Tag Archives: slips

Russia slips into default zone as payment deadline expires

The clock on Spasskaya tower showing the time at noon, is pictured next to Moscow?s Kremlin, and St. Basil?s Cathedral, March 31, 2020. REUTERS/Maxim Shemetov

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  • Grace period runs out on $100 mln interest payment due May 27
  • Some Taiwanese bondholders did not received payment on Monday – sources
  • Russia says it has funds to pay, sanctions are to blame
  • Lapsed U.S. waiver, EU sanctions on NSD scupper Russia payments
  • CDS committee already declared ‘credit event’ occurred

LONDON, June 27 (Reuters) – Russia looked set for its first sovereign default in decades as some bondholders said they had not received overdue interest on Monday following the expiry of a key payment deadline a day earlier.

Russia has struggled to keep up payments on $40 billion of outstanding bonds since its invasion of Ukraine on Feb. 24, as sweeping sanctions have effectively cut the country off from the global financial system and rendered its assets untouchable to many investors.

The Kremlin has repeatedly said there are no grounds for Russia to default but it is unable to send money to bondholders because of sanctions, accusing the West of trying to drive it into an artificial default.

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Russia’s efforts to avoid what would be its first major default on international bonds since the Bolshevik revolution more than a century ago hit a insurmountable roadblock in late May when the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) effectively blocked Moscow from making payments.

“Since March we thought that a Russian default is probably inevitable, and the question was just when,” Dennis Hranitzky, head of sovereign litigation at law firm Quinn Emanuel, told Reuters. “OFAC has intervened to answer that question for us, and the default is now upon us.”

While a formal default would be largely symbolic given Russia cannot borrow internationally at the moment and doesn’t need to thanks to plentiful oil and gas export revenues, the stigma would probably raise its borrowing costs in future.

The payments in question are $100 million in interest on two bonds, one denominated in U.S. dollars and another in euros , Russia was due to pay on May 27. The payments had a grace period of 30 days, which expired on Sunday.

Russia’s finance ministry said it made the payments to its onshore National Settlement Depository (NSD) in euros and dollars, adding it has fulfilled obligations.

Some Taiwanese holders of the bonds had not received payments on Monday, sources told Reuters. read more

For many bondholders, not receiving the money owed in time into their accounts constitutes a default.

With no exact deadline specified in the prospectus, lawyers say Russia might have until the end of the following business day to pay the bondholders.

SMALL PRINT

The legal situation surrounding the bonds looks complex.

Russia’s bonds have been issued with an unusual variety of terms, and an increasing level of ambiguities for those sold more recently, when Moscow was already facing sanctions over its annexation of Crimea in 2014 and a poisoning incident in Britain in 2018.

Rodrigo Olivares-Caminal, chair in banking and finance law at Queen Mary University in London, said clarity was needed on what constituted a discharge for Russia on its obligation, or the difference between receiving and recovering payments.

“All these issues are subject to interpretation by a court of law, but Russia has not waived any of its sovereign immunity and has not submitted to the jurisdiction of any court in any of the two prospectuses,” Olivares-Caminal told Reuters.

In some ways, Russia is in default already.

A committee on derivatives has ruled a “credit event” had occurred on some of its securities, which triggered a payout on some of Russia’s credit default swaps – instruments used by investors to insure exposure to debt against default. This was triggered by Russia failing to make a $1.9 million payment in accrued interest on a payment that had been due in early April. read more

Until the Ukraine invasion, a sovereign default had seemed unthinkable, with Russia being rated investment grade up to shortly before that point. A default would also be unusual as Moscow has the funds to service its debt.

The OFAC had issued a temporary waiver, known as a general licence 9A, in early March to allow Moscow to keep paying investors. It let it expire on May 25 as Washington tightened sanctions on Russia, effectively cutting off payments to U.S. investors and entities.

The lapsed OFAC licence is not the only obstacle Russia faces as in early June the European Union imposed sanctions on the NSD, Russia’s appointed agent for its Eurobonds. read more

Moscow has scrambled in recent days to find ways of dealing with upcoming payments and avoid a default.

President Vladimir Putin signed a decree last Wednesday to launch temporary procedures and give the government 10 days to choose banks to handle payments under a new scheme, suggesting Russia will consider its debt obligations fulfilled when it pays bondholders in roubles.

“Russia saying it’s complying with obligations under the terms of the bond is not the whole story,” Zia Ullah, partner and head of corporate crime and investigations at law firm Eversheds Sutherland told Reuters.

“If you as an investor are not satisfied, for instance, if you know the money is stuck in an escrow account, which effectively would be the practical impact of what Russia is saying, the answer would be, until you discharge the obligation, you have not satisfied the conditions of the bond.”

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Reporting by Karin Strohecker; Additional reporting by Emily Chan in Taipeh and Sujata Rao in London; Editing by David Holmes, Emelia Sithole-Matarise & Simon Cameron-Moore

Our Standards: The Thomson Reuters Trust Principles.

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Crypto industry fears contagion as bitcoin slips under $20,000

Representations of the Ripple, Bitcoin, Etherum and Litecoin virtual currencies are seen on a PC motherboard in this illustration picture, February 14, 2018. REUTERS/Dado Ruvic/File Photo

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LONDON/HONG KONG, June 20 (Reuters) – The cryptocurrency industry was on edge on Monday as bitcoin struggled to stay above a key level, with investors fearing that problems at major crypto players could unleash a wider market shakeout.

Bitcoin, the world’s biggest cryptocurrency, was trading just under the symbolic level of $20,000 in early London trading hours – roughly the peak of its charge to its previous record in 2017.

Bitcoin had dropped on Saturday to as low as $17,592.78, falling below $20,000 for the first time since December 2020.It has lost almost 60% of its value this year and 37% this month alone in the cryptocurrency sector’s latest meltdown.

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Its fall follows problems at several major industry players. Further declines, market players said, could have a knock-on effect as other crypto investors are forced to sell their holdings to meet margin calls and cover losses.

Crypto hedge fund Three Arrows Capital is exploring options including the sale of assets and a bailout by another firm, its founders told the Wall Street Journal in a story published Friday, the same day Asia-focused crypto lender Babel Finance said it would suspend withdrawals. read more [nL4N2Y42I2]

U.S. based lender Celsius Network this month said it would suspend customer withdrawals. In a blog on Monday, Celsius said it would continue working with regulators and officials, but that it would pause its customer Q&A sessions. read more

“There is a lot of credit being withdrawn from the system and if lenders have to absorb losses from Celsius and Three Arrows, they will reduce the size of their future loan books which means that the entire amount of credit available in the crypto ecosystem is much reduced,” said Adam Farthing, chief risk office for Japan at crypto liquidity provider B2C2.

“It feels very like 2008 to me in terms of how there could be a domino effect of bankruptcies and liquidations,” Farthing said.

Smaller tokens, which usually move in tandem with bitcoin, were also hurt. No.2 token ether was at $1,0752, having dipped below its own symbolic level of $1,000 over the weekend.

The fall in crypto markets has coincided with a slide for equities, as U.S. stocks suffered their biggest weekly percentage decline in two years on fears of rising interest rates and the growing likelihood of recession.

Bitcoin’s moves have tended to follow a similar pattern to other risk assets such as tech stocks.

The overall crypto market capitalisation is roughly $877 billion, according to price site Coinmarketcap, down from a peak of $2.9 trillion in November 2021. read more

A fall in stablecoins – a type of crypto designed to hold a steady value – is also suggesting investors are pulling money from the sector as a whole. read more

Bitcoin so far in 2022
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Reporting by Alun John, Editing by Shri Navaratnam and Ed Osmond

Our Standards: The Thomson Reuters Trust Principles.

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2022 NBA Mock Draft: Keegan Murray, Jaden Ivey move up, but AJ Griffin slips out of top five

Auburn

• Fr

• 6’10”

/ 220 lbs

Projected Team

Orlando

PROSPECT RNK

3rd

POSITION RNK

2nd

PPG

16.9

RPG

7.4

APG

2

3P%

42%

With an attractive offensive skill set headlined by a smooth 3-point shot, Smith is a modern stretch-four who should be able to defend all five positions. His outside shot will be defended more competently at the next level, which will force him to tighten his handle and hone his shot-creation acumen. But Smith has all the tools to become the primary scoring option in Orlando.

Gonzaga

• Fr

• 7’0″

/ 195 lbs

PPG

14.1

RPG

9.9

APG

1.9

3P%

39%

Given the makeup of OKC’s roster, Holmgren looks like the right call. The concerns over his physicality and ability to handle the rigors of the NBA with a lanky 7-foot frame are legitimate. But the Thunder are in a total rebuild and can afford him some time to develop.

Duke

• Fr

• 6’10”

/ 250 lbs

Projected Team

Houston

PROSPECT RNK

1st

POSITION RNK

1st

PPG

17.2

RPG

7.8

APG

3.2

3P%

33.8%

Landing Banchero at No. 3 would be a phenomenal outcome for the Rockets, who will be getting a player that could just as easily go No. 1. Perhaps Holmgren and Smith have a bit more potential for stardom, but Banchero’s offensive skill and potential for 1-5 defense make him a high-floor selection. At worst, he’ll be a solid NBA role player. At best, he’ll be an All-Star.

Iowa

• Soph

• 6’8″

/ 225 lbs

When our staff named the “most NBA ready” prospects in this draft class for a recent Dribble Handoff piece, I went with Murray. With the Kings needing to maximize DeAaron Fox’s prime and return to the playoffs for the first time since 2006, Murray makes a ton of sense. He’ll be 22 when the season begins and contribute immediately. But the versatile forward still has a ton of room to grow and develop over time.

Purdue

• Soph

• 6’4″

/ 195 lbs

Projected Team

Detroit

PROSPECT RNK

4th

POSITION RNK

1st

PPG

17.3

RPG

4.9

APG

3.1

3P%

35.8%

Yes, the Pistons drafted a ball-dominant shot creator last season at No. 1 overall in Cade Cunningham a year after taking Killian Hayes at No. 7. But Ivey’s athleticism and ability to attack the rim differentiates himself from those two. If he’s available at No. 5, it would surely be difficult for Detroit to pass on a player with such high upside.

Duke

• Fr

• 6’6″

/ 222 lbs

Projected Team

Indiana

PROSPECT RNK

7th

POSITION RNK

1st

PPG

10.4

RPG

3.9

APG

1

3P%

44.7%

Griffin became one of college basketball’s top outside threats last season, but he can do more than just shoot it. He’s got the frame to become a plus defender and is comfortable creating off the dribble if opponents close out too hard on his shot.

Kentucky

• Fr

• 6’6″

/ 200 lbs

Projected Team

Portland

PROSPECT RNK

5th

POSITION RNK

2nd

Sharpe has no college film to evaluate after enrolling at Kentucky in for the spring semester but not suiting up. He’s billed as an athletic shooting guard with the explosiveness to create shots and finish at the rim, and he wound up as the No. 3 ranked prospect in the 2021 recruiting class. That slotting put him ahead of players like Jabari Smith, Jalen Duren and AJ Griffin. It’s hard to see a prospect with those credentials slipping much further in this draft even if he is somewhat of a mystery.


Dyson Daniels


SG

G League Ignite

• 6’8″

/ 195 lbs

Projected Team

New Orleans

PROSPECT RNK

10th

POSITION RNK

5th

PPG

11.3

RPG

5.9

APG

4.4

3FG%

25.5%

Daniels served as the primary facilitator for G-League Ignite. His outside shot is a work in progress. But if the Pelicans have the appetite for a long-term play on the heels of a playoff appearance, Daniels has tremendous two-way upside.

Arizona

• Soph

• 6’6″

/ 210 lbs

Projected Team

San Antonio

PROSPECT RNK

8th

POSITION RNK

3rd

PPG

17.7

RPG

5.6

APG

2.5

3P%

36.9%

Mathurin outperformed his modest recruiting accolades as a freshman and evolved into one of the top players in the Pac-12 as a sophomore. His perimeter jumper and ability to create shots standout, and he’s got all the tools to become a quality defender.

Baylor

• Fr

• 6’9″

/ 230 lbs

Projected Team

Washington

PROSPECT RNK

11th

POSITION RNK

4th

PPG

9.2

RPG

6.4

APG

1.8

3P%

29.6%

Sochan is a nimble power forward who is comfortable shooting from the outside and guarding players at any position. Assuming he improves on the 29.6% 3-point mark he posted in one season at Baylor, Sochan should play in the league for a long time.


Ousmane Dieng


SF

France

• 6’9″

/ 185 lbs

Projected Team

New York

PROSPECT RNK

16th

POSITION RNK

4th

At 6-9 and with the coordination and flow of a guard, Dieng is among the most intriguing prospects in this class. The French prospect enjoyed a nice finish to his season with the New Zealand Breakers of the NBL but will likely face a long road toward NBA proficiency.

Wisconsin

• Soph

• 6’6″

/ 196 lbs

PPG

19.7

RPG

8.2

APG

2.1

3P%

30.6%

His 30.6% 3-point shooting mark as a sophomore might scare some scouts, but Davis basically ran the show for a Wisconsin team not exactly known for having a modern offensive philosophy. In the right system, Davis will shine as a two-way talent because of his defensive tenacity and bucket-getting prowess. Over time, he’ll need to trade some of his mid-range attempts for 3-point shots if he wants to fit in the modern NBA as an off-ball guard.

Duke

• Soph

• 7’2″

/ 242 lbs

Projected Team

Charlotte

PROSPECT RNK

17th

POSITION RNK

3rd

PPG

11.2

RPG

7.4

APG

0.9

FG%

72.1%

The market for centers who don’t shoot 3-pointers is lean in today’s NBA. Williams is good enough as a shot blocker, rebounder and finisher to find a role, though. The 7-footer can bruise with anyone and is also active enough to hold his own in pick-and-roll situations.

Kansas

• Sr

• 6’6″

/ 217 lbs

Projected Team

Cleveland

PROSPECT RNK

9th

POSITION RNK

4th

PPG

18.8

RPG

5.1

APG

1.6

3P%

40.9%

Agbaji could make an NBA team better immediately as a plug and play 3-and-D wing. Considering the Hawks have made consecutive playoff appearances and have an established core, he makes sense here, even though he’s an older prospect. Solid NBA starter may be his ceiling, but the development Agabji showed from his junior to senior season showcased his relentless work ethic and capacity for improvement.

Ohio State

• Fr

• 6’6″

/ 195 lbs

Projected Team

Charlotte

PROSPECT RNK

13th

POSITION RNK

2nd

PPG

13.7

RPG

3.6

APG

2

3P%

41.6%

Branham’s offensive efficiency stood out during his one season with Ohio State as he hit 53% of his 2-pointers and 41.6% of his 3-pointers. He showed big-time scoring ability while earning Big Ten Freshman of the Year honors and closed the season phenomenally well. Among players who could be picked outside the lottery range, he was my pick as most likely to become an All-Star in a recent edition of the Dribble Handoff.

Memphis

• Fr

• 6’11”

/ 250 lbs

Projected Team

Atlanta

PROSPECT RNK

14th

POSITION RNK

2nd

PPG

12

RPG

8.1

APG

1.3

FG%

59.7%

At minimum, he’ll be a rim-running center who blocks shots and plays defense. Ultimately, if he is going to reach his potential, his overall offensive repertoire and comfort with the ball will need to develop immensely beyond what he showed in his lone season at Memphis.

Kentucky

• Fr

• 6’4″

/ 196 lbs

Projected Team

Houston

PROSPECT RNK

12th

POSITION RNK

1st

PPG

12.5

RPG

3.5

APG

3.9

3P%

35%

Washington can play on or off the ball and is an intense defender, though he may be too small to contest the shots of taller NBA wings. Nonetheless, he’s a versatile guard with the doggedness and intangibles to find a role in the league.

LSU

• Soph

• 6’8″

/ 217 lbs

Projected Team

Chicago

PROSPECT RNK

19th

POSITION RNK

6th

PPG

16.9

RPG

6.6

APG

1

3P%

35.9%

Eason enjoyed a breakout sophomore season after transferring to LSU from Cincinnati. He can score at all three levels and is a high-upside, versatile defender. His college coaches employed him as a sixth man, and it wouldn’t be surprising to see Eason cast in the same role at the next level. He’s like a perimeter-oriented Montrezl Harrell in terms of motor, grit and the type of role he may play.


Nikola Jovic


SF

Serbia

• 6’10”

/ 210 lbs

Projected Team

Minnesota

PROSPECT RNK

27th

POSITION RNK

7th

Jovic is already adept at scoring from all three levels and shows signs of the defensive competency you’d hope for with an offensively gifted forward. There is plenty to fine tune here — and there will be questions about his athleticism — but as one of the youngest players in the class he’s worth a first-round flyer.

Ohio State

• Jr

• 6’7″

/ 243 lbs

Projected Team

San Antonio

PROSPECT RNK

18th

POSITION RNK

5th

PPG

19.4

RPG

7.9

APG

2.5

3P%

37.4%

Liddell is like a slightly more athletic version of third-year Celtics forward Grant Williams, who has played a nice role for Boston in the NBA Playoffs after he was taken with the No. 22 pick in 2019. He’s got a stocky build reminiscent of a traditional post player but can shoot 3-pointers and is agile enough to hold his own as a versatile weapon in the NBA.

Baylor

• Fr

• 6’8″

/ 201 lbs

Projected Team

Denver

PROSPECT RNK

25th

POSITION RNK

6th

PPG

9.7

RPG

4.9

APG

1.9

3P%

34.1%

Brown was an elite role player in his lone season at Baylor as he showed excellent offensive efficiency as a secondary option. His athleticism and defensive versatility should help him carve out a long NBA career.

Tennessee

• Fr

• 6’1″

/ 172 lbs

Projected Team

Memphis

PROSPECT RNK

22nd

POSITION RNK

2nd

PPG

13.9

RPG

3.2

APG

4.7

3P%

38.3%

The knock on Chandler is that he’s just 6-foot and slender, and to some draft heads that screams defensive liability. Sure, he can’t guard bigger wings and post players, but Chandler’s defense was arguably the most impressive aspect of his lone season at Tennessee. He can hold his own on that side and has plenty of offensive upside to warrant first-round consideration. He also logged the best vertical jump at the combine, which won’t hurt his stock.

Santa Clara

• Jr

• 6’6″

/ 209 lbs

Projected Team

Philadelphia

PROSPECT RNK

21st

POSITION RNK

6th

PPG

18

RPG

4.4

APG

4.2

3P%

39.6%

Williams’ statistical profile from his junior season at Santa Clara stands out, as he averaged 18 points on 39.6% 3-point shooting and 55.1% 2-point shooting while also dishing out 4.2 assists per game. How he’ll translate to the NBA after playing in the WCC for a team not named Gonzaga is a fair question. But at this point in the draft, he’s worth a shot.


Jaden Hardy


SG

G League Ignite

• 6’4″

/ 185 lbs

Projected Team

Milwaukee

PROSPECT RNK

23rd

POSITION RNK

7th

PPG

17.7

RPG

4.6

APG

3.2

3P%

26.9%

Hardy led G-League Ignite in scoring but did it on just 35.1% shooting in 12 games. The former No. 4 overall prospect from the 2021 recruiting class has plenty of upside, but it’s going to take some risk-tolerance to use a first-round pick on him.

Wake Forest

• Jr

• 6’8″

/ 235 lbs

Projected Team

San Antonio

PROSPECT RNK

28th

POSITION RNK

8th

PPG

14.6

RPG

6.6

APG

3.7

3P%

38.4%

LaRavia is a versatile playmaker and one of college basketball’s top surprises at Wake Forest as a junior last season after transferring in from Indiana State. He does a little bit of everything and should be able to guard multiple positions at the next level.

Memphis

• Fr

• 6’8″

/ 205 lbs

Projected Team

Dallas

PROSPECT RNK

42nd

POSITION RNK

11th

PPG

6.6

RPG

3.8

APG

0.9

3P%

14.3%

Minott didn’t get to show his full game much in one season at Memphis as he came off the bench and fought for minutes on a talented roster. But with a 7-foot wingspan, the versatile forward is oozing with upside.

Kansas

• Jr

• 6’7″

/ 209 lbs

Projected Team

Miami

PROSPECT RNK

40th

POSITION RNK

13th

PPG

14.1

RPG

6.5

APG

2.8

3P%

38.6%

Braun is a dynamic forward who can guard 1-4, knock down 3-pointers and get to the basket. By turning down another season at Kansas in which he could have become a superstar, Braun made a bet on himself.

Arizona

• Soph

• 6’7″

/ 195 lbs

Projected Team

Golden St.

PROSPECT RNK

24th

POSITION RNK

5th

PPG

8

RPG

4.8

APG

3.9

3P%

36.4%

Like Braun from Kansas, Terry is a talented wing who could have transitioned from a role player to a superstar for a national title contender if he’d opted for another season of college basketball. Instead, he’s taking the plunge — likely turning down lucrative NIL money — to begin his professional career.

Marquette

• Fr

• 6’8″

/ 235 lbs

Projected Team

Memphis

PROSPECT RNK

35th

POSITION RNK

9th

PPG

16.8

RPG

7.9

APG

1.7

3P%

34.9%

It’s easy to envision Lewis as a floor-stretching power forward in an NBA system after he demonstrated some outside touch by hitting 34.9% of on 5.2 attempts per game as a sophomore at Marquette. With a built frame, he brings the physicality expected of the position along with the modern requirements of versatility.


MarJon Beauchamp


SF

G League Ignite

• 6’7″

/ 197 lbs

Projected Team

Denver

PROSPECT RNK

45th

POSITION RNK

13th

PPG

15.1

RPG

7.3

APG

2.3

3P%

24.2%

Beauchamp will turn 22 just before the NBA season after taking an unorthodox path to the G-League Ignite program. But at the end of the day, he’s a physically gifted wing who can become an NBA starter if his 3-point shot continues developing.

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Quick-Thinking KFC Worker Helps Save Alleged Kidnapping Victim After She Secretly Slips Him Note ‘Begging For Help’

A KFC employee in Memphis, Tennessee, is being hailed a hero after reportedly helping police rescue a woman who secretly left a note behind claiming she was being held against her will.

The victim and her alleged kidnapper left KFC, and the employee immediately called the police to report the purported kidnapping, Fox News reported.

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The woman’s desperate note begging for help and the subsequent phone call to authorities led to the prompt arrest of Diego Glay, 23, Sunday after a brief foot chase with Memphis police officers.

“Officers were advised that a female had written a note begging for help. The female that wrote the note was still on the business lot accompanied by a male,” a report from the Memphis Police Department reads. “As officers approached the couple, the man ran on foot. After a brief foot chase, he was apprehended.”

The victim reportedly told authorities she was in a relationship with Glay and was punched in the face by the accused when she tried to leave.

She also said he took her phone and wouldn’t let her out of his sight for days, according to WHBQ-TV.

The victim, reportedly from another state, had purportedly gone to Tennessee to meet Glay. However, authorities alleged he “held her physically against her will with physical assaults, threats, and being armed with a handgun.”

Glay was charged with kidnapping and evading arrest, and his bond was set at $35,000.

The quick-thinking KFC employee is yet to be named, but the individual’s actions thankfully helped someone in need. That kind deed saved the victim from unimaginable pain and suffering.

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Oil slips on fears over slowing China demand

The chimneys of the Total Grandpuits oil refinery are seen just after sunset, southeast of Paris, France, March 1, 2021. REUTERS/Christian Hartmann

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  • China’s economy slowed in March
  • Libya’s NOC declares Zueitina force majeure, warns of closures
  • Russian oil output down 7.5% in April so far – IFAX cites source

TOKYO/LONDON, April 18 (Reuters) – Oil edged lower on Monday as worries over slowing demand in China balanced support from concern over tight global supply and the deepening Ukraine crisis.

China’s economy slowed in March as consumption, real estate and exports were hit, taking the shine off faster-than-expected first-quarter growth numbers and worsening an outlook already weakened by COVID-19 curbs and the Ukraine war. read more

Brent crude fell 19 cents, or 0.2%, to $111.51 a barrel at 0825 GMT, sliding from the highest since March 30 of $113.80 hit earlier in the session. U.S. West Texas Intermediate was down 19 cents, or 0.2%, at $106.76.

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“Some Asian investors booked profits as they became worried about slowing demand in China,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.

Data on Monday also showed China refined 2% less oil in March than a year earlier, with throughput falling to the lowest since October as the surge in crude prices squeezed margins and tight lockdowns hurt demand. read more

Oil surged to the highest since 2008 in March, with Brent briefly topping $134, as Russia’s invasion of Ukraine added to supply concerns due to sanctions on Russia and buyers avoiding Russian oil.

Adding to supply-side pressure, Libya’s National Oil Corp on Monday declared force majeure at Zueitina oil port and warned that “a painful wave of closures” had begun hitting its facilities. Libya had halted production from its El Feel oilfield on Sunday. read more

Russian production declined by 7.5% in the first half of April from March, Interfax reported on Friday, and EU governments said last week the bloc’s executive was drafting proposals to ban Russian crude.

Those comments came before tensions grew in the Ukraine crisis. Ukrainian authorities said missiles struck Lviv early on Monday and explosions rocked other cities as Russian forces kept up their bombardments after claiming near full control of the port of Mariupol. read more

“Continued war between Russia and Ukraine with no signs of a ceasefire fuelled supply fears, especially as demand is expected to pick up as driving season nears in the northern hemisphere,” said Chiyoki Chen, chief analyst at Sunward Trading.

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Reporting by Yuka Obayashi and Alex Lawler; Editing by Jacqueline Wong

Our Standards: The Thomson Reuters Trust Principles.

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Shares gain as oil slips on hopes for Ukraine progress

A man wearing a protective mask, amid the coronavirus disease (COVID-19) outbreak, walks past an electronic board displaying Shanghai Composite index, Nikkei index and Dow Jones Industrial Average outside a brokerage in Tokyo, Japan, March 7, 2022. REUTERS/Kim Kyung-Hoon

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  • >Asian stock markets :
  • S&P 500 futures firm 0.5%, China stocks slip
  • Yields rise ahead of expected rate hikes from Fed, BoE
  • Dollar climbs to 5-year peak on yen as BOJ lags
  • U.S. crude oil falls over $2 a barrel

SYDNEY, March 14 (Reuters) – Most share markets firmed and oil slid on Monday on hopes for progress in Russian-Ukraine peace talks even as fighting continued to rage, while bond markets braced for rate rises in the United States and UK this week.

While Russian missiles hit a large Ukrainian base near the border with Poland on Sunday, both sides gave their most upbeat assessment yet of prospects for talks. read more

Just the chance of peace saw S&P 500 stock futures add 0.5%, while Nasdaq futures rose 0.4%. EUROSTOXX 50 futures gained 0.5% and FTSE futures 0.2%.

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Tokyo’s Nikkei (.N225) rose 0.9%, but MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was dragged down 1.6% by losses in China.

Chinese blue chips (.CSI300) shed 1.7% after a jump in coronavirus cases saw the southern city of Shenzen locked down and stoked speculation about more policy easing. read more

Bonds elsewhere remained under pressure having taken a beating last week as surging commodity prices looked set to boost inflation further, with yields on 10-year Treasuries rising four basis points to 2.04% .

Notably, a key measure of U.S. inflation expectations climbed to 3% and near record highs .

That merely cemented expectations the Federal Reserve would lift rates by 25 basis points at its policy meeting this week and signal more to come through members’ “dot plot” forecasts.

“The dots will likely be mainly clustered around four or five hikes for 2022, up from three previously, given the stronger pace of inflation since the January FOMC meeting,” said Kevin Cummins, chief U.S. economist at NatWest Markets.

“We suspect we could also get an addendum on how the Fed plans to reduce the size of the balance sheet as early as this week.”

The Bank of England is expected to lift its rates to 0.75% on Thursday, the third rise in a row, and to signal more with the market pricing an aggressive 2% by year-end. read more

Fed fund futures imply no less than six or seven hikes this year to around 1.75%, keeping the U.S. dollar underpinned near the highest since May 2020.

The euro was stuck at $1.0905 , and not far from its recent 22-month trough of $1.0804, while the dollar hit a fresh five-year peak on the yen at 117.87 .

The Bank of Japan is seen lagging far behind other major central banks in tightening policy.

“The yen has been unable to display its typical safe-haven attributes, partly because of the big rise in U.S. yields and the BoJ yield curve control policy that prevents JGBs following the move up in core global yields,” said Rodrigo Catril, a senior FX strategist at NAB.

“Japan is also a big energy importer adding to concerns over a terms of trade shock from higher energy prices.”

Gold lost some of its safe-haven charm on Monday, easing 0.5% to $1,975 an ounce and away for last week’s peak at $2,069.

Likewise, the chance of progress on Ukraine saw oil prices surrender a little of their recent gains, even as talks with producer Iran seemed to be stalled. read more

Brent was last quoted $2.13 lower at $110.54, while U.S. crude fell $2.46 to $106.84.

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Reporting by Wayne Cole; Editing by Sam Holmes & Shri Navaratnam

Our Standards: The Thomson Reuters Trust Principles.

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Share futures jump, gold slips on hopes for diplomacy in Ukraine

A man looks at stock market monitors in Taipei October 8, 2008. REUTERS/Nicky Loh (TAIWAN)/File Photo

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  • Blinken to meet Lavrov next week – U.S. state dept
  • E-minis bounce, gold and safe-haven currencies edge down
  • Asian shares down, but pare some early losses

SINGAPORE, Feb 18 (Reuters) – U.S. and European stock futures bounced back on Friday and selling pressure on Asian shares eased after the U.S. Secretary of State agreed to a meeting with Russia’s foreign minister, raising hopes of a solution to the standoff over Ukraine.

S&P 500 futures jumped 0.7% and Nasdaq futures gained 0.8% following the news, while, in early trading, pan-region Euro Stoxx 50 futures were up 0.45%, and FTSE futures were 0.4% higher.

The positive sentiment ranged across asset classes. Safe-haven currencies such as the Japanese yen and Swiss franc retreated a little in Asia trade having climbed to two-week highs on the dollar overnight, and gold lost 0.4%.

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U.S. Secretary of State Antony Blinken has accepted an invitation to meet with Russian Foreign Minister Sergei Lavrov late next week provided Russia does not invade Ukraine, the U.S. State Department said.

“It’s better news than what we had yesterday,” said Kyle Rodda, an analyst at IG Markets in Melbourne. “But we’ve seen diplomatic talks go nowhere before, and the troops are still on the border, so risks remain.”

There was slightly less positivity when it came to Asian shares. MSCI’s broadest index of Asia shares outside Japan (.MIAPJ0000PUS) was last down 0.24%, but markets in Tokyo (.N225), Hong Kong (.HSI), Sydney (.AXJO) and Seoul (.KS11) all pared deeper morning losses.

Wall Street had taken a dive overnight, with the S&P 500 (.SPX) dropping 2.1% and the Nasdaq (.IXIC) off 2.9% – while gold shot to an eight-month peak – on renewed U.S. warnings of an imminent Russian invasion. read more

Investors fear a wider war as one of the deepest crises in post-Cold War relations plays out, with Russia wanting security guarantees, including Ukraine’s never joining NATO.

Treasuries likewise gave back some overnight gains, with the benchmark 10-year yield last up two basis points to 1.9877%. Two-year yields also rose two basis points to 1.4902%.

Oil dipped and Brent crude futures were last down 0.6% on Friday at $92.44 a barrel, more than 4% below Monday’s peak, and U.S. crude fell 0.7% to $91.07 a barrel.

RATES RACE

Concern about conflict in Ukraine comes with markets already rattled by a rates outlook that could hold as many as seven Federal Reserve increases in the year ahead.

St. Louis Fed president James Bullard on Thursday reiterated his call for the Fed funds rate to be raised to 1% by July to combat stubbornly high inflation and Fed funds futures price about a 1/3 chance of a 50 bps hike next month to begin. read more

Cleveland Fed President Loretta Mester said the pace of hikes will need to be faster than previous cycles. read more

“Markets have been particularly volatile recently and virtually everyone adjusted their Fed hike calls higher,” said NatWest Markets’ strategist Jan Nevruzi.

“The consensus seems to range between 5 (our view) and 7 (every meeting) hikes and I do believe the right number lays somewhere in between. Given the strong growth trend and elevated inflation, it wouldn’t be too surprising to see a hike at every meeting from now on,” Nevruzi said.

On Friday, Japan reported a fifth straight month of inflation, with energy prices posting their biggest annual rise in 41 years. read more

Elsewhere in currency markets the dollar held its bid and was firm at $1.1363 per euro though the Aussie gained a little in line with the risk-on mood to $0.7201 .

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Editing by Lincoln Feast and Kenneth Maxwell

Our Standards: The Thomson Reuters Trust Principles.

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Auburn coach Bryan Harsin slips in side door of SEC HQ for coaches meeting

With news crews staking out two of the three entrances to the SEC headquarters in downtown Birmingham, embattled Auburn football coach Bryan Harsin slipped in the third.

Riding in a state trooper’s SUV, Harsin entered the building just after 9:30 a.m. CT Thursday for a previously scheduled meeting of conference football coaches. Camera crews from local TV stations were stationed at the main entrance and at the third-floor skywalk from a parking garage into the SEC headquarters. Harsin arrived in a side alley and entered in an unmarked door and walked into the building flanked by a state trooper.

RELATED: Auburn releases statement amid ongoing Bryan Harsin investigation

Harsin’s status has been a matter of debate for the past week as Auburn reportedly investigates the inner workings of his program. The coach just finished his first season that began with promise but ended with five straight losses — the last of which came directly across the street from the SEC headquarters in the Birmingham Bowl at Protective Stadium.

Questions about Harsin’s future with Auburn led to the heavy media presence but he was able to sidestep all but one camera. ESPNs Alex Scarborough snapped a picture of the back of Harsin’s head as he exited the black SUV for daylong meetings.

This post will be updated.

Michael Casagrande is a reporter for the Alabama Media Group. Follow him on Twitter @ByCasagrande or on Facebook.



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Nasdaq reverses as tech slips, Ford hits $100B milestone

U.S. stocks turned mixed as technology shares took a back seat to cyclical names and as investors digested a jump in producer prices and higher jobless claims.

The Nasdaq Composite turned lower by 0.4%, while the S&P 500 pared its gains. However, the Dow Jones Industrial Average added over 200 points or 0.6%. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 36309.04 +18.72 +0.05%
SP500 S&P 500 4698.67 -27.68 -0.59%
I:COMP NASDAQ COMPOSITE INDEX 14987.569347 -200.82 -1.32%

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The December producer price index jumped by 9.7% a record, while month-over-month prices rose 0.2%, less than expected. Factoring out volatile food and energy costs, core producer prices rose 0.5% in December, slightly below November’s 0.7% gain. Year-over-year look core PPI rose 8.3% in December.

On Wednesday consumer prices rose 7% the most since 1982. 

INFLATION SURGES 7% IN DECEMBER, HIGHEST RATE IN 40 YEARS

New claims for unemployment benefits unexpectedly rose by 230,000 last week and above a 52-year low of 188,000 reported in the first week of December. Continuing claims, which track the total number of unemployed workers collecting benefits, fell to 1.55 million. 

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In stocks, Ford rallied to a new milestone topping the $100 billion in market value, compared to General Motors $91 billion. 

Ticker Security Last Change Change %
F FORD MOTOR CO. 25.53 +1.05 +4.31%
GM GENERAL MOTORS CO. 62.71 +1.66 +2.72%

Boeing rose helping support the Dow, after Bloomberg reported it will soon restart sales in China for the 737 Max. 

Ticker Security Last Change Change %
BA THE BOEING CO. 224.59 +6.98 +3.21%

Delta Airlines also rose after CEO Ed Bastian signaled a recovery by mid-first quarter after the airline posted a loss of $408 million tied to COVID disruptions. 8,000 of his employees have tested positive for the virus. United Airlines also disclosed 3,000 of its employees were infected resulting in flight cancellations. 

Taiwan Semiconductor is a winner after posting record quarterly profits and forecasting revenue of as much as $17 billion, higher than the same period a year ago. 

Ticker Security Last Change Change %
TSM TAIWAN SEMICONDUCTOR MANUFACTURING CO. LTD. 141.06 +8.55 +6.45%
Ticker Security Last Change Change %
DAL DELTA AIR LINES INC. 41.91 +1.29 +3.18%
UAL UNITED AIRLINES HOLDINGS INC. 48.72 +2.18 +4.68%

RIchard Branson’s Virgin Orbit has a satellite launch later this afternoon, while Virgin Galactic rolled out a $425 million bond offering. 

Ticker Security Last Change Change %
VORB NEXTGEN ACQUISITION II 10.52 +0.56 +5.62%
SPCE VIRGIN GALACTIC HOLDINGS INC. 10.19 -2.18 -17.62%

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Vaccine makers continue to report developments with Moderna disclosing it will release data for treating children 2 to 5 years of age by March. 

Ticker Security Last Change Change %
MRNA MODERNA INC. 213.94 -8.95 -4.02%

In commodities, oil slipped to the $81-per-barrel level. 

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 58.86 -0.05 -0.08%

 Cryptocurrencies saw more downward pressure with Bitcoin slipped. 

In Europe, London’s FTSE slipped 0.2%, Germany’s DAX was off 0.2% and France’s CAC declined 0.5%.

In Asia, Tokyo’s Nikkei 225 index dropped 1%, the Hang Seng in Hong Kong edged 0.1% higher, while China’s Shanghai Composite shed 1.2%.

FOX Business’ Ken Martin and The Associated Press contributed to this report.

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Bills’ Josh Allen too much for Mac Jones, Patriots to overcome as AFC East control slips away – The Athletic

FOXBORO, Mass. – Josh Allen jogged through the tunnel at Gillette Stadium, turned a corner toward the locker room and found Harrison Phillips.

“I don’t know who the fuck they thought I was!” Allen hollered.

He’d just completed 30 of 47 passing attempts for 314 yards and three touchdowns against Bill Belichick’s top-ranked passing defense. He added 64 rushing yards. His team won 33-21 and took a big step toward a second straight AFC East title. Just 20 days after losing a 14-10 heartbreaker at home to the same Patriots, Allen and the Bills were cavalier while strolling to the visiting locker room in Foxboro.

“That shit was embarrassing!” safety Jordan Poyer said.

“It would suck to be in Boston tonight!” added defensive end Jerry Hughes.

And by the time the Patriots made their way into the auditorium for postgame interviews, they all knew the Bills had earned every word of their postgame chest-beating. Allen and the Bills’ offense didn’t punt once on Sunday. They became the first team not to punt against a Bill Belichick-coached team in his 474 games, including the postseason.

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