WORLD ECONOMIC CRISIS GOES UP as THE US PUSH MORE SANCTIONS ON RUSSIA

WORLD ECONOMIC CRISIS GOES UP as THE US PUSH MORE SANCTIONS ON RUSSIA

“The premium investors demand to own emerging-market debt over U.S. Treasuries fell 0.02 percentage point to 286 basis points, according to JPMorgan Chase & Co. indexes.” See the end of this report from Bloomberg.

So, we’re shooting our feet with these sanctions. Russia already called 40 Nations to meet on this regard. Simply: the attack is not only on Russia and China, it is on most developing countries. Certainly our nation will pay the cost of this war mongering too.
It is time to stop the idiocy of getting involved in Ukraine riddles

EMERGING STOCKS FALL AS UKRAINE DEAL NEARS COLLAPSE

Bloomberg. By Anuchit Nguyen and Natasha Doff Apr 22, 2014

http://www.bloomberg.com/news/2014-04-22/emerging-stocks-fall-as-chinese-shares-slide-while-rupiah-drops.html  

Here only extracts

Emerging-market stocks fell for a second day as an accord designed to ease tension in Ukraine showed signs of collapsing. Turkey’s lira weakened after the economy minister said inflationary pressures will ease.

Russia’s equities lost 1 percent, while the ruble retreated 0.2 percent versus the central bank’s target basket of dollars and euros. The lira weakened for the third day against the greenback. Great Wall Motor Co. (2333), China’s biggest maker of sport-utility vehicles, tumbled 6.3 percent in Hong Kong after posting the slowest profit growth in at least seven quarters. Global Telecom Holding SAE led gains in Egypt.

The MSCI Emerging Markets Index slipped 0.3 percent to 1,008.22 at 2:08 p.m. in London. Pro-Russian forces who seized buildings in at least 10 eastern Ukrainian cities said they are not bound by the deal reached by Ukraine, the European Union, the U.S. and Russia on April 17. Vice President Joe Biden expressed U.S. support for Ukraine during a visit to Kiev after the nation traded blame with Russia.

“Even if a political solution should eventually be reached in the Ukraine, the risk of local military confrontations is now relevant, and hence a further source of volatility,” Nick Paulson-Ellis, co-head of global emerging markets at Espirito Santo Investment Bank, said by e-mail. “Focus is on the deceleration in China, the rise in geopolitical risks in eastern Ukraine and concerns as the reality of EM earnings season beckons.”

Stock Valuations

Today’s losses after a drop of 0.4 percent last week trimmed the developing-nation gauge’s gain in 2014 to 0.6 percent. The gauge trades at 10.5 times projected 12-month earnings, while the MSCI World Index, which has risen 1 percent this year, has a multiple of 14.8.

The Micex fell for a second day, led by declines in OAO Sberbank. U.S. Secretary of State John Kerry warned Russian Foreign Minister Sergei Lavrov yesterday “there will be consequences” if Russia fails to act “over the next pivotal days” to restrain pro-Russian militants in eastern Ukraine, spokeswoman Jen Psaki said in Washington.

Lavrov called on the U.S. to hold Ukraine’s government accountable for curbing what Russia portrays as right-wing militias. “As of today, the Russian side has shown no signal that it is ready to implement the Geneva accords,” Ukraine’s Foreign Ministry said late yesterday in an e-mailed statement.

Hryvnia Tumbles

The ruble depreciated 0.3 percent versus the euro and was little changed versus the dollar, while South Africa’s rand weakened the most in almost two weeks on a closing basis. Ukraine’s hryvnia, the world’s worst-performing currency in 2014, slumped 3.6 percent.

The lira headed for the biggest depreciation in a week against the dollar after Economy Minister Nihat Zeybekci said inflation will fall to around 6 percent by the end of the year, spurring speculation the government will push for lower interest rates.

Stocks in Dubai and Qatar, which will be added to the developing-nation index this quarter, increased at least 0.7 percent. Emaar Properties PJSC, developer of the world’s tallest building in Dubai, gained 1.4 percent amid a real estate recovery in the emirate.

Benchmark gauges in Hungary and Poland increased 0.7 percent and 1.1 percent respectively. The PX Index advanced for a fifth day in Prague as Orco Property Group surged as much as 21 percent. The company reached an agreement to acquire loan receivables and collateral related to the Zlota project in Warsaw from Bank Pekao SA, it said today.

Egypt Rallies

Egypt’s EGX 30 rallied 2 percent, taking a five-day advance to 5 percent. Global Telecom Holding, a unit of VimpelCom Ltd., surged 9.2 percent.

Indonesia’s rupiah lost 0.7 percent and Indonesian government bonds fell on concern the nation’s current-account deficit will widen. Vietnam’s VN Index climbed 2.1 percent, snapping the steepest two-day loss since June 25.

The premium investors demand to own emerging-market debt over U.S. Treasuries fell 0.02 percentage point to 286 basis points, according to JPMorgan Chase & Co. indexes.

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To contact the reporters on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net; Natasha Doff in London at ndoff@bloomberg.net

To contact the editors responsible for this story: Daliah Merzaban at dmerzaban@bloomberg.net Zahra Hankir, Chris Kirkham

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