Daily commentary-2022.5.26

1.Covid:
There are news that Haikou city eased itscovid policy that no covid test result needed anymore to get-in or out airport. Also airlines are talking about open more international flights. These a sign of easing potential easing covid policy in China. By the way, total new covid cases no. continue to dropas figure below.

2.Monkeypox:
Governments continue to prepare for potential outbreak of Monkeypox.

3.Russia and Ukraine:
Russia continues with their military action in Ukraine with little progress. Ukraine said they will never give up their home land. Russian flush attack turned into a long term war and this war will cost Russia more than their expectation. 

4.Food crisis:
As fertilizer prices continue to climb,food shortage will continue to get serious in 2022. Russia is considering to allow Ukraine export grains exchange forlift santions on Russia.

5.Climate changes:
It estimated this years summer may be hotter than last year. This mean more electricity usage and less food production.

6.China economy:
Even with more than massive attendances vido conference call Chinese gov held yesterday, stock market didn't react much today. Market is waiting for clear instruction and actions from government.

JP Morgan estimated 2Q Chinese GDP would be -5.4% mom, or about 1.46 trillion RMB GDP lose from last quarter. This will make 2022 full year Chinese GDP around 3.7%. This would be the second lowest since 1990.