Bitcoin fell below $20,000 over the weekend and remains below that mark on Monday after US Federal Reserve Chairman Jerome Powell made comments during the annual economic symposium at Jackson Hole on Friday.
The bitcoin exchange rate at 15:00 TC on Monday fell by 0.9% and amounted to $19,812 thousand.
The Fed will continue to raise the key rate until inflation is under control, and this is likely to “cause some pain for households and businesses,” Powell said.
Such “hawkish” statements also had a negative impact on the US stock market. The Dow Jones Industrial Average plunged the most since May on Friday.
The price of bitcoin did not fall below $20K for about a month and rose to $25,199K in mid-August. Since the beginning of the year, the value of the cryptocurrency has collapsed by 57% amid tightening monetary policy in the world, which could cause a recession.
The price of Ethereum, another popular crypto-currency, is down 2.35% on Monday to around $1,449k. Ethereum has dropped 60% since the start of the year.
According to the results of work in 2021, PJSC “Kyiv Shipbuilding and Ship Repair Plant” (KSSZ) reduced its net loss by 46 times, to UAH 2.047 million from UAH 94.073 million.
According to the information, by the extraordinary general meeting of shareholders scheduled for September 30 of the current year, the outstanding loss as of December 31, 2021 amounted to UAH 228.5 million.
The meeting will be held remotely. The start date for shareholders voting on the agenda is September 22, the voting end date is until September 30, 2022
Shareholders will consider a number of issues based on the results of work in 2021, in particular, the report of the board on the results of the financial and economic activities of the company for 2019-2021, the report of the supervisory board for this period, the report and conclusions of the audit commission, and the conclusions of the external audit. On all these issues, it is proposed to recognize the performance as satisfactory and it is planned to approve the annual reports for 2019, 2020 and 2021.
In addition, shareholders intend to consider the distribution of profit and loss for 2019, 2020 and 2021.
The draft decision, which the Interfax-Ukraine agency has at its disposal, plans to distribute the company’s profit in the amount of UAH 4.564 million for 2019 to cover losses from previous periods. The losses of the company in the amount of UAH 94.073 million for 2020 and in the amount of UAH 2.047 million for 2021 shall be covered from the profits of subsequent periods.
The meeting also intends to make changes and additions to the charter by presenting it in a new edition.
Shareholders will also consider personnel issues. Thus, the meeting intends to decide on the termination of the powers of the members of the Supervisory Board and the Revolutionary Commission, electing their new compositions. The board is also planned to be dismissed, liquidating the board as a management body and electing a director of the company.
In addition, shareholders will consider the issue of liquidation of subsidiaries: DP “Diesel”, DP “Shipyard” and DP “Shipfur”.
As reported, KSSZ received a net loss of UAH 94.073 million in 2020 against a net profit of UAH 4.564 million in 2019.
In March 2021, the Department of Enforcement of Decisions of the Department of the State Executive Service of the Ministry of Justice of Ukraine opened enforcement proceedings to foreclose on the property of KSSZ, which is a property guarantor for the obligations of the Finance and Credit Bank (Kyiv) to the National Bank (NBU) for a total of 4, UAH 2 billion
The NBU then noted that this plant, like the Finance and Credit Bank (FiK) itself, was associated with businessman Konstantin Zhevago.
KSSZ manufactures ships of various types, complex metal structures, equipment for the mining and processing industry, repair of diesel engines.
The Economic Court of Kyiv, by its decision of August 21, 2017 No. initiated proceedings on the bankruptcy case of PJSC “KSSZ”.
According to NDU data, for the fourth quarter of 2021, Mulready Ventures Limited (UK) owns 24% of the shares of PJSC, DІ.ER.AY. LLC, Harmonika LLC, Ukrtekhvuglets LLC (all three are Ukraine) – according to 9.8%, the American-Ukrainian joint venture with foreign investments in the form of Finance and Credit Leasing LLC – 9%, for individuals Sergey Kovalenko and Anatoly Rekun – 6.0972% each.
The authorized capital of PJSC is UAH 62.5 million.
European stock indices fall on Monday on growing fears that the tightening of policy by the world’s largest central banks will continue to put pressure on the global economy.
The composite index of the largest enterprises in the region Stoxx Europe 600 as of 12:35 CSK fell by 1% to 421.71 points.
The German DAX index is losing 1.36%, the French CAC 40 – 1.52%, the Italian FTSE MIB – 1%, the Spanish IBEX 35 – 1.15%. UK stock exchanges are closed on Monday (Summer Bank Holiday).
“Today the markets are focusing on the message from Jackson Hole about a ‘coordinated tightening’ of policy. Treasury bond yields are rising and risky assets are getting cheaper,” said Danske Bank experts, quoted by Dow Jones.
Federal Reserve Chairman Jerome Powell, speaking Friday at an economic symposium in Jackson Hole, reaffirmed the US central bank’s determination to continue tightening monetary policy to bring inflation under control.
“We are purposefully moving our policies to a point where they will severely restrict economic activity,” Powell said.
“Higher rates, slower economic growth and a weaker labor market will contain inflation, but will also cause some pain for households and businesses. This is the sad price of reducing inflation. However, failure to restore price stability will mean even more serious pain,” he said.
Representatives of the European Central Bank (ECB) warned at Jackson Hole that the ECB’s monetary policy is likely to remain tight for an extended period of time.
ECB executive board member Isabelle Schnabel said tightening policy would require global central banks to “sacrifice” more in terms of economic consequences than in the past, as the “globalization of inflation” makes it harder for central banks to keep inflation under control, the Financial Times writes.
The head of the Bank of France, Francois Villeroy de Galo, in turn, said that there should be no doubt about the ECB’s readiness to raise key interest rates above the so-called “neutral” level, which does not constrain, but does not limit economic activity.
He noted that rates could reach the level of 1-2% by the end of this year.
Shares of energy and utility companies, as well as chemical producers, fell sharply on Monday amid persistently high gas prices.
The value of shares of French Engie SA and Veolia Environment SA fell by 3.8% and 2.4% respectively, German RWE AG and Bayer AG – by 2.1% and 3%, Italian Enel SpA – by 1.8%, Spanish Iberdrola SA – by 1.1%.
The decline leaders in Germany are shares of Infineon Technologies (-3.9%), Deutsche Post (-2.5%) and HeidelbergCement (-2.3%), in France – Cie de Saint-Gobain (-2.6%) and Kering (-2.5%).
Luxury goods makers LVMH and Hermes lost 2.2% and 1.7%, respectively, on weaker consumer spending forecasts in Europe and expectations of a further slowdown in the Chinese economy.
Ukraine’s GDP in 2022 will decrease by 30%, however, the unblocking of seaports would reduce the economic decline to 22-25%, Olena Bilan, chief economist at Dragon Capital, believes.
The real gross domestic product (GDP) of Ukraine in the first quarter of 2022 fell by 15.1% compared to the first quarter of 2021 after growing by 6.1% in the fourth quarter of last year, the State Statistics Service published such a preliminary estimate on Thursday.
The economy of Ukraine is gradually recovering from the level of the greatest fall in March thanks to the regions where there are no active hostilities, as a result, the decline in May this year (against the same month last year) slowed down to 35-40%, Deputy Governor of the National Bank of Ukraine Serhiy Nikolaychuk said.
The National Bank expects Ukraine’s GDP to fall by at least a third in 2022, Deputy Governor of the NBU Serhiy Nikolaychuk said during the presentation of the report on financial stability.
The National Bank of Ukraine (NBU) estimates Ukraine’s losses from destroyed housing, business and infrastructure due to Russian aggression at 50% of GDP in 2021, or $100 billion, according to a financial stability report published on the central bank’s website on Tuesday.
The real GDP of Ukraine will decrease by more than a third in 2022, inflation accelerated to 20% in the first half of the year, according to bankers surveyed by Interfax-Ukraine.
The deficit of Ukraine’s foreign trade in goods in January-April 2022 fell by almost 97.6% compared to the same period in 2021, to $29.6 million from $1.237 billion, the State Statistics Service reported on Tuesday.
Consumer price growth in Ukraine in May 2022 slowed down to 2.7% from 3.1% in April and 4.5% in March, but exceeded 1.6% in February and 1.3% in January, the State Statistics Service said on Thursday.
The state budget deficit in January-May 2022 exceeded annual deficits of the previous two years, the National Bank of Ukraine (NBU) said in its June macroeconomic and monetary review.
Ukraine’s total state debt in April grew by 0.84% in U.S. dollars to $97.62 billion, in hryvnias – by 0.84% to UAH 2.855 trillion, according to data on the website of the Ministry of Finance.
Economic Monitoring’s Project Manager – PhD in Economics, Maksim Urakin
South Korean Samsung Electronics may launch its own cryptocurrency exchange next year, according to Market Watch, citing local media.
Samsung is one of seven South Korean companies that have recently submitted applications to regulators for licenses needed to create a cryptocurrency exchange. Other companies include Mirae Asset Securities Co., one of the nation’s largest stock market brokers.
According to South Korean media, Samsung expects to create a new exchange in the first half of 2023.
This is not Samsung’s first move into the cryptocurrency market. Earlier this year, the company added a cryptocurrency wallet feature to its Galaxy smartphones.
YouTube channel “Club of Experts” – another video review of current events and events for the next week.
The founder of the club of experts Maksim Urakin, together with co-host Olga Levkun, spoke about the main news in Ukraine and the world from August 8 to 14, 2022.
So, in Ukraine, the next week will be quite rich in various events and activities. In particular, it is planned to hold several conferences and round tables dedicated to supporting the economy during the war, the prospects for the development of the banking sector, information security, etc. Such world-famous economists and politicians as Francis Fukuyama, Oliver Hart, Ivan Miklos, Leszek Balcerowicz are expected to speak.
Among the world events next week, one can single out the meetings of the heads of military and diplomatic departments of the EU countries, where Ukrainian representatives will also be present. The main topic of the meetings will be building up support for Ukraine. The publication of up-to-date statistical data by the world’s leading economies is also expected. Among sporting events, the main one is the start of one of the world’s major tennis tournaments – the US Open and EuroBasket 2022, which will be held in four countries at once. More about this on the sports portal sport.ua.
Also next week, several landmark international conferences and exhibitions are expected to take place, including the B-20-G-20 Dialogue in Indonesia and IFA-2022 in Berlin.
Watch these and other events in a new video on the Club of Experts channel at the link:
You can subscribe to the Expert Club channel here – https://www.youtube.com/channel/UC4plQ0XBaoLOKPIXrb1aMGQ
ANNOUNCEMENTS, EVENTS, EXPERT_CLUB, URAKIN, ЛЕВКУН, МАКСИМ_УРАКИН
