Tag Archives: AMERS

Stocks slide as oil surge kindles inflation fears

  • Oil almost hits $120 a barrel, falls on possible Iran deal
  • Metals prices surge as Russia supply woes deepen
  • Stocks fall after Wednesday’s rally on Powell comments
  • Euro weakens toward 21-month low, dollar rallies
  • >Graphic: Global asset performance

NEW YORK, March 3 (Reuters) – Oil prices initially soared on Thursday as the Ukraine war sparked a run on commodities that raised fears of “stagflation,” while equity markets fell as investors gauge the impact of the Federal Reserve’s plans to tighten monetary policy.

The fresh surge in energy prices heightened worries about the European economic outlook, leading the euro to slide to its lowest level in almost six years against Britain’s pound and pinning it near 21-month lows versus the dollar.

Brent crude futures , the international benchmark for oil, climbed to within 16 cents of $120 a barrel before falling on hopes the United States and Iran will agree soon to a nuclear deal that could add output to a badly undersupplied market.

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The price of aluminum, copper and nickel raced to fresh highs as the widening sanctions on Russia for its invasion of Ukraine threatened to further disrupt the flow of commodities from one of the world’s major producers.

The jump in commodity prices has raised concerns about the potential for stagflation — when rising inflation and stagnate output roils the economy and crimps employment.

“Investors are more fearful of a Fed reaction to stagflation than stagflation itself,” said Kristina Hooper, chief global market strategist at Invesco.

“We will see a flash of stagflation,” she said. “But markets would be comfortable with that if they felt that the Fed would be comfortable with that.”

Markets are volatile, leading investors to try to figure out a lot of moving parts “in one fell swoop,” said Jeff Mortimer, director of investment strategy at BNY Mellon Wealth Management.

“Markets are trying to recalibrate what the Fed will do and its views on inflation,” he said. “To us it’s how to get a handle on what’s inflation going to be six, nine, 12, 15 and 18 months from now. That is really the critical question.”

U.S. stocks initially rose, extending a rally on Wednesday after Powell eased widely held expectations of a 50 basis-point hike in interest rates when policymakers meet in two weeks.

But stocks later fell after Powell told a Senate committee in a second day of testimony before Congress that Russia’s war in Ukraine could hit the U.S. economy from higher prices to dampened spending and investment. read more

The Dow Jones Industrial Average (.DJI) fell 0.29%, the S&P 500 (.SPX) lost 0.53% and the Nasdaq Composite (.IXIC) dropped 1.56%.

In Europe, the pan-regional STOXX 600 index (.STOXX) slid 2.01%, while MSCI’s gauge of stocks across the globe (.MIWD00000PUS) closed down 0.61%.

U.S. and German government bond yields retreated as investors eyed potential monetary tightening. Money markets in Europe are now pricing in a 95% chance of a 30-basis-point hike in interest rates from the European Central Bank by year-end.

Germany’s 10-year government bond yield, the benchmark of the bloc, rose 0.2 basis point (bps) to 0.039%.

The yield on 10-year Treasury notes fell 1.3 basis points to 1.825% as U.S. and other sovereign bond prices whipsawed while investors assess the impact of the Fed, ECB and other central banks raising rates to tame inflation.

Everything from coal to natural gas and aluminium are surging as Western nations tighten sanctions on Russia following its invasion of Ukraine. read more

Three-month nickel on the London Metal Exchange (LME) rose to its highest since April 2011, and benchmark LME aluminium rose 5% after hitting a record $3,755 a tonne.

Oil markets were volatile as investors anticipate disruption to worldwide flows due to the sanctions on Russia. Prices fell on signs of progress toward removing remaining issues blocking a revival of the 2015 Iran nuclear deal. read more

U.S. crude settled down $2.93 at $107.67 a barrel, while Brent slipped $2.47 to settle at $110.46.

U.S. gold futures settled 0.7% higher at $1,935.90 an ounce.

MSCI added to Russia’s financial isolation by deciding to shut the country out of its emerging markets index, while FTSE Russell said Russia would be removed from all its indices.

Fitch slashed Russia’s sovereign credit rating six notches to “junk” status, saying it was uncertain the country could service its debt, and Moody’s soon followed. read more

The ruble pared some losses after slumping to new record lows against the dollar and euro. The currency was flat by day’s end on Moscow exchange at 106.01 after hitting an all-time low of 118.35 in thin and volatile trade.

In Asia, the rush to commodities lifted resource-rich Australian stocks (.AXJO) 0.49%.

Overnight in Asia, Japan’s Nikkei (.N225) managed a 0.7% gain, while MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) nudged up 0.39%.

In currency markets, the dollar index rose 0.327%, with the euro was down 0.52% to $1.1063.

The yen strengthened 0.07% to 115.44 per dollar.

The euro and gas prices
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Reporting by Herbert Lash, additional reporting by Tommy Wilkes in London and Wayne Cole in Sydney; Editing by Jane Merriman, Bernadette Baum and Jonathan Oatis

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Ukrainian nuclear plant, Europe’s largest, ablaze after Russian attack – minister

  • No signs of elevated radiation – RIA
  • Intense fighting in area around plant

BORODYANKA/LVIV, Ukraine, March 4 (Reuters) – The largest nuclear power plant in Europe is on fire following a Russian attack, Ukraine’s foreign minister said on Friday, as he called for a security zone and firefighters to be allowed to tackle the incident.

A generating unit at the plant has been hit during an attack by Russian troops and part of the station is on fire, RIA news agency cited the Ukrainian atomic energy ministry as saying on Friday.

A plant spokesperson told RIA that background levels of radiation had not changed.

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“Russian army is firing from all sides upon Zaporizhzhia NPP, the largest nuclear power plant in Europe,” Foreign Minister Dmytro Kuleba wrote on Twitter.

“Fire has already broke out … Russians must IMMEDIATELY cease the fire, allow firefighters, establish a security zone!”

There has been fierce fighting in the area about 550 kilometers (342 miles) southeast of Kyiv, the mayor of the nearby town of Energodar said in an online post. He said there had been casualties, without giving details.

Russia has already captured the defunct Chernobyl plant, some 100 km north of Ukraine’s capital, Kyiv.

The International Atomic Energy Agency said in a tweet that it was “aware of reports of shelling” at the power plant and was in contact with Ukrainian authorities about situation.

Earlier, Ukrainian authorities reported Russian troops were stepping up efforts to seize the plant and had entered the town with tanks.

“As a result of continuous enemy shelling of buildings and units of the largest nuclear power plant in Europe, the Zaporizhzhia nuclear power plant is on fire,” Orlov said on his Telegram channel, citing what he called a threat to world security. He did not give details.

Reuters could not immediately verify the information, including the potential seriousness of any fire.

As the biggest attack on a European state since World War Two enters its ninth day, thousands are thought to have died or been wounded, 1 million refugees have fled Ukraine and Russia’s economy has been rocked by international sanctions.

On Thursday, the United States and Britain announced sanctions on more Russian oligarchs, following on from EU measures, as they ratcheted up the pressure on the Kremlin.

Sanctions have “had a profound impact already,” said U.S. President Joe Biden.

Russia calls its actions in Ukraine a “special operation” that is not designed to occupy territory but to destroy its neighbour’s military capabilities and capture what it regards as dangerous nationalists. It denies targeting civilians.

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Reporting by Pavel Polityuk, Natalia Zinets, Aleksandar Vasovic in Ukraine, David Ljunggren in Ottawa and other Reuters bureaux; Writing by Costas Pitas; Editing by Rosalba O’Brien and Stephen Coates

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Nike, IKEA close Russian stores as sanctions, trade restrictions bite

March 3 (Reuters) – Sneaker maker Nike and home furnishings firm IKEA shut down stores in Russia on Thursday, as trade restrictions and supply shutdowns added to political pressure for companies to stop business in Russia because of its invasion of Ukraine.

French bank Societe Generale (SOGN.PA) said it was working to cut its risks in Russia, fearing a tit-for-tat response by Moscow to Western sanctions, as more companies from vodka maker Diageo (DGE.L) to IKEA suspended business in the country.

Globally known companies including Apple, Ford and Shell have condemned Russia’s attack, but some of the announcements on Thursday were more practical, focused on supplies and sanctions as shipping routes closes and governments banned exports to Russia.

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Boeing Chief Executive David Calhoun, in a note to staff, acknowledged the violence in Ukraine but avoided politics.

“Moving forward, Boeing will continue to follow the lead of the U.S. government and strictly adhere to the export controls and restrictions that have been announced governing work in Russia,” he said in the note seen by Reuters, which described suspension of work in Russia and Ukraine.

Brazilian plane-maker Embraer (EMBR3.SA) joined Airbus and Boeing in halting parts supplies to Russian airlines.

Home furnishings retailer IKEA (IKEA.UL) said it would close outlets in Russia and Russian ally Belarus, affecting 15,000 workers, and described its shutdowns in non-political terms.

“The war has both a huge human impact and is resulting in serious disruptions to supply chain and trading conditions, which is why the company groups have decided to temporarily pause IKEA operations in Russia,” IKEA said in a statement. read more

Nike Inc said it was “deeply troubled by the devastating crisis in Ukraine” and described its closing of stores in this way: “Given the rapidly evolving situation, and the increasing challenges of operating our business, Nike will be pausing operations in Russia.”

Some companies and investors added up the costs of their actions.

Norway’s $1.3 trillion wealth fund said its Russian assets, worth around $3 billion before the invasion, have now become effectively worthless. read more “They are pretty much written off,” CEO Nicolai Tangen told Reuters.

TJX Cos Inc (TJX.N) said on Thursday it would sell its 25% stake in Russian low-cost apparel retailer Familia, which cost it $225 million in 2019. Because of a decline in the rouble and TJX said it may take an impairment charge due to the sale.

SANCTIONS RISKS

Underscoring the challenges global companies are facing as they comply with sanctions against Russia, Societe Generale said on Thursday it could see an “extreme scenario” where Russia strips the bank of its local operations. The lender has a $20 billion exposure to Russia. read more

Citigroup Inc (C.N) said on Wednesday it could face billions of dollars in losses on its exposure to Russia and was looking to exit Russian assets. Bank shares have taken a drubbing in recent days amid fears of possible writedowns and weaker economies. read more

Western sanctions, including shutting out some Russian banks from the SWIFT global financial network, new export controls, and closure of air space, have led dozens of global companies to pause operations in the country, hammered the rouble and forced the central bank to jack up interest rates. read more

Spanish fashion retailer Mango said on Thursday that it was temporarily closing its shops and its online sale website in Russia, and Spirits company Diageo (DGE.L), the maker of Smirnoff vodka and Guinness, said it had paused exports to Ukraine and Russia. read more

Accenture said it was discontinuing its Russian business, which had nearly 2,300 employees. read more

Britain said on Thursday it will ban Russian companies from the London insurance market, the world’s largest commercial and specialty insurance centre. read more

Hundreds of Russian soldiers and Ukrainian civilians have been killed and more than one million people have fled Ukraine in the week since President Vladimir Putin ordered the attack. read more

Russia calls its actions in Ukraine a “special operation” that it says is not designed to occupy territory but to destroy its southern neighbour’s military capabilities and capture what it regards as dangerous nationalists.

SCRAMBLED SUPPLIES

With a shortage of components, more carmakers are halting production at their factories in Russia, including Russia’s biggest carmaker, Avtovaz (AVAZI_p.MM) – controlled by France’s Renault (RENA.PA) – which said it would close two plants on Saturday and from March 9 to 10 due to shortage of electronic components. read more

Nissan Motor Co <7201.T > said on Thursday it has suspended vehicle exports to Russia, while Japanese peer Toyota (7203.T) said it would halt production at its Russian factory from Friday and indefinitely stop vehicle exports to the country.

The world’s biggest shipping lines, MSC and Maersk (MAERSKb.CO) have suspended container shipping to and from Russia, with Maersk saying food and medical supplies to Russia risk being damaged or spoiled due to delays at ports and customs. read more

Japan Airlines (9201.T) and ANA Holdings (9202.T), which normally use Russian airspace for their Europe flights, said they would cancel all flights to and from Europe on Thursday, joining other carriers that have canceled or rerouted flights between Europe and north Asia. read more

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Reporting by Tassilo Hummel in Paris, Jamie Freed in Sydney, Gwladys Fouche in Oslo, Illona Wissenbach in Frankfurt, Anna Ringstrom in Stockholm, Richa Naidu in London
Additional reporting by Tim Hepher in Paris, Satoshi Sugiyama in Tokyo, Mehr Bedi, Chavi Mehta, Praveen Paramasivam, Uday Sampath in Bengaluru, Megan Davies in New York, and in Madrid by Emma Pinedo
Writing by Peter Henderson, Sayantani Ghosh and John Revill
Editing by Lincoln Feast, Simon Cameron-Moore, Tomasz Janowski, Frances Kerry and Nick Zieminski

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EXCLUSIVE Russian firms rush to open Chinese bank accounts as sanctions bite – sources

Coins and banknotes of China’s yuan are seen in this illustration picture taken February 24, 2022. REUTERS/Florence Lo/Illustration/File Photo

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SHANGHAI, March 3 (Reuters) – The Moscow branch of a Chinese state bank has seen a surge in enquiries from Russian firms wanting to open new accounts, a person familiar with the matter said, as the country’s businesses struggle with international sanctions after its invasion of Ukraine.

“Over the past few days, 200-300 companies have approached us, wanting to open new accounts,” the person, who works at the Moscow branch of a Chinese state bank and has direct knowledge of its operations, told Reuters.

He declined to be named or have his bank identified as he is not authorised to speak with media.

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It was not clear how widespread Russian demand for new accounts at Chinese banks was, but the banker source told Reuters many of the companies seeking new accounts do business with China and that he expected yuan transactions by such firms to increase.

Western governments are shutting off Russia’s economy from the global financial system, pushing international companies to halt sales, cut ties and dump tens of billions of dollars’ worth of investments. read more

China has repeatedly voiced opposition to the sanctions, calling them ineffective and insisting it will maintain normal economic and trade exchanges with Russia. read more

A handful of Chinese state banks operate in Moscow, including Industrial & Commercial Bank of China (601398.SS), Agricultural Bank of China (601288.SS), Bank of China and China Construction Bank (601939.SS).

China Construction Bank declined to comment. The other three Chinese state banks did not respond to Reuters’ request for comment.

A Chinese businessman with long-term ties with Russia, who also did not want to be identified, said several Russian companies he works with are now planning to open yuan accounts.

“It’s pretty simple logic. If you cannot use U.S. dollars, or euros, and U.S. and Europe stop selling you many products, you have no other options but to turn to China. The trend is inevitable,” the source told Reuters.

As a growing number of Western companies abandon Russia, the willingness of emerging market giants such as China to sustain business relations with Moscow highlights a deep rift over Europe’s biggest crisis since the World War Two. That trend could threaten to chip away the dominance of the U.S. dollar in global trade. read more

FESCO Transportation Group , a major Russian transport and logistics company, said this week it will accept Chinese yuan from customers, after some Russian banks were kicked out of the global financial messaging system SWIFT. read more

“It’s natural for Russian companies to be willing to accept yuan,” said Shen Muhui, head of a trade body that promotes links between Russia and China.

But small Chinese exporters are suffering from a tumble in the rouble and many are suspending deliveries to avoid potential losses, he said.

The Russian currency dived to a record low of more than 17 rouble to the yuan on Wednesday , having lost nearly 40% of its value against the Chinese unit over the past week.

“Companies will be switching to yuan-rouble business but in any case things will become two, three or four times more expensive for Russians because the exchange rate between the yuan and rouble is also changing,” said Konstantin Popov, a Russian entrepreneur in Shanghai.

Shen said Russian demand for Chinese goods will nevertheless grow in the long term. “The key is to solve trade settlement issues” in the face of sanctions, he said.

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Reporting by Samuel Shen and Andrew Galbraith
Editing by Vidya Ranganathan and Sam Holmes

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Rivian spares preorders from price hike to fix ‘painful’ mistake

March 3 (Reuters) – Rivian Automotive Inc (RIVN.O) has rolled back price hikes on electric vehicles booked before March 1 after facing backlash from customers following a 20% increase in prices.

Preorders as of March 1 will not be subject to the new prices, and customers who canceled orders can reinstate them with the original price, Chief Executive Officer RJ Scaringe said in a letter to clients on Thursday.

The Amazon-backed company on March 1 increased the base price of the Rivian R1T electric pickup to about $79,500 from $67,500, while the R1S SUV went to $84,500 from $70,000. read more

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The price hike spurred some customers to cancel orders and express frustration, accusing the company of “betraying” its early supporters, according to social media postings.

“It was wrong and we broke your trust in Rivian,” Scaringe wrote.

“I have made a lot of mistakes since starting Rivian more than 12 years ago, but this one has been the most painful.”

Rivian stock, which plunged over 13% on Wednesday, extended losses on Thursday, down 4%.

The company logo is seen on a Rivian R1T pickup, the Amazon-backed electric vehicle (EV) maker, as it is parked outside the Nasdaq Market site during the company’s IPO in Times Square in New York City, U.S., November 10, 2021. REUTERS/Brendan McDermid/

Scaringe reiterated that the price increase was prompted by inflationary pressures and higher component costs.

Average new vehicle pricing across the United States has risen more than 30% since 2018 when it started to receive preorders for the RIT, he said.

Rivian reservation holders welcomed the move.

“I’m back on with Rivian. Super sincere apology from RJ and they are making it all good,” Zach Jump-Start Marino, who canceled his pre-order after the price increase, said.

“100% trust and confidence restored. This is the right move,” Zack Nelson, who made a reservation for R1T in 2018, tweeted.

The new prices will remain in place for orders placed after the announcement.

“We think the damage has been done and many customers will be purchasing EVs from competitors instead,” said Garrett Nelson, analyst at CFRA Research.

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Reporting by Akash Sriram in Bengaluru and Hyunjoo Jin in San Francisco; Editing by Saumyadeb Chakrabarty, Shinjini Ganguli, Devika Syamnath and Cynthia Osterman

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Russian oligarchs’ yachts seized in Europe, others harbouring in Maldives

  • France impounds yacht it says linked to Rosneft’s Sechin
  • Germany holding yacht owned by oligarch Usmanov -Forbes
  • Other Russian tycoon yachts anchored in Maldives -data
  • Sweeping sanctions target oligarchs, Kremlin interests

PARIS, March 2 (Reuters) – France and Germany have seized two superyachts owned by Russian oligarchs, French authorities and Forbes magazine said, hitting Russia’s super-rich under sanctions imposed on Moscow over its invasion of Ukraine.

At least five other superyachts owned by Russian billionaires are anchored or cruising in the Maldives, an Indian Ocean island nation, ship tracking data showed. read more

The yachts arrived in the Maldives after the West imposed sanctions on Russia. Washington, the European Union and others have said they will target oligarchs who have amassed fortunes and political influence under Russian President Vladmir Putin.

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“Thanks to the French customs officers who are enforcing the European Union’s sanctions against those close to the Russian government,” Finance Minister Bruno Le Maire said on Thursday after French customs seized the 88-metre “Amore Vero” (True Love).

The yacht had been about to flee, he said.

It was impounded in the French Riviera port of La Ciotat and belongs to a company whose main shareholder is Rosneft (ROSN.MM) chief Igor Sechin, a close ally of Putin, the finance ministry said. read more

In Germany, a nearly $600 million luxury yacht owned by Russian billionaire Alisher Usmanov was seized in the northern port of Hamburg, Forbes reported. read more

And in another sign of Russian oligarchs feeling the sanctions’ heat, billionaire Roman Abramovich said on Wednesday he would sell the Chelsea Football Club and promised to donate money from the sale to help victims of the war in Ukraine. read more

TRACKING ASSETS

The United States is preparing a sanctions package targeting more Russian oligarchs as well as their companies and assets, two sources said on Wednesday, after U.S. President Joe Biden said the United States would work to seize the yachts, luxury apartments and private jets of wealthy Russians.

The EU, the United States, Canada and Britain are pooling efforts to examine how oligarchs could find ways to bypass the sanctions and also nail down the role of trust companies in holding assets, an EU official said on Thursday.

This task force will aim to close loopholes as they become apparent, the official said.

The impact of the sanctions was being widely felt.

“There is a significant chilling effect on any new business with Russia,” said Matt Townsend, a sanctions partner at law firm Allen & Overy.

“People are concerned about credit risk exposure but are also worried about what’s coming next. Everyone’s eyes are on the next wave of significant sanctions.”

READY TO FLEE?

The Amore Vero seized in La Ciotat had arrived there on Jan. 3 and was due to stay until April 1 for repairs, the French finance ministry said.

On Wednesday, customs officers noted that the yacht was “taking steps to sail off urgently, without the repair works being over”, the statement said.

As it was subject to the new sanctions, the officers decided to seize it.

Rosneft, a Russian oil giant, did not respond to a request for comment over the seizure.

Monaco-based Imperial Yachts told Reuters the yacht was owned by a firm called Kazimo, which had appointed Imperial Yachts as managers of the boat in 2018.

“The individual you name is not connected with either Kazimo nor the yacht,” a representative for Imperial Yachts told Reuters when asked about Sechin. The French finance ministry did not immediately return a request for comment.

Spanish group MB92, which owns the Ciotat shipyard, said the company was cooperating with the French authorities.

In Germany, the 512-foot (156-metre) yacht Dilbar had been undergoing a refit in the shipyards of Blohm + Voss, Forbes said.

The German government had frozen the asset and employees working on the ship did not appear for work on Wednesday, Forbes said.

A representative of Usmanov said he had no confirmation of the yacht’s reported seizure. Germany’s General Customs office said details of operational measures cannot be made public.

A spokesperson for Blohm + Voss declined to comment on the Dilbar, saying only that all orders and projects of its owners, the Luerssen Group, and subsidiaries were treated in accordance with the legal situation.

MALDIVES HAVEN?

Meanwhile, at least five superyachts owned by Russian billionaires appeared to have found temporary haven in the Maldives, a luxury holiday destination.

The superyacht Clio, owned by Oleg Deripaska, the founder of aluminium giant Rusal who was sanctioned by the United States in 2018, was anchored off the capital Male on Wednesday, according to shipping database MarineTraffic.

The Titan, owned by Alexander Abramov, a co-founder of Russian steel producer Evraz, arrived on Monday.

Three more yachts owned by Russian oligarchs were seen cruising in Maldives waters on Wednesday, the data showed. They included the 88-metre (288-foot) Nirvana owned by Russia’s richest man, Vladimir Potanin.

Most of the vessels were last seen anchored in Middle Eastern ports. A spokesperson for the Maldives government did not respond to a request for comment.

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Reporting by Reuters in New Delhi, Paris, Berlin, London, Moscow, Brussels and Barcelona, Writing by Ingrid Melander
Editing by Mark Heinrich and Angus MacSwan

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EMA says not concerned by New York state data on Pfizer/BioNTech vaccine

A girl receives the Pfizer-BioNTech coronavirus disease (COVID-19) vaccine in Lansdale, Pennsylvania, U.S., December 5, 2021. REUTERS/Hannah Beier/File Photo

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March 3 (Reuters) – The European Medicines Agency’s leading vaccine expert said he was not concerned over recent data from New York state on a decline of protection from the Pfizer and BioNTech SE (22UAy.DE)(PFE.N) COVID-19 vaccine in children aged 5 to 11.

“This study somehow showed lower protection from symptomatic COVID-19 but it is still within the frame of the level of protection that we are seeing overall with the vaccines that we have against Omicron and after a primary series,” EMA’s head of vaccines strategy, Marco Cavaleri, said in a media briefing, adding the regulator would assess the data in more detail.

“We would not be particularly concerned at this stage with respect to these results,” he said.
The U.S. researchers said this week that two doses of the vaccine were protective against severe disease in children during the recent Omicron variant surge, but it quickly lost most of its ability to prevent infection in the age group. read more

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Reporting by Ludwig Burger and Manojna Maddipatla; editing by Jason Neely

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Russian column stalled for days outside Kyiv

  • Ukraine president says defence lines holding
  • Eastern city of Kharkiv suffers further heavy bombardment
  • Moscow says it has seized Kherson, mayor says troops in streets
  • UN votes overwhelmingly to censure Russia’s invasion
  • Refugee total exceeds 1 million – UNHCR

BORODYANKA, Ukraine, March 3 (Reuters) – Russia’s invasion of Ukraine entered its second week on Thursday an apparent tactical failure so far, with its main assault force stalled for days on a highway north of Kyiv and other advances halted at the outskirts of cities it is bombing into wastelands.

The number of refugees who have fled Ukraine rose to more than 1 million, the United Nations said. Hundreds of Russian soldiers and Ukrainian civilians have been killed, and Russia itself has been plunged into isolation never before experienced by an economy of such size. read more

Despite an initial battle plan that Western countries said was aimed at swiftly toppling the Kyiv government, Russia has captured only one Ukrainian city so far – the southern Dnipro River port of Kherson, which its tanks entered on Wednesday.

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“The main body of the large Russian column advancing on Kyiv remains over 30 km (19 miles) from the centre of the city having been delayed by staunch Ukrainian resistance, mechanical breakdown and congestion,” Britain’s defence ministry said in an intelligence update. read more

“The column has made little discernible progress in over three days,” it said. “Despite heavy Russian shelling, the cities of Kharkiv, Chernihiv and Mariupol remain in Ukrainian hands.”

Ukraine’s President Volodymyr Zelenskiy has remained in Kyiv, releasing regular video updates to the nation. In his latest message, he said Ukrainian lines were holding. “We have nothing to lose but our own freedom,” he said. read more

In Borodyanka, a tiny town 60 km (40 miles) northwest of Kyiv where locals had repelled a Russian assault, burnt out hulks of destroyed Russian armour were scattered on a highway, surrounded by buildings blasted into ruins. Flames from one burning apartment building lit up the pre-dawn sky. A dog barked as emergency workers walked through the rubble in the darkness.

“They started shooting from their APC towards the park in front of the post office,” a man recounted in the apartment where he was sheltering with his family. “Then those bastards started the tank and started shooting into the supermarket which was already burned. It caught fire again.

“An old man ran outside like crazy, with big round eyes, and said ‘give me a Molotov cocktail! I just set their APC on fire!… Give me some petrol, we’ll make a Molotov cocktail and burn the tank!’.”

SECOND ROUND OF TALKS

Russian Foreign Minister Sergei Lavrov characterised the Western response to Russia’s actions as “hysteria”, which he said would pass. He said he expected a second round of peace talks with a Ukrainian delegation would take place on Thursday. A first meeting on Monday in Belarus yielded no progress. read more

Only Belarus, Eritrea, Syria and North Korea voted against an emergency resolution at the U.N. General Assembly condemning Russia’s “aggression”. In Beijing, organisers sent Russian and Belarusian athletes home from the Paralympic Games.

“To the Para athletes from the impacted countries, we are very sorry that you are affected by the decisions your governments took last week in breaching the Olympic Truce. You are victims of your governments’ actions,” they said.

In Russia itself, where nearly all major opposition figures have been jailed or exiled in a crackdown over the past year, the authorities have banned reporting that describes the “special military operation” launched by President Vladimir Putin on Feb. 24 as an invasion or war.

The last two major independent broadcasters, Dozhd TV and Ekho Moskvy radio, were taken off the air. TASS reported on Thursday Ekho Moskvy would be shut down for good. Anti-war demonstrations have been small and quickly shut down by police who have arrested thousands of people. Riot police snatched peaceful protesters off the streets in St Petersburg late on Wednesday.

Having failed to capture major Ukrainian cities, Russia has shifted tactic in recent days, escalating its bombardment of them. Swathes of central Kharkiv, a city of 1.5 million people, have been blasted into rubble.

Mariupol, the main port of eastern Ukraine, has been surrounded under heavy bombardment, with no water or power. Officials say they cannot evacuate the wounded. The city council compared the situation there to the World War Two siege of Leningrad, calling it the “genocide of the Ukrainian people”. read more

“In just seven days, one million people have fled Ukraine, uprooted by this senseless war. I have worked in refugee emergencies for almost 40 years, and rarely have I seen an exodus as rapid as this one,” said Filippo Grandi, the U.N. High Commissioner for Refugees.

“Hour by hour, minute by minute, more people are fleeing the terrifying reality of violence.”

STALLED ADVANCE

Military analysts say the Russian advance has been a tactical fiasco so far, stalled by failures of logistics and equipment maintenance, with columns now confined to roads as the spring thaw turns Ukrainian ground into mud. Each day the main attack force remains stalled on the highway north of Kyiv, its condition deteriorates further, said Michael Kofman, an expert on the Russian military at the Wilson Center in Washington DC.

“The longer Russian forces sit forward, the lower their readiness and performance will be. Everything from state of tires, to supply availability, and in the end morale,” he tweeted.

But the great fear is that, as the likelihood of any rapid victory recedes, Russia will fall back on tactics it used in Syria and Chechnya, which left the large cities of Aleppo and Grozny in shattered ruins before they were finally overcome.

Russia has already acknowledged nearly 500 of its soldiers killed. Ukraine says it has killed nearly 9,000, though this cannot be confirmed. Ukrainian authorities have offered to release any Russian prisoners if their mothers come to fetch them.

Kherson, a provincial capital of around 250,000 people, was the first significant urban centre to fall. Mayor Igor Kolykhayev said late on Wednesday that Russian troops were in the streets and had entered the council building.

“I didn’t make any promises to them … I just asked them not to shoot people,” he said in a statement.

The U.S. State Department called on Putin and the Russian government to “immediately cease this bloodshed” and withdraw forces from Ukraine.

The International Criminal Court said it would open an investigation into potential war crimes in Ukraine following requests by 39 of its member states. Russia denies targeting civilians and says its aim is to “disarm” Ukraine and arrest leaders it falsely calls neo-Nazis. read more

Russia is one of the world’s largest energy producers and both Russia and Ukraine are major exporters of food. Oil and commodity prices spiralled ever higher on Thursday in a grim omen for global inflation. read more

(This story was refiled to add dropped word “to” in paragraph 2)

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Reporting by Pavel Polityuk, Natalia Zinets and Aleksandar Vasovic in Ukraine, David Ljunggren in Ottawa and other Reuters bureaux; Writing by Costas Pitas, Stephen Coates, Simon Cameron-Moore and Peter Graff; Editing by Lincoln Feast and Alex Richardson

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Former Ghosn deputy set for U.S. return after suspended sentence

Greg Kelly, former executive of Nissan Motor Co., walks in to the Tokyo District Court, in Tokyo, Japan, March 3, 2022. Zhang Xiaoyu/Pool via REUTERS

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TOKYO, March 3 (Reuters) – A Tokyo court on Thursday handed former Nissan Motor executive Greg Kelly a six-month suspended sentence for helping Carlos Ghosn hide pay from regulators, paving the way for the American lawyer to return home after more than three years in Japan.

“The court finds the existence of unpaid remuneration” and the failure to disclose amounted to “false” reporting, the chief judge Kenji Shimotsu said, telling Kelly he was responsible for one of the eight years included in the charges.

“I was shocked by the judgment,” Kelly said in a statement after the ruling. “The court found me mostly innocent, but I do not understand why it said I was guilty for one of the years,” he added.

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His lawyers said they will appeal the conviction, which Kelly should be able to do from the United States.

In a pointed criticism of the prosecutors, the ruling also pinned blame for Ghosn’s alleged failure to disclose $80 million of income over eight years on Toshiaki Ohnuma, a Nissan official overseeing compensation, who was given legal immunity in return for testimony implicating Kelly.

“Ohnuma’s statement is fraught with danger that he was making statements that conformed to the prosecutors’ wishes,” Shimotsu said. “There was a danger as an accomplice that he would seek to shift responsibility to Ghosn,” he added.

The court also fined Nissan , which pleaded guilty at the start of the trial 18 months ago, 200 million yen ($1.73 million) for its part in the financial wrongdoing and took aim at corporate governance failings.

“The dysfunctional governance of the company allowed Ghosn to act in his own self interest. The severe damage to the company’s social reputation can only be described as it suffering the consequences,” Shimotsu said, describing Ghosn’s tenure there as a “dictatorship”.

DRAWS A LINE

The verdict more than three years after Kelly’s arrest alongside Ghosn draws a line under a case that threatened to strain relations between Japan and the United States, its closet ally. Some Western observers criticised the Japanese justice system for its treatment of Kelly.

Suspects in Japan are not allowed to have a lawyer present during interrogations and can be detained for up to three weeks without charge and often in solitary confinement. And 99% of cases that go to trial end with a conviction.

“While this has been a long three years for the Kelly family, this chapter has come to an end. He and Dee (his wife) can begin their next chapter in Tennessee,” U.S. ambassador in Japan Rahm Emanuel said in a statement.

Kelly testified that his only intent was to give Ghosn, who was also the chief executive at Renault, a compensation package that would dissuade him from defecting to a rival automaker.

Bill Hagerty, a U.S. Senator from Kelly’s home state Tennessee, said he planned to welcome his constituent at the airport.

“Greg has been subjected to circumstances corporate America could never contemplate,” Hagerty said. “Greg is innocent of the charges levied against him,” he added.

The court ruling, however, does not mean an end to legal troubles faced by the former head of Nissan and alliance partner Renault SA (RENA.PA), but it may be the closest the Tokyo court gets to ruling on Ghosn’s culpability.

Ghosn is beyond the reach of Japanese prosecutors after fleeing to Lebanon in 2019 hidden in a box on a private jet. He is unable to leave without risking arrest.

In addition to the charge of hiding his earnings, Ghosn is also accused of enriching himself at his employer’s expense through $5 million of payments to a Middle East car dealership, and for temporarily transferring personal investment losses to his former employer’s books.

Ghosn has denied all the accusations against him.

($1 = 115.5900 yen)

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Reporting by Tim Kelly and Satoshi Sugiyama; Editing by Grant McCool, Michael Perry and Emelia Sithole-Matarise

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U.S. weighs sanctions on Russia energy flows, but time is not ‘right now’

WASHINGTON, March 2 (Reuters) – The United States is open to imposing sanctions on Russia’s oil and gas flows but going after its exports now could help Moscow, the White House said on Wednesday as oil prices surged to an 11-year high and supply disruptions mounted.

After Russia’s invasion of Ukraine, the White House slapped sanctions on exports of technologies to Russia’s refineries and the Nord Stream 2 gas pipeline, which has never launched. So far, it has stopped short of targeting Russia’s oil and gas exports as the Biden administration weighs the impacts on global oil markets and U.S. energy prices.

“We don’t have a strategic interest in reducing global supply of energy … that would raise prices at the gas pump for Americans,” spokesperson Karine Jean-Pierre said at a White House news briefing.

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The administration warned it could block Russian oil if Moscow heightens aggression against Ukraine. “It’s very much on the table, but we need to weigh what all of the impacts will be,” White House spokeswoman Jen Psaki told MSNBC earlier on Wednesday.

The National Economic Council’s deputy director, Bharat Ramamurti, told MSNBC that the White House does not want to make a move just yet.

“Going after Russian oil and gas at this point would have an effect on U.S. consumers and actually could be counterproductive in terms of raising the price of oil and gas internationally, which could mean more profits for the Russian oil industry,” he said.

“So we don’t want to go there right now.”

The White House deputy national security adviser, Daleep Singh, told CNN the Biden administration was looking at cutting U.S. consumption of Russian oil while maintaining the global supply of energy.

“There are other producers in the world that could backfill for any Russian oil we don’t import,” Singh said.

The Biden administration has taken pains to say it has not yet targeted Russian oil sales as part of sweeping economic sanctions it has slapped on Moscow since last week. read more

Even so, traders and banks have shied away from Russian oil shipments via pipeline and tankers, so as not to be seen as funding the invasion, sending energy markets into disarray. read more

And some U.S. lawmakers have pushed legislation that analysts said could lead to higher gasoline prices.

The top Democrat and a Republican on the Senate energy committee floated a bill that would prohibit the import of Russian crude, liquid fuels and liquefied natural gas. The United States imported an average of more than 20.4 million barrels of crude and refined products a month in 2021 from Russia, about 8% of U.S. liquid fuel imports, according to the Energy Information Administration.

Democratic Senator Joe Manchin and Republican Senator Lisa Murkowski are working on getting support for their bill, a Manchin spokesperson said.

The United States did slap sanctions on Russia’s oil refineries, banning the export of specific technologies, a move that could make it harder for Russia to modernize those plants. read more

Nearly one week after Moscow invaded Ukraine, U.S. crude oil ended Wednesday at $110.60 per barrel, the highest close since May 2011, while global benchmark Brent settled at its highest since June 2014, at $112.93. read more

Meanwhile, OPEC+ oil producers meeting on Wednesday agreed to stick to their modest output rises, offering little relief to the market or consumers. read more

On Tuesday, the United States and its allies agreed to release 60 million barrels of oil reserves to help offset supply disruptions.

“We want to minimize the impact on the global market place … and the impact of energy prices for the American people,” Psaki said. “We’re not trying to hurt ourselves, we’re trying to hurt President Putin and the Russian economy.”

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Reporting by Doina Chicau, Timothy Gardner, Susan Heavey and Valerie Volcovici; writing by Timothy Gardner; editing by Louise Heavens, Alistair Bell and Leslie Adler

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