Monday Digest #77
Weekly summary of finance, economic and tech news. Vision from Russia. With 💜
The EU has extended sanctions against Russia till January 31, 2017
The Bank of Russia will increase its requirements for the minimum size of the equity for federal banks to 1 billion rubles beginning with 2018.
Now the minimum size of the equity for all banks is 300 million rubles.
Today, on July 4, the Independence Day is celebrated in the USA, so trades will be held in the limited mode.
Activity will be observed only on futures for the main indexes and goods, such as SnP500 and WTI.
Since July, 16 denomination 1:10 000 is carried out in Belarus.
Bloomberg: The market expects increase of rates of FRS not earlier than in January 31, 2018. The reason is Brexit.
Dream Team Investments believes that the market will be in panic when it is raised earlier.
Low rates will be but not as long as the market wants.
Market awards/discounts will be rearranged aggressively and quickly.
With probable panic in the stock market and in the raw materials market.
The president of the Czech Republic Milos Zeman has called for carrying out of a referendum in the country on a membership in the European Union and NATO #DominoEffect
Also there are people willing to leave the EU in France.
The S&P rating agency has lowered a credit rating of Great Britain directly on two positions: from the highest AAA to AA with the “negative” forecast.
Karen Ward, the chief European economist from HSBC: an exit of Great Britain can seem peaceful in the near future before the storm because there can be something worse than Brexit.
Deutsche Bank. Three years ago rumors about possible bankruptcy of Deutsche Bank have appeared from behind the huge amount of unsecured derivatives on balance (for the end of 2015 the amount constituted 41,9 billion euros).
Now the IMF have started talking about similar risk.
Besides, Deutsche Bank fails stress tests of FRS two years in a row.
Bank shares are testing historical minimums now.
The IMF has also noted that the bank system of Germany represents higher extent of possible external chain reaction in comparison with risks which it creates inside.
>> It means that in the global interconnected game of partners Deutsche Bank fall will be followed by the others.
Reuters: Oil extraction by the OPEC countries in June has grown by 250 thousand barrels a day to 32,82 million barrels, that is an absolute record.
#macro #finance
Fitch: Since the beginning of June sovereign bonds with negative yield became for $1,3 billion more, their general size has reached $11,7 trillion.
Recently, Brexit which has caused jumps of the market and a great demand for reliable assets became the catalyst of this trend.
Japan has most of all bonds with negative yield — $7,9 trillion, or two thirds of all sovereign bonds, Germany and France have $1 trillion each.
Ministry of Finance: The income of the federal budget of Russian Federation will be reduced by 700 billion rubles in 2016 in comparison with the approved plan, expenditures from the Reserve fund will grow by 300 billion rubles.
Four banks from Top-30 of the largest on assets — VTB24, Promsvyazbank, MDM Bank and the Ural Bank for Reconstruction and Development are under threat — recapitalization within 19 billion rubles.
The reason — the minimum inventory according to the standard rate of sufficiency of fixed capital (H1.2) for June 1.
The Central Bank of Russian Federation will toughen control of currency transactions of Russian legal entities and individuals.
Threshold value of the amount of liabilities according to contracts in foreign trade and credit agreements according to which the companies shall arrange transaction certificates decreases twice — to $25 000.
In 2011 the Central Bank has introduced such a requirement only for legal entities, individual entrepreneurs and those who are busy with private practice. The regulators now suggest distributing such rules of currency exchange control on individuals too.
Central Bank also suggests obliging them to report on loans to nonresidents and to arrange the passport on such transactions.
In July the ruble will get support, record for this year, from the largest Russian raw corporations and banks — the first should increase sales of currency at the Moscow exchange and the second — we will need rubles for the accomplishment of standard rates of the Central Bank.
In addition to taxes, about 80% of a total dividend flow will be paid
in the middle of the summer.
The USA has imposed sanctions against three Russian companies.
Action of sanctions is expected to be for two years.
There is an opinion that the current situation is only temporary thaw in opposition of two superstates (the USA and the Russian Federation). And that it is connected with the upcoming elections in the USA.
Such actions from their part — confirmation to that.
#interesting
Beeline will move up to 70% of the employees to work from their houses.
The Google Company develops “the big red button” for shutdown of artificial intelligence.
“The big red button” shall interrupt the current activities of the robot with guarantee and protect people around in case of potentially dangerous situation, and also prevent making actions, which can lead to “irreversible consequences”.
Nikolay Shkolnik, born in USSR living in the USA has invented, patented and tested the most powerful and effective internal combustion engine in the world together with his son. The new motor will exceed several times existing engines on efficiency and yield on weight.
The Japanese What’s Up Line will sell the shares during IPO in Tokyo and New York in July for 2700–3200 yens ($26,5–31,5). The company can attract up to $1,1 billion that can become the largest IPO in technological sector this year.
WSJ: SEC has approved licensing to the IEX stock exchange which is slowing down the speed of the trades.
MasterCard may acquire PayPal.
Qiwi and several Russian banks will create consortium to work on blockchain.
#opinion [Press]
DTI managing partner Alexander Butmanov at Kommersant, 29 June 2016:
“ Such countries as Poland, Hungary, the Czech Republic will be damaged In addition to the Benelux countries and Cyprus, because there are a lot of general workers in Great Britain — plumbers, turners and mechanics — which carry out draft work and send half of the income to home, to the Czech Republic, Poland and Hungar particularly. Households in these countries will lose essential part of the income: by the different estimates, nearly 10% of the GDP growth in these countries provide the transactions of compatriots from abroad”. More at http://www.kommersant.ru/doc/3025162
