The U.S. dollar is getting stronger against the euro and the pound sterling in trading on Friday, getting cheaper against the yen.
The ICE-calculated index showing the dollar’s performance against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona) is gaining 0.07%, while the broader WSJ Dollar Index is up 0.08%.
The euro/dollar pair is trading at $1.0894 as of 8:00 a.m., up from $1.0911 at the close of the previous session.
The pound was down to $1.2212 from $1.2224 at the close of the previous session.
Both the European Central Bank (ECB) and the Bank of England raised key interest rates by 50 basis points (bps) on Thursday, with the European regulator saying it intends to raise them by the same amount at its next meeting in March.
Britain’s central bank lowered its inflation forecasts for 2023-2025, while ECB President Christine Lagarde said risks to both economic growth and inflation in the euro zone have become more balanced.
The day before the Federal Reserve raised its prime rate by 25 basis points. The rate had been raised 50 bps at the previous meeting and had been raised four times before by 75 bps.
The head of the US Central Bank Jerome Powell acknowledged at a press conference following the meeting for the first time that the “disinflationary process has begun”. He also said that the rate will not exceed 5% and reiterated that the Fed can achieve slowdown in inflation without causing significant harm to the economy.
The value of the dollar paired with the yen fell to 128.3 yen in trading on Friday, compared with 128.72 yen the day before.
President of the European Commission Ursula von der Leyen announced that Ukraine will join the EU’s key programs.
“We are including Ukraine in a number of key EU programs. Ukraine is joining now or later that year to the single market program, we just signed this, the program in justice, civil. Very soon you will be able to apply for funding by describing different types of projects. This means more support for small businesses within the single market in Ukraine,” she said at a joint press conference with Prime Minister Denis Shmygal in Kiev.
Speaking about the program in the field of justice, von der Leyen noted that Ukrainian lawyers would be able to take part in various projects. Thus, the specialists from the EU and Ukraine will be able to build a long-term partnership.
According to her words, Ukraine will not be charged any fees for the participation in the programs.
Besides, the EU will open a Horizon Europe Program Office in Kiev by mid-year, which will promote EU funding opportunities, offer technical support to Ukrainian researchers and innovators and strengthen ties between Ukrainian and European institutions.
A 15-point roadmap for Ukraine’s access to the EU internal market was also agreed upon.
In addition, in the area of roaming, an agreement was signed on a six-month extension of voluntary measures by EU and Ukrainian operators on free calls between the EU and Ukraine.
Oil prices continued to decline on Friday, ending in minus territory for the second week in a row amid some weakening of traders’ optimism about demand prospects in China and the continuing growth of US inventories.
April Brent crude futures on London’s ICE Futures exchange stood at $82.01 a barrel by 7:10 a.m. Friday, down $0.16 (0.19%) from the previous session’s closing price. Those contracts fell $0.67 (0.8%) to $82.17 a barrel at the close of trading on Thursday.
The price of WTI futures for March crude oil at electronic trades of NYMEX fell by $0.16 (0.21%) by that time to $75.72 per barrel. By closing of previous trades these contracts have dropped by $0.53 (0.7%) to $75.88 per barrel.
Both Brent and WTI ended trading Thursday at their lowest levels since Jan. 10.
Since the beginning of this year, oil has been trading in a range of about $10 a barrel. On the one hand, the market is waiting for an upswing in demand in China after the lifting of quarantine restrictions in the country, on the other hand – it fears a decline in activity in developed countries in connection with the continued increase of interest rates by leading global central banks, said Bloomberg.
In addition, from next week the EU embargo on the supply of Russian oil products, introduced in response to the continuation of Russia’s full-scale war against Ukraine and accompanied by the initiative of the price ceiling, will come into effect, and traders will wait for the consequences of this decision.
“The oil market is in limbo, waiting for tangible signs of demand growth in China,” notes Vanda Insights founder Vandana Hari. – The factor of the ban on Russian oil products to the EU is not the main one, but it still creates some uncertainty.”
Climate change in Spain is threatening a key ingredient in the diet of pigs, acorns from oak forests, which could affect the production of premium Iberico Beyota jamón in the country.
Iberico Beyota jamón is a premium Spanish jamón that can sell for more than 100 euros per kilogram. It is made from black-legged pigs that must spend their last month of life eating acorns in oak forests.
In recent years, however, due to unusually hot and dry summers, fewer acorns have grown on the oaks. This fact, as well as a drop in the market value of the product, has led to a 20% reduction in jamón production in the autonomous region of Extremadura.
The summer of 2022 was the hottest in Spain’s history and also the third driest. In 50 years, rainfall in Extremadura decreased by 35%. That said, even if next summer isn’t as hot, it won’t guarantee plenty of acorns in the future.
“I expect that this year, after last summer’s drought and winter with little rain, could be the worst in the 40 years I’ve been working here,” said Francisco Esparrago, president of jam producer Señorio de Montanera.
Jamon producers could import acorns, but Esparrago does not approve of the idea. Imported acorns could bring new diseases, he said.
The National Agency for Prevention of Corruption (NAPK) has put the American corporation Procter&Gamble (P&G) on the list of international sponsors of war, its website says.
“Unfortunately, due to the low moral threshold, hundreds of foreign companies remain operating in the Russian market, thereby financing the army and military-industrial complex of the aggressor state. Among the companies we know, besides P&G, there are already OpenWay Group, Danieli, TMS Tankers Ltd, Minerva Marine Inc., Thenamaris Ships Management, Delta Tankers Ltd, Dynacom Tankers Management Ltd. eKassir, Liberian International Ship & Corporate Registry and Bonduelle. All information about their activities is transmitted to the international company LSEG and is included in the database World-Check to protect the international financial industry from the sponsors of the Russian war”, – the press service quotes the words of the NAPC chairman Alexander Novikov.
The reason for inclusion in the list of sponsors of war was the fact that, working in Russia, the company pays taxes to the Russian state budget and contributes to the mobilization measures.
In March 2022 P&G announced about reduction of assortment in the Russian market and promised to leave only products for health and hygiene. In August it was reported that it was no longer investing in business development in Russia. However, P&G is developing its business in Russia, in particular a household chemicals factory, the world’s largest producer of P&G detergents, and a plant making razor blades and shaving irons for Gillette are still operating in Russia. The company provides jobs for about 2,500 Russians.
P&G owns such subsidiaries and brands as Gillette, Fairy, Tide, Ariel, Lenor, Mr. Proper, Pampers, Always, Head & Shoulders, Pantene, Old Spice, Hugo Boss, Max Factor and others.
In March 2022, after announcing the reduction of its presence on the Russian market, P&G raised prices for its own products in Russia by 40%, which almost offset the loss of revenue from the reduction of the brand portfolio. According to the company’s 2022 report, this price hike boosted the company’s organic sales in Russia.
In addition, the company promotes mobilization, because under new Russian law, corporations operating in Russia are forced to participate in mobilization activities, assist in recruiting employees to the army and finance their military equipment.
Source: https://sanctions.nazk.gov.ua/boycott/14/
The European Commission will propose to the EU member states to extend the suspension of all customs duties and trade protection measures on imports from Ukraine for a year, the head of the European Commission, Ursula von der Leyen, has said.
“Last year, we abolished all duties and quotas for goods from Ukraine. It was a great success… Today I can announce that we will propose to prolong this trade agreement for the next year,” – said von der Leyen during a press conference with Ukrainian Prime Minister Denis Schmigal.
