Russia’s
Bond Market Return Aborted as Yields Surpass 9% - (www.bloomberg.com) Russia tested appetite for ruble bonds for the
second time in eight weeks yesterday, only to scrap the auction after seeing
how much it would pay to borrow as the crisis over neighboring Ukraine
escalates. The Finance Ministry said in a statement that investor bids for the
20 billion rubles ($560 million) in five-year and nine-year OFZ notes on offer
didn’t “adequately represent” Russia’s “credit quality.” Government
bonds fell
for a fourth day, with the yield on 2027 notes rising five basis points to 9.22
percent. The ruble was little changed and the Micex index fell.
The aborted attempt to return to the market confirms there’s “no demand” for government securities as the U.S. and the European Union
consider further sanctions for what they see as President Vladimir
Putin’s
destabilizing role in Ukraine, according to Raiffeisen Capital. Russia may
forgo foreign-currency debt sales this year and cut domestic borrowing as the
weaker ruble boosts taxes from oil and gas exports and helps the budget, Finance
Minister Anton Siluanov said last month.
Russian
Brokers Gain From Crisis, Profits So Rich They're Trading From the Beach - (www.bloomberg.com)
It was a vacation that Russian stock broker Alexander Antipov said he dreamt
about for two decades: a tropical getaway from the harsh Moscow winter to the
white-sand beaches of Acapulco, Mexico. Yet as Antipov, the head of sales at
Moscow-based Veles Capital LLC, settled into the Park Royal hotel with his
family last month, his mobile phone kept ringing. Clients were unnerved by
President Vladimir Putin’s
push into Ukraine and wanted to know if they should sell as stocks sank.
Antipov fell into an odd schedule -- trading by night from the hotel balcony to
avoid waking his kids as markets opened about 7,000 miles away in Moscow and
napping during the day. “It felt surreal,” Antipov, 40, said in an April 15
phone interview from Veles, a brokerage firm founded in 1995. “Most of my
clients were selling. Some had the courage to buy.”
United
loses $609M in 1Q; fares don't cover costs - (www.huffingtonpost.com) United
Airlines is the one U.S. carrier that can't seem to get its act together. While
all the other major airlines made money in the first quarter, United lost $609
million during the first three months of this year. United attributed $200
million of its loss to the "historic severe" winter weather that
impacted much of the U.S. this past winter. But by comparison, Delta Air Lines
made $213 million in the same quarter while dealing with the same ice and snow
storms. Chicago-based United is still struggling to combine systems and see
financial benefits following its 2010 merger with Continental Airlines. In the
first quarter, its cost for each mile passengers flew rose 1 percent but its
related revenue fell 2 percent. It simply isn't able to charge high enough
airfares. United lost $1.66 per share, worse than the $1.26 per share it lost during
the same period last year. Excluding special items, the loss was $1.33 per
share, barely beating the $1.35 loss expected by Wall Street analysts surveyed
by FactSet. United's revenue slipped 0.3 percent to $8.7 billion, just short of
the $8.71 billion Wall Street analysts had expected.
US
inciting civil war in Venezuela to get its oil– Bolivia's ... - (www.rt.com) Washington
is pushing Venezuela towards a “civil war” because it wants access to the
country’s rich oil reserves, Bolivian President Evo Morales has warned. The
Venezuelan government has also accused the US of fomenting a coup d’état. Addressing
over 3,000 young people at a Latin American Youth Summit in the Bolivian city
of Santa Cruz, Morales branded the US an “empire” with its eye on
Venezuelan oil wealth. Morales said that Venezuelan President Nicolas Maduro
was blameless in the recent wave of unrest in the country and accused
Washington of orchestrating a civil war. “I believe [the US] are trying
to incite if not a coup d’état then a civil war from their empire,” Morales
said. “They are always going to sponsor internal conflict so that they can
interfere and invade us to take control of our oil reserves.”
Abe
Revives Dying Shipyards as JBIC Loans Jump 30%: Japan Credit - (www.bloomberg.com) For
a sign of success for Prime Minister Shinzo Abe’s economic stimulus policies
look no further than Japan’s once-stricken shipbuilding industry. Japan
Marine United Corp. has work scheduled for more than two years and is building
two types of large bulk carriers at its Ariake shipyard that are about 20
percent more fuel efficient, spokeswoman Shoko Aoyama said. Japanese
shipbuilders’ orders reached the highest level since 2007 last fiscal year,
industry data show. Japan Bank for International Cooperation boosted ship loans to foreign customers
by 30 percent in the period, Katsuya Mogaki, director at the bank’s marine and
aerospace finance division, said in an April 16 interview. “Overseas shippers
and ship owners are coming to Japan, betting now’s the chance to buy Japanese
vessels,” Mogaki said.
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