The Economist - UK (2022-03-26)

The Economist March 26th 2022 7
The world this week Business

Moscow’sstockexchange
resumedpartialtradingnearly
a monthafterit closed.The
phasedreopeningbeganwith
tradinginlocalbonds,fol­
lowedby 33 equitiesincluding
statelendersSberbankand
vtb. Russia’scentralbanksaid
foreignerswouldbebarred
fromsellinglocalstocksor
roubletreasurybondsuntil
April1st.Italsobannedshort
selling.

Westerncompaniescontin­
uedtocuttieswithRussia.
Nestlé,theworld’sbiggestfood
company,pulledbrandssuch
asKitKatandNesquikfrom
Russiabutsaidit wouldcon­
tinuetosellessentialitems.
bnpParibasandCréditAgri­
colebecamethelatestbanksto
pullout.Renault,a carmaker,
suspendedoperationsatits
Moscowplantandunveiled
planstoexititsRussianven­
ture,AvtoVaz.TotalEnergies
saidit wouldstopbuyingoil
fromRussiabytheendofthis
year,thoughit stoppedshortof
joiningitspeersindivesting
itsoilandgasassetsinthe
country.

Bigoil’scomeback
Saudi Aramco, the world’s
biggest oil producer, said it
would invest up to $50bn a
year to boost production after
more than doubling its annual
net income in 2021 to $110bn.
Aramco and its peers have
profited from a sharp rise in oil
prices, which topped $120 a
barrel on March 23rd.

Gas pricessurged by nearly a
third after President Vladimir
Putin ordered Russia’s central
bank to push for rouble pay­
ments for natural­gas purchas­
es from countries it deems
hostile, including America,

Britain and members of the

European Union. The decision

comes as the Biden adminis­

tration and European Union

explore a deal to slash Europe’s

dependency on Russian gas.

The Securities and Exchange

Commission (sec), a financial

regulator, proposed new rules

forcing public companies in

America to disclose climate­

related risks and greenhouse

gas emissions. If finalised, the

rules would mark the first

mandatory disclosures re­

quired by the secon climate

risk.

Inflation in Britainrose to a

30­year high, pushed up by

soaring global prices for ener­

gy, petrol, food and durable

goods. Consumer prices were

6.2% higher in February com­

pared with a year earlier, mak­

ing it the fastest annual in­

crease since 1992.

The International Monetary

Fundsaid Egypt has asked for

support as the war in Ukraine

pushes wheat and oil prices

higher. Egypt, the world’s

biggest wheat importer, is

heavily reliant on supplies

from Russia.

Evergrande, an indebted

Chinese developer, delayed the

publication of its annual re­

sults following a disclosure

that lenders had seized around

13.4bn yuan ($2.1bn) of depos­

its from the group. The proper­

ty giant, which has more than

1.97 trillion yuan ($305bn) in

liabilities, said it had launched

an independent investigation

into the matter.

Share prices in Boeing, an

American aircraft manufactur­

er, fell after one of its 737­

jets crashed in southern China

with 132 people on board,

renewing concerns about the

company’s safety record.

China Eastern Airlines said it

would ground its 737 aircraft

and India’s aviation regulator

placed the country’s entire

fleet of 737 jets under en­

hanced surveillance.

Credit Suisse, a Swiss bank,

said it could be forced to pay

more than $500m in damages

in a lawsuit brought by the

former Georgia prime min­

ister, Bidzina Ivanishvili. The

ruling will be decided in a

Bermudan court. Credit Suisse

will announce its first­quarter

results on April 27th.

Alibaba, a Chinese

e­commerce giant, increased

its share buyback programme

to a record $25bn after slowing

growth and a crackdown by

Beijing on the tech sector.

China’s tech stocks have been

weighed down by volatile

trading. Alibaba’s share price

has fallen by around half in the

past year.

Warren Buffett sent Berkshire

Hathaway’s share prices soar­

ing following an $11.6bn cash

acquisition of Alleghany, an

insurer, in the conglomerate’s

largest deal in six years. The

purchase will dip into Berk­

shire’s $147bn cash pile. 

Ferretti Group, an Italian

yacht maker, launched an

initial public offering on the

Hong Kong stock exchange to

raise up to $300m. The compa­

ny downplayed the potential

fallout from sanctions against

Russian oligarchs. 

Kohl’s, one of America’s larg­

est department stores, said it

was reviewing offers from

potential buyers following

activist pressure to sell itself.

The company previously re­

jected bids from investment

firms that valued it at $9bn. 

Two private islands that were

owned by the late, disgraced

financier, Jeffrey Epstein,

went on sale for $125m. Pro­

ceeds will go towards resolving

outstanding lawsuits and

other costs incurred by the

Epstein estate.