowing costs of seven-day repos from 2.20% to 2.10%.
3) Goldman slash U.S. GDP growth amid diminishing stimulus and omicron spread
Goldman Sachs slash the U.S. economic growth forecast for 2022 to 3.4%, citing diminishing expectations for fiscal stimulus and the spread of the omicron variant.
The bank previously estimated a 3.8% growth for the U.S. in 2022, slowing down from 5-6% pace in 2021.
4) 2,700 flights being cancelled in U.S. as winter storm hits East Coast
More than 2,700 flights departing from or within the United States were cancelled on Sunday as a winter storm was poised to hit the U.S. East Coast. According to the National Weather Service, the major winter storm will impact the eastern United States on Sunday into Monday.
