Tag Archives: Russia

Russian stocks plunge by nearly 20 percent

Traders stunned as Russian stocks go into tailspin, lose nearly 20 percent

MOSCOW (AP) — Russia’s leading stock markets suffered their biggest-ever one-day losses as shares went into free fall on the back of falling oil prices and deepening fears about the global economy despite the passage of a $700 billion U.S. bank bailout.

Trading on MICEX — the country’s largest index– was shut down three times, closing down 18.6 percent to 752 points. The benchmark RTS — where trading was halted twice — crashed to its lowest point since August 2005, falling by 19.1 percent to 866.4 points.

“The mood is kind of disbelief. You’d think we would have gotten used to it by now,” said Ron Smith, strategist at Moscow-based Alfa Bank. “Traders are just sitting there staring at the screens and going, ‘Wow.'”

“In this environment, nobody wants to step up to the table and buy a stock,” he added.

In September, growing financial turmoil in the United States and a wave of margin calls sent the Russian stock markets into their biggest downward spiral since 1998. The MICEX lost 25 percent in just three days, and prompted regulators to shut down the markets to stem the decline. They have since used that tool on several occasions when falls have become severe — to lesser effect.

Russia’s stock market has boomed in recent years amid high prices for oil and natural gas. But the market began falling sharply in midsummer amid concerns about government interference with businesses, and the drop accelerated as the global economic crisis intensified. Oil prices, the backbone of Russia’s economy, have been sharply down in recent days — dropping to under $90 a barrel — and investors have also been spooked by August’s five-day war between Russia and Georgia. The RTS is now down by 64 percent from its May peak.

Banking stocks were among the worst hit on Monday in Russia. State-controlled Sberbank, the country’s largest lender, shed 16.6 percent on MICEX, while the state-backed VTB banking concern shed 24.5 percent. Mining firm Norilsk Nickel plunged by 30.1 percent on the RTS on weak financials and plummeting nickel prices. State-controlled oil major Rosneft was 24 percent lower.

Russia’s shares tanked against a worsening global backdrop.

After trading closed for the weekend in Russia, the U.S. House of Representatives passed a $700 billion bailout plan at the second attempt. But it provided little relief to investors, who are focused on deepening financial woes in Europe that threaten to derail global growth.

Concerns have mounted in Europe amid a wave of state-backed bank bailouts, and a growing sense of dislocation of European-wide efforts to tackle the financial crisis — despite pledges from EU leaders to secure the stability of the financial system in a coordinated manner.

All major indexes in Europe suffered heavy falls in afternoon trading: The FTSE 100 closed the day down 7.9 percent, Germany’s DAX was down 7.1 percent and France’s CAC-40 closed 9 percent lower.

“When it’s cracking up that badly there, you are going to see extremely high data come in for a market like Russia,” said Smith. “The valuations (in Russia) haven’t mattered for two months now, and they certainly don’t at this point.”

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Revealed – Similarities between Sarah Palin and Miss South Carolina?

Is this the reason why mccain campaign keeps Sarah Palin away from the media?

Couric: Have you ever been involved in any negotiations, for example, with the Russians?

Palin: We have trade missions back and forth, we do. It’s very important when you consider even national-security issues with Russia. As Putin rears his head and comes into the air space of the United States of America, where do they go? It’s Alaska. It’s just right over the border. It is from Alaska that we send those out to make sure that an eye is being kept on this very powerful nation, Russia, because they are right next to, they are right next to our state.

COURIC: Why isn’t it better, Governor Palin, to spend $700 billion helping middle-class families struggling with health care, housing, gas and groceries? … Instead of helping these big financial institutions that played a role in creating this mess?

PALIN: Ultimately, what the bailout does is help those who are concerned about the health care reform that is needed to help shore up the economy– Oh, it’s got to be about job creation too. So health care reform and reducing taxes and reining in spending has got to accompany tax reductions.

Remember Miss south Carolina who made the following statement:

I personally believe that U.S. Americans are unable to do so because uh some uh people out there in our nation don’t *have* maps and uh I believe that our ed- education like such as in South Africa and uh the- the Iraq everywhere like such as and I believe that they should uh our education over here in the U.S. should help the U.S. or- or- should help South Africa and should help the Iraq and the Asian countries so we will be able to build up our future

 

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Sarah Palin and Russia

GOP vice presidential candidate Sarah Palin was interviewed by Charles Gibson the other day. Here is an excerpt of her comments on how to deal with Russia in the future:

GIBSON: And under the NATO treaty, wouldn’t we then have to go to war if Russia went into Georgia?
PALIN: Perhaps so. I mean, that is the agreement when you are a NATO ally, is if another country is attacked, you’re going to be expected to be called upon and help.
But NATO, I think, should include Ukraine, definitely, at this point and I think that we need to — especially with new leadership coming in on January 20, being sworn on, on either ticket, we have got to make sure that we strengthen our allies, our ties with each one of those NATO members.
We have got to make sure that that is the group that can be counted upon to defend one another in a very dangerous world today.
GIBSON: And you think it would be worth it to the United States, Georgia is worth it to the United States to go to war if Russia were to invade.
PALIN: What I think is that smaller democratic countries that are invaded by a larger power is something for us to be vigilant against. We have got to be cognizant of what the consequences are if a larger power is able to take over smaller democratic countries.
And we have got to be vigilant. We have got to show the support, in this case, for Georgia. The support that we can show is economic sanctions perhaps against Russia, if this is what it leads to.

Is she seriouslly thinking of going to war with Russia over Georgia? Would’nt going to war with Russia would make the world a more dangerous place? Which country was a larger power and which country was a smaller power when Iraq was invaded (on the pretext of finding WMD’s).  

If the statement was made to gain political mileage then it is OK , but if she is seriously considering a conflict with Russia , then God help us all

 

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