DTI’S WEEKLY DIGEST [20/26 JUNE]
#main
BREXIT
Referendum results: UK votes to leave the EU
European indices fell sharply after the announcement of the results. Sterling hit a 30-year low.
After the announcement of the results, collecting signatures on a petition demanding a referendum on the country’s exit from the European Union began in Finland. Preparation for the referendum has also started in Switzerland.
On the above infographic, you can see the list of other countries that also want to hold a referendum to leave the EU.
Fed
J. Yellen: The regulator will be cautious in raising interest rates, estimating GDP growth, employment, and price level.
#macro #finance
Nigeria devalued the national currency by a quarter.
Most analysts expect a further weakening of the Nigerian currency in the short term — up to the level of 390 nairas for a dollar. According to Reuters, black market currency dealers have already been quoting the naira at 325 to 345 nairas for a dollar by the present moment.
Brazil wants to freeze the growth of budget expenditures for 20 years.
This will be the starting point for a whole series of reforms, from fiscal policy and the pension system to the functioning of Petrobas, the state oil company.
Russia’s share in global FDI inflows has dropped to its lowest since 2001, 0.6% — against the average for the 2004–2014 value of 2.7%.
The collapse was due to geopolitical reasons, combined with the drop in oil prices in 2015.
Cyprus has officially published a list of countries which they would like to automatically exchange information with. The list consists of 82 countries, including Russia.
Russian tax authorities will receive the first data from Cyprus as soon as in September 2018.
CB of Russia canceled the licenses of NPF “Zerich”, “Ural Finance House”, “Mechel-fund”, “First National PF”, NPF of metallurgists, and “Pallada Asset Management”, a management company.
The possibility of the VAT increase is being considered in Russia.
#China
Reuters: The People’s Bank of China allowed foreign companies to trade their shares on stock exchanges of Mainland China — Shenzhen and Shanghai — for the first time.
>> Now foreign companies will be able to issue bonds in yuans and sell shares in the local markets.
The Bank is also considering allowing mainland banks to trade in the offshore yuan market.
The purpose of this measure is to reduce the spread between the offshore and the onshore exchange rate.
Recall that the onshore yuan is being controlled by the state, while the offshore one is freely traded.
JD.com, Chinese online retailer and Wal-Mart, the US company, announced the creation of a strategic alliance whereby Wal-Mart will get approximately 5% of the share capital of the Chinese company.
Reuters: China predicted manifestation of the effects of Brexit in the next 5–10 years.
#COMMODITIES
Expenses of OPEC countries exceeded their incomes for the first time in 18 years.
This happened against the background of falling oil prices.
Over the past year, the deficit was $99.6 billion, compared to a $238.1 billion surplus in 2014.
Saudi Arabia, the largest exporter of crude oil in the world, reduced its exports to a 6-month low in April 2016.
The reason is a seasonal decline in fuel purchases by foreign plants.
Gasoline inventories in the United States have reached a maximum.
#Interesting
The first Russian electric charge points were introduced in Sochi.
Merrill Lynch was fined by $415 million for engaging in complex options trades with customer funds. This penalty would be the highest in the history of violations of the rules of the US Securities and Exchange Commission, aimed at protecting the interests of depositors.
World Wealth Report: North America is no longer a leader by the wealth of high net worth individuals, being replaced by Asia-Pacific, which happened for the first time.
#opinion [DTI in media]
DTI managing partner Alexander Butmanov at Kommersant, 23 June 2016:
“Speaking about Russian economy is like measuring an elephant with a measuring tape. On one hand, it is big, on the other, it is tall, and at the same time, it is completely weird”
