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Saturday, 24 February 17:45 (GMT -05:00)



Business And Politics News

American Sanctions Will Cut Investments In Russia


Some experts say that the next round of anti-Russian sanctions imposed a couple of weeks ago is going to undermine the Russian economy. In particular, they are threatening the investment capital inflow.

 

 

 

 
A few weeks after Donald Trump reluctantly signed the new sanctions approved by the U.S. Congress, Russian and foreign investors are still trying to figure out what the actual consequences of this decision are going to be. For now, they seem to have understood enough to be afraid of long-term negative consequences for their existing or potential investments in the Russian economy, which has just started recovering after a 2-year recession.
 
Even those analysts who are skeptical about the efficiency of those sanctions are afraid that cautious investors may start reducing exposure to their Russian investments or quitting them. A top-manager working for a Russian mining company has to admit that the next round of the anti-Russian sanctions is designed to poison the recovery of the Russian economy that has been seen in there for a while. Still, he things those sanctions are going to miss the target anyways.
 
The Russian economy gained 2,5% in the second quarter of the year, which is the highest rate seen in almost 5 years.
 
According to Chris Weafer, Senior Partner at Moscow consulting firm Macro Advisory, the Russian economy is indeed recovering. In particular, the economy gradually got used to low oil prices as well as the sanctions imposed on Russia in 2014. He is convinced that those sanctions won’t curb the economic growth in Russia over the next 2 years. However, in order for the Russian economy to sustain its growth over a longer period, investment inflow is necessary, but the new round of sanctions imposed on Russia jeopardizes it.
 
According to fDi Intelligence, the amount of direct investments in Russia reached $12,9 billion in 2016. This allowed Russia to become Europe’s third biggest country in terms of attracting direct foreign investments, with the UK and France occupying the first 2 positions.
 

 

Meanwhile, some American experts believe that Trump’s administration is not going to advocate those sanctions or implement them since they have never approved those sanctions and Donald Trump signed them reluctantly. Chances are, the U.S. Congress will try to influence President Trump through even tougher moves against Russia. That’s why the experts expect new laws trying to force Trump’s administration into implementing those sanctions. It should also be noted that right in advance of the intermediate election in 2018, the Republicans believe they will benefit from acting tough against Moscow. The experts believe that they will come up with a new draft law within the next 12 months, and in this draft law “maybe” will be replaced with “have to”.

 

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Any Brexit Scenario Will Damage the British Economy

In practice, there can be multiple Brexit scenarios, i.e. the scenarios of how the United Kingdom will exit the European Union. Experts say that almost any scenario will damage the British economy to some extent. Moreover, there will be some economic damage to both the UK, the USA, and the EU.

Publication date: 25 December 02:48 AM

The Era of Cheap Money from Central Banks is Over

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Publication date: 25 December 02:05 AM

Will Bitcoin Mining Leave the World without Electricity?

It seems like people have been obsessed with cryptocurrencies. While loading up on them like crazy, they seem to have forgotten that everything has a price. When it comes to mining cryptocurrencies, this is all about the growing deficit of electricity. The thing is that all those mining farms consume tons of energy. Maintaining that cryptocurrency infrastructure is rather energy-consuming as well since all of that requires really powerful and capacious hardware, which consumes big amounts of electricity.

Publication date: 04 December 01:04 AM

Brexit and Bank Capital Outflow

Since the Brexit referendum that took place in the United Kingdom last year, European banks have already withdrawn from the UK as much as 350 billion euros. That’s reported to be the official stats provided by the European Union, The Financial Times reports.

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Fed Will Raise Interest Rate 4 Times in 2018, Goldman Sachs Experts Predict

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Publication date: 25 November 04:05 AM

Referendum In Catalonia May Hit Europe Harder Than Brexit

The possibility of Catalonia exiting from Spain is dangerous to the integrity of the European Union, even more dangerous than the Brexit. This is what The Daily Telegraph thinks on the matter.

 

Publication date: 01 October 04:58 AM

Trump Announced Revolutionary Tax Cuts for Americans

On Wednesday, September 27th, President Trump announced a tax reform. The thing is that Donald trump promised this tax reform when making his election pledges in 2016.

Publication date: 29 September 07:51 AM

What is so precious about Ukraine for international investors? An American businessman shares his opinion

More and more international investors have been paying attention to Ukraine as a promising area for profitable investing. Cody Shirk, an American entrepreneur, traveler and investor, is now urging international investors to look at Ukraine as a country with really great investment potential, Market Leader reports.

Publication date: 27 September 03:16 AM

China’s Debt Bubble May Trigger Another Global Financial Crisis

The Chinese economy keeps on slowing down as China’s debt bubble is growing. International experts are concerned about that. They are afraid of a new global financial crisis, Market Leader reports. The thing is, the Chinese economy is not growing fast enough anymore. Beijing has to admit the economic slowdown. The entire international expert community is now closely watching this slowdown and expressing their concerns about China’s economic prospects amid the mentioned economic slowdown and inflating debt bubble.

Publication date: 25 September 12:44 PM

Why Is German Parliamentary Election Important to Europe?

Judging by the results of several sociological surveys, the chances of electing Angela Markel for the next 4 years is fairly high at the moment. Even though there is almost no intrigue in the election, the international community has still been closely watching it, Market Leader reports

Publication date: 24 September 12:55 AM