Short overview of 5 things on September 9

The death of a monarch

Tackling Europe’s energy crisis

More weapons for Ukraine

Citigroup gets a reprieve over a $504 million blunder

Coming up…

Mourning

The death of Queen Elizabeth II at the age of 96 prompted an outpouring of condolences from around the world. Ascending the throne in 1952, Elizabeth’s reign took Britain from the age of steam to the era of the smartphone and encompassed the largely peaceful breakup of an empire that once spanned the globe. Her passing marked the start of a tumultuous 10 days for the UK that will see the queen buried and a new king proclaimed as the nation mourns its longest-reigning monarch. Charles, the eldest of Elizabeth’s four children, will be formally proclaimed king in a ceremony dating back hundreds of years. At 73, he is the oldest person to accede to the throne in British history.

Energy Crisis

The European Union is throwing together a series of radical plans to tame runaway energy prices and keep the lights on across the continent — but governments across the region are going to need to find common ground quickly. The bloc’s energy ministers gather in Brussels on Friday to take the first steps on ways to prevent Russian President Vladimir Putin’s cutoff of gas supplies from unleashing rationing, blackouts or even social unrest. And as inflation soars, European Central Bank officials are prepared to deliver another jumbo interest-rate increase at their October meeting if needed, according to people familiar with the debate. Their counterparts in the US also continue to be hawkish, with Federal Reserve Chair Jerome Powell saying officials won’t flinch in the battle to curb inflation.

More Weapons

The US is looking to ramp up support for Ukraine more than six months after Russia’s invasion began and ahead of a new round of European sanctions in December that could lead to price spikes for energy. The Biden administration offered $2.8 billion in weapons and military financing to Ukraine and its neighbors. President Joe Biden also held a video call with leaders of the Group of Seven and the European Union to discuss new ways to make sure Europe gets “sustainable affordable energy supplies,” White House Press Secretary Karine Jean-Pierre said.

$504 Million Saved

A federal appeals court saved Citigroup from an epic blunder that became the talk of Wall Street, rejecting a ruling that Revlon creditors could keep more than half a billion dollars the bank accidentally sent them. After a decision process one expert compared to “The Twilight Zone,” a trio of judges in Manhattan on Thursday overturned the trial court’s surprise decision early last year that the lenders — which include Brigade Capital Management, HPS Investment Partners and Symphony Asset Management — didn’t have to return $504 million the bank mistakenly wired them in 2020.

Coming Up…

European stocks are set to nudge higher, following gains in the US and Asia, while the euro advanced. EU officials meet in Brussels to discuss an emergency intervention in energy markets. The region’s finance ministers meet in Prague. US President Joe Biden travels to Ohio to attend the groundbreaking of a new Intel facility and discuss the Chips Act. Expected data include Norway inflation figures and Spain industrial production. Kroger and Dollarama are among companies slated to report earnings. 

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(Source: Bloomberg, Sept. 9-2022)

UK in Mourning Faces Hard Times Without Comfort of Its Queen
Short overview of 5 things on September 8

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