Category Archive : Ukraine

Russia-Ukraine war increases financial stability risks, ECB Financial Stability Review finds

25 May 2022

  • Impact of war on energy prices, inflation and growth amplifies existing vulnerabilities
  • Market reaction to invasion largely orderly, but risk of further correction remains
  • Banks face weaker profitability after strong recovery in 2021

Financial stability conditions in the euro area have worsened as the Russian invasion of Ukraine leads to higher energy and commodity prices and increases risks to euro area inflation and growth, the May 2022 Financial Stability Review (FSR) published today by the European Central Bank (ECB) concludes.

“The terrible war in Ukraine has brought immense human suffering,” ECB Vice-President Luis de Guindos said. “It has also increased financial stability risks through its impact on virtually all aspects of economic activity and financing conditions.”

The market reaction to the Russian invasion of Ukraine has been largely orderly. However, prices for commodities and energy have remained elevated and volatile, which has caused some stress in derivatives markets for these products. Despite recent adjustments, some assets remain at risk of further corrections should the growth outlook weaken further and/or inflation turn out to be significantly higher than expected.

Vulnerabilities may increase due to the uncertain path of the Russia-Ukraine war and shifting expectations of policy normalisation in advanced economies. Other potential global developments, such as a broader resurgence of the coronavirus (COVID-19) pandemic, weaknesses in key emerging market economies or a sharper slowdown in Chinese economic activity, could also affect risks to growth and inflation.

Euro area non-financial corporations face challenges from rising input prices and a more clouded economic outlook. This may increase corporate defaults, especially for firms and sectors that have not yet fully recovered from the pandemic. Moreover, highly indebted firms and those with lower credit ratings may struggle with tighter financing conditions.

Euro area…

Read more at www.ecb.europa.eu

Financial Stability Review, May 2022

The May 2022 Financial Stability Review (FSR) has been prepared against the backdrop of the devastating invasion of Ukraine. We do not yet know how the war will be resolved. But we do know that the human suffering it has caused is enormous. We hope for peace.

This war is also affecting the economy, in Europe and beyond. The invasion and the associated uncertainty have prompted some repricing in global financial markets, albeit with much less turmoil than seen in March 2020, and dampened the confidence of businesses and consumers that are only just emerging from the tight restrictions imposed during the coronavirus (COVID-19) pandemic. Higher energy and commodity prices are pushing up inflation and slowing the economic recovery. Elevated volatility has highlighted some liquidity risks, notably in some commodity derivatives markets. However, the main threat to euro area financial stability comes from the impact through macroeconomic channels. This implies additional challenges for indebted businesses at a point in time when countries’ fiscal space is very limited and support may need to be more targeted than the broad fiscal policy response to the pandemic.

With these developments in mind, this FSR assesses financial stability vulnerabilities and their implications for financial markets, debt sustainability, bank resilience, the non-bank financial sector and macroprudential policies.

This issue of the FSR also includes two special features on topics that are increasingly part of our routine financial stability assessment at the ECB. The first focuses on recent advances in the monitoring of financial stability risks stemming from climate change, building on previous special features on the topic. The second special feature explores risks arising from crypto-assets – which have been increasing over time, as this sector grows both in its size and in its integration with the core financial system.

This issue of the FSR has been prepared with the involvement of the…

Read more at www.ecb.europa.eu

Crypto Moves — Bitcoin, Ether up; ECB says crypto a risk to financial stability; Central African Republic to launch bitcoin investment hub

RIYADH: Saudi stocks closed higher on Tuesday, bucking the downward trend in most Middle Eastern and global markets.

TASI rebounded from three days of losses to advance 0.5 percent to 12,300, while the parallel market Nomu lost 0.5 percent to 22,251.

Stock exchanges of Abu Dhabi, Kuwait, Dubai, and Egypt dropped 2.5, 2.2, 1.5, and 1 percent, respectively.

While those of Qatar, Bahrain, and Oman edged down between 0.2 and 0.4 percent.

In energy trading, oil prices recorded gains on Wednesday as tight supply outweighed concerns over a potential recession and China’s COVID-19 curbs.

Brent crude added 0.6 percent to $114.28 a barrel and US West Texas Intermediate gained nearly 0.7 percent to $110.53 a barrel as of 9:11 a.m. Saudi time.

Stock news

Unitholders of Jadwa REIT Saudi Fund will receive quarterly dividends of SR37 million ($9.9 million) in total 

Saudi Indian Co. for Cooperative Insurance, known as Wafa Insurance, has been delisted from the Saudi stock exchange

Retal Urban Development Co. announced its offering price range between SR112 and SR120 per share as it seeks to join Saudi Arabia’s initial public offering boom this year

Al Sagr Cooperative Insurance Co. has been suspended from trading on the Saudi exchange due to its failure to announce Q1 financial results in the specified time frame

Jabal Omar Development Co. saw its losses narrow by 47 percent to SR182 million in the first quarter, due to improved post-pandemic business operations

Al Jouf Cement Co. recorded a profit decline of 73 percent to SR5.55 million for the first quarter of 2022

Tourism Enterprise Co., known as Shams, made profits of SR87,549 in the first quarter of 2022 after recovering from SR941,441 losses in the same period a year earlier

Amana Cooperative Insurance Co.’s net loss before Zakat has widened by 25 percent to SR29 million in the first quarter

Arabian Pipes Co. swung into losses of SR13.2 million last quarter

East Pipes Integrated Co. for Industry…

Read more at www.arabnews.com

From Wall Street, Asian Shares, Gold To Rupee, Here Are 10 Things To Know Before Opening Bell On May 25

The Indian stock market is likely to make a positive start on Wednesday following mixed cues from global markets. US stocks ended the session on a mixed note and Asian shares too were trading mixed as investors worried about slowing economies amid inflation concerns. From Wall Street, oil, gold, rupee to cryptocurrency, here are 10 things to know before opening bell on May 25

Read more at www.cnbctv18.com

House ethics panel opens investigation into GOP’s Madison Cawthorn over crypto



House ethics panel opens investigation into GOP’s Madison Cawthorn over crypto | Fortune



Read more at fortune.com

Oh Snap, wrath of US data misses, stock selling resumes, bitcoin in danger

US stocks are quickly giving up yesterday’s gains after a wrath of US economic data signaled broad weakness across large parts of the economy. ​ Everything is weakening at a faster clip than anyone expected and that does not bode well for the US consumer and for short-term outlooks for equities. ​ The dollar is sliding as Treasury yields plunge as risk aversion returns following a gloomy outlook from snap and disappointing US PMI and housing data.

Snap slides

Snap shares plunged after the social media giant cut their forecast over concerns with a rising macro operating environment, including continued supply chain disruptions, rising input costs, economic concerns due to rising interest rates, and concerns related to geopolitical risks stemming from the war in Ukraine.

Snap’s downbeat outlook dragged all social media and advertising stocks lower as it appears to be clear that most companies will not avoid the troubling macro backdrop. 

Snap CFO Andersen noted that the “operating environment could be even more challenging going forward. More specifically, the headwinds that impacted our business in Q1 have persisted into Q2, and we believe the impact of the war on Ukraine has been significant, and this impact is particularly difficult to predict going forward.”

US Data ​

The flash PMI readings showed a sharper deceleration in economic activity as inflationary pressures linger. Manufacturing activity fell to a 3-month low and what surprised many was an even larger deterioration in service sector activity. ​ The playbook most traders were using was that manufacturing output would weaken, but that should benefit the service sector.  Service business activity fell from 55.6 to 53.5, a 4-month low. ​ It looks like inflationary pressures are having a worse impact on the US economy and that demand growth is sharply weakening.

The Richmond Fed Manufacturing Activity was abysmal. ​ The headline reading for the fifth…

Read more at www.marketpulse.com

Cryptocurrency donations to abortion rights groups soar after leaked Roe v Wade opinion

Artist Molly Dickson swung into action when a leaked opinion suggested the U.S. Supreme Court was set to scrap Roe v. Wade, hurrying to pull together a collection of non-fungible tokens (NFTs) to raise money for abortion rights groups.

Dallas-based Dickson had already raised about $30,000 for abortion access in Texas following the state’s near-total ban by selling a selection of NFTs – digital assets often linked to an image or piece of artwork and bought with cryptocurrency.

With this month’s leak suggesting nationwide abortion rights were at risk, Dickson and her partners – Madison Page and Audrey Taylor Akwenye – decided to launch a much larger selection of NFTs with a fundraising target of $3 million.

“When the leak occurred we decided we needed immediate, bold action for pro-choice organisations that help fund abortion access,” Dickson and Page, whose collection is called Computer Cowgirls, told the Thomson Reuters Foundation by email.

They said a traditional web-based fundraising campaign would have struggled to gain the same amount of interest from donors.

“So much money is pouring into crypto. We get a lot more attention,” they said, without specifying how much they had raised since putting the new selection of 10,000 brightly coloured NFTs on sale.

Donations to abortion rights groups in the United States have surged since the publication of the leaked opinion that would strike down the landmark 1973 Roe v. Wade case that established the right to abortion.

Increasingly, some of these donations are in cryptocurrency, with contributions of nearly $70 million to nonprofits in 2021 on The Giving Block online platform https://thegivingblock.com/annual-report/ar21, a rise of more than 1,000 per cent from the previous year, according to the company.

NFT projects donated more than $12 million to charities via The Giving Block last year, its data showed. The average cryptocurrency donation was also bigger – more than $10,000 – compared to the average online…

Read more at www.independent.co.uk

Business daily – Davos 2022: What role for cryptocurrencies? – FRANCE 24 English

Business daily – Davos 2022: What role for cryptocurrencies?  FRANCE 24 English
Read more at www.france24.com

Ukraine asks for crypto donations in ‘Doves of Peace’ rap video

CryptocurrencyFinTechInvestmentMediaTech

Everstake, a Ukraine-based blockchain company, has created a rap video featuring Vice Prime Minister and Minister of Digital Transformation of Ukraine Mykhailo Fedorov to urge the crypto community to keep donating to charitable organisation Aid For Ukraine.

Aid For Ukraine raises funds from the crypto community for the benefit of Ukraine’s military and humanitarian needs. It has raised over $60 million worth of cryptocurrency since its launch, of which over $45m has already been spent on first aid kits, ration packs, bulletproof vests and other procurements. 

The initiative is co-powered by Everstake, Kuna, FTX, and the Ministry of Digital Transformation of Ukraine.

You can watch the amusing and creative video below.

Sergey Vasylchuk, CEO and co-founder of Everstake, said: “Peace comes at a price, but the first wave of donations has subsided. Cryptocurrencies are free from red-tape hurdles, which makes them the most efficient way to provide fast help. 

“Every crypto contribution, no matter big or small, is another nail in the coffin of totalitarianism. Helping Ukraine fight off the invasion means helping us save the free world from enslavement.”

Everstake and its co-founders Sergey Vasylchuk and Yev Zaifert have made crypto donations to Ukraine amounting to $10m. Zaifert alone donated $9m. They funded Aid For Ukraine and other initiatives, including the charitable foundation of Kyiv School of Economics.

The rap video was produced by the Kyiv-based creative agency Bickerstaff.734. Ilia Anufreinko, creative director of Bickerstaff.734, said: “People rarely think about peace as an investment. But if there is no peace, there will be no opportunity to pump your Lamborghini or get an alpaca farm.

“It’s a very unusual communication campaign, so we believe it will stand out and attract more crypto donations.”

Former Snap engineers raise $36.8m for…

Read more at businesscloud.co.uk

The cryptocurrency price fall – The Hindu

Is inflation the only reason why cryptocurrencies like Bitcoin had such a steep downward movement?

Is inflation the only reason why cryptocurrencies like Bitcoin had such a steep downward movement?

The story so far: Bitcoin, the most dominant cryptocurrency around, is down more than 50% from an all-time high price of $68,000, which it achieved just last November. It has, in fact, lost a fourth of its value in the last 30 days. Bitcoin isn’t alone. The prices of almost all cryptocurrencies have seen a similar steep downward movement over the last month. Volatile price movements aren’t new to the cryptocurrency world but this time the plunge seems to have revealed new insights and vulnerabilities of the market.

Is the Bitcoin price fluctuation a new phenomenon?

It isn’t. Its history is filled with many instances of big price falls and big price rises within a short period of time. Last year, after hitting a new peak of over $63,000 in April, its value more than halved by June. China’s crackdown on cryptocurrency mining operations was seen as the main reason for this fall. The April price it reached was itself a massive eight to nine times of its year-ago value. So steep was the climb. The new peak in November followed.

Over the years, speculators have flooded in to take advantage of such volatility. It should be noted that the downside risks come swift and steep. At the same time, this inherent volatility effectively rules it out as a medium of exchange which is something that researchers have repeatedly pointed out. All these and the fact that cryptocurrencies are designed to bypass the official monetary mechanism of any country make most governments wary of them.

THE GIST

Bitcoin, one of the most dominant cryptocurrency, is down more than 50% from an all-time high price of $68,000, which it achieved last November. The prices of almost all cryptocurrencies have seen a similar steep downward movement over the last month.

The inflation which has come…

Read more at www.thehindu.com