WORLDWIDE: HEADLINES
Russia demands that U.S. stop Meta’s “extremist activities”
Russia’s embassy in the United States demanded on Friday, 11th March 2022, that Washington stop the “extremist activities” of Facebook owner Meta Platforms (FB.O), which has temporarily lifted a ban on calls for violence against the Russian military and leadership.
Meta Platforms will allow Facebook and Instagram users in some countries to call for violence against Russians and Russian soldiers in the context of the Ukraine invasion, according to internal emails seen by Reuters on Thursday, in a temporary change to its hate speech policy. read more
“Meta’s aggressive and criminal policy leading to incitement of hatred and hostility towards Russians is outrageous,” the Russian embassy said in a statement. “The company’s actions are yet another evidence of the information war without rules declared on our country.”
The embassy said it wanted the U.S. authorities to “stop the extremist activities of Meta and take measures to bring the perpetrators to justice”.
Full coverage: REUTERS
Japan’s Nikkei dives back towards 16-month low as Ukraine worries weigh
Japan’s Nikkei stock index retreated towards a 16-month low on Friday, as risk sentiment soured after talks between Ukraine and Russia’s foreign ministers made little apparent progress.
The Nikkei share average (.N225) lost 2.44% to 25,064.74, retracing about two-thirds of the previous day’s rebound from the lowest close on Wednesday since November 2020 at 24,717.53.
The broader Topix (.TOPX) lost 1.99%.
“In this environment where it’s not possible to make a forecast for what’s coming, you can’t expect any real attempt to take stocks higher,” said a trader at a domestic securities firm.
About three times as many shares fell as rose on the Nikkei, with the sectors that faired the best on Thursday – consumer, real estate and tech – dropping the most. Energy shares saw a sharp gain, however, as crude oil resumed its climb.
The stand-out loser was tech investor SoftBank Group (9984.T), declining 6.32% to become the biggest percentage decliner and biggest drag by index points. Shares in the company, which is heavily invested in Chinese startups, slid back to the cusp of their May 2020 low.
Chipmaking giant Tokyo Electron (8035.T) lost 3.06% to be the second-largest drag on the benchmark, followed by Uniqlo store operator Fast Retailing (9983.T), which said late Thursday that it would suspend its Russian business, backtracking on an earlier decision to keep stores open. read more
Automakers fell after strong gains in the previous session. Toyota Motor (7203.T) dropped 5.01% and Nissan slid 4.73%.
Energy- and commodity-related stocks advanced, with JGC Holdings soaring 12.41% to be the Nikkei’s top performer, followed by a 5.38% advance for Pacific Metals Co (5541.T) and a 3.06% gain for refiner Inpex (1605.T).
Full coverage: REUTERS
WORLDWIDE: FINANCE/BUSINESS
Disney to pause all business in Russia
Walt Disney Co (DIS.N) said on Thursday it will pause all business in Russia, including content and product licensing, Disney Cruise Line activities, National Geographic magazine and tours, local content productions and linear channels.
“Given the unrelenting assault on Ukraine and the escalating humanitarian crisis, we are taking steps to pause all other businesses in Russia,” the media and entertainment company said.
Disney said some businesses including linear channels and content and product licensing will take time to pause due to contractual nuances, while other streams of business will pause immediately.
The company had earlier said it would halt the release of theatrical films in Russia. Other Hollywood studios Warner Bros. and Sony Pictures Entertainment too had decided on such a move last month in response to Russia’s invasion of Ukraine. Russia has called its actions in the country a “special operation.”
Full coverage: REUTERS
Dollar hits 5-year high on yen, euro pressured by growth risks
The dollar hit a new five-year high on the yen on Friday after a strong U.S. inflation report, while the euro struggled to hold its own as a hawkish turn from the European Central Bank was offset by growth risks emanating from the Ukraine crisis.
The greenback rose as high as 116.39 yen in early trade, its best level since January 2017, while sterling was beaten down at $1.3089, having tumbled 0.8% overnight to a 16 month-low.
Data on Thursday showed that U.S. consumer prices surged 7.9% year-over-year in February, in the largest annual increase in 40 years.
The CPI data “basically indicates that the Fed should be hiking rates this month, but it also indicates that they will keep going [with hikes] at least initially,” said Rodrigo Catrill, a currency strategist at National Bank of Australia.
Both the Fed and the Bank of Japan have policy meetings next week, but while the Fed is all but certain to hike rates from their pandemic low, the BOJ is set to remain an outlier and hold onto a dovish stance on monetary policy, weighing on the yen. read more
The dollar has gained 1.3% on the Japanese currency this week.
Both the sterling and euro have been hurt by the impact of the conflict in Ukraine and resulting higher energy prices.
The euro was last at $1.1010 having finished a choppy Thursday 0.8% lower, though in the course of the day it had risen to as high as $1.112 and dropped as low as 1.0975.
“The more hawkish message from the ECB had a temporary upward pressure on the euro but it was very short-lived which tells you that other dynamics are overriding any considerations about what the ECB might do, including news coming from Ukraine,” said Catrill.
The ECB said on Thursday it will phase out its stimulus in the third quarter, opening the door to an interest rate hike before the end of 2022 to combat soaring inflation. read more
It also modestly downgraded its growth forecasts for this year and next, and ramped up inflation expectations, as ECB President Christine Lagarde said the conflict was a “watershed for Europe”, which would curb growth but boost inflation.
Talks between Ukraine and Russia’s foreign ministers on Thursday made little apparent progress towards ending a war that is now in its third week.
Elsewhere high commodity prices continued to boost the Australian and New Zealand dollars.
The Aussie was at 0.734 having risen 0.49% overnight, while the kiwi was at 0.6854 after a 0.36% overnight gain.
Bitcoin was around $39,000, little changed on the week, despite a volatile few day as prices took a round trip in response to an executive order from U.S. President Joe Biden requiring the government to prepare reports on the future of money.
Full coverage: REUTERS
Oil steadies amid supply doubts, but heads for sharp weekly decline
Oil prices stabilised on Friday, (11th March 2022) and were on track for their biggest weekly drops since November after see-sawing on fears of escalating bans on Russian oil versus efforts to bring more supply to market from other major producers.
Brent crude futures inched down 16 cents, or 0.15% to $109.17 a barrel at 0434 GMT after dropping 1.6% in the previous session.
U.S. West Texas Intermediate (WTI) crude futures were up 2 cents, or 0.02%, to $106.04 a barrel, following a 2.5% decline on Thursday.
In a week of volatile trading marked by talk of Russian oil embargoes then potential supply additions from Iran, Venezuela and the United Arab Emirates while fighting escalated in Ukraine, Brent was on track for a weekly fall of about 7% after hitting a 14-year high of $139.13. U.S. crude was headed for a drop of around 8% after touching a high of $130.50.
“Both contracts could well move sharply below $100 a barrel from here on any news perceived as easing supply disruptions,” said Jeffrey Halley, an analyst at OANDA.
Similarly, both contracts could easily be back at $115.00+ on any negative headlines, he said.
“It’s just that sort of market.”
Prices eased this week after it became clear the European Union, heavily reliant on Russian energy, would not join the United States and Britain in banning Russian oil.
Russia, the world’s second largest crude exporter behind Saudi Arabia, exports about 3 million barrels per day of crude to Europe’s OECD countries.
In the near term, supply gaps are unlikely to be filled by extra output from members of the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, given that Russia is part of the grouping, Commonwealth Bank analyst Vivek Dhar said.
“They’re really tied politically by the structure,” he said.
In addition, some OPEC+ producers, including Angola and Nigeria, have struggled to meet their production targets, further limiting the group’s ability to offset Russian supply losses.
Commonwealth Bank forecasts Brent will average $110 in the second and third quarters of this year, but sees prices potentially climbing as high as $150 in the short term.
“All of it is very uncertain. It’s been very difficult to come out with a view,” Dhar said.
Full coverage: REUTERS
