Russia sanctions ripple across world markets, rouble tanks

LONDON - World stocks slid, oil prices jumped and the rouble tanked to fresh record lows on Monday, as the West ramped up sanctions against Russia for its attack on Ukraine that included blocking banks from the SWIFT global payments system.

Russia's central bank raised its key interest rate to 20 percent from 9.5 percent in an emergency move, and authorities told export-focused companies to be ready to sell foreign currency as the rouble slid almost 30 percent to record lows versus the dollar. 

As an economic crisis loomed in Russia, the fallout of tougher sanctions from the West imposed over the weekend rippled out across financial markets.

European stocks slumped 2 percent. European banks most exposed to Russia, including Austria's Raiffeisen Bank, UniCredit and Societe Generale, dropped between 9 and 15 percent, while the wider euro zone banking index fell 7 percent.

US stock futures were deep in negative territory, although MSCI's broad gauge of Asia shares and Japan's Nikkei eked out small gains.

"The trading environment is highly dynamic, and we maintain a defensive stance as things could get a lot worse from here," said Peter Garnry, head of equity strategy at Saxo Bank.

Oil prices meanwhile surged after Russian President Vladimir Putin put nuclear-armed forces on high alert on Sunday, the fourth day of the biggest assault on a European state since World War Two. 

The ramp-up in tensions heightened fears that oil supplies from the world's second-largest producer could be disrupted, sending Brent crude futures up 5 percent to $102.86. US. West Texas Intermediate crude futures were up $4.62 or almost 5.0 percent at $96.24 a barrel.

"I am telling clients all we know for certain is that energy prices are going to be higher, and there are going to be some beneficiaries," said John Milroy, Ord Minnett financial advisor in Sydney.

"It's an old cliché, but it's true that uncertainty drives moves in both directions." 

SAFE-HAVENS SHINE

As uncertainty continued to grip markets, investors plumped for the safety of the dollar, Swiss franc and Japanese yen.

The euro slid 1 percent to $1.1168 and 0.9 percent to 129.08 yen, while the risk-sensitive Australian and New Zealand dollars fell 0.5 percent and 0.3 percent, respectively.

Sovereign bonds such as the US. Treasuries and German Bunds -- regarded as among the most safest assets to hold globally -- remained in strong demand.

The 10-year US. Treasury yield was down around 7 basis points to 1.90 percent in London trade, and equivalent German yields were down 6 basis points to 0.16 percent.

Money markets continued to push back rate hike expectations with investors now pricing roughly 30 basis points worth of tightening from the European Central Bank in total this year, down from 35 bps late last week. 

Gold was last up 0.61 percent to around $1,899.

Russia's rouble dived almost 30 percent to a record-low 120 per dollar, but recovered some ground to last trade at just over 100 to the dollar.

MSCI's Russia equity index slid 25 percent, while London and Frankfurt-listed Russian equity exchange traded funds (ETFs) tanked more than 35 percent as investors dumped Russian assets.

(Reporting by Dhara Ranasinghe; Additional reporting by Kevin Buckland in TOKYO; editing by Jason Neely)

-reuters

Cohen on Trump Hush Money, Moscow Plans and Wikileaks

Donald Trump’s longtime personal attorney and “fixer” Michael Cohen testified Wednesday before Congress about hush payments to alleged former lovers of the president and a deal to build a Trump Tower in Moscow, and said Trump knew in advance about a WikiLeaks document dump that damaged his opponent Hillary Clinton.

Here is where Cohen and his former boss stand on the three key issues:

In April 2018, reporters asked Trump on board Air Force One if he knew about $130,000 in payments made before the 2016 election to former porn actress Stormy Daniels, to keep her quiet about an alleged affair.

Trump denied any knowledge of the payments, and suggested reporters ask Cohen — then still his lawyer — about it. Trump later changed his account, admitting he reimbursed Cohen for the payments but that they were a “private transaction” unrelated to his campaign.

Cohen was sentenced in December to three years in jail for crimes that included violating campaign finance laws via the hush payments made to Daniels and a former Playboy model. Testifying to the House Oversight Committee Wednesday, Cohen submitted a copy of a check issued from Trump’s personal account — after he took office  — “to reimburse me for the hush money payments I made to cover up his affair with an adult film star and prevent damage to his campaign.”

“The President of the United States thus wrote a personal check for the payment of hush money as part of a criminal scheme to violate campaign finance laws,” Cohen stated. Cohen said the reimbursements were deliberately spread out over 12 months to make them “look like a retainer.”

Cohen has also pleaded guilty to lying to Congress when he previously claimed negotiations to build a Trump Tower in Moscow had ended in January of 2016. He later admitted they continued into June 2016, after Trump had become the Republican White House nominee.  “To be clear: Mr. Trump knew of and directed the Trump Moscow negotiations throughout the campaign and lied about it,” Cohen told Wednesday’s hearing. Cohen asserted that personal lawyers for Trump reviewed his testimony to Congress in which he lied about the deal.

Trump has repeatedly argued Russia had no sway over him because he had no business dealings there, as he seeks to deflect suggestions his campaign colluded with Russian meddling in the 2016 election.  After Cohen changed his story, Trump acknowledged his right-hand man had pursued a deal with the Russians well into 2016, but insisted there was nothing wrong with seeking business opportunities while running for office.

Court filings have since revealed that negotiations continued even longer than Cohen had admitted, through October or even November 2016.

Cohen testified Wednesday that Trump knew in advance — and welcomed the news — that WikiLeaks planned to release a trove of sensitive emails hacked from Democratic Party computers by Russian agents.

Cohen said that in July 2016 he heard a phone conversation in which Roger Stone, another long-term associate of the president charged with lying to Congress and witness tampering, had told Trump that WikiLeaks founder Julian Assange had promised the document dump. According to Cohen, Trump answered “to the effect of ‘wouldn’t that be great.'”

Cohen also said he believed Trump had prior knowledge of a June 2016 meeting between his son Donald Jr, campaign officials and a Russian lawyer peddling “dirt” on Clinton. This was based on him seeing Donald Jr inform his father, at around that time, “The meeting is all set.”

“Mr. Trump had frequently told me and others that his son Don Jr. had the worst judgment of anyone in the world,” Cohen said — adding that “Don Jr. would never set up any meeting of any significance alone and certainly not without checking with his father.” Trump has denied any knowledge of the Trump Tower meeting, or that he discussed the WikiLeaks release with Stone.

source: usa.inquirer.net

10 ways to enjoy Russia

To the intrepid traveler in search of exotic sites and adventures, Russia is the perfect starting point for the trip of a lifetime.

Aside from being the largest country in the world, spanning two continents and covering 1/7 of the earth’s total land area, Russia is also home to some of the most awe-inspiring natural and manmade wonders on the planet. (Some of the most widely televised events in the world will be held there, such as the 2013 Miss Universe pageant in Moscow in November and the July 2014 Winter Olympics in Sochi.)



If the mere thought of navigating your way through this vast territory overwhelms you, fear not. Here are some must-sees and dos to get you started.


Moscow

1. Get to know Russia’s rich and colorful past in Moscow. Start at the Kremlin and get to know the seat of Russian political power. Inhabited since the 2nd century BC and known as a kremlin (“fortress”) beginning 1331, here is where you’ll see five palaces, four cathedrals, as well as the official residence of the president of the Russian Federation. The Moscow Kremlin is also home to what the Unesco describes as “religious monuments of exceptional beauty,” such as the Church of the Annunciation and the Church of the Archangel, as well as the Senate and the historic Red Square.

Another interesting tidbit about Moscow: It is home to the largest number of billionaires in any other city in the world—beating New York by a handful of ultra-rich citizens. If you’d like to get more than the usual taste of glitz and glamour, Moscow is the place to be in.

St. Petersburg

2. Feel like a tsar in St. Petersburg. Approximately 400 miles from Moscow and only 90 minutes via a nonstop flight on Aeroflot, St. Petersburg is home to some of the most stunning palaces in the world. Peterhof (Petrodvorets) is a complex of palaces and gardens commissioned by Peter the Great in the early 1700s, and is known as the “Russian Versailles.” It is recognized as a Unesco World Heritage Site, with some famous attractions such as the Grand Palace and the fountain complex known as the Grand Cascade.

Perhaps even grander than Peterhof is the Tsarkoe Selo (Pushkin), which was built by the Romanov tsars in the 18th century and is known to be a symbol of Russian opulence and extravagance. But more displays of grandeur abound in St. Petersburg.

Golden Ring

3. Take a tour around the “Golden Ring,” and explore Russia’s spiritual side. The Golden Ring is a cluster of cities toward the northeast of Moscow, which has become popular with tourists for its many churches, monasteries, and a taste of the Russian pastoral life.

The closest stop would be Sergiev Posad (approximately 83 miles from Moscow), home of the ancient monastery founded by Sergey Radonezhskiy, a saint of the Russian Orthodox Church.

For a more rustic feel, head out to Suzdal (approximately 134 miles and four hours by land from Moscow), and find yourself surrounded by 12th- to 13th-century churches and monasteries. While there, make sure to try medovukha, a light alcoholic drink made from honey.

Lake Baikal

4. If you think Russia is all pomp and overindulgence, head over to Lake Baikal in southeastern Siberia (six hours by plane from Moscow to Irkutsk) for a more down-to-earth experience with Mother Nature’s glory. A place of many superlatives, Lake Baikal is the world’s oldest lake (25 million years old) and also its deepest (1,700 meters deep). It is also the world’s largest unfrozen freshwater reserve and is home to some of the world’s richest freshwater faunas, cited by the Unesco for its “exceptional value to evolutionary science.”

Vodka

5. Indulge in vodka, one of the world’s most popular drinks. No trip is complete without sampling a country’s cuisine, but no trip to Russia would be authentic without a sip (or a glass, or more) of vodka. First produced over 600 years ago, vodka is made by distilling grains such as rye, wheat and barley, and then filtering the liquid with birch charcoal.

Its long and fascinating history has survived the Prohibition era, and it has likewise been instrumental to the wealth and the power of the Russian state.

For a closer look at how vodka is made, take a tour at Cristall, Russia’s largest vodka distillery, located in Moscow.

Art and culture

6. Immerse yourself in fine art and high culture—all in St. Petersburg. The Russians certainly love culture, as seen in more than 2,000 libraries and more than 200 museums and galleries that have been established in St. Petersburg alone.

One of the world’s largest museums, the State Hermitage Museum houses more than three million items and is known for its grand art collection.

For something more intimate and quaint, head over to the (Fyodor) Dostoyevsky Memorial Apartment Museum, where the “Crime and Punishment” author resided during the last three years of his life. Aside from a reconstruction of the Dostoyevsky family home, the museum also houses art exhibits and a small theater for conferences, poetry readings and performances.

Russian ballet

7. Fall in love with (or at!) the Russian ballet. Although ballet was really a French import, the Westernization program of Peter the Great and the establishment of St. Petersburg’s Imperial School of Ballet paved the way, centuries later, for the careers of such important names as Anna Pavlova, Mikhail Foskine and Nijinsky.

Today, one of the most prestigious dance companies is the Bolshoi Ballet, housed at the Bolshoi Theatre in Moscow. Several well-loved productions are lined up this October, including “Swan Lake,” “Don Quixote” and “Spartacus.” (Visit www.bolshoi.ru/en/)


Matryoshka dolls

8. Take home a set of matryoshka dolls. Perhaps the most iconic of Russian souvenir items is the matryoshka or the babushka dolls, nesting dolls that were first introduced at the 1900 World Exhibition in Paris. Usually made of linden or birch, and then hand-painted, matryoshka dolls became globally popular in the 20th century and were manufactured in Sergiev Posad and Semenov, outside Moscow.

Today, the best place to find a wide variety of gift items is in Izmaylovo Market, Moscow. Before heading out there, remember to wear comfortable shoes and clothing, as your shopping trip could easily last the whole day.

Moscow Metro

9. Travel like a local, in style. One of the most magnificent contributions of the Stalin era is Moscow’s opulent metro system, with stations built as “people’s palaces.” Constructed in the 1930s, the Moscow Metro was built by some of Russia’s best architects and artists, and featured fine examples of different architectural styles, iconography, art.

One of the more popular stations is Mayakovskaya, featuring a sky-theme Art Deco mosaic by Alexander Deineka. If you intend to check out each station, give yourself a few days as there are now over 170 stations in all.

Traveling around Russia

10. Tour the vast expanse of Russia. You may want to try Aeroflot, which flies to 28 destinations there. It is also practical to take as it offers connections to other local cities.  (Contact its Philippine ticketing office at 7592191 and 7592192; or e-mail

info@aeroflot.ph)

There is truly much more to Russia than meets the eye, and it offers many unforgettable experiences to those who open themselves up to its charms. Although it may seem like a world away to many Filipinos, in truth, Russia is much closer and more accessible than many of us think. With a bit of research and planning, a few tips from the experts, and a lot of gumption for adventure and exotic cultures, the trip of your dreams could be just a plane ride away.


source: lifestyle.inquirer.net