The coronation ceremony of King Charles III of Great Britain will take place on May 6 next year, Buckingham Palace announced on Tuesday.
“Buckingham Palace is delighted to announce that the coronation of His Majesty the King will take place on Saturday 6 May 2023,” the royal residence said in a statement.
The ceremony at Westminster Abbey will be officiated by the Archbishop of Canterbury.
In addition, Queen Consort Camilla is crowned along with Charles III.
Queen Elizabeth II died on September 8 at Balmoral Castle in Scotland at the age of 96. On September 10, the Council of Succession proclaimed her son as the new monarch of the United Kingdom of Great Britain and Northern Ireland, Charles III.
The International Monetary Fund (IMF) left unchanged its July forecast for global economic growth in 2022 – 3.2% (in January, an increase of 4.4% was expected, in April – by 3.6%). For 2023, the estimate is lowered to 2.7% from 2.9% in July and 3.6% in April (in January, the IMF predicted global GDP growth of 3.8%).
“The global economy continues to face serious challenges caused by the lingering impact of three powerful forces: the Russian invasion of Ukraine, the “cost of living crisis” caused by persistent and increasing inflationary pressures, and the slowdown in China. (…) GDP of countries representing more than a third of the world economy will contract in 2023, while the three largest economies – the US, the European Union and China – will continue to slip. In short, the worst is yet to come, and for many, 2023 will feel like a recession,” the report says.
Russia’s war against Ukraine has triggered an energy crisis in Europe that is drastically increasing the cost of living and hindering economic activity, the IMF writes. “Gas prices in Europe have more than quadrupled since 2021, with Russia cutting deliveries to less than 20% of 2021 levels, raising the possibility of power shortages next winter and beyond. More broadly, the war has also pushed up food prices on world markets, despite the recent decline in prices following the Black Sea grain deal, which has caused severe hardship for low-income families around the world, especially in low-income countries.
The report also notes that sustained and rising inflationary pressures have caused a rapid and synchronized tightening of monetary conditions, along with strong dollar appreciation against most other currencies. “Tighter global monetary and financial conditions will affect the economy, reducing demand and helping to gradually curb inflation. However, so far, price pressures remain quite persistent and are of great concern to policymakers. We expect global inflation to peak at the end of 2022, but will remain high for longer than previously expected, falling to 4.1% by 2024.
COUNTRY ASSESSMENTS
The IMF insignificantly, but still improved its forecast for the growth of the economies of emerging markets and developing countries for 2022 – to 3.7% from 3.6% (in April it expected 3.8%), for 2023 – lowered to 3. 7% from 3.9% (April – 4.4%).
The growth forecast for the Chinese economy this year has been worsened to 3.2% from 3.3% (in April, an increase of 4.4% was expected, in January – by 4.8%), in 2023 – to 4.4% from 4 .6% (April estimate – 5.1%).
India’s GDP growth estimate has also been reduced to 6.8% from 7.4% (April – 8.2%) in 2022, and remained unchanged for 2023 – 6.1% (April – 6.9%).
At the same time, the growth forecast for the Brazilian economy has been significantly increased for 2022 – up to 2.8% from 1.7% in July and 0.8% in April, for 2023 it has also been increased – up to 1% from up to 0.9% (April forecast – 1.4%).
The estimate of GDP growth in developed countries in 2022 is worsened by 0.1 percentage points – up to 2.4% (April – 3.5%) and by 0.3 percentage points. – up to 1.1% – in 2023 (2.4% – April estimate).
The IMF continued to reduce the forecast for US GDP growth in 2022 – by 0.7 percentage points. to 1.6% (April – 3.7%). The following year, the estimate remained the same – 1% (April – 2.3%).
The economy of the eurozone countries this year, according to the IMF, will grow by 3.1%, the forecast has been improved from 2.6% in July and 2.8% in April). For 2023, the estimate is downgraded by 0.7 p.p. – up to 0.5% (April – 2.3%).
Italy’s 2022 GDP growth forecast has been raised to 3.2% from 3% in July and 2.3% in April. In 2023, the IMF expects the economy to decline by 0.2%, in July it predicted an increase of 0.7%, in April – by 1.7%.
The German economy in 2022 will grow, according to the IMF, only by 1.5% (better than the July forecast – 1.2%). At the same time, in 2023, the economy is expected to decline by 0.3% (in July, an increase of 0.8% was expected, in April – by 2.7%).
The forecast for Spain for the current year has been raised to 4.3% from 4% (in April – 4.8%) and lowered to 1.2% from 2% in 2023.
For France, the estimate for the current year has been improved to 2.5% from 2.3% and by 0.4 percentage points, for 2023 it has been worsened to 0.7% from 1%.
The growth forecast for the UK economy for 2022 has been improved to 3.6% from 3.2%, for 2023 it has been worsened to 0.3% from 0.5%. Japan’s GDP growth estimate for the current year remained at the level of 1.7%, for 2023 it decreased to 1.6% from 1.7%.
Ankara intends to produce oil and gas in the waters of Libya within the framework of the energy agreement concluded by Turkey with this country, Turkish President Recep Tayyip Erdogan said.
“After the agreement on hydrocarbons signed by us with Libya, we will cooperate in a new area – in the extraction of oil and other resources from the Libyan continental shelf,” Bloomberg quotes him as saying.
Erdogan also announced plans to double the capacity of the Trans-Anatolian gas pipeline (TANAP), which runs from Azerbaijan through Georgia and Turkey to Greece.
Bloomberg recalls that Ankara and the administration of Abdel Hamid al-Dbeiba concluded this agreement last week: he was supposed to leave the post of prime minister after December 25, 2021, but did not do this, citing the disruption of the presidential elections in Libya. As a result, the Prime Minister of another Libyan government, Fathi Bashaga, rejected this agreement, emphasizing that al-Dbeiba does not have the authority to conclude agreements with foreign states.
At the same time, the current agreements are based on the 2019 agreement that Ankara concluded with the previous internationally recognized government of Libya, and to which Turkey provided military assistance in the confrontation with the forces of Marshal Khalifa Haftar.
In turn, the EU said that the new agreement does not comply with the UN Convention on the Law of the Sea and violates the interests of third parties. Also, Greece, Cyprus and Egypt regard the agreement as an attempt by Turkey to dominate the waters of the region.
In Libya, for a long time, there were two bodies of executive power in parallel: the Government of National Accord in Tripoli, in the west of the country, and an interim cabinet in the east of the country, supported by the army of Marshal Khalifa Haftar. According to Western media, Haftar’s forces were supported by Russia, France, Saudi Arabia, the United Arab Emirates, Egypt, Greece and Cyprus. On the side of the government in Tripoli, in turn, were Turkey, Qatar and Italy.
In October 2021, in Geneva, representatives of the warring parties signed an agreement on a permanent ceasefire. The presidential elections in Libya, the first after the overthrow and assassination of Muammar Gaddafi, were scheduled for December 24, 2021, but in the end the vote did not take place. This was due to controversy surrounding the electoral law.
GAS, OIL, PRODUCTION, TURKEY
Quotes of futures for US stock indices do not show a single dynamics at the auction on Tuesday.
The US stock market has declined in the previous four sessions, and risk appetite remains low due to investors’ fears that the Federal Reserve’s (Fed’s) rapid tightening of monetary policy will dampen economic activity and corporate profits, Market Watch notes.
CEO of JPMorgan Chase & Co. Jamie Dimon said the day before that the S&P 500 index could fall by another 20% amid the ongoing tightening of monetary policy by the Fed. This year, the stock indicator has already lost 24%.
Dimon warned that the US economy could fall into recession in the next six to nine months.
Yields on two-year US Treasuries, which are sensitive to a hike in the base rate, rose above 4.3% on Tuesday, close to the maximum since 2007. The interest rate on ten-year US Treasury bonds rose during trading above the 4% mark.
“The 10-year US Treasuries are back above 4% and we expect the pressure on the US stock market to continue,” said Peter Garnry, head of equity strategy at Saxo Bank A/S. profits and cause disappointment in the prospects of the companies.”
S&P 500 companies’ third-quarter combined earnings are up 4.5% year-over-year, according to Refinitiv’s forecast. Profits of energy companies are expected to have grown by 6.3%, banks – have decreased by 1.6%.
Citigroup Inc., JPMorgan, Morgan Stanley and Wells Fargo & Co. will release quarterly results this week. Bank shares lost 0.2%, 0.4%, 0.3% and 0.5% respectively in early trading on Tuesday.
American Airlines Group Inc. rose by 4.3%. The airline improved its forecasts for revenue and revenue per marginal passenger turnover in the third quarter.
Shares of Delta Air Lines Inc. add 2.8% to the price. The airline said Tuesday it is investing $60 million in flying taxi developer Joby Aviation Inc. and intends to use air taxis to deliver passengers to airports in the future, bypassing traffic jams in New York and Los Angeles.
Joby shares rose 18%.
The value of the December E-mini futures for the S&P 500 fell by 0.1% to 3621.75 points by 15:50 Moscow time on Tuesday. Quotation of the December E-mini futures on the Dow Jones index increased by this time by 0.02%, to 29266 points. Futures on the Nasdaq 100 for December fell 0.14% to 10969.5 points.
Oil prices deepened their decline on Tuesday afternoon on concerns about global fuel demand and a stronger dollar.
December futures for Brent on London’s ICE Futures exchange fell by $2.14 (2.22%) by 14:30 CST to $94.05 per barrel.
Quotes of futures for WTI for November in electronic trading on the New York Mercantile Exchange (NYMEX) by the specified time fell by $2.28 (2.5%) to $88.85 per barrel.
On the eve of Brent fell 1.8%, WTI – 1.6% after the publication of data that the Purchasing Managers’ Index (PMI) in China’s services sector, calculated by Caixin Media Co. and S&P Global, fell to 49.3 points in September from 55 points in August.
An index value below 50 points indicates a drop in business activity in the service sector. The indicator in the world’s second largest economy and largest importer of fuel fell below this mark for the first time in four months.
Meanwhile, Shanghai and several other major cities in China have ramped up coronavirus testing of residents to the most active level since August and imposed travel restrictions, writes Barron’s. Such measures may be linked to the 20th Congress of the Communist Party of China, which will begin in Beijing on October 16.
Additional pressure on the quotes is exerted by a strong dollar, which continues to strengthen on the statements of the Federal Reserve System management.
By the beginning of next year, the level of the key interest rate in the US may slightly exceed 4.5%, according to the chairman of the Federal Reserve Bank (FRB) of Chicago, Charles Evans. According to him, the Fed will need to keep rates high for some time to cool the economy and the labor market.
Meanwhile, Fed Vice Chair Leil Brainard noted the need for tighter monetary policy to slow inflation, but added that the Central Bank’s decisions will depend on incoming statistical data.
“The Fed is likely to raise rates by another 75 basis points in November, which will strengthen the dollar and limit the rise in oil prices,” Schneider Electric analysts wrote.
Stock indexes in the Asia-Pacific region (APR) mostly fell in trading on Tuesday, with the exception of the Shanghai Shanghai Composite.
Including pressure on the markets had a fall in the shares of the technology sector.
As reported, the US authorities last week introduced new restrictions on the supply of advanced chips and equipment for the production of semiconductors to China to prevent the development of the Chinese military industry through these products.
This decision negatively affected the papers of semiconductor manufacturers, including South Korean Samsung Electronics Co. and its competitor Taiwan Semiconductor Manufacturing Co. (TMS).
In addition, Asian markets declined following the dynamics of Wall Street.
American stock indices fell on Monday for the fourth session in a row. At the same time, the value of the Nasdaq Composite fell to a minimum in more than two years – since June 28, 2020, according to Dow Jones Market Data.
The value of the Japanese Nikkei 225 index by the close of trading decreased by 2.6%.
Japan’s current account surplus narrowed to 58.9 billion yen in August from 1.5 trillion yen in the same period a month earlier, according to Japan’s finance ministry. Analysts on average had forecast a surplus of 121.8 billion yen, according to Trading Economics.
Meanwhile, Japan’s services sentiment indicator rose 2.9 points in September from a month earlier, to a high since June of 48.4 points, according to Economy Watchers data.
Among the components of the index, the leaders of the fall were shares of electric motor manufacturer Nidec Corp. (-9.4%), automation equipment specialist SMC Corp. (-6.7%) and construction equipment manufacturer Hitachi Construction Machinery Co. Ltd. (-6.4%).
The Hong Kong Hang Seng fell 2.2%, while the Shanghai Shanghai Composite rose 0.2%.
The most significant fall in Hong Kong paper developers Country Garden Holdings Co. Ltd. (-6.8%), Longfor Group Holdings Ltd. (-8.2%) and Internet company Meituan (-7.2%).
Shares of Contemporary Amperex Technology Co. Ltd. (CATL) at the auction in Shenzhen rose by 6%. The country’s largest lithium-ion battery maker expects third-quarter net profit to more than double year-over-year, the company said in a statement.
TMS shares plunged 8.3% on the Taiwan Stock Exchange.
The South Korean index Kospi k decreased by 1.8%.
The value of shares of automaker Hyundai Motor fell by 4.3%.
Shares of Samsung, one of the world’s largest manufacturers of chips and electronics, fell 1.4%, while shares of its rival LG Electronics fell 4.3%.
The Australian S&P/ASX 200 fell 0.3%.
The capitalization of the world’s largest mining companies BHP and Rio Tinto fell by 0.4% and 0.6%, respectively.
