Crisis

China pledges to help Russia overcome economic hardships
China's foreign minister has pledged support to Russia as it faces an economic downturn due to sanctions and a drop in oil prices. Boosting trade in yuan is a solution proposed by Beijing's commerce minister. “Russia has the capability and the wisdom to overcome the existing hardship in the economic situation," Foreign Minister Wang Yi told journalists, China Daily reported Monday. [...]
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What Putin is not telling us
Even facing what under any circumstances is a perfect storm; President Putin delivered an extremely measured performance at his annual press conference and Q&A marathon. The perfect storm evolves in two fronts; an overt economic war – as in siege by sanctions - and a concerted, covert, shadow attack to the heart of the Russian economy. [...]
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Ruble volatile after Tuesday trauma
The Russian currency remains volatile Wednesday, after it suffered its own "Black Tuesday" losing about 20 percent during the day. It had been a rollercoaster morning, with the ruble falling on the opening of Wednesday trading, and within 40 minutes rebounding, only to relapse later in the morning. [...]
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US, European markets tumble following ruble, oil
US stock futures fell along with shares in European companies exposed to Russia, as the ruble and crude oil slid to new record lows on Tuesday. The Russian ruble lost over 20 percent against hard currencies on Tuesday. At its worst the ruble plummeted to 75 against the US dollar, and traded at almost 100 to the euro on the Moscow Exchange. [...]
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Russian ruble continues recovery, as oil back to $80
The Russian ruble continued its fight back on Friday to move above 46 against the US dollar, as the price of Brent crude slid over the $80 per barrel threshold. The US dollar has fallen to 45.62 rubles Friday at 3PM Moscow time on the Moscow Exchange. The euro has fallen to 56.69 rubles. [...]
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Euromaidan 1st birthday: How the Kiev coup grew (Op-Edge)
It's been a year since thousands of peaceful protesters took part in the initial Euromaidan rallies in Kiev, hoping for a brighter future. Since that optimistic start, the state has been torn to shreds and now its very future is in doubt. Ironically, Maidan was the cause, although it's probable that, eventually, Ukraine would have come to conflict by other means. [...]
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“EU may become an increasingly declining part of the world”
The eurozone has huge problems and is holding back the global economy from growing, however the world in general is doing ok, Jim O'Neill, former chairman of Goldman Sachs Asset Management, told RT. Europe's had a hard time economically in the last few years, with 2014 seeing an especially sharp slowdown in growth. What's behind this poor performance? [...]
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EU: No guarantees for Russia if Ukraine fails to settle gas debt
The EU won't provide any new funds for Ukraine to pay off its gas debt to Russia, and Moscow has no guarantees should Kiev use agreed funding elsewhere, said the EU Energy Commissioner's spokeswoman Marlene Holzner. The European Commission is allocating €760 million ($954 million) of financial aid to Ukraine earlier than scheduled to help it pay for gas deliveries, said Mrs. Holzner on Friday [...]
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Germany should spend more on eurozone recovery – IMF chief
Christine Lagarde, head of the International Monetary Fund (IMF) has urged Germany to increase spending to spur the eurozone's flagging economic recovery, and said that a number of structural reforms are needed to revive the bloc’s growth. "We think that public or private investment (in Germany) to finance infrastructure would be welcome," Lagarde told French daily Les Echos in an interview o [...]
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The Cost of War: Ukraine’s economy to pay heavy price for offensive in the east
Financing the military offensive in eastern Ukraine is now proving to be a major economic headache for Kiev. The cost of rebuilding conflict-torn eastern Ukraine may reach $8 billion, Prime Minister Arseny Yatsenyuk has indicated. As long as the military offensive in the east continues, Ukraine has to further dig into its fast-depleting state coffers to support the operation. If the war continu [...]
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Russian food ban to cost EU $6.6bn a year – internal document
Russia's decision to impose a food embargo in response to Western sanctions may cost the European Union €5 billion ($6.6 billion) a year, according to an internal EU document. "The overall temporary restrictions currently applied by Russia potentially jeopardize €5 billion worth of trade," the report seen by Reuters states. [...]
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Mr Tusk goes to Brussels – but can he save the EU?
The first Eastern European EU president, Donald Tusk faces difficult times ahead – and few credentials to suggest he is up to the job... Polish Prime Minister Donald Tusk will chair EU meetings as President of the European Council, with many hoping he will prove to be a pragmatic counterweight to the divisive Jean-Claude Juncker, who by his own admission held the Eurozone together with a tiss [...]
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Nobel prize winners: Eurozone recovery is ‘dismal failure’
"Stunningly destructive" and "dismal failure" is how Nobel laureates describe growth in the European Union after destructive austerity policies and the euro crisis. Economists are casting doubt on the effectiveness of monetary policy in the 18-member eurozone, which is yet to fully shake off recession and produce sustained growth. [...]
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Ukraine moves step closer to default – Fitch
The Fitch ratings agency has downgraded Ukraine one step closer to default grade, as the Ukrainian currency the hryvnia hits a record low, and the economy balances on the brink of a collapse. Fitch cut the long-term local currency Issuer Default Rating (IDR) of Ukraine from B-,signifying a default risk, to CCC, where default is a real possibility, and affirmed its long-term foreign currency IDR [...]
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French goverment resigns amid rancor over German austerity pressure
The French government has resigned despite being formed just 4 months ago. They quit after ministers slammed President Francois Hollande's plans for taxation and cuts, while also being critical of Germany's austerity program. The statement published on Monday said the new office would be formed on Tuesday and would be in the "direction he (the president) has defined for our country." [...]
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Fed up with euro, France flirts with coupon money
Whether buying bread, filling a pharmacy prescription, getting a haircut or going to the doctor, some residents of Montreuil, France, are rejecting the euro in favor of "La Peche", a local community currency. In France, local currencies are growing in popularity as trust in state institutions erodes. An elaborate coupon system lets locals pay for services and goods with special local banknotes, [...]
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Bank of America agrees to record $17bn settlement over mortgage fraud
America's second largest lender has reached a $16.65 billion settlement with US federal authorities for selling toxic mortgages misleading investors, the Justice Department said Thursday. “This historic resolution - the largest such settlement on record - goes far beyond ‘the cost of doing business,’” Attorney General Eric Holder said in a statement posted on the US Justice Department w [...]
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Europe’s reboot: Reform or die
Sooner or later EU denial must give way to gut-wrenching reform. The longer the delay, the greater the pain for the Lost Generation. The precipice of relative poverty never looks very threatening. Thus, despite mass eurozone youth unemployment and a 12 percent rate overall, Europe retains a facade of relative prosperity. However, the UK and US economies are growing with gusto, surpassing pre-re [...]
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Turkey: “We’re ready to increase food exports to Russia”
As Moscow banned food imports from the West, Turkey voiced its readiness to increase its exports of agricultural products to Russia, Turkish economy minister has said. “Turkey is a major supplier of food and agricultural produce to Russia. It is ready to increase its food exports to Russia if necessary,” Turkish Economy Minister Nihat Zeybekci said in an interview with Itar-Tass. [...]
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Record high US income gap threatens housing recovery
Inequality between the richest and poorest metropolitan areas in the US is at its highest since 1969, and could hamper the recovery of the housing market that was at the heart of the 2008 financial crisis. A report by the US Commerce and Labor Department shows that when analyzing the largest 100 metropolitan areas in the country, the disparity between the 10th most affluent region and the 90th [...]
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Another US stock crash round the corner, says market guru
The US stock market will suffer a 20 percent or greater pullback within 12 months says Mark Cook, a legendary investor who predicted the last three major crashes including the 2007 world economic crisis. The trader didn’t specify the exact time when the market will fall. [...]
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IMF pushes Ukraine to “voluntarily committing suicide”
Western support will allow more IMF and European lending to prop the Ukrainian currency so the Ukrainian oligarchs can move their money safely to British and US banks, economist and author Michael Hudson told RT's Truthseeker. The basic principle to bear in mind is that finance today is war by non-military means. [...]
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