Meat bans, hovering gold costs and Britain voting to ‘un–Brexit’ may very well be on the playing cards for 2023, in accordance with Saxo’s Outrageous Predictions.
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Saxo Financial institution’s “outrageous predictions” for 2023 embrace a ban on meat manufacturing, skyrocketing gold costs and Britain voting to “un-Brexit.”
The Danish financial institution’s annual report, revealed earlier this month, expects international economies to shift into “battle financial system” mode, “the place sovereign financial beneficial properties and self-reliance trump globalisation.”
The forecasts, whereas not consultant of the financial institution’s official views, checked out how selections from policymakers subsequent yr might affect each the worldwide financial system and the political agenda.
Gold to hit $3,000
Among the many financial institution’s “outrageous” requires subsequent yr, Saxo Head of Commodity Technique Ole Hansen predicted the worth of spot gold might exceed $3,000 per ounce in 2023 – round 67% larger than its present worth of about $1,797 per ounce.
The report places its forecasted surge down to 3 components: “an rising battle financial system mentality” that makes gold extra interesting than overseas reserves, an enormous funding in new nationwide safety priorities, and rising international liquidity as policymakers attempt to keep away from debt debacles of their respective recessions.
“I’d not be stunned to see commodity pushed economies eager to go to gold due to an absence of higher alternate options,” Steen Jakobsen, chief funding officer at Saxo, instructed CNBC’s “Squawk Field Europe” on Dec. 6.
“I feel gold goes to fly,” he added.
Whereas analysts expect a rise within the worth of gold in 2023, a surge of that magnitude is unlikely, in accordance with international commodities intelligence firm CRU.
“Our worth expectations are far more average,” Kirill Kirilenko, a senior analyst at CRU, instructed CNBC.

“A much less hawkish Fed is more likely to result in a weaker USD, which might in flip give gold bulls extra respiration area and vitality to stage a rally subsequent yr, lifting costs nearer to $1,900 per ounce,” he mentioned.
Kirilenko highlighted, nonetheless, that it is all depending on strikes by the Federal Reserve. “Any trace of accelerating ‘hawkishness’ from the US central financial institution would doubtless strain gold costs decrease,” he mentioned.
Britain will vote to un-Brexit
The “outrageous prediction” almost certainly to happen subsequent yr, in accordance with Saxo’s Jakobsen, is for there to be one other referendum on Brexit.
“I really suppose it is one of many issues that may have a excessive chance,” he instructed CNBC.
Saxo Market Strategist Jessica Amir mentioned British Prime Minister Rishi Sunak and his Finance Minister Jeremy Hunt could take Conservative Celebration rankings to “unheard-of lows” as their “brutal fiscal programme throws the UK right into a crushing recession.”
This, the financial institution forecasted, might immediate the English and Welsh public to rethink the Brexit vote, with youthful voters main the best way, and power Sunak to name a basic election.
Saxo predicts there may very well be one other Brexit referendum on the playing cards for Britain.
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Saxo’s Amir mentioned the opposition Labour celebration could then win the election and promise a referendum to reverse Brexit for Nov. 1, with the “re-join” vote profitable.
“Enterprise individuals are saying the one factor they’ve gained from Brexit is U.Okay-specific GDPR,” Saxo’s Jakobsen instructed CNBC. “The remaining is simply elevated purple tape,” he mentioned.
Anand Menon, director of the suppose tank UK in a altering Europe, mentioned this prediction “simply does not compute.”
“I do not suppose there shall be one other referendum and the concept that [Labour leader Keir] Starmer would undertake that place is for the birds,” he mentioned.
Starmer instructed a enterprise convention in September that his celebration would “make Brexit work.”

Public sentiment towards Brexit has modified for the reason that referendum, Menon mentioned, after the vote resulted in a slim majority of 52% of voters opting to depart the EU again in 2016.
“It is completely the case that public opinion appears to be turning,” he mentioned.
Research carried out by YouGov in November confirmed 59% of the 6,174 individuals surveyed thought Brexit had gone “pretty badly” or “very badly” for the reason that finish of 2020, whereas solely 2% mentioned it had gone “very properly.”
Meat manufacturing to be banned
Meat is accountable for 57% of emissions from meals manufacturing, in accordance with analysis revealed by Nature Food, and with international locations the world over having made net-zero commitments, Saxo says it’s attainable not less than one nation might lower out meat manufacturing solely.
One nation “trying to front-run others” on its local weather credentials could determine to closely tax meat from 2025 and will ban all domestically produced stay animal-sourced meat solely by 2030, Saxo Market Strategist Charu Chanana mentioned.
Meat is accountable for 57% of emissions from meals manufacturing, in accordance with analysis revealed by Nature Meals.
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“I would not be stunned to see faculties in Denmark and Sweden banning meat altogether, it is undoubtedly going that means,” Saxo’s Jakobsen instructed CNBC. “It sounds loopy for us previous individuals,” he added.
The U.Okay., international locations within the European Union, Japan and Canada are among the many nations with legally binding net-zero pledges.
The U.Okay’s Division for Surroundings Meals and Rural Agriculture mentioned there have been “no plans” to introduce a meat tax or ban meat manufacturing when contacted by CNBC.
An eventful 2023?
A few of the different “outrageous predictions” for subsequent yr from Saxo embrace the resignation of French President Emmanuel Macron, Japan pegging the yen to the U.S. greenback at a charge of 200 and the formation of a united European Union army.
The predictions ought to all be taken with a pinch of salt, nonetheless. Saxo’s Jakobsen instructed CNBC that there was a 5-10% probability of every forecast coming true.
The financial institution has made a set of “outrageous predictions” every year for the final decade and a few have really come true — or not less than come shut.
In 2015, Saxo forecasted that the U.Okay. would vote to leave the European Union following a United Kingdom Independence Celebration landslide, it predicted Germany would enter a recession in 2019 – which the nation narrowly avoided – and it wagered that bitcoin would experience a meteoric rally in 2017.