Weekly Market Update - 12 September 2022

End of an Era

Photographer: Chris Jackson/Chris Jackson Collection

Queen Elizabeth II, whose reign took Britain from the age of steam to the era of the smartphone, and who oversaw the largely peaceful breakup of an empire that once spanned the globe has died at the age of 96. Her death marks the start of a tumultuous 10 days for the UK that will see a nation — and the rest of the world — mourn its longest-reigning monarch. Within hours, Charles, the eldest of Elizabeth’s four children, will be formally proclaimed King Charles III in a ceremony dating back hundreds of years. Having lived most of her life in the public eye, the Queen leaves behind an unparalleled photographic record.

Source: Bloomberg

Rice Tax

India, the world’s biggest rice shipper, levied a tax on some exports to secure domestic supplies after planting shrank, in a move that could further rattle global food markets. Unmilled and husked brown rice will attract an export levy of 20%, with a similar duty on semi-milled and wholly-milled rice, except parboiled and basmati varieties. The move will put pressure on countries struggling with worsening hunger and soaring food inflation. The United Nations estimated that one-tenth of the world’s population went hungry in 2021.

Source: Bloomberg

Jobs Cuts

Goldman Sachs is embarking on its biggest round of jobs cuts since the start of the pandemic, with plans to eliminate several hundred roles starting this month. The headcount reduction is a resumption of the bank’s annual culling cycle that it had largely paused as Covid-19 swept around the world. Analysts expect the bank to post a more than 40% drop in earnings this year, according to data compiled by Bloomberg. Like its Wall Street competitors, Goldman, whose shares are about 15% down from a year ago, has been hurt by the dramatic slowdown in investment banking. Meanwhile, HSBC’s Chief Financial Officer Ewen Stevenson said rising inflation could force the bank to significantly raise salaries as it eyes “brutal” cuts to keep a lid on costs.

Source: Bloomberg