Russian Market

2023-05-02 20:01:53 Democrat-led lawmakers urge Fed to halt rate hikes

A group led by several prominent Democratic lawmakers, including Sen. Elizabeth Warren, is calling on the Federal Reserve to halt rate hikes to avoid risking too much damage to the economy and its "potential to throw millions of Americans out of work."

The letter to Fed Chair Jerome Powell was sent ahead of the Fed's expected rate hike announcement Wednesday. It would be the 10th increase since last year, as the central bank has tried to tame inflation.

The lawmakers called on the Fed to suspend rate hikes to "respect" its dual mandate and "avoid engineering a recession that destroys jobs and crushes small businesses."

The blind leading the blind.

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2023-05-02 19:00:38 First Republic stock investors face 'wipe-out,' analyst says

First Republic investors will be left with nothing after JPMorgan Chase purchased the bank, according to banking equity analysts at Wedbush Securities.

JPMorgan did not assume First Republic's corporate debt or preferred stock, meaning institutional investors will not be made whole.

Moreover, neither JPMorgan nor the Federal Deposit Insurance Corporation have explicitly said what the purchase means for First Republic common shareholders, meaning they will not be compensated either.

"We expect a wipe-out of common shareholders following FRC entering receivership and being sold to JPM," Wedbush Securities equity analysts wrote.

Stockholders can sue the FDIC to seek payment for their shares, now down over 97% since the banking crisis began.

That said, a new FDIC web page answering questions for those impacted by First Republic's collapse lists stockholders as the fourth and final group of creditors to be paid out.

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2023-05-02 17:00:29 Tinder to quit Russia

Tinder owner Match Group has decided to swipe left on Russia, announcing it will quit the country by June 30, joining other digital service providers with few employees in Russia like Spotify and Netflix.

"We are committed to protecting human rights," Match Group said in a report, adding that its brands will "restrict access to their services in Russia and will complete their withdrawal from the Russian market by June 30, 2023."

Earlier in April, Match Group, which brands include dating apps such as Tinder, Hinge and PlentyOfFish, disabled its paid options for Russians, while leaving access to the service intact.

Prior to Tinder, its main competitors in the Russian market, Badoo and Bumble, also left the country.

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2023-05-02 14:46:04 Eurozone inflation hits 7% in April

Eurozone inflation rose above expectations to 7% in April, complicating the situation for the European Central Bank, which on Thursday is to set borrowing costs.

Eurostat said annual core inflation, which excludes energy and food prices, fell to 5.6% in April from 5.7% the previous month. ECB officials said they are not going to stop raising rates until underlying inflation declines significantly.

The month-on-month inflation rate slowed from 0.9% in March to 0.7% in April.

The ECB has increased its deposit rate from -0.5% last summer to 3% in March. Policymakers said another increase is likely to be announced after Thursday's meeting, but incoming data will determine whether the ECB will stick to a half-percentage point rise or slows to a quarter-point move.

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2023-05-02 14:01:34 IMF sees world gradually abandoning US dollar

The world is gradually ditching the US dollar, International Monetary Fund Managing Director Kristalina Georgieva said at the Milken Institute Global Conference in California.

The dollar is being gradually abandoned now; it used to account for about 70% of the global forex reserves, but now is slightly below 60%, she stated.

Still, Georgieva does not see an alternative to it any time soon, adding that "de-dollarization is not on top of my worry list."

Referring to the banking crisis, the IMF chief argued that the rapid acceleration in interest rates "exposed vulnerabilities in the financial sector," noting that the banking industry needs to be on watch for additional risks.

Georgieva further pointed to the need for a better debt restructuring mechanism as over 70 emerging markets face a collective $326 billion debt burden, with more than half of them already in or near debt distress, including Zambia, Ethiopia and Ghana.

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2023-05-02 13:00:23 Poland seeks reparations from Russia after Germany

Poland first wants to get reparations from Germany, and then may turn to Russia, said Polish state secretary Marcin Przydacz, the FT reported.

"Once there will be a success with Germany, the next step could be to launch such a discussion with the other oppressor," he said.

Earlier, Polish President Andrzej Duda said that Russia, like Germany, is obliged to pay reparations to Poland for damages and losses inflicted during World War II.

Last October, Poland demanded Germany to pay 6.2 trillion złotys ($1.3 trillion) in reparations. But Germany has repeatedly claimed it has no intention of paying reparations to Warsaw, which rejected them in 1953.

The Russian Foreign Ministry also called Poland's requests inadequate, adding that the country is trying to solve its own internal political problems by appealing to "historical revisionism."

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2023-05-02 12:01:13 Deutsche Bank loses deposits

Deutsche Bank's deposits in Q1 2023 were down 5% to €592 billion. Most happened before banking turmoil in March, driven by depositors seeking higher rates.

Deutsche Bank now offers a 2.4% APR on a 1-year fixed saving account to retain or attract customer deposits.

Meanwhile, inflation in Germany, measured as the year-on-year change in the consumer price index (CPI), stood at 7.4% in March 2023.

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2023-05-02 11:00:12 Pepe coin overtakes Dogecoin in trading volume

Pepe (PEPE), a meme-inspired cryptocurrency, has surpassed Dogecoin (DOGE) in trading volume.

This marks a milestone for the digital currency, which just yesterday entered the market's top 100 largest cryptocurrencies, with a market cap of $565 million.

According to data from CoinGecko, Pepe's 24-hour trading volume reached $432 million, compared to Dogecoin's $303 million.

Launched earlier this year, Pepe has quickly gained traction among traders, bolstered by its association with the controversial internet meme character Pepe the Frog.

The PEPE token pumped 14% today, 355% over the week and is up 685% in the last month.

Similar to other meme-based cryptocurrencies like Dogecoin and Shiba Inu, Pepe also lacks a distinct purpose and is primarily seen as a vehicle for speculation.

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