Business

Markets tumble, oil prices rise on Ukraine conflict fears

Published

2 years ago

15/02/2022

MNN

After sharp Wall Street losses on Friday, the dip continued in Asia at the start of the week while oil prices closed in on the $100-a-barrel mark on fears over the Russian invasion of Ukraine.

Asian and European markets have tumbled and oil prices rallied after the United States warned Russia could attack Ukraine within days.

Monday’s losses matched a sell-off in New York and Europe on Friday as Western powers prepare for a conflict in eastern Europe after Russian President Vladimir Putin dismissed calls by US counterpart Joe Biden and others to pull back.

Governments have told their citizens to leave Ukraine and US national security adviser Jake Sullivan warned last week that an invasion could begin “any day now” and would likely start with “a significant barrage of missiles and bomb attacks”.

German Chancellor Olaf Scholz was preparing to visit Kyiv and Moscow to try to head off the crisis.

The prospect of a conflict compounded the gloomy mood on trading floors after Thursday’s data showed US inflation hit a forecast-busting 7.5 percent in January, ramping up pressure on the Federal Reserve to hike interest rates by more than expected.

After sharp Wall Street losses on Friday, the dip continued in Asia.

Tokyo and Mumbai each shed more than two percent, while Hong Kong, Shanghai, Seoul, Jakarta, Wellington and Taipei were at least one percent down.

Singapore and Bangkok were also off, though Sydney and Manila rose.

Paris and Frankfurt plunged more than three percent in early trade, while London was 1.9 percent off.

Inflation impact?

A “flight to safety for all markets will be the first order” if Russia invades, said Wai Ho Leong, a strategist with Modular Asset Management in Singapore.

“The impact on inflation will go beyond oil and gas,” he warned. “For the rest of the world, it is potentially a massive food shock – as Ukraine is a major exporter of grain – mainly corn and wheat.”

Wheat futures are up about eight percent since the start of the month.

Eli Lee at Bank of Singapore added that the volatility that had characterised markets so far this year would probably continue.

“In the scenario of military action, we could see a spike in oil and gas prices, which would exacerbate the issue of inflation over the near term, and result in a market-wide risk-off move,” he wrote in a note.

“This would inject volatility into risk assets and cause a bid for safe havens such as the Japanese yen, the US dollar and gold.”

Meanwhile, oil prices jumped, closing in on the $100-a-barrel mark last seen in 2014, as investors grow increasingly worried about supplies in the event of a war.

The crisis comes with crude already tight, owing to a pick-up in demand as economies reopen after the coronavirus pandemic and people return to a more normal life.

Source: TRT

Business

CWEIC office to establish in Maldives, Janah as Chair

Published

2 days ago

16/05/2024

Commonwealth Enterprise and Investment Council (CWEIC) has announced decision to establish its office in the Maldives, and appoint President Dr. Mohamed Muizzu’s Principal Advisor Mohamed Ali Janah as its Country Chair.

CWEIC in a statement on Thursday, said the office will be established to connect the Maldives government with international investors and businesses.

The Maldives hub office of CWEIC will play a vital role in seeking prospective investment opportunities from all 56-member nations of the Commonwealth. The office will also enhance strategic alliances and partnerships between these countries and the Maldivian government.

Veteran entrepreneur, Janah boasts of over 30 years of business relations with the Middle East.

Source(s): sun.mv

Business

Dubai company awarded the development of SEZ

Published

6 days ago

12/05/2024

An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.

The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.

Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.

The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.

The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.

Source(s): PsmNews

Business

Over USD 713M generated attributing to revenue increasing by 3.7%

Published

7 days ago

11/05/2024

Ministry of Finance has revealed a remarkable surge in the government’s revenue generated as of April 25, which exceeds USD713 million. The latest weekly fiscal report publicised by the ministry indicates that this contributes to a 3.7% increase in revenue in comparison to the revenue of USD693 million, generated within the same period, in 2023.

The fiscal report shows that the revenue comprises USD 596 million in tax revenue, USD116 million in non-tax revenue, and USD3 million in aid received. Tax earnings include import duty, business and property tax (BPT), goods and services tax (GST), as well as earnings from GST. The breakdown of revenue generation includes USD45 million from import duties, USD168 million from BPT, USD330 million from GST, USD24 million from green tax, USD22.6 million from airport service charges, and departure tax.

Expenditures until April 25 totalled USD817 million, with USD629 million allocated to recurrent expenses and USD181 million to capital expenditures. This represents a significant reduction in expenditures compared to the USD244 million spent by the government in 2023, during the corresponding timeframe. Recurrent expenses cover USD207 million for salaries and allowances and USD408 million for administrative work. Meanwhile, capital expenditure primarily encompasses expenses related to structural development.

Source(s): PsmNews