April was the month of consolidation – stock indices rose slightly, while government bond yields fell by a few basis points. The reporting season is almost over, with no major disappointments recorded.

Looking beyond April, both the Federal Reserve System and the European Central Bank raised interest rates by 25 basis points at the very beginning of May, which was expected and did not add to the overall volatility. 

Players interpreted the message of the main bankers positively, seeing a hint that the rate peak in this cycle might have been reached.

More information about Signet Bank Market Review 04/2023 can be found here

On friday 12 of May, the British Chamber of Commerce in Latvia Platinum Member Skonto Plan Tukuma material production facility was visited by special guests – Ambassador Paul Brummell of the British Embassy in Latvia (British Embassy, ​​Riga) and Business Development Advisor Aldis Celms.

The British Chambers of Commerce (BCC) have published a Press Release “WEAK FIRST QUARTER FOR UK EXPORTS” regarding the UK Trade for March 2023.

Reacting to the latest ONS Trade data, William Bain, Head of Trade Policy at the BCC, said:

“The picture for global trade in the first quarter of 2023 is creating serious challenges for UK exporters, with a drop off in services as well as goods. While a pick-up in global demand is likely to develop in the second half of the year, we need action now to address both the cyclical and structural factors holding back UK export growth.

“Labour market concerns appeared to act as a brake on any further services growth during March. Removing inflationary effects, UK services exports, which make up the bulk of our overseas sales, are still 0.9% below their pre-pandemiclevels. The Government needs to do more to remove non-tariff trade barriers that are frustrating firms and make a big push to improve take up of free trade agreements.”

Detailed Analysis of UK trade Data

Q1 2023

Figures for March revealed a further drop in both goods imports and exports, concluding a weak start to the year. Across the quarter, UK goods exports values declined by 3.2%, and goods imports by 7.5%. Services exports values fell by 2% across the quarter. Taking goods and services trade overall, there was a fall in UK exports values of 2.6% between January and March 2023, and in imports of 6.8%.

March data

After taking inflation into account, goods imports values fell by 2.1% in March and goods exports by 2.7%. Although imports of goods with the EU remained static, there was a decline in goods imports trade with the rest of the world in March of 4.7% – driven by lower fuel and oil imports, and across cars, transport, machinery and other manufactured goods. Good exports to the rest of the world fell by 3.6% and to the EU by 1.7%. In services, UK exports increased by 0.8% in March, and imports by 0.3%.

Trade Deficit

Reduced imports across the quarter led to a fall in the overall UK goods and services trade deficit from £15.1bn to £10.2bn in Q1 2023. 

More information on the ONS Trade figures can be found here.

The Coronation of Their Majesties The King Charles III and the Queen Camilla took place at Westminster Abbey in London on last Saturday the 6th of May, in the first Coronation Service in almost 70 years with a majestic and deeply religious ceremony.

Majesties arrived at Westminster Abbey in procession from Buckingham Palace, known as ‘The King’s Procession’.

After the Service, Their Majesties returned to Buckingham Palace in a larger ceremonial procession, known as ‘The Coronation Procession’. Their Majesties were joined in the procession by other Members of the Royal Family.

Upon returning, The King and The Queen received a Royal Salute in the Garden of Buckingham Palace from the Armed Forces taking part in the Processions.

The King and The Queen, accompanied by Members of the Royal Family, then appeared on the Buckingham Palace Balcony for the Flypast and the conclusion of the day’s ceremonial events.

Long live the King! 🇬🇧

📸Chris Jackson

Reacting to the news that the trade deals with Australia and New Zealand will come into force on May 31, William Bain, Head of Trade Policy at the BCC, said:

“It is good news to hear that the free trade agreements with Australia and New Zealand will finally come into force at the end of the month.

“These deals will lower tariffs, simplify customs procedures, allow for greater freedom of movement for labour and provide stronger market access for the UK’s world-leading services sector.

“But the success of any free trade agreement comes down to whether businesses use it, so it’s vital the Government shouts from the rooftops about these new opportunities.

“A recent BCC survey also found almost a quarter of firms (23%) said finding a business partner or distributor overseas would encourage them to either start exporting or export more.

“We have strong Chambers in both Australia and New Zealand and will be working with them to get the most out of these trade deals for all our economies.”

Further details on the trade agreements can be found here, for Australia, and here, for New Zealand.

Happy independence restoration day to Latvia and all the Latvian people

Reacting to reports that the sunset clause might be removed from the Retained EU Law Bill, William Bain, Head of Trade Policy at the BCC, said:

“Over the past few months, the BCC has consistently put forward a strong business case to remove the uncertainty caused by an imminent sunset clause for retained EU law.

“If Ministers are now considering a more pragmatic approach this would be greatly welcomed. Firms have been battered by the pandemic, energy costs, inflation and rising interest rates, but their confidence in the economic outlook has been starting to grow. Now is not the time to knock that with a hasty sunset clause across vast areas of UK regulation.

“But it would appear the Government has been listening and we welcome the opportunity for further dialogue. Businesses are keen to see reform which removes barriers to growth, where appropriate, that keeps costs down andavoids divergence within the UK internal market.”

On April 19, 2023, the RISEBA University of Business, Arts and Technology’s Constitutional Assembly, elected the current Vice Rector of RISEBA Studies, professor Lucija Rutka, as the new rector of RISEBA.

We, British Chamber of Commerce in Latvia, send our warmest congratulations to the new Rector, and wish her and RISEBA University continuous success and development, and hope for a further cooperation with BritCham!