{"id":1637510,"date":"2022-09-09T11:06:26","date_gmt":"2022-09-09T15:06:26","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1637510"},"modified":"2022-09-09T11:06:37","modified_gmt":"2022-09-09T15:06:37","slug":"take-five-navigating-the-energy-shock","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/take-five-navigating-the-energy-shock\/","title":{"rendered":"Take Five: Navigating the energy shock"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">12<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftake-five-navigating-the-energy-shock%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1637510&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>(Reuters) \u2013     The Bank of England will ponder implications of the government\u2019s record-breaking energy package as the country mourns the passing of its queen. <\/p>\n<p>Leaders across Europe are scrambling to keep the lights on and U.S. inflation data should provide the last piece in the puzzle ahead of the Federal Reserve\u2019s September meeting.<\/p>\n<p>China meanwhile is trying to get banks to help spur the economy and Volkswagen seems set to embark on listing luxury car maker Porsche against a volatile markets backdrop. <\/p>\n<p>Here is a look at the week ahead in markets from Kevin Buckland in Tokyo, Emma-Victoria Farr in Frankfurt, Bill Schomberg, Vincent Flasseur and Karin Strohecker in London, and Lewis Krauskopf in New York.<\/p>\n<p>1\/ BANK OF ENGLAND <\/p>\n<p>The Bank of England meets on Thursday and must gauge the implications for inflation from the government\u2019s huge energy bill bailout of households. The measures will bring down price pressures in the short-term but could stoke them further ahead as consumers are spared the worst of the hit to their finances. <\/p>\n<p>Many economists think the BoE will raise interest rates by a further 50 basis points \u2013 normally a huge increase but less than the 75 bps rate hike that investors had been betting on increasingly until a few days ago.<\/p>\n<p>Policy makers will have a few more datapoints to chew over before then, including economic output figures for July on Monday, the latest job market readings on Tuesday and August inflation on Wednesday.<\/p>\n<p>Bank of England under pressure https:\/\/graphics.reuters.com\/GLOBAL-MARKETS\/THEMES\/movanewmkpa\/chart.png<\/p>\n<p>2\/RUNNING OUT OF GAS<\/p>\n<p>Faced with soaring energy prices that threaten to spark social unrest, necessitate rationing and inflict a recession, Europe\u2019s leaders are scrambling to pull together radical plans to counter Russian President Vladimir Putin\u2019s gas cut-off.<\/p>\n<p>Governments are spending hundreds of billions of euros to help consumers and businesses cope with runaway bills. A plan from Britain\u2019s new government could cost as much as 150 billion pounds, sending its currency to near-four decade lows.<\/p>\n<p>Euro zone energy ministers gather on Friday in Brussels to set plans in motion and discuss options \u2013 including gas price caps and emergency credit lines for energy market participants, though there are no pain free solution in sight.<\/p>\n<p>Meanwhile more oil-importing countries \u2013 for example India \u2013 are considering joining the Group of Seven wealthy nations\u2019 plan to cap the price of Russian oil, Washington said.<\/p>\n<p>Put a cap on it https:\/\/graphics.reuters.com\/GLOBAL-MARKETS\/THEMES\/egpbkrjngvq\/chart.png<\/p>\n<p>3\/PRICING POWER<\/p>\n<p>\u00a0\u00a0\u00a0 Tuesday\u2019s U.S. inflation data is one of the last \u2013 and perhaps the most important \u2013 pieces of data that will help the Fed decide how aggressively it needs to hike rates in September. <\/p>\n<p>\u00a0\u00a0\u00a0 July\u2019s CPI report showed a surprising moderation in prices that helped spur a rebound in stocks. That rally has since faded with Fed chair Jerome Powell warning that the Fed\u2019s single-minded fight to tame inflation could lead to economic pain.<\/p>\n<p>\u00a0\u00a0\u00a0 On an annual basis, CPI increased by a weaker-than-expected 8.5% in July, with the inflation gauge coming in flat, month-over-month. Early estimates for August call for a 0.1% decline on a monthly basis, but wildcards such as volatile energy prices are keeping investors on edge.<\/p>\n<p>U.S. inflation https:\/\/graphics.reuters.com\/GLOBAL-MARKETS\/THEMES\/egpbkraxmvq\/chart.png<\/p>\n<p>4\/ PUSHING ON A STRING?    A downside surprise on Chinese inflation data on Friday cheered markets because it seems to afford policymakers plenty of room to ease and help boost a flagging economy.    But loan figures out shortly afterward pointed to the dilemma: who wants to borrow in a downturn? Loan growth is scarcely budging, and a meagre rise in August was below analysts\u2019 hopes.    The central bank has already flooded the system with cash, without improving confidence, since there is no clear path out of a deepening property crisis or COVID-19 lockdowns.    More help has been promised, but is yet to meaningfully arrive, leaving the Hang Seng lingering near major lows and the yuan close to a two-year trough.<\/p>\n<p>Data on industrial production, house prices and retail sales due on Sep. 16 will give more indications on the state of the world\u2019s second largest economy.<\/p>\n<p>Yuan decline https:\/\/graphics.reuters.com\/GLOBAL-MARKETS\/THEMES\/jnpwemaobpw\/chart.png<\/p>\n<p>5\/BOLD DEBUT<\/p>\n<p>It\u2019s been a bleak year for capital markets. But that might not detract Volkswagen from listing luxury car maker Porsche.<\/p>\n<p>Volkswagen fired the IPO starting gun even as European stock markets reeled from record inflation and the Russia energy standoff. The next three weeks will be crucial as bankers gather investor feedback and begin book building. <\/p>\n<p>At the high end of estimates \u2013 investors expect a valuation between 60-85 billion euros ($60.4-$85.5 billion) \u2013 the IPO could be the largest in German history and the biggest in Europe since 1999, Refinitiv data showed.<\/p>\n<p>Porsche will only backtrack on its stock market debut if \u201csevere geopolitical problems arise\u201d, the sportscar brand\u2019s chief financial officer said on Tuesday. The Frankfurt Stock Exchange has only seen two SPACs and one small primary listing in 2022.<\/p>\n<p>European IPO volumes https:\/\/graphics.reuters.com\/GLOBAL-MARKETS\/THEMES\/akvezbegxpr\/chart.png<\/p>\n<p>($1 = 0.9939 euros)<\/p>\n<p> (Compiled by Karin Strohecker, editing by Elaine Hardcastle)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/?attachment_id=2746939\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI880D6-VIEWIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI880D6-VIEWIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Reuters) \u2013 The Bank of England will ponder implications of the government\u2019s record-breaking energy package as the country mourns the passing of its queen. Leaders across Europe are scrambling<\/p>\n","protected":false},"author":66,"featured_media":1888724,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1637510","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1637510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1637510"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1637510\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1888724"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1637510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1637510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1637510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}