Ukraine will restore membership in the International Organization of Vine and Wine (OIV, OIV), which it was a member of from 1997 to 2008, which will be announced on November 4 during the annual meeting of its members in Ensenada (Mexico).
As reported on the website of the Ministry of Agrarian Policy and Food of Ukraine, the public union “Ukrsadvinprom” will represent the country in the wine-making organization, and its head Volodymyr Pechko has been appointed as the official representative of the ministry in the OVV).
“Participation in the OIV as a permanent member will allow Ukrainian specialists in the wine industry to actively participate in the work of experts, subcommittees and commissions of the organization for the development of regulatory documentation, and will also allow the use of official standards and rules in the international trade in wines and wine materials,” the Ministry of Agrarian Policy emphasized.
According to the agency, by February 1, 2022, the total area of vine plantations in Ukraine for all categories of farms amounted to 34.0 thousand hectares, the gross grape harvest – 257.5 thousand tons. However, due to Russian aggression, almost 25% of the vineyard area is temporarily occupied or in the war zone.
In total, there are 144 wineries in Ukraine (of which 29 are small producers of wine products).
MOVV was established in 2001. She became the heiress of the International Bureau of Vine and Wine, which existed since 1924. The goals and objectives of the OIV are to protect the interests of the wine industry and create favorable market conditions, harmonize and comply with analysis methods, combat fraud and unfair competition in the market. Ukraine has become the 49th member state of the EPZ.
U.S. stocks tumble in early trading on Monday but could end October with a record gain in decades.
The Dow Jones Industrial Average jumped 14.4% from the beginning of the month to the close of trading on Friday. The indicator may record the highest monthly gain since January 1976 and the best October in its history.
The attention of market participants is directed to the November meeting of the US Federal Reserve System (FRS).
The meeting will be held on November 1-2, and, according to most analysts, the Fed will again raise the key interest rate by 75 basis points, to 3.75-4% per annum. After that, as expected, the US Central Bank may slow down the rate hike.
“Last week, there were plenty of reasons for a big sell-off in stocks, including weak financials from tech giants, data on the acceleration of growth in the PCE index, the main indicator of inflation for the Fed, and new lockdowns in China,” said Tom Lee, head of research at Fundstrat. The S&P 500 is up 4% in a week and up 12% in two weeks.”
About half of the S&P 500 index companies have already reported their third-quarter results, and on average, they recorded a 2.2% increase in quarterly earnings, which is the worst performance since the third quarter of 2020, when the figure collapsed by 5.7%, said a senior analyst at FactSet. John Butters.
However, 71% of the companies that reported so far beat market expectations in terms of earnings per share, and 68% in terms of revenue.
Shares of Chinese electric vehicle makers XPeng (SPB: XPEV) Inc. and Li Auto (SPB: LI) Inc. in the US are down by 5.2% and 3.8% respectively, dropping to a record low due to weak Chinese statistics.
As it became known on Monday, the Purchasing Managers’ Index (PMI) in China’s manufacturing industry in October fell to the lowest since July 49.2 points from 50.1 points a month earlier. Experts on average expected it to drop to 50 points. Meanwhile, China’s services PMI fell to 48.7 in October, falling below 50 for the first time since May.
Shares of Emerson Electric (SPB:EMR) rose 0.1%. The engineering firm posted a 10% increase in net income in the fourth quarter of fiscal 2022, with adjusted earnings and revenue better than expected. The firm also confirmed a deal to sell a majority stake in the HVAC technology business to investment firm Blackstone Inc. for $9.5 billion.
XPO Logistics (SPB: XPO) is up 2%. The transport and logistics company recorded a decrease in revenue in the third quarter, but increased net income from ongoing operations.
The market value of Global Payments (SPB: GPN) falls by 7.5%. The American fintech firm saw a 14% increase in revenue in the last quarter, which came as a surprise to analysts, while its adjusted earnings increased by 14%, in line with experts’ forecasts.
Capitalization of Align Technology (SPB: ALGN) Inc. increased by 5%. The medical device maker on Monday announced it was launching a $200 million accelerated share buyback program. The company’s shares have fallen 71.3% since the start of the year, the worst performer of any company in the S&P 500 index.
The Dow Jones Industrial Average fell 159.12 points (-0.48%) by 4:48 pm to 32,702.68 points.
The drop leader among the components of the index are Boeing Co. (SPB: BA) (-2.5%), Chevron Corp. (SPB: CVX) (+1.5%).
Standard & Poor’s 500 fell 28.47 points (-0.73%) to 3872.59 points.
The Nasdaq Composite fell 122.84 points (-1.11%) to 10,979.61 points.
PJSC “Interpipe Dnepropetrovsk Vtormet” (Dnipro), which is part of the pipe and wheel company (TKK) “Interpipe”, ended January-September of this year with a net loss of UAH 54.081 million against a net profit of UAH 17.197 million for the same period last year.
According to the interim report of the company, published in the information disclosure system of the National Securities and Stock Market Commission (NSMSC), for 9 months-2022, the company’s net income decreased by 44%, to UAH 2 billion 502.603 million.
Retained earnings by the end of September 2022 amounted to UAH 125.783 million.
The enterprise processed 122.675 thousand tons of scrap metal during the specified period.
As reported, following the results of work in 2021, the company increased its net profit by 75%, to UAH 14.234 million, net income increased 2.2 times, to UAH 6 billion 796.291 million. At the same time, 9.706 thousand tons of scrap metal was procured, services were provided for the processing and reloading of customer-supplied raw materials in the amount of 677.651 thousand tons.
“Interpipe Dnepropetrovsk Vtormet” specializes in the procurement and processing of ferrous scrap in the Dnepropetrovsk region with the subsequent sale of this product, including the preparation of charge for steelmaking enterprises.
According to the company, at the end of 2021, Interpipe Limited (Cyprus) owns 98.6699% of the shares of PJSC Interpipe Dnepropetrovsk Vtormet.
The authorized capital of the company is UAH 64.876 million.
The US dollar strengthens against the euro, yen and pound sterling in trading on Monday.
The market is waiting for the meeting of the Federal Reserve System (Fed), which will be held on November 1-2. Traders are confident that the US Central Bank will raise the base interest rate by 75 basis points (bp) following the results of the fourth meeting in a row. As a result, the rate will reach the level of 3.75-4% – the maximum since December 2007.
Traders will be closely watching Fed Chairman Jerome Powell’s statements to see if the US central bank intends to slow down the pace of policy tightening from December, writes the Financial Times newspaper. The global economy is weakening, and experts are already seeing signs that the peak of inflation in the United States has passed. In this regard, investors are increasingly expressing fears that the Fed may overdo it with raising rates and provoke an excessive recession in the economy.
The ICE-calculated index, which shows the dynamics of the dollar against six currencies (the euro, the Swiss franc, the yen, the Canadian dollar, the pound sterling and the Swedish krona), adds 0.08% on Monday, the broader WSJ Dollar – 0.19%.
The euro/dollar pair is trading at $0.9946 as of 8:55 am KSK, compared to $0.9966 at market close on Friday.
The US dollar against the yen rose to 147.92 yen against 147.48 yen in the previous session.
The pound dropped to $1.1592 from $1.1617 on Friday.
The Bank of England is also holding a meeting this week, its results will be made public on 3 November. Experts expect the British Central Bank to raise the base rate by 75 bp. – until 3%. The Bank of England did not raise the rate by more than 50 bp. since 1989, notes FT.
The dollar against the yuan edged up to 7.2698 yuan from 7.2525 yuan at market close on Friday amid weak economic data from China.
The Purchasing Managers’ Index (PMI) for China’s manufacturing industry fell to its lowest level since July of 49.2 in October from 50.1 a month earlier, according to data from the National Bureau of Statistics of the People’s Republic of China (GSO). An index value below 50 points indicates a decline in activity in the sector.
PMI services in China in October fell to 48.7 points, dropping below 50 points for the first time since May.
Stock indices of Western European countries do not show a single dynamics during trading on Monday.
Investors are evaluating the latest batch of statistics.
The composite index of the largest companies in the region Stoxx Europe 600 by 13:00 Moscow time fell by 0.03% and amounted to 410.64 points.
The British stock index FTSE 100 rose by 0.18%, the German DAX – by 0.06%, the Italian FTSE MIB – by 0.17%. Meanwhile, the French CAC 40 fell by 0.22%, the Spanish IBEX 35 – by 0.11%.
Retail sales in Germany in September rose by 0.9% compared to the previous month, according to the country’s Federal Statistical Agency (Destatis).
Analysts polled by Trading Economics had expected a 0.3% decline in retail sales last month.
Meanwhile, consumer prices in the eurozone rose 10.7% year-on-year in October, according to preliminary data from the European Union Statistics Office. Thus, inflation accelerated compared to 9.9% in September and again updated the maximum since the beginning of the calculations.
Analysts polled by Trading Economics had expected a less significant increase of 10.2%.
The economies of the 19 eurozone countries grew by 0.2% in the third quarter compared to the previous three months, according to preliminary data from the European Union Statistics Office. In annual terms, the eurozone GDP increased by 2.1%.
The dynamics of both indicators coincided with analysts’ expectations, according to Trading Economics.
Italy’s GDP rose 0.5% qoq in the third quarter, official statistics show. Growth slowed down compared to the previous quarter, when the rise was 1.1%. Meanwhile, the figure exceeded the expectations of analysts who did not expect changes in GDP, according to Trading Economics.
The Swiss National Bank (SNB, the country’s central bank) reported a large loss in the first nine months of this year amid rising franc and rising interest rates, which led to the depreciation of the bank’s investments in gold, foreign currencies and financial markets. Meanwhile, the bank’s shares are up 2.9%.
Shares of Credit Suisse Group AG strengthened by 4.2%. The Swiss bank has unveiled details of a $4 billion share offering plan.
Italian UniCredit SpA stock quotes are up 2.2%. The bank improved its net interest income forecast for 2022.
The biggest drop among Stoxx 600 components is German power generation company Verbund AG, which shed 4.5%.
Meanwhile, the growth leaders are the shares of the French manufacturer of pharmaceuticals Orpea S.A., which add 18.7%.
The United States, in contacts with the EU countries, put forward a proposal to apply the experience gained from the implementation of the export control regime in relation to the Russian Federation against China, Bloomberg reported on Monday, citing a number of anonymous sources.
“The United States, in contacts with European allies, has voiced the idea of learning from the export control regime used against Russia to fight China, according to people familiar with the matter,” the agency said.
The White House is “exploring some elements of similar information sharing and coordination in implementing measures to tighten US and EU restrictions” on exports to China, the sources said.
Such discussions come at a time when the EU and the US are discussing the agenda for the third meeting of the Trade and Technology Council scheduled for December 5, which serves as a forum for coordinating trade and technology policy between the EU and the US.
However, the sources note, the EU is not inclined to consider applying to the PRC the same approach that was used in relation to Russia. According to one source, the EU may look at the goods that Beijing is able to use to increase its military capabilities.
In turn, the US National Security Council denied plans to extend the export control regime against the Russian Federation to China, and the fact of discussions on this topic with European countries.
Bloomberg explains that export restrictions are considered potentially effective in slowing down China’s development amid global competition for technological supremacy.
On October 7, the US Department of Commerce banned the sale to China of the most advanced chips, as well as equipment, components and software for their production, with a special focus on technologies related to artificial intelligence and potential military applications. The restrictions affected the exports of other countries, which depend on similar American technologies and programs. Also, US citizens were forbidden to advise the Chinese side or provide it with other services in this area.
Subsequently, US Deputy Secretary of Commerce for Industry and Security Alan Estevez said that Washington expects an early agreement with the allies on their accession to these restrictions. However, authorities in the Netherlands, home of ASML Holding, a manufacturing equipment for the electronics industry, have expressed concern about the effect of new US restrictive measures.
Meanwhile, in mid-October, The Financial Times reported, citing an EU foreign policy document prepared for a meeting of the EU Foreign Affairs Council, that, in its opinion, China is a competitor that needs to be confronted, and that policy towards China should be tightened. A number of EU leaders later also warned against economic dependence on China.
