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D-PIMS Weekly Market Update - Week of 7th to 13th November 2022

Today’s Monday update:

Over the course of last week, market moving headlines were mostly related to economic and geopolitical matters:

• On Monday, Britain's Prime Minister Rishi Sunak and European Commission chief Ursula von der Leyen agreed to work to resolve problems with the Northern Ireland Protocol at a meeting at the COP27 conference in Egypt, Sunak's office said. "The Prime Minister reiterated the need to find solutions to the very real problems (the protocol) had created on the ground in Northern Ireland," a Downing Street spokesperson said. "They agreed on the importance of working together to agree a resolution."

Airlines around the world are ripping up schedules and bringing in new flights to cope with a COVID-triggered trend in corporate travel for executives - the scrapping of one-day business trips in favour of longer stays. Industry data show business travellers are taking longer trips than before COVID-19, leaving airlines adjusting flight plans. Environmental concerns, rising ticket prices, increased flight cancellations amid staff shortages and a boom in online videoconferencing are all undermining the single-day trip option as an industry standard.

• On Tuesday, World leaders, policymakers and delegates from nearly 200 countries are in Egypt at the COP27 U.N. climate summit, which delegates kicked off with a deal to discuss compensating poor nations for mounting damage linked to global warming.

Americans on Tuesday cast the final ballots in U.S. midterm elections that will determine whether Democrats lose control of Congress, and with it the ability to push forward on President Joe Biden's agenda in the next two years. The party that controls the White House typically loses seats in midterm elections, and nonpartisan forecasts suggest Tuesday's results will be no exception, as concerns about high inflation and crime outweigh the end of national abortion rights and the violence of the 6th January 2021, assault on the Capitol in voters' minds.

Ukraine doubled down on its tough stance on negotiations with Russia on Tuesday, saying talks could only resume once the Kremlin relinquishes all Ukrainian territory and that Kyiv would fight on even if it is "stabbed in the back" by its allies. The remarks come days after a U.S. media report that Washington had encouraged Kyiv to signal willingness for talks, and seemed aimed at rebuffing such pressure, at a time when U.S. mid-term elections could test Western support for Ukraine.

• On Wednesday, Russian Defence Minister Sergei Shoigu on Wednesday ordered his troops to withdraw from the occupied Ukrainian city of Kherson and take up defensive lines on the opposite bank of the River Dnipro. The announcement marked one of Russia's most significant retreats and a potential turning point in the war, now nearing the end of its ninth month.

Control of Congress was up for grabs early on Wednesday after the U.S. midterm elections, with many of the most competitive races uncalled, leaving it unclear whether Republicans would crack Democrats' tenuous hold on power.

• On Thursday, U.S. consumer prices rose less than expected in October, pushing the annual increase below 8% for the first time in eight months, the strongest signs yet that inflation was slowing, which would allow the Federal Reserve to scale back its hefty interest rate hikes. In the 12 months through October, the CPI increased 7.7% after rising 8.2% on the same basis in September. It was the first time since February that the annual increase in the CPI was below 8%, and the smallest gain since January.

• On Friday, Ukrainian troops have reclaimed dozens of landmine-littered settlements abandoned by Russian forces in southern Ukraine, officials said, the day after Moscow announced its withdrawal from the strategic capital city of Kherson province. Kherson province is one of four that Russian President Vladimir Putin claimed to have annexed in late September and that most countries condemned as illegal.

The Kremlin said on Friday that work was underway to address a number of Russian concerns regarding the Black Sea grain initiative, which is due to expire on 19th November Speaking as delegates from Russia and the United Nations were due to meet in Geneva to discuss a possible extension to the deal, Kremlin spokesman Dmitry Peskov said there was a "reciprocal understanding" about Russia's calls for the West to remove "obstacles" to its own fertilisers and grain exports. "Negotiations and contacts are continuing," Peskov told reporters.

• Over the week, the main global stock markets were up, apart from the UK’s FTSE 100, which was slightly down. Hong Kong and German markets were up the most. The strengthening Pound did reduce the value of returns from many overseas markets. Over the week, all the D-PIMS portfolios were strongly up, especially the higher risk portfolios. The portfolios were particularly helped by their Gold equity and Japan allocations, but also supported by Bond holdings.

The value of investments and the income from them can fall as well as rise and you may not get back the original amount you invested.

Past Performance is no guarantee of, or guide to future returns.

The comments made above represent our interpretation of events and market views and are in no way a guarantee of future investment performance.