WSJ Europe @WSJeurope 56m56 minutes ago
Russian ruble falls to a 2015 low after Bank of Russia unexpectedly cuts interest rates
http://on.wsj.com/1ve6G0n
The beleaguered currency, which has been struck in recent months by geopolitical tensions, Western sanctions and a relentless tumble in the price of oil, fell more than 2.5% to touch 72 to the dollar after the bank said it was slashing its key rate to 15% from 17%.
That takes the ruble’s losses over the last six months against the buck to close to 50% and since the start of the year to close to 14%, making it one of the world’s worst-performing currencies.
They will have war, one way or another. These bankers are doing everything but hit Putin over the head.
I have seen the Elephant, War and Worse,
I do not love it
Nor do I fear it.
I just dread what it can do to my country.
Duty, HONOR, Country.
If you have to ask, you will never Know.
Those who make peaceful revolution impossible will make violent revolution inevitable.
John F Kennedy
The time is near at hand which must determine whether Americans are to be free men or slaves.
George Washington
'Forged in a fire lit long ago. Stand next to me, you'll never stand alone.'
BI: Markets @themoneygame 2h2 hours ago
Morgan Stanley thinks Russia's doomed
http://read.bi/1DfvkMV
"We downgrade 2015 growth from -1.7%Y to -5.6%Y and revise our 2016 growth from a mild (0.8%Y) recovery to a 2.5%Y recession," writes Morgan Stanley's Alina Slyusarchuk. "The key new assumption that triggers the revision is the signifcantly weaker oil price, combined with a tighter policy response. At the same time, we see risks to our call as being titled to the downside, given the enhanced risk of further sanctions, and concerns over increased state control over the economy."
Russia's manufacturing sector hasn't looked this bad since June 2009
Things are getting uglier in Russia's manufacturing sector.
Russia's HSBC composite output index fell to 47.6 in January, down from 48.9 in December, which was the sharpest deterioration in overall business conditions in the Russian manufacturing sector since June 2009.
http://www.businessinsider.com/russi...january-2015-2
Moody's writes:
"We estimate that the sector’s aggregate net loss will be around RUB1 trillion in 2015, compared with net profits of RUB600 billion in 2014 and net profits of RUB1 trillion in 2013."
The Russian news service quoted a letter from Anatoly Aksakov, the president of the Association of Regional Banks of Russia, to Russian central bank governor Elvira Nabiullina. It said:
The situation in the Russian banking market is a serious concern. Despite some stabilisation in the foreign exchange market and the expected inflow of tax and budgetary resources, banks are experiencing acute shortage of liquidity. According to bankers, skyrocketing interest rates caused an increase in the key rate, already launched the process of losing the solvency of companies. Bankers believe that the preservation of the current situation will cause a wave of bankruptcies not only credit institutions but also a number of enterprises and companies.
Inflation in Russia is so crazy that officials are considering price controls on 'essential food products'
Food prices are out of control in Russia.
So now, Russian officials are even thinking about putting a price cap on "essential food products," reports the Moscow Times.
http://www.businessinsider.com/infla...ontrols-2015-2
Matt O'Brien @ObsoleteDogma 6h6 hours ago
Putin’s choice: Save Russia’s banks or its currency
http://www.washingtonpost.com/blogs/wonkblog/wp/2015/02/03/theres-only-one-thing-that-can-save-russias-economy-and-its-not-vladimir-putin/ …
Prices for diapers and tampons are skyrocketing in Russia
Thanks to the sharp decline in the ruble’s value, RBK reports that certain large packs of Procter & Gamble active baby diapers, as well as most of the company’s feminine products, men’s razors and toothpaste, will see a price hike of 50 percent.
Starting March 7, Russians will have to pay around 2,650 rubles ($40) instead of the current list price of 1,767 rubles ($25) for a value pack of 186 Pampers. Considering Procter & Gamble accounted for almost 37 percent of diaper sales in Russia in 2013, that cost increase will affect hundreds of thousands of Russians.
http://www.businessinsider.com/price...-russia-2015-2