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Showing posts with label currency. Show all posts
Showing posts with label currency. Show all posts

Wednesday, April 16, 2025

Global Economics - Now Here's Something completely unexpected > Russian Ruble top currency - outperforms gold; China cancels 179 Boeing jetliners - ouch!!!

 

Ruble is this year’s best-performer

– Bloomberg

The Russian currency has posted strong gains against the US dollar and has outshined gold, data shows
Ruble is this year’s best-performer – Bloomberg











The Russian ruble has emerged as the world’s top-performing currency this year, outpacing even gold, Bloomberg reported on Tuesday, citing calculations based on over-the-counter market data.

The ruble has surged 38% against the US dollar, marking the strongest gains of any currency so far this year. It has also outperformed gold – long seen as a safe-haven asset – which has risen 23% to record highs since January.

Analysts cited a combination of geopolitical developments and monetary policy decisions by the Bank of Russia as key drivers of the ruble’s performance.

“Unlike many emerging-market currencies, the ruble is not facing pressure from capital outflow, caused by global investors’ retreat from riskier assets,” Sofya Donets, an economist at T-Investments, told Bloomberg, noting that capital controls “have largely shielded Russia from this.”

Other economists pointed to high borrowing costs. In October, the Bank of Russia hiked its benchmark interest rate to a record 21% to curb inflation and has held it steady since. Experts said the move dampened demand for imports, and by extension, foreign currency. Meanwhile, regulations requiring exporters to convert a portion of their foreign earnings into rubles, a measure introduced in response to Western sanctions, have further strengthened the currency, they noted.

Analysts also cited improved US-Russia relations, spurred by joint efforts to resolve the Ukraine conflict, as boosting foreign investor interest in Russian markets and the ruble. Iskander Lutsko, the head of research at Istar Capital, said international investors are increasingly turning to countries that maintain ties with Moscow to access high-yielding ruble assets. He also predicted that the conditions currently boosting the ruble are likely to persist for some time.

“There are no clear drivers for the ruble’s weakening at this stage with a rate cut off the table for the upcoming quarter,” Lutsko said.

The ruble rally comes amid a weakening of the US dollar, which hit a six-month low on Monday following tariff hikes announced by Washington. Earlier this month, US President Donald Trump introduced “reciprocal” tariffs on nearly 90 trade partners, citing unfair trade practices.

While Trump paused most of the new tariffs for 90 days, except on China, global financial markets have taken a beating as a result. Economists say the US president’s actions have shaken investor faith in US assets and cast doubt on the dollar and Treasuries as reliable safe havens. The ruble, however, has been relatively immune to the tariff war, as Russia has not been targeted.

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Now this really has to hurt!


China orders its airlines to dump Boeing

– Bloomberg

The trade war with the US has led to the cost of jets and parts from the aerospace giant to more than double for Chinese carriers
China orders its airlines to dump Boeing – Bloomberg











China has ordered its airlines to stop accepting Boeing jets as the trade war with the US continues to escalate, Bloomberg wrote on Tuesday, citing anonymous sources familiar with the matter.

This development follows a series of reciprocal tariff hikes between the two nations. Last week, Washington increased tariffs on Chinese imports to a total of 145%. In response, Beijing imposed 125% tariffs on American imports and restricted exports of minerals essential for high-tech manufacturing.

Beijing has also asked Chinese airlines to stop any purchases of parts or aircraft-related equipment from US companies, according to Bloomberg.

The reported order came after China’s announcement of retaliatory tariffs, which have more than doubled the cost of American aircraft and parts, making their continued use impractical for Chinese companies, Bloomberg cited its sources as saying.

In addition, the Chinese government is exploring measures to support airlines leasing Boeing jets that are now facing increased costs, the sources told the outlet.

China’s top three airlines – Air China, China Eastern Airlines and China Southern Airlines – had plans to receive 45, 53 and 81 planes from the US aerospace giant, respectively, over the next two years, according to Reuters

China is one of the biggest markets for aircraft, and has in the past accounted for up to a quarter of Boeing’s output.

US President Donald Trump seemingly slammed the decision in a Truth Social post on Tuesday. Beijing “just reneged on the big Boeing deal, saying that they will ‘not take possession’ of fully committed to aircraft,” the president wrote.

Earlier in April, Trump announced a sweeping wave of tariffs on nations with whom he claimed the US had an unfair trade deficit with. The tariffs prompted retaliation from a number of countries.

Beijing has slammed the US tariffs as “unilateral bullying.”

“China will insist on shaking hands rather than shaking fists, tearing down walls instead of building barriers, connecting instead of decoupling,” a Foreign Ministry spokesperson told a press briefing on Tuesday. It comes a day after Chinese President Xi Jinping began a set of visits to build ties with neighboring Asian countries similarly facing massive US tariffs.

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Sunday, July 31, 2022

European Politics > EU Shooting themselves in both feet; Ukrainian Refugees abandoning EU to return to war-torn homes; Russia chokes gas supplies to EU

..
Europe's insane support of NATO/USA's proxy war in Ukraine against Russia is going to cost the continent billions and billions of Euros and a very angry population. Are they really that stupid that they cannot see what is happening? Are they really that stupid that they are willing to provoke their own people with extremely high prices for energy? Apparently so!

High energy prices push inflation to nearly 9% in 19 euro-using countries


By Clyde Hughes
   
Similar to the United States, inflation in the eurozone continues to be affected by the higher costs of energy,
such as gasoline and natural gas, an official economic report said Friday.
File Photo by symbiot/Shutterstock


July 29 (UPI) -- A sharp rise in energy prices aided by Russia's war in Ukraine has helped fuel rising inflation in countries that use the euro, official statistics said on Friday.

According to the figures by Eurostat, prices in the eurozone nations reached a record-high 8.9% over the past 12 months.

The July inflationary increase was up from 8.6% in June. Energy costs rose 42% and continue to be heavily affected by the fighting in Ukraine, which has severely disrupted global energy markets.

Energy prices were expected to continue to rise at a high clip of 39.7% in July.

"Energy is expected to have the highest annual rate in July, followed by food, alcohol and tobacco, non-energy industrial goods and services," Eurostat said in a statement.

While the inflation spike is connected with Ukraine, prices in the 19-nation eurozone have been on the rise since last August when inflation stood at 3.2% and steadily increased over the past 12 months.

Inflation later rose to 5.6% in January, a month before the war in Ukraine, and then 6.2% in February.

Despite the high inflation, economic health in the eurozone was up in the most recent quarter, Eurostat said. Gross domestic product in the zone increased 0.7% for the second quarter and 0.6% in the European Union. The rise follows a 0.5% increase in the first quarter.




EU countries seemed to have been supportive of Ukrainian refugees a few months ago, however, it appears the refugees were left completely on their own with no means of survival. We are a long way from finding out how many women and children have been abducted and forced into prostitution, and nobody appears to be trying to find out.


'The money is gone': Evacuated Ukrainians forced to return

By CARA ANNA
July 25, 2022



POKROVSK, Ukraine (AP)The missile’s impact flung the young woman against the fence so hard it splintered. Her mother found her dying on the bench beneath the pear tree where she’d enjoyed the afternoon. By the time her father arrived, she was gone.

Anna Protsenko was killed two days after returning home. The 35-year-old had done what authorities wanted: She evacuated eastern Ukraine’s Donetsk region as Russian forces move closer. But starting a new life elsewhere had been uncomfortable and expensive.

Like Protsenko, tens of thousands of people have returned to rural or industrial communities close to the region’s front line at considerable risk because they can’t afford to live in safer places.

Protsenko had tried it for two months, then came home to take a job in the small city of Pokrovsk. On Monday, friends and family caressed her face and wept before her casket was hammered shut beside her grave.

Men carry the lifeless body of 35-year-old Anna Protsenko, who was killed in a Russian rocket attack, during her funeral procession, on the outskirts of Pokrovsk, eastern Ukraine, Monday, July 18, 2022. Protsenko was killed two days after coming home. She had done what authorities wanted, evacuating eastern Ukraine's Donetsk region as Russian forces move closer, but starting a new life elsewhere was uncomfortable and expensive. (AP Photo/Nariman El-Mofty)


A man walks away from a crater in the aftermath of a Russian rocket attack, that killed 35-year-old Anna Protsenko, on the outskirts of Pokrovsk, eastern Ukraine, Saturday, July 16, 2022. Protsenko was killed two days after coming home. She had done what authorities wanted, evacuating eastern Ukraine's Donetsk region as Russian forces move closer, but starting a new life elsewhere was uncomfortable and expensive. (AP Photo/Nariman El-Mofty)


“We cannot win. They don’t hire us elsewhere and you still have to pay rent,” said a friend and neighbor, Anastasia Rusanova. There’s nowhere to go, she said, but here in Donetsk, “everything is ours.”

The Pokrovsk mayor’s office estimated that 70% of those who evacuated have come home. In the larger city of Kramatorsk, an hour’s drive closer to the front line, officials said the population had dropped to about 50,000 from the normal 220,000 in the weeks following Russia’s invasion but has since risen to 68,000.

Tens of thousands of evacuees from Ukraine's eastern Donetsk region are returning to homes close to the front line, as they can't afford to live in safer places. 

It’s frustrating for Ukrainian authorities as some civilians remain in the path of war, but residents of the Donetsk region are frustrated, too. Some described feeling unwelcome as Russian speakers among Ukrainian speakers in some parts of the country.

But more often, lack of money was the problem. In Kramatorsk, some people in line waiting for boxes of humanitarian aid said they were too poor to evacuate at all. Donetsk and its economy have been dragged down by conflict since 2014, when Russian-backed separatists began fighting Ukraine’s government.

“Who will take care of us?” asked Karina Smulska, who returned to Pokrovsk a month after evacuating. Now, at age 18, she is her family’s main money-earner as a waitress.

Eighteen-year-old waitress, Karina Smulska, who returned to her home town after fleeing, prints a receipt for Ukrainian servicemen, at a restaurant, in Pokrovsk, eastern Ukraine, Wednesday, July 20, 2022. Tens of thousands of people from Donetsk region are returning to their rural or industrial communities close to the front line at considerable risk because they can't afford to live in safer places. (AP Photo/Nariman El-Mofty)

Volunteers have been driving around the Donetsk region for months since Russia’s invasion helping vulnerable people evacuate, but such efforts can end quietly in failure.


Damages from shelling on a house in Malotaranivka village, where Tamara Markova, 82-year-old resident and her son Mykola Riaskov, suffering from a disability, both returned back to after fleeing, in Kramatorsk, eastern Ukraine, Monday, July 18, 2022. Markova and Riaskov said they spent only five days as evacuees in the central city of Dnipro this month before deciding to take their chances back home. (AP Photo/Nariman El-Mofty)


Tamara Markova, 82-year-old resident, sits with her son Mykola Riaskov, suffering from a disability, who both returned back to their home after fleeing, sit in their home in Malotaranivka village, in Kramatorsk, eastern Ukraine, Monday, July 18, 2022. Markova and Riaskov said they spent only five days as evacuees in the central city of Dnipro this month before deciding to take their chances back home. (AP Photo/Nariman El-Mofty)

In a dank home in the village of Malotaranivka on the outskirts of Kramatorsk, speckled twists of flypaper hung from the living room ceiling. Pieces of cloth were stuffed into window cracks to keep out the draft.

Tamara Markova, 82, and her son Mykola Riaskov said they spent only five days as evacuees in the central city of Dnipro this month before deciding to take their chances back home.

“We would have been separated,” Markova said.

The temporary shelter where they stayed said she would be moved to a nursing home and her son, his left side immobilized after a stroke, would go to a home for the disabled. They found that unacceptable. In their hurry to leave, they left his wheelchair behind. It was too big to take on the bus.

Now they make do. If the air raid siren sounds, Markova goes to shelter with neighbors “until the bombing stops.” Humanitarian aid is delivered once a month. Markova calls it good enough. When winter comes, the neighbors will cover their windows with plastic film for basic insulation and clean the fireplace of soot. Maybe they’ll have gas for heat, maybe not.

“It was much easier under the Soviet Union,” she said of their lack of support from the state, but she was even unhappier with Russian President Vladimir Putin and what his soldiers are doing to the communities around her.

“He’s old,” she said of Putin. “He has to be retired.”

Homesickness and uncertainty also drive returns to Donetsk. A daily evacuation train leaves Pokrovsk for relatively safer western Ukraine, but another train also arrives daily with people who have decided to come home. While the evacuation train is free, the return one is not.

Oksana Tserkovnyi took the train home with her 10-year-old daughter two days after the deadly attack on July 15 in Dnipro, where they had stayed for more than two months. While the attack was the spark to return, Tserkovnyi had found it difficult to find work. Now she plans to return to her previous job in a coal mine.

Costs in Dnipro, already full of evacuees, were another concern. “We stayed with relatives, but if we needed to rent it would have been a lot more,” Tserkovnyi said. “It starts at 6,000 hryvnia ($200) a month for a studio, and you won’t be able to find it.”

Taxi drivers who wait in Pokrovsk for the arriving train said many people give up on trying to resettle elsewhere.

“Half my work for sure is taking these people,” said one driver, Vitalii Anikieiev. “Because the money is gone.”


In mid-July, he said, he picked up a woman who was coming home from Poland after feeling out of place there. When they reached her village near the front line, there was a crater where her house had been.

“She cried,” Anikieiev said. “But she decided to stay.”




Putin chokes gas supply to Latvia as Europe faces winter energy crisis

that could see cities in darkness & hot water cut

Jacob Bentley-York
20:21, 30 Jul 2022, Updated: 0:35, 31 Jul 2022

VLADIMIR Putin has choked off Latvia's gas supply "indefinitely".  

The country is the latest European nation to be cut off as Russia continues to weaponize its energy supplies in revenge at the West's sanctions.

Russia has cut the gas supply of Latvia amid growing fears of a winter energy crisis. Credit: Reuters



Gazprom announced the decision after country refused to pay for supplies in roubles. Credit: Reuters


This week, towns and cities in Germany were plunged into darkness after Russian-state energy giant Gazprom strangled supplies by 20 per cent.

Hanover's mayor Belit Onay said the "imminent gas shortage" meant energy consumption had to immediately drop by 15 per cent.

Residents have already started taking cold showers to conserve their energy.

German breweries have also been told to stop the production of beer amid fears Oktoberfest will be cancelled.

OMG! Oktoberfest cancelled? There will be riots in the streets!

Elsewhere, Spanish residents have been urged take off unnecessary clothing like ties at work to cool down.

And Belgium will reverse its phase-out of nuclear energy, while the Netherlands and Austria are switching to coal-fired power plants.

Because it is far more important for NATO and America to move the weapons inventory than to save the planet from destruction.

Putin has lashed out after European leaders banded together in fury at the war in Ukraine.

Experts say the tyrant believes the policies may act as leverage in negotiations given the huge reliance Europe has on Russian gas and energy.

Gas giant Gazprom announced today that Latvia’s supplies would be cut off after the country refused to pay for supplies in roubles.

In a statement, the company said it was halting its gas deliveries to the country because it broke “terms for extraction of gas.”

Edijs Saicans, deputy state secretary on energy policy at the Latvian Economy Ministry, said Russian gas imports will be banned from January 1, 2023.

“We do not see any major impacts from such a move,” he said defiantly.

Defiantly, and, would you believe, stupidly?

Gazprom has already cut off gas supplies to Denmark, Finland, the Netherlands, Poland and Bulgaria because the countries would not pay in their local currency as required by the supplier.

On Tuesday, EU countries reportedly agreed on emergency regulation to curb their gas use this winter as Putin continues to slash supplies.

The European Commission had previously warned that complying with Putin's order could breach EU sanctions on Moscow.

It has urged companies to keep paying in the currency agreed in their contracts with Gazprom despite the ongoing restrictions.

The news comes amid fresh reports that Putin’s men could be on the ropes after President Volodymyr Zelensky’s brave troops wiped out two Russian ammunition depots.

The Directorate for Strategic Communications of the Ukrainian army confirmed Ukraine hit two ammunition depots in Ilovaisk (Donetsk Oblast) and Brylivka belonging to Russia in the early hours of Friday morning.

Footage shared on social media show enormous flames erupting and thick, dark plumes of smoke filling the Ukrainian night sky.