International

Stocks stumble to end ‘miserable’ 2022

| By AFP | Roland Jackson |

Stock markets wrapped up their worst performances in years on Friday before heading into 2023 under recession fears following Russia’s invasion of Ukraine, high inflation and rising interest rates.

Both US and European indices closed their final sessions of the year in the red.

For the year, Frankfurt was down more than 12 percent and Paris lost 9.5 percent for their worst performances since 2018. London, however, was up 0.9 percent in 2022 as the energy sector was buoyed by soaring energy prices.

Wall Street saw its worst annual drop since 2008, with the S&P 500 index down around 20 percent and the tech-heavy Nasdaq losing about 30 percent for the year.

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Equities were slammed as the US Federal Reserve, European Central Bank and Bank of England aggressively lifted interest rates in a bid to tackle rampant consumer price rises. The move carries the risk of sparking recession as higher borrowing costs slow economic activity.

US tech companies were hit particularly hard as they are usually boosted by lower interest rates.

The MCSI World Equity Index has lost almost a fifth in its worst annual performance since 2008, when markets were ravaged by the global financial crisis.

Asia-Pacific markets finished their last sessions mostly in the green on Friday.

But for the year, Hong Kong tanked 15.5 percent and Shanghai dived 15.1 percent in the biggest annual slumps since 2011 and 2018, respectively.

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Covid spiked once more in China in December, after Beijing relaxed its strict curbs in the face of rare public outcry. The surge has also prompted worries about the impact on stretched global supply chains.

Tokyo plunged 9.4 percent in the first annual fall since 2018 but the Bank of Japan maintained its ultra-easy monetary policy, in contrast with other central banks, to help its fragile economy.

‘Pitiful end to miserable year’

“It’s shaping up to be a pitiful end to a miserable year in stock markets,” OANDA trading platform analyst Craig Erlam told AFP.

He said 2022 had “brought an end to an era” of low interest rates that fueled tech and crypto booms.

“That’s been replaced with soaring inflation and interest rates, immense economic uncertainty and the reshaping of energy markets in the aftermath of the Russian invasion of Ukraine,” Erlam added.

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In commodities, oil prices rallied in 2022 with Brent gaining about 10 percent and the West Texas Intermediate adding around seven percent.

However, they remain significantly below peaks struck in March on supply woes after key producer Russia invaded its neighbor, sending natural gas prices also spiking.

Britain and other major economies now face the likely prospect of grim recessions next year, as consumers and businesses battle rampant inflation and rising rates after years of ultra-low borrowing costs.

“The most important take of the year is: the era of easy money ended, and ended for good,” noted SwissQuote analyst Ipek Ozkardeskaya.

“And given that there is still plenty of cheap central bank liquidity waiting to be pulled back, the situation may not get better before it gets worse,” she said.

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“Recession, inflation, stagflation will likely dominate headlines next year.”

London was down 0.8 percent and Frankfurt shed 1.1 percent in half-day sessions ahead of the New Year holiday. Paris closed 1.5 percent lower.

On Wall Street, the Dow ended 0.2 percent lower while the tech-heavy Nasdaq shed 0.1 percent.

“It would appear that people have checked out for the year — and have settled back into holiday mode for New Year celebrations,” Erlam said.

Key figures around 2145 GMT

New York – Dow: DOWN 0.2 percent at 33,147.25 (close)

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New York – S&P 500: DOWN 0.3 percent at 3,839.50 (close)

New York – Nasdaq: DOWN 0.1 percent at 10,466.48 (close)

London – FTSE 100: DOWN 0.8 percent at 7,451.74 (close)

Frankfurt – DAX: DOWN 1.1 percent at 13,923.59 (close)

Paris – CAC 40: DOWN 1.5 percent at 6,473.76 (close)

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EURO STOXX 50: DOWN 1.5 percent at 3,793.62 (close)

Tokyo – Nikkei 225: FLAT at 26,094.50 (close)

Hong Kong – Hang Seng Index: UP 0.2 percent at 19,781.41 (close)

Shanghai – Composite: UP 0.5 percent at 3,089.26 (close)

Euro/dollar: UP at $1.0704 from $1.0667 on Thursday

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Pound/dollar: UP at $1.2094 from $1.2062

Euro/pound: UP at 88.47 pence from 88.40 pence

Dollar/yen: DOWN at 131.11 yen from 132.96 yen

West Texas Intermediate: UP 2.4 percent at $80.26 per barrel

Brent North Sea crude: UP 2.9 percent at $85.91

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International

Police investigate deaths of Rob Reiner and wife as apparent homicide

The Los Angeles Police Department (LAPD) is investigating the deaths of Hollywood actor and filmmaker Rob Reinerand his wife as an “apparent homicide,” amid a wave of tributes to the director of classics such as When Harry Met Sally.

According to U.S. media reports on Sunday, Rob Reiner and Michele Singer Reiner were found dead at their Los Angeles mansion with what appeared to be stab wounds.

Several political figures shared messages of condolence following the reported deaths of the director of A Few Good Menand his wife.

While the LAPD did not officially confirm the identities of the victims, it stated that homicide detectives were dispatched to the Reiner residence.

“At this time, no additional details are available and the investigation into an apparent homicide is ongoing,” the Los Angeles Police Department said in a statement posted on social media.

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LAPD Deputy Chief Alan Hamilton told reporters that no arrests have been made and that no individuals are currently being questioned as suspects.

“I’m not going to confirm whether anyone is being questioned at this moment or not. We are going to try to speak with as many family members as we can,” Hamilton said.

CNN reported that a family spokesperson confirmed the deaths of Reiner and his wife.

California Governor Gavin Newsom, former U.S. President Barack Obama, and former Vice President Kamala Harrisissued statements expressing their condolences.

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International

U.S. and Mexico Reach Deal to Address Water Deficit Under 1944 Treaty

The United States and Mexico have reached an agreement to comply with current water obligations affecting U.S. farmers and ranchers and for Mexico to cover its water deficit to Texas under the 1944 Water Treaty, the U.S. Department of Agriculture said in a statement.

The department уточified that the agreement applies to both the current cycle and the water deficit from the previous cycle.

On Monday, U.S. President Donald Trump accused Mexico of failing to comply with the water-sharing treaty between the two countries, which requires the United States to deliver 1.85 billion cubic meters of water from the Colorado River, while Mexico must supply 432 million cubic meters from the Rio Grande.

Mexico is behind on its commitments. According to Washington, the country has accumulated a deficit of more than one billion cubic meters of water over the past five years.

“This violation is severely harming our beautiful crops and our livestock in Texas,” Trump wrote on Monday.

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The Department of Agriculture said on Friday that Mexico had agreed to supply 250 million cubic meters of water starting next week and to work toward closing the shortfall.

Agriculture Secretary Brooke Rollins, quoted in the statement, said Mexico delivered more water in a single year than it had over the previous four years combined.

Trump has said that if Mexico continues to fall short of its obligations, the United States reserves the right to impose 5% tariffs on imported Mexican products.

Mexico’s Deputy Foreign Minister for North America, Roberto Velasco, said that a severe drought in 2022 and 2023prevented the country from meeting its commitments.

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International

Several people shot in attack on Brown University campus

Several people were shot on Saturday in an attack on the campus of Brown University, in the northeastern United States, local police reported.

“Shelter in place and avoid the area until further notice,” the Providence Police Department urged in a post on X. Brown University is located in Providence, the capital of the state of Rhode Island.

U.S. President Donald Trump said on his social media platform Truth Social that he had been briefed on the situation and that the FBI was on the scene.

At 5:52 p.m. local time (11:52 p.m. GMT), Brown University said the situation was still “ongoing” and instructed students to remain sheltered until further notice.

After initially stating that the suspect had been taken into custody, Trump later posted a second message clarifying that local police had walked back that information. “The suspect has NOT been apprehended,” the U.S. president said.