The Day at a Glance | November 1 2022

The Top

*ECB must keep increasing rates even if risks of a recession grow: Christine Lagarde.

*The Manufacturing ISM will be made known in the US (50e.).

*Crude oil production in PEMEX remained stable at 1.77 million daily barrels during September; exports increased to 1.21mdb.

*CFE´s losses increased to 50,671 million pesos in the 3Q22; 242% above what was seen in the same period of last year.

*Finland called on Turkey and Hungary to approve its request to be a member of NATO along with Sweden.

*US and UAE signed a $100 billion clean energy project agreement.

*Russia announced wider evacuation of occupied territories in southern Ukraine.

Economic environment

ECB decided to contain inflation. With inflation reaching a record 10.7% annual rate in October, according to Eurostat estimates, the European Central Bank reiterated its commitment to contain inflation even if the risks of a recession grow. President of the central bank, Christine Lagarde, assured in an interview on Tuesday that its priority is price stabilization and that they are ready to do whatever is necessary for inflation to return to 2% levels. This implies greater interest rate increases in the short term – after rates have been increased in 200bp in the last 3 of the European Central Bank´s monetary policy meetings. Lagarde assured that rates still haven’t reached the necessary levels to guarantee inflation will return to its 2% target level and should continue carrying out a restrictive monetary policy. She warned that as inflation remains elevated, the risks of it spreading to the rest of the economy is high, which is why decisive actions are required on behalf of the ECB; even despite the fact that the European economy has showed a total loss of momentum in economic growth and is steering towards a contraction in the 4Q22.