In Asia, shares fell sharply. Stock trading on the Moscow Stock Exchange will be closed at least until Wednesday. Netflix and Fazer withdraw from Russia.
Russian the attack on Ukraine continues for twelve days. In this case, we are watching the economic impact of the war.
Russian economy at 9.30
The ruble collapsed to a record low
The Russian ruble has once again collapsed to a record low against the dollar. One dollar now gets 127.5 rubles on Monday morning. The currency is now really cheap, because even two weeks ago before the attack began, one dollar got 80 rubles.
The ruble has depreciated by almost 60 percent in two weeks.
Valio and Paulig withdraw from Russia
The dairy company Valio will divest its business in Russia immediately, the company says in a press release. Valio has a processed cheese factory near Moscow.
The food company Paulig also says it will withdraw from the Russian business immediately. Paulig has a coffee roastery in Tver.
Streaming giant Netflix has suspended its service in Russia, according to several US media outlets. The reason for the decision is Russia’s invasion of Ukraine.
Netflix is the world’s leading streaming service. By the end of last year, it had more than 220 million subscribers. However, the company is not a large player in Russia, where it has less than one million subscribers.
Tiktok, a mobile app for sharing short videos, is also suspending publishing video content from Russia. The reason for the decision is said to be the safety of workers and compliance with Russia’s new “false news” regulations.
Food company Fazer said on Sunday evening that it would divest all its business in Russia.
Fazer has employed a total of about 2,300 people in the bakery business in Moscow and St. Petersburg. Last year, the company’s turnover in Russia was approximately EUR 157 million, or 13 percent of the company’s turnover.
As late as Friday, Fazer announced that it intended to maintain its business in Russia, even though it had stopped all exports to Russia and suspended its investment in the country.
Energy market at 9.15
The price of oil is rising at a rapid pace
The price of oil has continued to rise. The Brent reference grade jumped as much as 18 percent to about $ 140 a barrel after e-commerce opened up in Finland at night after weekend news.
United States Secretary of State Antony Blinken said on Sunday that the country is actively in talks with European countries to ban Russian oil imports.
Russian Foreign Minister Sergei Lavrov Meanwhile, he said on Saturday that Western economic sanctions against Russia would jeopardize Iran’s nuclear deal negotiations.
“The key question for the coming week is whether the import bans on Russian energy will be imposed. At the same time, rumors have been heard about Iran’s nuclear deal negotiations, which will not alleviate the difficult supply situation, ”Nordea Bank assessed in its morning report.
After a rise in the morning, Brent’s May delivery price dropped to close to $ 130 a barrel, up nearly 10 percent from the close of trading on Friday. Last week, the price of a barrel of Brent rose 21 percent.
The price of Brent reference quality has risen 33 percent since Russia invaded Ukraine about a week and a half ago. Russia is one of the world’s largest oil-producing countries.
The stock market has started a new week in sharp signs in Asia. The Hong Kong stock market was at its deepest in the 4 percent frost, with Tokyo and Taipei packing at a 3 percent pace.
The Tokyo Nikkei Index closed down 2.9 percent. During the trading day, the index was below the psychologically important 25,000 points.
Index futures, which anticipate the opening of European stock markets, will have a clear downturn for Monday. Euro Stoxx 50 futures were minus 3.0 percent at seven o’clock.
In Moscow, the stock market will remain closed both today and tomorrow, Tuesday, when Russia has a public holiday due to International Women’s Day.
Foreign exchange market
The single currency, the euro, has weakened significantly against the US dollar, and the euro is now gaining just under $ 1.09.
The euro has also slipped against the Swiss franc, breaking the 1.0000 mark for the first time since 2015.
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