2024-12-02 06:36
MOSCOW, Dec 2 (Reuters) - Western sanctions imposed on Russia over its military action in Ukraine will not be lifted anytime soon, the CEO of Russia's second largest lender VTB Andrei Kostin told Reuters in an interview. "I don't really believe that the sanctions will be lifted quickly. I don't see how that is possible. A good example is the Jackson-Vanik amendment. It was enacted against the USSR, and it was only repealed in 2012," Kostin said. Kostin was referring to a law that dated back to the Cold War years and linkeds trade relations with the Soviet Union to the rights of religious minorities to emigrate. Kostin said he thought that Russia's forex reserves, frozen in the West after the start of the Ukraine conflict, would not be returned. "In the West, they say, let's pay for the reconstruction of Ukraine from the reserves. And they will draw up such a bill that even the reserves will not be enough," Kostin predicted. Sign up here. https://www.reuters.com/business/finance/russias-vtb-does-not-expect-western-sanctions-be-lifted-soon-2024-12-02/
2024-12-02 06:34
JOHANNESBURG, Dec 2 (Reuters) - South Africa's rand weakened early on Monday, ahead of a purchasing managers' index (PMI) survey for the domestic manufacturing sector. At 0620 GMT, the rand traded at 18.15 against the dollar , 0.64% softer than its previous close. The Absa PMI for November is set to be released at 0900 GMT and will shed light on manufacturing conditions in Africa's most industrialised economy. Local investors will also turn their focus towards last month's vehicle sales data later in the day. South Africa's benchmark 2030 government bond slipped in early deals, with the yield up 4.5 basis points to 8.96%. Sign up here. https://www.reuters.com/world/africa/south-african-rand-weaker-ahead-manufacturing-pmi-2024-12-02/
2024-12-02 06:33
MOSCOW, Dec 2 (Reuters) - The Russian rouble will stabilise at around 100 to the U.S. dollar after the period of volatility in the aftermath of U.S. sanctions on Russia's financial sector, CEO of Russia's second largest lender Bank VTB Andrei Kostin told Reuters on Monday. The Russian currency weakened by 15% against the U.S. dollar after the United States sanctioned Gazprombank, which handled Russia's energy trade with Europe and was a major supplier of foreign currency to the Russian market, on Nov. 22. "In 2022, if you remember, the dollar reached up to 120 roubles. A correction is already happening, the dollar is slightly above 100, and I think it will remain at this level," Kostin said. Kostin said that the share of the U.S. dollar assets on VTB's balance sheet has drastically decreased following Western sanctions. "Previously, half of the bank's balance sheet was in dollars, and every exchange rate movement had a significant impact on us. But now we just couldn't care less," Kostin said. "I understand that exporters are pleased (with the exchange rate jump following another package of sanctions from the U.S. Treasury), while importers are not very happy, but to a large extent, this is an emotional outburst," he added. Sign up here. https://www.reuters.com/markets/currencies/russias-vtb-expects-rouble-stabilise-around-100dollar-ceo-says-2024-12-02/
2024-12-02 06:32
MOSCOW, Dec 2 (Reuters) - Russia's second largest lender VTB will acquire the Zvezda shipbuilding yard from oil company Rosneft but the deal is still in its early stages, VTB CEO Andrei Kostin told Reuters. VTB is currently running Russia's United Shipbuilding Corporation (USC), Russia's largest shipbuilder, which operates about 40 shipyards, design offices and repair yards across Russia, employing 95,000 staff. "The deal is at the very beginning. There are basic agreements. And just recently, we signed a trilateral agreement between USC, VTB, and Rosneft regarding the due diligence process," Kostin said. Zvezda is Russia's most advanced shipbuilding yard, focusing on building large Arc7 ice-class tankers, able to cut through 2-metre thick ice to transport liquified natural gas (LNG) from Arctic projects. "I think this is a good decision. Consolidating the industry is the right thing to do, and we are committed to participating in this for the long term and seriously," Kostin said. Sign up here. https://www.reuters.com/business/finance/russias-vtb-buy-zvezda-shipbuilding-yard-rosneft-2024-12-02/
2024-12-02 06:31
MOSCOW, Dec 2 (Reuters) - A summit of the BRICS countries held in the Russian city of Kazan in October was a slap in the face for Western nations which imposed sanctions on Russia, the CEO of Russia's second largest lender VTB Andrei Kostin told Reuters in an interview. "Twenty three leaders came to Kazan for the BRICS summit. This is a certain statement, even a slap in the face to the Americans. It is significant that there is support for Russian initiatives and a rejection of U.S. policies," Kostin said. "I think the summit was beneficial for Russia, and there will be further steps, it is important not to relax," he added. Kostin said that Western sanctions on Russia did not work because there were "dozens" of countries willing to work with Moscow, including China, India and Turkey. Sign up here. https://www.reuters.com/world/europe/russias-vtb-ceo-says-brics-summit-was-slap-face-west-2024-12-02/
2024-12-02 06:11
Dollar up 0.7%, set for it best day in nearly 4 weeks Expect choppy, consolidative gold market into year-end - analyst Most brokerages see 25-bps rate cut in December US ADP employment report, non-farm payrolls due this week Dec 2 (Reuters) - Gold prices slipped on Monday, snapping a four-day winning streak, as the U.S. dollar staged a sharp rally and investors braced for pivotal economic data and Federal Reserve insights on the path of interest rates. Spot gold was down 0.6% at $2,636.54 per ounce as of 01:41 p.m. ET (1841 GMT), having fallen as much as 1% earlier in the day. U.S. gold futures settled 0.8% lower at $2,658.50. A firmer dollar driven partly by U.S. President-elect Donald Trump's comments that BRICS nations should refrain from trying to replace the dollar is pressuring gold prices, said Peter Grant, vice president and senior metals strategist at Zaner Metals. Trump urged the nine-nation bloc not to back or create alternatives to the dollar, threatening 100% tariffs for defiance. This stoked fears that U.S. interest rates will remain high for a longer period. Such concerns had already triggered a 3% drop in non-yielding gold during November, the sharpest monthly decline since September 2023. Grant noted that gold has pared losses, with bullion being supported by persistent geopolitical uncertainty. He said the downside is limited and expects a choppy, consolidative gold market into year-end. The dollar index (.DXY) , opens new tab surged 0.7%, poised for its strongest daily performance in nearly four weeks, pressuring gold by making the greenback-priced metal more costly for buyers using other currencies. Key U.S. economic events this week include the release of job openings data, ADP employment report and non-farm payrolls. Speeches from Fed officials, including Chair Jerome Powell, will also draw attention. "We note strong downside risks to gold in 2025, and anticipate significant volatility as we will likely see the U.S. Federal Reserve take a more cautious approach to interest rate cuts, to the detriment of gold," BMI analysts said in a note. After last month's 25-basis-point reduction to 4.50%-4.75%, markets now peg the odds of another cut in December at 64%, aligning with major brokerages' expectations. Elsewhere, spot silver shed 0.6% to $30.41 per ounce, platinum ticked up 0.1% at $946.25 and palladium rose 0.6% to $984.75. Sign up here. https://www.reuters.com/markets/commodities/gold-falls-firmer-us-dollar-profit-taking-key-us-data-focus-2024-12-02/
