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Goodnight. 16.47 That's where we'll leave it today - check out our
finance page for more updates. FTSE closes. 16.45 The FTSE has closed up
1.72pc, making up for yesterday's losses.
Business news and markets: as it happened - March 4, 2014
Russia's state gas company have said they will raise gas prices for the Ukraine as tensions between the two countries build
In Russia, where more than 10pc was
wiped off the stock market yesterday, equities have opened in positive
territory. The rouble-dominated Micex has ciimbed 2.99pc while the
dollar-dominated RTS is up 3pc. Photo: David Rose for The Telegraph
4:26PM GMT 04 Mar 2014
128 Comments
Latest
Goodnight
16.47 That's where we'll leave it today - check out our
finance page for more updates.
FTSE closes
16.45 The FTSE has closed up 1.72pc, making up for yesterday's losses.
France's CAC is up 2.54pc, Spain's IBEX up 2.51pc and Germany's DAX up 2.3pc
Meanwhile in Wall St Dow Jones is up 1.23pc and S&P 500 up 1.36pc.
Richard Branson: climate change deniers should get out of our way
16.26 Virgin chief executive Sir Richard Branson said climate change deniers should not influence business decisions.Sir Richard voiced support for Apple chief executive Tim Cook and said "business should have benefits for people and the planet, beyond just profit".
Writing on the Virgin website, Sir Richard said:
Conservative think tank the National Center for Public Policy Research (NCPPR)
- Apple shareholders - criticised Cook for pursuing sustainability programs,
questioned the impact of combating climate change on the bottom line, and
demanded return on investment on all environmental initiatives.
Tim took a crucial stand: he told shareholders who oppose Apple's commitment to sustainability to "get out of the stock".
<noframe>Twitter: Richard Branson - Applaud Apple for telling climate change sceptics to “get out of our stock”. I urge deniers to get out of our way <a href="http://t.co/y0FdACo0gH" target="_blank">http://t.co/y0FdACo0gH</a></noframe>
16.12 Kathleen Brooks of forex.com has highlighted this chart which she calls an "eye opener". She says: "It shows US economic data surprises, along with the S&P 500 and the dollar index. As US economic data has been missing expectations, the S&P 500 has surged to fresh record highs (orange line in the chart below)".
She wonders if stock investors are ignoring the weaker data - which might be explained by the bad weather - and asks if current stock valuations be justified at this level if this continues?
Her conclusion:
Overall, we are at a critical time for stocks, the dollar and US economic
data. The next few days could be crucial for the future direction of markets
and may help us to break out of some frustrating ranges for major FX pairs.
Friday’s Non-Farm payrolls report could be even more important than usual. EU to help Ukraine pay Russian gas bill
15.47 Russian pressure on Ukraine via Gazprom has triggered a response from the EU. Energy Commissioner Guenther Oettinger has said the EU will help Ukraine pay the $2bn (£1.2bn) it owes to the Russian gas giant. He said:
Payment of the outstanding Ukraine bills is high up in the European
Commission's aid package" for Ukraine which is expected to be adopted
Wednesday.
Ukraine's state gas firm Naftogaz owes the money to Gazprom and "we are going to help it pay this bill," he said, adding the EU may even supply the country with gas.
EU officials are working on the details of an reported €1bn aid package in readiness for an EU leaders' emergency summit on Thursday. The United States has pledged $1 billion in loan guarantees and the IMF is expected to provide €15bn to Ukraine this year. However, the newly installed Ukrainian government says it needs €25bn over two years.
S&P 500 hits record intraday high
15.22 Wall Street does not seem bothered by the Ukraine situation
anymore. The S&P 500 has hit a record intraday high, of
1,869.49, and is now trading at around 1,867.2. The Nasdaq meanwhile is at a
14-year-high.
Ukraine could become a major EU gas supplier
14.16 An interesting note from Bank of America's commodity desk, who point out that Moscow's major trump card - being the world's largest oil and natural gas exporter - might not be as powerful as it thinks. For one thing, Ukraine holds large shale gas reserves of its own, meaning it could become a major energy supplier to the EU in its own right.
While Secretary Kerry may believe Russia is behaving in "19th century
fashion", the biggest threat to Moscow, in our view, may well be 21st
century shale technology. With NATO military protection, European capital,
and American technology, Ukraine could potentially become a competitive gas
supplier to EU markets. After all, the pipeline infrastructure is already in
place.
Stock markets still in positive territory
14.06 European stocks have stayed in the green through to the
afternoon. The FTSE 100 is up 1.42pc, the Dax has climbed
2.05pc and the Cac has added 2.19pc.
Gold falls back as Putin backpedals
13.41 The gold price has pulled back from a four month high as tensions between Ukraine and Russia ease. Vladimir Putin earlier softened his stance on Ukraine, saying that Russia would only use military force as a last resort. The gold price dropped as low as $1,331.44 from the day's $1,352.68 high, and is currently trading at around $1,333.12.
Gold price. Source: Bloomberg
Ex Microsoft chief exec: you don't have to be cool to succeed
13.03 Recently departed Microsoft chief executive Steve Ballmer is in typically passionate mood at a speech to students at Oxford University.He as admitted that "there are things we could have done better in the last 10 years... we would have a stronger position in the phone market if I could redo the last 10 years". However, he says Microsoft is determined to be at the front of the next wave of technology.
"In 10 years, do you really think we’re going to use devices that look like the devices we use today? Devices will continue to change so do you give up or do you get ready for the next wave of change "
He admits that Apple is "quote cool unquote", but that "you don't have to be cool" to succeed. He says: "If Microsoft can be like brand Oxford or brand Harvard, despite being around forever that’s a good goal"
<noframe>Twitter: Tom Warren - “I am not an engineer. I have never written a line of production code in my life.” - Steve Ballmer, former Microsoft CEO.</noframe>
UK economy 'will not be majorly affected by Ukraine crisis'
12.41 Capital Economics, a macroeconomic research company, believes the Ukraine crisis isn't a worry for the UK economy.
The UK economy should not feel any major adverse effects from the crisis in
Ukraine since trade and financial exposures to it and Russia are small. The
biggest threat is from higher commodity prices, but only a major and
sustained rise would cause UK inflation to rise much above the 2% target
this year.
Unsurprisingly, the UK’s direct trade links with Ukraine are relatively insignificant. UK goods and services exports to Ukraine accounted for just 0.2% of the total in 2012. (By comparison, exports to Germany account for about 9%.) Even exports to Russia amounted to just 1.5% of the total, so a downturn there would not spell disaster.
Similarly, UK banks’ exposure to Ukrainian and Russian debt is tiny, accounting for just 0.01% and 0.5% of their total foreign claims in the third quarter of 2013 respectively.
Gazprom to raise Ukraine gas prices
12.15 Gazprom will raise gas prices for Ukraine from the start of next month because the country couldn't pay its debt for February, the Russian gas company chief executive Alexei Miller said.Alexei Miller also said Gazprom could offer Ukraine a loan of $2-3bn to pay off the country's debt of more than $1.5bn after Ukraine told the state company it was unable to pay in full for gas deliveries in February, according to Interfax.
Russian president Vladimir Putin gave Ukraine a discount on Russian gas supplies, but the price must be renegotiated every three months and has not been renewed.
They failed to pay of the debt, I think it’s $1.5bn as of today, and if they
don’t pay for February it’s going to be US$2bn. So if you don’t pay, then
let’s go back to regular prices. This makes perfect commercial sense. This
has nothing to do with situation in Ukraine. We gave them money, they failed
to deliver", Putin said in his televised news conference.
India trade minister accuses US of protectionism
12.07 India's trade minister accused the United States of excessive trade protectionism, launching a broadside that coincided with the visit of a top US official to patch up a stormy bilateral friendship.
"There are issues which India has raised where we feel there is very high and unacceptable protectionism," he told reporters in New Delhi. He also said Washington made it too hard for Indian nationals to obtain US visas.
So Russia is going to abandon the dollar as a reserve currency? Good luck
11.54 Jeremy Warner doesn't hold much stock with threats that RUssia will abandon the dollar as a reserve currency.
The dollar remains overwhelmingly the currency of choice for international
transactions, and is the middle currency in virtually all transactions. The
US dollar is also the pricing currency for virtually all commodity
transactions, including crucially, oil. Repeated attempts to set up
alternative pricing arrangements have all come to nothing.
Then finally, more than 60 per cent of the world's central bank foreign currency reserves are held in dollars. The euro, the next biggest reserve currency, comes nowhere close. This is not about to change. In other words, Russian threats are as vacuous as Western ones. Hey ho", he writes in a blog.
Everyone needs some dollar
Putin: market reaction is 'temporary and tactical'
11.36 Russia's President Vladimir Putin has said the current instability in the financial markets is a temporary and tactical situation.
He also said any sanctions would backfire and blamed some of the turbulence on US policies, namely the Fed tapering reduction.
Meanwhile, Russia's shares are surging up, with the MICEX up 5pc and Russian RTS up 5.77pc. So not quite all of yesterday's losses, but half way there.
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