Client Weekly Update – 5 May

Market Update

European markets nudge higher as investors assess the monetary policy. The pan-European Stoxx 600 added 0.4% in early trade while Britain’s FTSE 100 is set to climb by around 30 points to 7,733, Germany’s DAX is seen around 45 points higher at 15,779 and France’s CAC 40 is expected to add around 21 points to 7,362.

U.S stock rose early Friday morning after tech giant Apple posted its latest quarterly figures, and investors looked ahead to the release of fresh U.S. jobs data. Futures tied to the Dow Jones Industrial Average gained 98 points or 0.3%. S&P 500 futures gained 0.45%, while Nasdaq-100 futures added 0.5%.

Asia markets are mixed this Friday morning as banking fears were reignited on Wall Street, sending the three major U.S. indexes into a four-day losing streak. Hong Kong’s Hang Seng index rose 0.38%, leading gains in the region. In mainland China, the Shanghai Composite slipped by 0.48% to close at 3,334.5 and the Shenzhen Component fell 0.83% to end at 11,180.87.

Coronation of King Charles III

King Charles III’s Coronation will take place on Saturday 6 May 2023 at Westminster Abbey in London.

During the ceremony, the King will be crowned alongside Camilla, the Queen Consort.
Here is what we know about the plans, code-named Operation Golden Orb.

What time is the Coronation?

The ceremony is due to start at 11:00, with the King’s procession expected to arrive at Westminster Abbey shortly beforehand.

What is a coronation?

A coronation is both the symbolic religious ceremony during which a sovereign is crowned and the physical act of placing a crown on a monarch’s head.

What happens at a coronation?

Coronations have remained much the same for more than 1,000 years. The British ceremony is the only remaining event of its type in Europe.

However, it is likely to be shorter and smaller in scale than Queen Elizabeth II’s 1953 coronation, with a wider range of religions represented.

The Coronation Procession is also expected to be more modest. Queen Elizabeth’s procession had 16,000 participants, and took 45 minutes to pass any stationary point on the 7km (4.3 miles) route.

This time, the King and Camilla, the Queen Consort, will travel to Westminster Abbey in a relatively modern horse-drawn carriage which has electric windows and air conditioning.

They will ride in the Diamond Jubilee State Coach, first used in 2014, before returning in the Gold State Coach used in every coronation since the 1830s.

When is the Coronation bank holiday?

There will be an extra bank holiday across the UK on Monday 8 May.

Buckingham Palace has announced various events for the weekend, including a concert at Windsor Castle on Sunday 7 May featuring Katy Perry, Take That and Lionel Richie.

Tough new knife crime laws on the way for Jersey

Tough new laws are set to be introduced to deter people from carrying knives in public.
Currently, the authorities in Jersey have to prove that anyone caught in possession of a knife intended to use it to harm someone. In the UK – bar a few exceptions – simply carrying such a weapon is a criminal offence and the authorities do not need to prove intent in order to launch a prosecution. Chief Inspector Chris Beechey, from the States police, said he hoped that the new legislation would help to reduce the number of weapons on the streets. ‘A lot of our work is based on intelligence,’ he said.

‘Let’s say we have intelligence that certain individuals are involved in drug dealing and when we target those people, we may stop and search them, and if we find weapons on them you would expect us to deal with them appropriately.

‘The challenge for us is that we have to prove that they were going to harm someone. That can be very difficult to do. That’s not the case in the UK. ‘The Jersey police would say that that would be a valuable tool for us to further our education piece. We know that some people will arm themselves and what this new legislation will do is remind people that there is no reason in Jersey to carry a bladed article in public.’ The government has confirmed that it plans to lodge the draft legislation, which forms part of wider work on public disorder, before the end of the year.

Jersey minister rejects ‘erroneous claims’ made by tax pressure groupe

The Treasury Minister has rejected a series of what he has called ‘erroneous claims’ made about Jersey by a pressure group campaigning against tax avoidance. Deputy Ian Gorst defended the Island’s reputation following the allegations made by the Tax Justice Network in an open letter to King Charles III ahead of the Coronation this weekend. The campaigners are calling on the King to use his influence to revamp laws allowing tax avoidance in the UK, the Crown Dependencies and the British overseas territories. An estimated £152 billion in tax was being avoided globally each year, the Tax Justice Network claimed, of which Jersey and Guernsey were responsible for more than £6.9bn. Deputy Gorst said: ‘Jersey meets all international tax standards and has a long-standing track record of active co-operation with the international standard-setting bodies and with the European Union.
‘It is regrettable that the Tax Justice Network did not check with the government before making these erroneous claims.’

The letter, from economist Alex Cobham, who is chief executive of the network, stated that ‘Jersey has even introduced a new form of anonymous ownership vehicle this year’, but this particular claim was also rebuffed by the Treasury Minister.

Deputy Gorst said: ‘It is factually wrong to claim, as the Tax Justice Network’s letter does, that Jersey Limited Liability Companies allow for anonymity. ‘The LLC regime, which came into force in 2022, does not allow anonymous ownership – all members must be declared by initial registration with the Jersey Financial Services Commission, and all subsequent changes must be updated within 21 days.’

A spokesperson for the UK Treasury said the government ‘did not recognise’ the £152bn tax loss each year attributed by the network. The UK spokesperson added: ‘The UK has led international tax reform, which includes improving tax transparency so countries can find hidden incomes and assets, and by implementing the global minimum corporate tax, ensure large multinational groups pay the right tax in the right place.’

Body found in wreck confirmed as trawler’s skipper

A Body recovered from the wreck of a trawler which sank following a collision with a Condor ferry has been identified as that of skipper Michael Michieli. Mr Michieli died along with two crew when the L’Ecume II fishing boat was in collision with the Commodore Goodwill freight ship in December. In a statement, the States police said: ‘The Michieli family have been informed. Our deepest sympathies are with the Michieli family, and our thoughts remain with them at this difficult time.’

Slave worker memorial service ‘is as relevant today’ as ever

Young children – the descendants of forced workers who were taken from their homes and made to build German fortifications in the Occupation – will gather with their families at Westmount on Liberation Day. Four generations of the families of workers who made Jersey their home after the Second World War will lay floral tributes at a simple memorial bearing plaque to represent the nationalities of those who died and suffered terrible cruelty at the hands of the German occupying forces. Slave and forced workers comprised PoWs and civilians. They included Russians, Ukrainians, Belarusians, Spanish Republicans, Algerians, Tunisians, Moroccans, Poles, French, Jews and Belgians.

Cycling duo aim to raise £20K for stroke survivor

An Islander who plans to cycle the length of Britain in June with his partner to raise money for a young stroke survivor’s rehabilitation is appealing for funds – and accommodation during their challenge. Joe Lambert and Ellen Raymond will be cycling the 1,800km route from John O’Groats to Land’s End in the first half of next month. They are taking up the challenge in aid of a friend, Will, who suffered a spinal cord injury and stroke in April 2022 which has affected his strength and control over his body. In March this year he moved to a rehabilitation centre. When he leaves this facility, however, he will be ‘fending for himself’, Mr Lambert said.

The intention was to raise £1,000, but now the pair have upped the target to £20,000 after donations passed the £6,000 mark.

Both Mr Lambert and Ms Raymond have cycled long distances before, but ‘this is the first one we’ve done for charity’, the Islander explained. ‘It adds pressure, but gives more motivation and meaning to it as well.’
Mr Lambert continued: ‘We are feeling both excitement and nerves before the challenge. The Highlands, Devon and Cornwall are going to be quite hilly, so we are nervous about that, but the views look unbelievable. ‘We are going to be camping and sofa-surfing the whole way. We’ve got a tent and we’ve been out for some practice cycles, but we are calling on friends and family to help provide accommodation, and already have a couple of places dotted around the country where we know we can stay. We are happy to camp in anyone’s garden, if they are offering it and it is safe.’