The Australia starting to feel the heat from Russia. I guess Asia should has minimum impact...
Austrian tourism hit worse by weak ruble than banks, finance minister tells newspaper
VIENNA - Austrian Finance Minister Hans Joerg Schelling is concerned about the weak Russian ruble's impact on domestic tourism rather than on banks exposed to the Russian market, he told a newspaper.
"It is of course not pleasant that the ruble drop will hit Austria as well - for instance, in tourism," he was quoted as saying by Der Standard in an in interview published on Thursday.
Some Austrian ski resorts have complained a decline in bookings by Russian customers even before the latest decline in the Russian currency.
Banks such as Raiffeisen Bank International and UniCredit's Bank Austria rely on Russia for profits, but Schelling said he did not expect any would need government help because of Russia's deteriorating economy.
"It affects all the banks, no question, but I doubt at the moment that there is really a problem," he said.
Raiffeisen and UniCredit both said this week their Russian businesses were holding up well despite the economic crisis in Russia, where Western sanctions and falling oil prices have caused the rouble to plunge. REUTERS
http://www.todayonline.com/business/aust...-newspaper
Russian government proposes up to 1 trillion rubles in extra capital for banking sector
MOSCOW - The Russian government proposed providing up to 1 trillion rubles ($17.10 billion) in additional capital to support the banking sector, a draft law posted on the lower house of parliament's web site showed on Thursday.
The measure is a part of attempts to stabilize the financing system, which is suffering in an economic slowdown aggravated by Western sanctions imposed on Russia over the Ukraine crisis as well as lower global oil prices. REUTERS
http://www.todayonline.com/business/russ...ing-sector
Both are voicing readiness for a long term fight...
EU leaders ready long confrontation with Russia
BRUSSELS - European Union leaders warned Moscow they were ready exercise their combined muscle over the long haul in a confrontation with an economically wounded Russia if President Vladimir Putin refused to pull back from Ukraine.
"We must go beyond being reactive and defensive. As Europeans we must regain our self-confidence and realize our own strengths," said Donald Tusk, the former Polish premier who chaired a brief EU summit in Brussels on Thursday.
...
http://www.todayonline.com/world/eu-lead...ion-russia
China is offering help to Russia...
China offers Russia help with suggestion of wider currency swap
HONG KONG (Dec 22): Two Chinese ministers offered support for Russia as the latter seeks to shore up support for the ruble without depleting its foreign-exchange reserves.
China will provide help if needed and is confident Russia can overcome its economic difficulties, Foreign Minister Wang Yi was cited as saying in Bangkok in a Dec 20 report by Hong Kong-based Phoenix TV.
Commerce Minister Gao Hucheng said expanding a currency swap between the two nations and making increased use of yuan for bilateral trade would have the greatest impact in aiding Russia, according to the broadcaster.
One-month ruble forwards strengthened 1.7 percent against the dollar amid the signs of willingness by China, the world’s second-largest economy, to prop up its neighbour.
...
http://www.theedgemarkets.com/sg/article...rency-swap
^^ Political observers should follow keenly how China is positioning itself in this conflict and threading on thin line not to be seen as enemy of the west:
(17-12-2014, 12:40 PM)specuvestor Wrote: [ -> ]They will need concerted efforts then just interest rates... but ooops they are largely isolated now. Will be interesting to see if China will want to fit into the picture... either RMB or USD swap lines or just O&G pre-payments to name a few.
Germany sees no need to ease Russia sanctions despite minister's concerns
BERLIN - Germany sees no reason to think about changes to the EU's sanctions regime against Moscow at the moment, a government spokeswoman said, after the foreign minister expressed concern that Russia could be destabilized if sanctions were not eased.
The spokeswoman Christiane Wirtz told a news conference that the expiry of sanctions next year provided a "natural point in time" to debate whether they should continue and in what form.
The European Union imposed sanctions in a series of escalating steps starting in March of this year. Each round of sanctions is valid for 12 months, meaning they must be renewed in March 2015 if they are to remain in place.
"At the current time, we are all in agreement that new sanctions should not be introduced," Wirtz said. "And as long as the causes of the sanctions remain, as long as they haven't disappeared, then there is no reason to think about lifting the sanctions independent of the agreed time period."
...
http://www.todayonline.com/world/germany...s-concerns
A view from an interested-party in Russia. Political risk seems low for Mr. Putin, and the view is merely a noise, IMO...
Ex-minister Kudrin warns of 'full-fledged crisis' in Russia
MOSCOW - Russia's government has pushed the country into an economic crisis by not tackling its financial problems fast enough, former finance minister Alexei Kudrin said on Monday, as evidence mounted of trouble spreading through the economy.
The central bank bailed out its first victim of the collapsing currency, authorities announced a tax on grain exports to protect domestic stocks and a Reuters poll of 11 economists predicted that Russia's gross domestic product would fall 3.6 percent next year.
Russia has been hit by what Economy Minister Alexei Ulyukayev recently called a "perfect storm" of plummeting oil prices, sanctions related to its military action in Ukraine, and a flight of investors' capital -- made worse by a lack of structural reforms that means the economy is overwhelmingly dependent on oil revenues..
Kudrin, one of few to criticize President Vladimir Putin, said he believed the decline in the rouble could be attributed primarily to the sanctions, imposed following Russia's annexation of Ukraine's Crimea region and its subsequent support for loyalist fighters in the east.
...
http://www.todayonline.com/business/russ...ter-kudrin
(22-12-2014, 06:17 PM)specuvestor Wrote: [ -> ]^^ Political observers should follow keenly how China is positioning itself in this conflict and threading on thin line not to be seen as enemy of the west:
(17-12-2014, 12:40 PM)specuvestor Wrote: [ -> ]They will need concerted efforts then just interest rates... but ooops they are largely isolated now. Will be interesting to see if China will want to fit into the picture... either RMB or USD swap lines or just O&G pre-payments to name a few.
China is continuing her policy of "the enemy of my enemy is my friend". My guess is China, like Apple's prepayments to suppliers, just want the "goods" ie resources in return rather than the cash.
http://www.forbes.com/sites/markadomanis...s-bidding/
