Mastercard blocks Russian firms; bitcoin rises after latest sanctions on Russia – business live

Stock markets calmer and rouble stabilises while oil prices climbUkraine crisis liveManufacturing output growth in the eurozone was supported by stronger demand and fewer delivery delays in February, according to monthly snapshot from IHS Markit. It warned of new inflation risks from the war in Ukraine, which has driven oil and gas prices higher.Its final reading for the manufacturing PMI for February shows:Don’t let the drop in the headline PMI distract from what should be viewed as a largely positive month for the euro area manufacturing sector in February. Demand for goods is trending higher, with the rate of expansion accelerating to a six-month high. Underlying sales conditions are clearly strengthening as Europe overcomes the Omicron wave of Covid-19 and businesses step up their recovery efforts.Now, the Russia-Ukraine situation, which also carries the risk of dampening growth, adds fresh fuel to inflation risks, and we’ve seen Brent crude already moving higher in response. It’s going to take prudent macroeconomic policy management to re-anchor inflation expectations without denting the demand recovery too heavily.Russia exposed stocks more mixed this morning: Polymetal, JPMorgan Russian Securities and Petropavlosk all lower again, whilst Evraz and Ferrexpo rallied a bit. The rouble has come off its lows and trades around 91 to the US dollar. At the moment it looks as though the Russian central bank is doing a not terrible job of supporting the currency, but through some pretty tough measures – massive rate hike and capital controls. How long can this last? First Switzerland and now even Monaco is kicking out Russian money!As for Russia and Ukraine….the dreadful situation gets worse as heavy shelling of built-up areas shows us what is to come. Talks yesterday didn’t get far but the two sides have agreed to try again as a massive Russian convoy starts to encircle Kyiv. Bombing of civilians will harden Western public opinion against Russia – voters are already taking a pretty hard line across Europe. Unified public opinion complicates matters for governments who might prefer to base policy solely on the advice of their military intelligence and strategic advisors. But that is the way of things. Continue reading…

Manufacturing output growth in the eurozone was supported by stronger demand and fewer delivery delays in February, according to monthly snapshot from IHS Markit. It warned of new inflation risks from the war in Ukraine, which has driven oil and gas prices higher.

Its final reading for the manufacturing PMI for February shows:

Don’t let the drop in the headline PMI distract from what should be viewed as a largely positive month for the euro area manufacturing sector in February. Demand for goods is trending higher, with the rate of expansion accelerating to a six-month high. Underlying sales conditions are clearly strengthening as Europe overcomes the Omicron wave of Covid-19 and businesses step up their recovery efforts.

Now, the Russia-Ukraine situation, which also carries the risk of dampening growth, adds fresh fuel to inflation risks, and we’ve seen Brent crude already moving higher in response. It’s going to take prudent macroeconomic policy management to re-anchor inflation expectations without denting the demand recovery too heavily.

Russia exposed stocks more mixed this morning: Polymetal, JPMorgan Russian Securities and Petropavlosk all lower again, whilst Evraz and Ferrexpo rallied a bit. The rouble has come off its lows and trades around 91 to the US dollar. At the moment it looks as though the Russian central bank is doing a not terrible job of supporting the currency, but through some pretty tough measures – massive rate hike and capital controls. How long can this last? First Switzerland and now even Monaco is kicking out Russian money!

As for Russia and Ukraine….the dreadful situation gets worse as heavy shelling of built-up areas shows us what is to come. Talks yesterday didn’t get far but the two sides have agreed to try again as a massive Russian convoy starts to encircle Kyiv. Bombing of civilians will harden Western public opinion against Russia – voters are already taking a pretty hard line across Europe. Unified public opinion complicates matters for governments who might prefer to base policy solely on the advice of their military intelligence and strategic advisors. But that is the way of things.

Continue reading…

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