The Day at a Glance | October 17 2022

*China delays releasing its 3Q22 GDP figure due to the Communist Party´s Congress.

*New Finance Minister of the UK, Jeremy Hunt, reverses Liz Truss´s economic plan; he will present a new budgetary plan.

*AICM is close to reaching passenger traffic levels seen prior to the pandemic.

*The Central Bank of England will resume corporate bond sales in its balance starting next week.

*Commissions in the Senate give green light for a reform that would increase the minimum number of vacation days from 6 to 12; it would come into force in 2023.

*Russia attacks Kyiv, the capital of Ukraine, with drones.

Economic environment

Chinese Communist Party´s Conference. This morning, 3Q22 growth figures were expected to be made public by the National Statistical Bureau of China (GDP, industrial production, investment and retail sales). However, their release was delayed without reason and no date for a rescheduled release has been given. The delay could have been caused by the Communist Party´s Congress, which is carried out twice a decade and is expected to give the country´s current President, Xi Jinping, his third leadership term. The delay in the figures´ release increases uncertainty revolving around China´s recovery; analysts expect a 3.3% annual increase after the 2Q22 was strongly impacted by confinement measures. At the moment, most government officials and human resources in China are focused on the Congress, or what will come from it. The delay in the figures´ release could be an attempt to avoid distractions. This weekend, Xi Jinping kicked off the Congress with a strong speech in which he envisioned China as a country with greater control and influential power at a global level and presented it as an alternative to the United States. The comments suggest that China is preparing a phase of greater confrontation with the United States. Concerning Taiwan, he once again called for the island´s reunification to China. As for the economy, Xi backed the “zero COVID” tolerance policy and quarantines that have been carried out in recent months; he gave no signs that the real-estate sector will receive any extraordinary aid.

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