Peace Talks Fail, Amazon Buyback, US CPI

© By Geoffrey Smith — Peace talks between Russian and Ukrainian foreign ministers are breaking down with no visible progress, ending Wednesday’s euphoria. The UK is expanding its sanctions list to include Roman Abramovich and Oleg Deripaska. Aluminum prices are soaring as Rio Tinto (NYSE:) cut ties with its joint venture partner Rusal. The oil price is also rising again. Amazon (NASDAQ:) announces stock split and major buyback. US inflation is expected to hit a new 40-year high in February as the European Central Bank ends its regular policy meeting. Here’s what you need to know in the financial markets on Thursday, March 10. 1. Peace talks break down without progress Euphoria on the world market cooled after barely two hours of negotiations between the foreign ministers of Ukraine and Russia. Ukrainian Dmytro Kuleba came forward and said Russia wanted its full surrender, while Russian Sergey Lavrov said Ukraine seemed to want meetings to hold it. He added for the record that “we did not attack Ukraine”. In response to the attack on a maternity ward in Mariupol, Lavrov said Russia had told the UN three days ago that it had been evacuated and taken over by Ukrainian military personnel. Ukraine says three people, including a six-year-old child, were killed in an airstrike on the building. Elsewhere, the UK has finally expanded its sanctions list to include oligarchs, including Chelsea Football Club owner, as well as Oleg Deripaska, former chief executive of aluminum giant Rusal (HK:). Rusal was dealt a double blow when the joint venture said it would stop supplying bauxite to a major refinery in Ireland. rose more than 5% in response. 2. US inflation hits new high in 40 years; House approves spending bill. The US is expected to hit 7.9% in February, a new high in 40 years, with the promise of more to come given the surge in energy and commodity prices so far this month. The data will be released along with weekly numbers at 8:30 a.m. ET. On Wednesday, the House of Representatives will finally keep the federal government funded for the rest of the year. The Ukraine emergency and the desire to win bipartisan support marked a last-minute surge in defense spending from what was expected to be the lowest (as a percentage of GDP) since World War II, while a series of spending lines related to pandemic problems. The package also earmarked $13.6 billion in financial aid for Ukraine. 3. ECB grapples with stagflation problem European Central Bank President Christine Lagarde will hold her regularly at 8:30 AM ET (1330 GMT), following the bank’s last policy-making meeting. The ECB is widely expected to stick to its previously announced intention to end the Pandemic Emergency Purchase Program this month, while increasing asset purchases under another program to mitigate the impact of the withdrawal of the stimulus measures. to catch. More important will be any change in Lagarde’s guidance at the press conference, a month after she appeared to open the door to rate hikes towards the end of the year. The ECB is facing a slump as record energy prices threaten to keep inflation above target for much longer than previously thought. At the same time, a European Union summit is taking place. reported that there was a French plan to extend joint loans to cover future defense and energy expenditures. 4. Stocks set to open lower; Amazon’s buyback, watch Oracle profits. US stock markets are expected to open lower as euphoria over the prospects for a quick end to the war in Ukraine faded. At 6:15 a.m. ET (1115 GMT), they were down 288 points, or 0.9%, with the contract down 0.9% and the contract down 1.2%. The three main cash indices were up between 2% and 3.6% on Wednesday after news of the Lavrov-Kuleba meeting. Stocks coming into the picture later are likely Amazon, which announced a $10 billion buyback and 20-for-1 stock split after Thursday’s close, as well as Oracle (NYSE:) and , which are reporting after the close. Amazon’s news softened the blow of new regulatory issues with the. The exodus from Russia, meanwhile, continued, with Europe’s second-largest brewer Carlsberg (OTC:) saying it would become a separate company and stop selling its namesake brand. Japanese fast-fashion giant Uniqlo also reversed course and said it will shut down operations in Russia. 5. Oil is recovering as UAE rolls back comments on production surge. Crude oil prices rose sharply again as the prospect of an early peace faded, and the United Arab Emirates after comments it could break the OPEC+ pact on manufacturing discipline. The Iraqi energy minister also reiterated his country’s adherence to the pact, which had been criticized for not ramping up production fast enough to meet the recovery in global demand after the pandemic. US inventories fell again last week as record high gasoline prices failed to noticeably dent consumption. At 6:25 AM ET, futures were up 3.4% to $112.40 a barrel, while they were up 4.3% to $115.89 a barrel.

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