Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Ukraine crisis flares

While you were sleeping: Ukraine crisis flares

March 14 (BusinessDesk) – Stocks slumped on Wall Street and in Europe, while US Treasuries rose, as Russia amassed troops near the border with Ukraine, prompting the US and Germany to sharpen their warnings to Vladimir Putin.

Ukraine’s Crimea region is preparing for a referendum on Sunday that might see ballots cast in favour of joining Russia. Group of Seven leaders yesterday said they would disregard the outcome of the vote because it is illegal.

US Secretary of State John Kerry told a Senate committee that the US and Europe will take “very serious” measures if Russia annexes Crimea following the referendum.

"If there is no sign of any capacity to be able to move forward and resolve this issue there will be a very serious series of steps in Europe and here with respect to the options that are available to us," Kerry said.

Russia began military exercises near the border with Ukraine.

"We would not only see it, also as neighbours of Russia, as a threat. And it would not only change the European Union's relationship with Russia," German Chancellor Angela Merkel told the Bundestag. "This would also cause massive damage to Russia, economically and politically."

In afternoon trading in New York, the Dow Jones Industrial Average slumped 1.17 percent, the Standard & Poor’s 500 Index dropped 0.94 percent, while the Nasdaq Composite Index sank 1.3 percent.

In Europe, the Stoxx 600 Index finished the day with a 1.1 percent slide from the previous close. The UK’s FTSE 100 shed 1 percent, France’s CAC 40 declined 1.3 percent, while Germany’s DAX slumped 1.9 percent.

“Investors will be reluctant to take large positions before the weekend with the Crimea referendum,” Jean-Paul Jeckelmann, chief investment officer at Banque Bonhote in Neuchatel, Switzerland, told Bloomberg News. “Sanctions, military interventions will all weigh on markets.”

The latest signs from the world’s second-largest economy provided more cause for concern as data showed that growth in China’s industrial output, investment and retail sales all slowed more than expected.

US Treasuries received a boost as a result.

“There’s clearly demand for safe-haven assets out there,” Larry Milstein, managing director in New York of government-debt trading at RW Pressprich told Bloomberg.

Meanwhile the latest US economic data provided reasons for optimism as spring arrives and slowly pushes away the remnants of the cooling factors over data of the recent months.

US retail sales rose 0.3 percent in February, according to the Commerce Department, which followed two straight months of declines. Initial claims for state unemployment benefits fell 9,000 to a seasonally adjusted 315,000 last week, according to the Labor Department.

"The economy seems to be rebounding from a winter-related slump," Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York, told Reuters. "We expect the Fed will stay the course with its exit strategy."

FOMC policy makers are scheduled to meet next week.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news