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Asian shares rally as Russia-Ukraine talks buoy sentiment

  • Nikkei up 3.8%, best in nearly 21 months
  • Oil prices up, euro holds gains
  • The ECB meets today; U.S. CPI due in the day
  • Senior Russian, Ukrainian officials in talks in Turkey

BEIJING, March 10 (Reuters) – Asian shares surged on Thursday, tracking Wall Street’s gains as planned diplomatic talks between Russia and Ukraine buoyed risk-on sentiment, although analysts warned the rally could be susceptible to a sharp reversal.

Oil prices also regained some footing, having fallen more than 12% on the previous session as the market weighed whether major producers would boost supply to help plug the gap in output from Russia due to sanctions for its invasion of Ukraine.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) gained 1.6%, pulling away from the lowest level since November 2020. Japan’s Nikkei (.N225) rallied 3.8%, the most in nearly 21 months.

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Chinese blue chips (.CSI300) rose 1.75% while Hong Kong’s Hang Seng index (.HSI) was up 0.6%.

In Europe, stock futures point to a stronger open. Euro Stoxx 50 were up 0.35%, although German DAX futures were 0.55% higher and FTSE futures gained 0.48% in early deals.

Wall Street futures were slightly lower. S&P 500 futures fell 0.13% and Nasdaq futures were 0.21% lower.

Traders and investors now await a meeting of the European Central Bank later in the day for any signs of how Russia’s invasion of Ukraine will affect monetary policy in the region. U.S. inflation figures are also due, which could further guide expectations for the Federal Reserve’s meeting next week.

Mansoor Mohi-uddin, chief economist at Bank of Singapore, said financial markets rallied on hopes that Ukraine and Russia may start to negotiate more seriously on their differences.

“The reaction, however, is unlikely to prove sustainable as the two countries have major differences still and the military conflict looks set to intensify with Russia aiming to capture Ukraine’s key cities.”

Russia’s foreign minister Sergei Lavrov arrived in Turkey ahead of planned talks on Thursday with his Ukrainian counterpart Dmytro Kuleba for what will be the first meeting between the two since Russia invaded Ukraine two weeks ago. read more

Adding to the uncertainties, Russia on Wednesday accused the United States of declaring an economic war on the country, and put Washington on notice it was considering its response to a ban on Russian oil and energy. read more

European Union leaders will phase out buying Russian oil, gas and coal, a draft declaration showed on Thursday, as the bloc seeks to reduce its reliance on Russian sources of energy, following a ban from the United States. read more

Brent crude futures were up 3% on Thursday, at $114.64 a barrel, and U.S. crude rose 1.73% to $110.58 a barrel, after comments from the UAE Energy Minister Suhail al-Mazrouei that his country is committed to the existing agreement by OPEC nations to ramp up oil supply.

Previously, prices slumped after UAE’s ambassador to Washington said the country will be encouraging OPEC to consider higher output to fill the supply gap due to sanctions on Russia.

Higher energy prices will reinforce expectations that the U.S. Federal Reserve will raise interest rates by 25 basis points at its policy meeting next week, with data due later in the day expected to show U.S. consumer inflation racing at a 7.9% annualised clip in February.

“U.S. equities could be in a holding pattern with higher levels of volatility as investors assess the impact of the Ukraine conflict on inflation and possible Fed actions,” said David Chao, Hong Kong-based global market strategist at Invesco.

U.S. stocks surged overnight, led by financial and tech shares. The Nasdaq Composite (.IXIC) added 3.59% while the Dow Jones Industrial Average (.DJI) rose 2%.

Amazon.com Inc said on Wednesday its board approved a 20-for-1 split of the e-commerce giant’s common stock and authorised a $10 billion buyback plan, sending the company’s shares up 7% in extended trading. read more

In currency markets, the euro was trading at $1.1054 after jumping 1.6% on Wednesday, its best day since June 2016, along with gains in European stocks and a sell off in bonds, while the safe haven yen , slipped to a one-month low of 116 per dollar.

The dollar index was at 98.144, after tumbling 1.2% overnight amid the euro’s surge, and hurt, along with the yen, by a rise in sentiment towards riskier assets like equities.

Gold was slightly lower, with spot gold easing 0.6% to $1,977.89 per ounce.

The yield on benchmark 10-year Treasury notes dropped slightly to 1.9409% compared with its U.S. close of 1.948% on Wednesday.

The two-year yield , which rises with traders’ expectations of higher Fed fund rates, touched 1.6638% compared with a U.S. close of 1.678%.

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Reporting by Stella Qiu in Beijing and Alun John in Hong Kong; Editing by Sam Holmes and Raju Gopalakrishnan

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U.S. man with transplanted genetically modified pig heart dies

March 9 (Reuters) – A 57-year-old man with terminal heart disease who made history as the first person to receive a genetically modified pig’s heart died on Tuesday at the University of Maryland Medical Center (UMMC), the hospital said.

David Bennett received the transplant on Jan 7. read more

His condition began deteriorating several days ago, the hospital said in a statement on Wednesday, and he was given “compassionate palliative care” after it became clear that he would not recover.

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Bennett “wasn’t able to overcome what turned out to be the devastating debilitation” caused by the heart failure he experienced before the transplant, Dr. Bartley Griffith, director of the UMCC cardiac transplant program, said in a videotaped statement.

The transplanted heart functioned “beautifully,” Griffith said.

Bennett was able to communicate with his family during his final hours, the hospital said.

Bennett first came to UMMC as a patient in October and was placed on a heart-lung bypass machine, but was deemed ineligible for a conventional heart transplant.

After Bennett received a pig heart that had been modified to prevent rejection with the use of new gene editing tools, his son called the procedure “a miracle.”

For Bennett, the procedure was his last option.

“Before consenting to receive the transplant, Mr Bennett was fully informed of the procedure’s risks, and that the procedure was experimental with unknown risks and benefits,” the hospital said.

Researchers have long considered pigs to be a potential source of organs for transplants because they are anatomically similar to humans in many ways. Prior efforts at pig-to-human transplants had failed because of genetic differences that caused organ rejection or viruses that posed an infection risk.

“The demonstration that it was possible – that we were able to take a genetically engineered organ and watch it function flawlessly for nine weeks, is pretty positive in terms of the potential for this therapy,” Griffith said.

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Reporting by Kanishka Singh in Bengaluru and Nancy Lapid in New York; Editing by Chizu Nomiyama, Bill Berkrot, Caroline Humer and Robert Birsel

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Ukraine accuses Russia of genocide after bombing of children’s hospital

  • Hospital hit by several Russian bombs, city council says
  • Russia’s foreign minister arrives in Turkey for talks
  • Russia had earlier agreed to ceasefire for evacuation
  • Moscow denies targeting civilians

LVIV, Ukraine, March 9 (Reuters) – Ukrainian’s president accused Russia of carrying out genocide after officials said Russian aircraft bombed a children’s hospital on Wednesday, burying patients in rubble despite a ceasefire deal for people to flee the besieged city of Mariupol.

The attack, which authorities said injured women in labour and left children in the wreckage, is the latest grim incident of the 14-day invasion, the biggest assault on a European state since 1945.

The Mariupol city council said the hospital had been hit several times in what the White House called a “barbaric use of military force to go after innocent civilians”.

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The destruction took place despite a Russian pledge to halt firing so at least some trapped civilians could escape the city, where hundreds of thousands have been sheltering without water or power for more than a week.

“What kind of country is this, the Russian Federation, which is afraid of hospitals, is afraid of maternity hospitals, and destroys them?” Ukrainian President Volodymyr Zelenskiy said in a televised address late on Wednesday.

Zelenskiy repeated his call for the West to tighten sanctions on Russia “so that they sit down at the negotiating table and end this brutal war”. The bombing of the children’s hospital, he said, was “proof that a genocide of Ukrainians is taking place”.

Kremlin spokesman Dmitry Peskov, asked by Reuters for comment, said: “Russian forces do not fire on civilian targets.” Russia calls its incursion a “special operation” to disarm its neighbour and dislodge leaders it calls “neo-Nazis.”

Ukraine’s foreign ministry posted video footage of what it said was the hospital showing holes where windows should have been in a three-storey building. Huge piles of smouldering rubble littered the scene.

The U.N. Human Rights body said it was verifying the number of casualties at Mariupol.

“The incident adds to our deep concerns about indiscriminate use of weapons in populated areas and civilians trapped in active hostilities in numerous areas,” said spokesperson Liz Throssell.

The Donetsk region’s governor said 17 people were wounded in the attack.

Ukraine accused Russia of breaking the ceasefire around the southern port, which aid workers and officials say is running out of food and water after days of Russian bombardment.

“Indiscriminate shelling continues,” Foreign Minister Dmytro Kuleba wrote on Twitter.

Satellite image company Maxar said images from earlier in the day showed extensive damage to homes, apartment buildings, grocery stores and shopping centres in the port city.

Russia blamed Ukraine for the failure of the evacuation.

Among more than 2 million total refugees from Ukraine, the United Nations Children’s Fund (UNICEF) said on Wednesday that more than 1 million children have fled the country since the invasion started on Feb 24. At least 37 had been killed and 50 injured, it said.

Around 48,000 Ukrainians have been evacuated through humanitarian corridors, Interfax Ukraine news agency said on Wednesday, citing a senior aide to Zelenskiy.

Ukrainian officials said while some had departed from certain locations, Russian forces were preventing buses from evacuating civilians from Bucha, a town near Kyiv.

The International Committee of the Red Cross (ICRC) said houses had been destroyed all across Ukraine. “Hundreds of thousands of people have no food, no water, no heat, no electricity and no medical care,” it said.

Thousands continued to flood into neighbouring countries. After hiding in the basement to shelter from Russian bombing, Irina Mihalenka left her home northeast of the Black Sea port of Odessa, she told Reuters in Isaccea, Romania.

“When we were walking, a bridge was blown up. And when we crossed over the wreckage, because there was no other way out, there were corpses of Russian people (soldiers) lying there,” she said.

RUSSIA’S ECONOMIC ISOLATION

Russia has been hit by Western sanctions and the withdrawals of foreign firms. Nestle, cigarette maker Philip Morris and Sony on Wednesday joined the list of multinationals stepping back from the country.

The United States is weighing sanctions on nuclear power supplier Rosatom, a senior Biden administration official said on Wednesday.

The World Bank’s chief economist said Moscow was edging close to defaulting on its debt. The Kremlin is taking measures to shore up the economy and planned to respond to a U.S. ban on its oil and energy exports as the rouble dropped to record lows.

There was not much hope for diplomacy as Russia’s Foreign Minister Sergei Lavrov arrived in Turkey ahead of talks on Thursday with Kuleba in what will be the first meeting between the pair since the incursion.

Ukraine is seeking a ceasefire, liberation of its territories and to resolve all humanitarian issues, Kuleba said, adding: “Frankly … my expectations of the talks are low.”

Moscow demands that Kyiv take a neutral position and drop aspirations of joining the NATO alliance.

Zelenskiy told VICE in an interview on Wednesday that he was confident Putin would at some stage agree to talks. “I think he will. I think he sees that we are strong. He will. We need some time,” he said.

The West says Russia is inventing pretexts to justify an unprovoked war. Russian President Vladimir Putin has called Ukraine a U.S. colony with a puppet regime and no tradition of independent statehood.

The White House on Wednesday said Russia’s claims about alleged U.S. involvement in biological weapons labs and chemical weapons development in Ukraine were false.

Russian forces hold territory along Ukraine’s northeast border, the east and the southeast. Fighting has taken place in the outskirts of Kyiv, while Ukraine’s second city Kharkiv is under bombardment.

A Russian assault force is stalled north of Kyiv and Western countries say the Kremlin has had to adjust its plan to swiftly topple the government.

The International Monetary Fund on Wednesday approved $1.4 billion in emergency financing for Ukraine to help meet urgent spending needs.

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Reporting by Reuters bureaus; Writing by Costas Pitas and Stephen Coates; Editing by Cynthia Osterman and Michael Perry

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Russian-linked private jet impounded as UK deepens aviation sanctions

LONDON, March 9 (Reuters) – Britain said on Wednesday it had impounded a plane connected to a Russian billionaire under new aviation sanctions which give authorities the power to detain any Russian aircraft and to ban exports of aviation or space-related goods to Russia.

The measures to strengthen action against Russian aircraft mean it is a criminal offence for any to fly or land in the United Kingdom. read more

The ban includes any aircraft owned, operated or chartered by anyone connected with Russia or designated individuals or entities, and will include the power to detain any aircraft owned by persons connected with Russia, the Foreign Office said in a statement.

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Transport minister Grant Shapps said one aircraft had already been impounded at Farnborough Airport in southern England while further investigations were carried out.

A British government source said the private jet was linked to Eugene Shvidler, a billionaire business associate of Roman Abramovich, the owner of Chelsea soccer club. read more Shvidler could not immediately be reached for comment.

Trails are seen in the sky as a plane flies over London while a Union Jack flag flies in the wind at 10 Downing Street, in London, Britain, January 29, 2022. REUTERS/May James

“We know that it isn’t a Russian company that holds the aircraft, it’s rather a Luxembourg-registered aircraft. We are carrying out further checks before releasing it,” Shapps told LBC radio.

The transport ministry said it was working with the Civil Aviation Authority to clarify details of the jet which is registered with Global Jet Luxembourg.

“Banning Russian flagged planes from the UK and making it a criminal offence to fly them will inflict more economic pain on Russia and those close to the Kremlin,” foreign minister Liz Truss said.

The foreign office said it would lay new legislation on Wednesday to implement the measures, which also include a power to remove from the British aircraft register any aircraft belonging to sanctioned Russian individuals and entities.

The new sanctions will also prevent aviation and space related exports including insurance and re-insurance.

This will mean cover is withdrawn on existing policies and British-based insurers and reinsurers will be unable to pay claims on existing policies in these sectors, the statement said.

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Reporting by William James, Elizabeth Piper and Michael Holden; Editing by Clarence Fernandez, Shri Navaratnam, Elaine Hardcastle

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EXCLUSIVE Washington pins easing of Venezuela sanctions on direct oil supply to U.S. -sources

An oil pumpjack painted with the colors of the Venezuelan flag is seen in Lagunillas, Venezuela January 29, 2019. REUTERS/Isaac Urrutia

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HOUSTON/WASHINGTON, March 8 (Reuters) – U.S. officials have demanded Venezuela supply at least a portion of oil exports to the United States as part of any agreement to ease oil trading sanctions on the OPEC member nation, two people close to the matter said.

U.S. President Joe Biden on Tuesday banned U.S. imports of Russian oil in retaliation for the invasion of Ukraine, ramping up economic pressure on a key Venezuelan ally.

U.S. diplomats have worked to find energy supplies worldwide that can help compensate for disruption to Russian oil and gas exports caused by sanctions or war. U.S. officials met Venezuelan President Nicolas Maduro in Caracas for the first bilateral talks in years on Saturday.

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Venezuela has been under U.S. oil sanctions since 2019 and could reroute crude if those restrictions were lifted.

U.S. officials made clear their priority was to secure supplies for the United States, the people told Reuters. The officials told their Venezuelan counterparts that any relaxation in U.S. sanctions would be conditional on Venezuela shipping oil directly to the United States, the sources said.

The United States had not previously made stipulations about the specific destination of cargoes permitted under waivers to sanctions.

The U.S. Department of State and Venezuelan state run energy company PDVSA did not immediately reply to requests for comment.

Chevron Corp (CVX.N), the last U.S. oil producer still operating in Venezuela, could be the first beneficiary if a deal is reached with Maduro’s administration. Chevron has been barred from shipping Venezuelan oil from its joint ventures since 2020 and has pushed to overturn the ban.

A Chevron spokesperson declined to comment on the U.S. discussions. The company operates “in compliance with the current sanctions framework provided by the U.S. Office of Foreign Assets Control,” he said.

The California-based company has a special license that allows it to maintain a low-level presence in the country, only to ensure the maintenance and safety of its facilities.

With that license due to expire in June, Chevron has sought authorization from the U.S. Treasury Department to trade Venezuelan oil cargoes for debt repayment through a revamped exemption, Reuters has reported. Chevron wants the revised permit so it can recoup hundreds of million dollars in unpaid debt and late dividends from its joint ventures with PDVSA.

If Washington decides to ease sanctions, Chevron could be in position to partially recover production in Venezuela and resume exports to its own and other refineries on the U.S. Gulf Coast, one of the sources said, replacing Russian barrels.

Chevron had no immediate comment.

Little progress was made in the weekend talks as Washington sought to gauge prospects for peeling Maduro away from his alliance with Russian President Vladimir Putin. But the parties agreed to further talks.

The sides established what one person familiar with the matter called “maximalist” negotiating positions. Washington pressed for free presidential elections and for the release of Americans jailed in Venezuela, while Maduro asked for a wide lifting of sanctions.

But the most pressing topic was energy. The parties discussed returning Venezuelan oil to markets hit by disruptions of Russian supplies and a workaround for PDVSA to temporarily access international bank transfers, according to the sources.

The meeting sparked strong reactions on Capitol Hill, where New Jersey Senator Robert Menendez and other U.S. lawmakers criticized the outreach to Maduro, who is under U.S. sanctions for human rights abuses.

The U.S. engagement comes as Venezuela’s financial lifeline to Russia is fraying under sanctions on Moscow following its bombardment of Ukraine. Venezuela’s funds held in Russian banks blacklisted by Washington have been frozen.

Oil prices rose another 5% on Tuesday to $128 per barrel on the U.S. import ban on Russia – which accounted for 670,000 barrels per day in 2021. Britain said it will phase out Russian imports by year end.

Venezuela’s oil production last year recovered from free fall and averaged 636,000 bpd. Officials have said it can boost output and exports, but analysts believe there is little room for further increases without massive new spending.

However, many refiners in the U.S. Gulf Coast that were importing Russian barrels could potentially resume processing Venezuelan heavy oil and fuel, among their preferred feedstock for specialized units.

Before sanctions, U.S. Valero Energy (VLO.N), Citgo Petroleum, Chevron and PBF Energy (PBF.N) were among top U.S. buyers of Venezuelan oil.

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Reporting by Marianna Parraga in Houston and Matt Spetalnick in Washington; additional reporting by Vivian Sequera in Caracas and Gary McWilliams in Houston; Editing by Stephen Coates

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U.S. rejects Poland’s offer to give it Russian-made fighter jets for Ukraine

WASHINGTON, March 8 (Reuters) – The United States rejected a surprise offer by NATO ally Poland on Tuesday to transfer its Russian-made MiG-29 fighter jets to a U.S. base in Germany as a way to replenish Ukraine’s air force in its defense against invading Russian forces.

The United States has sought to speed weapons deliveries to Ukraine. But the prospect of flying combat aircraft from NATO territory into the war zone “raises serious concerns for the entire NATO alliance,” the Pentagon said.

NATO has said it does not want direct conflict with Russia, a fellow nuclear-armed power, and President Joe Biden has ruled out sending U.S. troops into Ukraine to fight, something the Pentagon has said would apply to troops on the ground or in the air, flying missions.

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“It is simply not clear to us that there is a substantive rationale for it,” Pentagon spokesman John Kirby said of Poland’s proposal.

“We will continue to consult with Poland and our other NATO allies about this issue and the difficult logistical challenges it presents, but we do not believe Poland’s proposal is a tenable one.”

Poland’s foreign ministry announced on Tuesday that it was ready to deploy its MiG-29 jets to Ramstein Air Base in Germany and put them at the disposal of the United States. It urged other members of the alliance that had other such aircraft to do the same.

The U.S. State Department’s No. 3 diplomat said the Polish proposal caught the United States by surprise.

“To my knowledge, it wasn’t pre-consulted with us that they planned to give these planes to us,” State Department Undersecretary of State for Political Affairs Victoria Nuland told a Senate Foreign Relations Committee hearing.

Polish Air Force MiG-29 pilot Adrian Rojek performs during the Radom Air Show at an airport in Radom, Poland August 23, 2015. REUTERS/Kacper Pempel/File photo

“So I think that actually was a surprise move by the Poles,” she said.

The impasse raises questions about the viability of Ukrainian President Volodymyr Zelenskiy plea for European countries to provide Russian-made planes, an issue he underscored during a video call Saturday with U.S. lawmakers.

U.S. lawmakers are eager to speed military aid to Ukraine and are pushing the Biden administration to facilitate the aircraft transfer.

But Poland’s announcement could also reflect its own sensitivities.

Poland is supporting Ukraine with defensive weapons, but has said it would not send jets as it is not a direct party to the conflict between Ukraine – which is not a NATO ally – and Russia.

Russia’s defense ministry warned this week that countries offering air fields to Ukraine for attacks on Russia may be considered as having entered the conflict.

Nuland said the main issue was to assess what Poland’s immediate needs would be given it is adjacent to the conflict.

“Poland – they benefit from full air security from the NATO alliance. … The main issue is to evaluate what Poland’s immediate needs are in the context of being a neighbor of this conflict,” she said.

Separately, the U.S. military announced it would reposition two Patriot missile batteries to Poland to proactively “counter any potential threat to U.S. and Allied forces and NATO territory.”

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Reporting by Patricia Zengerle, Humeyra Pamuk, Mike Stone and Phil Stewart; additional reporting by Idrees Ali; editing by Jonathan Oatis and Grant McCool

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Crude rises on U.S. Russian oil ban, Asian shares wobble

A man looks at stock market monitors in Taipei January 22, 2008. REUTERS/Nicky Loh

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  • Brent crude up 1.88%, above $130 per barrel
  • European bourses set for firmer open
  • U.S. imposes ban on Russian oil, Britain to phase out imports
  • MSCI Asia ex-Japan turns lower, China shares dive in afternoon

SHANGHAI, March 9 (Reuters) – Crude oil prices rose again on Wednesday while Asian stocks struggled for footing as investors assessed the impact of the worsening conflict in Ukraine and a new U.S. ban on Russian oil.

In Europe, however, shares were poised for a stronger open. Euro Stoxx 50 and German DAX futures were around 2% higher and FTSE futures gained 1.36% in early deals.

“It’s not really … a risk-on rally. It’s more that investors have got less reason to sell than they previously did, nothing’s really come through to change sentiment around, and you’ve probably got some short covering in there,” said Matt Simpson, senior market analyst at City Index in Sydney.

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The price of a barrel of crude, already on the march higher in January on supply worries and expectations of a strengthening global economic recovery, has rocketed upward since Russia launched its invasion of Ukraine on Feb. 24. Oil is now roughly double its early December low.

Risking even higher U.S. fuel prices that could curb economic growth, President Joe Biden on Tuesday imposed an immediate ban on Russian oil and other energy imports in retaliation for the invasion, amid strong support from American voters and lawmakers.

The ban caps sweeping U.S. and European sanctions imposed on Moscow for launching the largest war in Europe since World War Two. Russian strikes have targeted Ukrainian cities and killed hundreds of civilians. read more

Britain also announced it will phase out imports of Russian oil and oil products by the end of 2022. read more

“The oil shock by nature is an accruing one, not a one-off, and the potential for the market to hit $150 before returning to $100 is easier for investors to digest,” said Stephen Innes, managing partner at SPI Asset Management.

“Putting in force sanctions without first developing surrogate supply contingencies risks Brent crude (going) much higher.”

Global benchmark Brent was last trading at $130.38 per barrel, up 1.88% on the day but still off a peak of $139.13 touched on Monday.

U.S. West Texas Intermediate crude was up 1.52% at $125.58 per barrel.

Russia calls its actions in Ukraine a “special operation,” and warned earlier this week that prices could surge to $300 a barrel and it could close the main gas pipeline to Germany if the West blocked its oil exports. read more

In equity markets, MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.10%, as a sharp reversal in Chinese shares erased earlier gains.

China’s blue-chip CSI300 index (.CSI300) briefly dived as much as 4.6% in the afternoon on what Zhang Yanbing, an analyst at Zheshang Securities, said was a technical acceleration near the market bottom.

Chinese shares had struggled in the morning session following inflation data that showed a combination of soft domestic demand and high commodity prices, while coronavirus cases continue to rise. read more

In Hong Kong, where infections have surged to record highs, the Hang Seng (.HSI) was last down 2%. read more

But broader regional losses were kept in check by gains elsewhere, with Australia’s resource-heavy ASX 200 (.AXJO) up 1.04% and Taiwan shares (.TWII) up 1.13%.

In Tokyo, the Nikkei (.N225) fell 0.3%.

“I think we’re getting Russia fatigue. We’ve had 10-12 days now of bombardment of Russia headlines. And whilst it’s tragic what’s happening over there, at the same time I think we’ve priced in effectively the worst of the worst,” said Simpson at City Index.

Wobbly share price moves in Asia followed another day in the red on Wall Street, where the Dow Jones Industrial Average (.DJI) fell 0.56%, the S&P 500 (.SPX) lost 0.72% and the Nasdaq Composite (.IXIC) dropped 0.28%.

“Markets remain volatile, unable to confidently price implications from the news flow given the complex state of the global economy,” said Rodrigo Catril, senior FX strategist at National Australia Bank.

Against the uncertain backdrop, the yen held steady against the dollar at 115.70, while the dollar fell 0.2% against a basket of its peers to 98.919.

The euro was 0.23% higher at $1.0924 and the rouble was last quoted at 122.5 to the greenback.

U.S. Treasury yields edged down, with benchmark 10-year notes last yielding 1.8490%, down from 1.871% late on Tuesday. The 2-year note last yielded 1.6069%, down from 1.629%.

The price of gold wavered between small gains and losses, and was last down 0.18% to $2,048.77 per ounce.

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Reporting by Andrew Galbraith; Editing by Kim Coghill and Christopher Cushing

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China’s Xi calls for ‘maximum restraint’ in Ukraine

BEIJING, March 8 (Reuters) – Chinese President Xi Jinping on Tuesday called for “maximum restraint” in Ukraine and said China is “pained to see the flames of war reignited in Europe,” state media reported, in his strongest statement to date on the conflict.

Xi, speaking at a virtual meeting with French President Emmanuel Macron and German Chancellor Olaf Scholz, said the three countries should jointly support peace talks between Russia and Ukraine, Chinese state broadcaster CCTV reported.

Xi described the situation in Ukraine as “worrying” and said the priority should be preventing it from escalating or “spinning out of control”, CCTV cited him as saying.

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2022 Beijing Olympics – Opening Ceremony – National Stadium, Beijing, China – February 4, 2022. Chinese President Xi Jinping during the opening ceremony. Pool via REUTERS/Anthony Wallace

He also said France and Germany should make efforts to reduce negative impacts of the crisis, and expressed concern about the impact of sanctions on the stability of global finance, energy supplies, transportation and supply chains.

China, which has refused to condemn Russia’s actions in Ukraine or to call them an invasion, has repeatedly expressed its opposition to what it describes as illegal sanctions on Russia.

China’s friendship with Russia, strengthened last month when President Vladimir Putin attended the opening ceremony of the Beijing Winter Olympics on the same day that the countries declared a “no limits” strategic partnership, has become awkward for China as the war in Ukraine escalates.

Moscow describes its actions in Ukraine as a “special operation” to disarm its neighbour and unseat leaders it calls neo-Nazis. Ukraine and its Western allies call this a baseless pretext for an invasion to conquer a country of 44 million people.

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Reporting by Yew Lun Tian and Tony Munroe; Editing by Andrew Heavens

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Apple upgrades low-end iPhone SE with 5G, and high-end Mac Studio computer with faster chip

NEW YORK, March 8 (Reuters) – Apple Inc (AAPL.O) on Tuesday added 5G connectivity to its low-cost iPhone SE and iPad Air and introduced a faster chip for a new desktop, a high point in Apple’s move to power its devices with microprocessors designed in house.

The new Studio desktop starts at $3,999 with the new M1 Ultra chip. The iPad Air also got Apple’s M1 chip that was developed for laptops.

“Apple Silicon strategy is the key highlight,” said analyst Neil Shah of Counterpoint Research. “Apple is scaling the portfolio of its in-house semiconductor capabilities to power a broader set of richer devices from affordable iPhone SE to the most powerful product Mac Studio.”

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Apple’s Mac Pro still runs on Intel Corp microprocessors.

Apple slightly hiked the price on the iPhone SE to $429 from $399 for the previous model. The new phone starts shipping March 18. read more

The iPhone SE comes with an A15 Bionic chip, which Apple says is the fastest among competition, a 4.7-inch retina display and a home button with touch ID.

“This is important for our existing users who want a smaller iPhone at a great value,” Chief Executive Tim Cook said.

Nabila Popal, an analyst at IDC, said the new iPhone SE will cater to consumers looking for a budget 5G device, and it could be particularly popular given the economic uncertainty caused by the Russia-Ukraine conflict.

“A cheaper iPhone with 5G is good news for Apple, especially in these times of uncertainty,” Popal said.

But demand for larger screens could negatively impact iPhone SE sales, Popal added. Some consumers might instead opt for older iPhone models with bigger screens in the same price range.

The M1 Ultra is made by connecting two M1 Max chips and is eight times faster than M1 chips. Its first use will be in the creative professional-focused Mac Studio computer.

Apple will offer two versions of the Mac Studio, one with the M1 Max chip and the other utilizing the M1 Ultra chip.

Mac Studio pricing starts at $1,999 for the version with the M1 Max chip and $3,999 for the M1 Ultra loaded computer.

Apple also debuted a new monitor called Studio Display that can be paired with any Mac, including Macbook Air and Macbook Pro models, and which is priced at $1,599.

Apple shares were about flat for the day in mid-afternoon trading.

The company which has been broadening its services and other products also said its Apple TV+ product would begin showing Major League Baseball games on Friday nights. The weekly double header will be available in eight countries.

The new iPad Air gets its first refresh in two years with a new design, 5G connectivity and the M1, popular in MacBooks. The starting price remained $599 and it will be available starting March 18.

The new iPad Air also features a 12-megapixel front camera.

Apple also announced new iPhone 13 models in two new finishes, including alpine green.

During the presentation, Cook made no mention of the conflict in Ukraine. Apple said on March 1 it had paused all product sales in Russia in response to the Russian invasion. The Russian state media, RT News and Sputnik News are no longer available for download from the Apple Store outside Russia. read more

Russia calls its actions in Ukraine a “special operation.”

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Reporting by Danielle Kaye in New York and Nivedita Balu and Kanika Sikka in Bengaluru; Additional reporting by Ashwini Raj, Ahmed Farhatha, Shivansh Tiwary and Nilanjana Basu in Bengaluru; Editing by Karishma Singh, Peter Henderson and Lisa Shumaker

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Global shares, oil rises as U.S. bans Russian oil imports

NEW YORK, March 8 (Reuters) – Global share markets slid lower on Tuesday as oil remained near record highs after the United States banned Russian oil and other energy imports, stoking volatility and concerns about inflation.

U.S. President Joe Biden banned imports of Russian oil and gas energy. Britain announced shortly before Biden’s remarks that it would phase out the import of Russian oil and oil products by the end of 2022.

Oil’s surging prices tempered some on the news, with the international oil benchmark Brent crude for May climbing by 2.29% to $122.13 at 12:45 p.m. EST (1745 GMT), down from its high of more than $139 a barrel in the previous session. read more

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Since Russia invaded Ukraine on Feb. 24, Western sanctions have cut Russia off from international trade and financial markets. read more

Russia, which calls its actions in Ukraine a “special operation,” had warned that prices could surge to $300 a barrel and it might close the main gas pipeline to Germany if the West blocks oil imports over its invasion of Ukraine. read more

Jason McMann, head of geopolitical risk analysis at Morning Consult, called the U.S. ban on Russian oil imports noteworthy, but said the “real show-stopper” would be Europe banning Russian energy imports.

“Given Europe’s relatively high dependence on energy supplies from Russia, such a move, if it materializes, would have major economic and geopolitical ramifications,” McMann said.

In the absence of such a ban, markets reacted positively to the U.S. ban, reversing direction to edge slightly higher in midday trade.

The MSCI world equity index (.MIWD00000PUS), which tracks shares in 50 countries, gained 0.44%.

The Dow Jones Industrial Average (.DJI) rose 444.6 points, or 1.35%, the S&P 500 (.SPX) gained 48.35 points, or 1.15%, and the Nasdaq Composite (.IXIC) added 229.16 points, or 1.79%. The STOXX 600 was down 0.51% (.STOXX).

Solita Marcelli, chief investment officer in the Americas for UBS’s wealth management arm, said the increase in oil prices over the past week — the second biggest jump 30 years — is likely to stick around, causing continued market volatility.

“The Russia-Ukraine war has driven oil prices up faster than we previously expected, but we continue to see a tight supply-demand balance for crude oil globally, even if the hostilities end and the geopolitical risk premium attached to crude declines,” Marcelli said.

U.S. crude recently rose 2.29% to $122.13 per barrel, while prices of safe-haven spot gold added 1.9% to $2,035.30 an ounce.

The London Metal Exchange (LME) halted nickel trading on Tuesday after prices doubled in just hours to a record $100,000 per ton, fueled by a race to cover short positions. read more

UBS Global Wealth Management recommended a neutral stance on equities and advised clients to hold commodities, energy stocks and the U.S. dollar as portfolio hedges in the short term.

The rally in oil and other commodities has heightened investor fears about global inflation. Data this week is expected to show the U.S. consumer price index climbed a stratospheric 7.9% on a year-on-year basis in February, up from 7.5% in January. read more

Germany’s benchmark government bond yield rose sharply and a gauge of long-term euro zone market inflation expectations rose to its highest level since late 2013.

The U.S. Treasury 10-year yield was at 1.868% .

The euro was up 0.75% to $1.0933, after taking a beating and falling 3% last week to its lowest level since mid-2020.

The dollar index fell 0.32%.

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Reporting by Elizabeth Dilts Marshall; additional reporting by Saikat Chatterjee, Elizabeth Howcroft, Sujata Rao and Julie Zhu; Editing by Susan Fenton, Angus MacSwan and Jonathan Oatis

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