Coronavirus Weekly Review: Russia Seeks To Calm Gas Crisis As US Extends Debt Ceiling To Avoid Default

This week, Russian President Vladimir Putin intervened to calm the escalating energy crisis by pledging to increase the amount of gas Russia will send to Ukraine via Europe.

Elsewhere, the Conservative Party conference saw Boris Johnson outlining his vision for the transition to a “high-wage, high-skill, high-productivity” economy, while Rishi Sunak announced a £ 500million support plan for those coming out of their leave.

Meanwhile, the US Senate voted to extend the debt ceiling until Dec. 3, a move aimed at avoiding default for the next two months.

See below for a summary of key events and click through the slides above to find out what investment managers think this means for portfolios.

Monday October 4

-Chancellor Rishi Sunak told the Conservative Party conference that excessive public borrowing is “immoral” and hints at future tax cuts if spending is brought under control. It also announces a £ 500million support program for those leaving support on leave and older workers

-Members of the British military begin delivering fuel to gas stations to help alleviate nationwide shortage

-Strong Chinese real estate giant Evergrande suspends Hong Kong shares

Tuesday, October 5

-Boris Johnson prepares to tell Conservative Party conference that the government has “the courage” to oversee a major transition to a “high-wage, high-skill, high-productivity economy” and that some bosses have cited high immigration as a reason for not investing in their business or staff

-IMF Director Kristalina Georgieva calls on governments to increase COVID vaccination rates and economic reforms to reduce “risks and obstacles” to a balanced global recovery

-Midsize Chinese real estate developer Fantasia Holdings says it failed to pay $ 206 million bond that matured on Monday, hinting Evergrande’s problems could seep into the wider market

Wednesday 6 October

-Boris Johnson said in his opening speech at the Conservative Party conference that it would be difficult and “take time” to restructure the UK economy and said there would be no turning back “old” economic model involving “uncontrolled immigration”

-Russian President Vladimir Putin says his country is ready to step in and stabilize the gas market

-Biden administration pledges to invest an additional $ 1 billion in Covid-19 testing

-Unite union says British Airways is looking to rehire around 3,000 cabin crew after cutting around 10,000 jobs last spring and summer due to Covid-19

-World’s largest package holiday operator Tui has announced plans to raise € 1.1 billion by selling new shares after demand accelerated over the summer

Thursday, October 7

– The Bank of England’s new chief economist said high levels of inflation in the UK could last longer than expected in his first public remarks since taking office last month

-Pfizer officially asks US regulators to authorize the use of the Covid-19 vaccine that it co-developed with BioNTech in children aged 5 to 12

-The number of people filing for unemployment in the United States last week stood at 326,000 according to the United States Department of Labor

-Natwest pleads guilty to failing to end alleged money laundering offenses

– ONS says the average number of traffic camera activity for cars in London fell 7% in the week ending October 3 due to the effect of driver and fuel shortages

-European gas prices drop after comments from Russia and US suggest gas market may be stabilized

-Figures released by the Federal Statistical Office show that German manufacturing output fell 4% in August compared to the previous month

-Halifax figures show the average UK home price rose 1.7% in September compared to August – the fastest monthly gain since February 2007

Friday October 8

-British government removes 47 countries from its travel “red list”, bringing the remaining number to seven

-The government is expected to announce an easing of testing requirements for international travelers coming to England from October 26, when the mid-term school holiday begins

– ONS statistics reveal that weekly Covid-19 infections in England jumped 19% at the end of September, with around 786,300 people infected with coronavirus in the week of October 2, up from 658,800 the previous week

-The chief executive of Ofgem told BBC Radio 4’s Today program that he expects the UK energy price cap to increase ‘significantly’ in April

-Figures from the British Retail Consortium show that UK retail footfall fell 16.8% between August 29 and October 2, compared to figures before the 2019 pandemic

-The US Senate votes to extend the debt ceiling until December 3, which will see the public borrowing limit extended by $ 480 billion to avoid a default for the next two months

-United States says it added just 194,000 jobs in September, well below 366,000 in August

-China orders coal miners to increase production as energy crisis threatens domestic industries

– The Chinese Caixin General Services Purchasing Manager index stood at 53.4 in September, against 46.7 in August

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