UK pound drop and Nord Stream 2 pipeline leaks were also highlights of the week
In the Round the World board, the team at Power 360 summarizes the main international events of the last week (24.Sep.2022 to 30.Sep.2022).
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CRISIS IN THE UK
The United Kingdom recorded this week one of the worst moments of its economic crisis. On Monday (September 26), the pound recorded its lowest value against the dollar in 51 years.
The British currency fell 7% and reached a value of US$ 1.03. Survey of Power 360 shows that the pound is down more than 20% against the dollar in 2022.
The trigger for the most recent fall was the announcement of a tax cut by the British government. The project, called “Growth Plan 2022”also made investors lose confidence in the UK and start selling the country’s government bonds.
In order to prevent the collapse of the fixed income market, the Bank of England had to intervene. On Wednesday (September 28), the financial institution suspended the sale of assets and announced the purchase of long-term bonds.
On Thursday (September 29), British Prime Minister Liz Truss defended tax cuts. She said the proposal would reduce the country’s inflation by up to 5 percentage points. The annual rate reached 10.1% in August.
NORD STREAM 2
The week was also marked by the leak of the Nord Stream 2 gas pipeline, which connects Russia to Germany.
On Monday (September 26) 2 gas leaks were confirmed in the Baltic Sea. Operations had to be suspended. European Union leaders have accused Russia of sabotage and said the matter is being investigated.
RUSSIA ANNEXES REGIONS
On Friday (September 30), President Vladimir Putin formally recognized the annexation of 4 Ukrainian regions to Russian territory. They are: Donetsk, Luhansk, Zaporizhzhia and Kherson.
Cities gained local administrators appointed by Moscow after Russia took parts of the territories. However, they are not fully controlled by Russia.
On Tuesday (September 27), pro-Russian local administrations announced the results of referendums held in the regions. According to the Russians, the percentages ranged from 87% to 99.2% and showed a majority approval for the annexation of the territories.
Ukraine and Western countries do not recognize the results and accuse the Russian government of coercing residents to vote.
In response, on Friday (September 27) Ukrainian President Volodymyr Zelensky announced that the country has formally requested membership of NATO (North Atlantic Treaty Organization).
HURRICANE IAN
The week was also marked by the passage of Hurricane Ian through Cuba and the state of Florida, in the United States. Federal funds were allocated to the state to supplement recovery efforts in the region during and after the storms.
US President Joe Biden declared on Thursday (September 29), a major disaster in Florida.
Ian is considered the strongest hurricane to hit the west coast of Florida. It left more than 2.6 million residents without power and caused flooding. Winds of 241 km/h were recorded in the state.
Also on Thursday (September 29), the tropical storm made landfall in the state of Georgia and headed towards South Carolina the following day (6th).
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