Ukraine – Disturbing Times II !
With Viktor Yanukovych fleeing the country and a new temporarily government in place, one could have hoped for peaceful progress for the troubled country in the heart of Europe. But unfortunately that is not the way it works. Russia will not let go without a fight.
In Ukraine as in many other countries occupied by Russia for years (Read the Baltic countries), their former dictators followed an in their opinion wise plan. They took the elite in the occupied countries and sent them into prison camps – Gulags – in Siberia and substituted them with faithful Russians.
We saw a lot of trouble under the liberation of the Baltic countries and now the old strategy bears fruits having millions of Russians in the Eastern part of the country and on the Crimean Peninsula. What we have seen over the last couple of days is nothing more than an invasion from Russia. Albeit not wearing Russian uniforms, but still flying the Russian Flag. Also the successful rhetoric’s from the invasion and occupation of Georgia is repeated.
Last time that was quite effective and the US backed off.
The Russian Black Sea fleet is still based at the Crimean Peninsula and the Russians paying 100M per year in rent – something they do gladly to keep a grip of the country and now feeling threatened it will be interesting to see to what length Putin is willing to go this time. He has been warned off by the EU, the US and NATO, but for someone not understanding the terms Democracy and Human Rights one must be prepared for the worst for the suffering nation of Ukraine!
The Syrian crisis – No changes!
With the turmoil going on in Ukraine the Syrian tragedy has somewhat fallen in shadow. No matter how big a tragedy, the world seems unable to focus one more than one at the time. This is really sad since we are facing a human catastrophe of enormous proportions where thousands of women and children may die and get sickened and have their lives disturbed even if they should survive.
But for Syria, action is needed and it is needed now – tiny Lebanon with 4 million people alone has 1 million refugees, sick and starved. So what’s stopping us? a sick person sitting in Moscow!
And we are saying that the US President is the most powerful person on the planet – at best he is number Three and number One and Two (Russia and China) are making the rules – simply sad for ALL of us!
Life Sentence for being Gay in Africa!
As we had to face homophobia in Russia during the Olympic Games suddenly Africa turned around and really showed us its true colours.
Being gay on that continent surely is no dance on roses. And twenty years ago I think they would have gotten away with it. Luckily the world has moved forward, although as slow as a turtle. Denmark and Norway reacted, immediately stopping payments in their aid programs and now the Worlds bank is following suit stopping a 540 Million loan to Uganda.
The former Norwegian government (socialists) were sending money to a number of countries regardless if they were run by dictators or had major breach on Human Rights.
Africa alone receives 4 Billion from Norway. Finally 59 countries will now be reviewed. A minimum demand must be that Human Rights are respected and followed.
“Take your money go”, clear message from President Yoweri Museveni
However in a world where people still believe that the world started some four thousand years ago I guess we will still see some unbelievable stories.
Currency & Interest Rates
The Pound is traded again around 1.65/66. Slowly but surely regaining its strength and we now see levels like we had in 2009 and 2011.
NOK/USD is now trading at 6.05 down from 6.30. We see the same pattern in NKK/USD and a far weaker development SEK/USD. The level between SEK/NOK peaked out on February 5th stopping at 0.96 now trading at 0.93.
EUR/USD has been stable around 1.37 and it seems like we will maintain that level.
According to the Swedish Riksbank February report, the prospects for 2014 are good, economic activity is strengthening and the labour market is improving. Nevertheless, inflation is expected to be low over the coming year. The repo rate needs to remain low to enable inflation to attain the target of 2 per cent. The Executive Board of the Riksbank has therefore decided to hold the repo rate unchanged at 0.75 per cent. The repo rate needs to remain at this level until inflation picks up and the recovery is on firmer ground. As before, the repo rate is not expected to be raised until the beginning of 2015.
Good prospects for 2014
The economic outlook and inflation prospects in Sweden and abroad are well in line with the Riksbank’s forecast from December. The recent financial market turbulence has had limited contagion effects and is not expected to prevent a recovery in the global economy. GDP growth in the United States is expected to remain high and the euro area will recover, albeit slowly. At the same time, inflation in these areas is expected to remain low for a further period.
After just over a year of weak growth, the prospects for the Swedish economy are now good.
The labour market situation has improved and confidence among Swedish households and companies has risen to levels better than normal. This, together with a gradual increase in demand abroad creates the conditions for GDP growth to rise and labour market to improve further this year.
It is election year in Sweden. The Reinfeldt lead conservative government has sent some disturbing signals. After nearly eight years they are starting to talk about increasing taxes. If this is a signal trying to sweeten voters from the Labour party or they are starting to lose control on the financial and economic development is hard to see.
Any government in Western Europe will have huge problems surviving going for a third period and sending this kind of signals is not good. Perhaps we will even see an additional fall in the Repo Rate after all?
BEIJING (Reuters) – Activity in China’s factory sector slowed to an 8-month low in February, a government survey showed, reinforcing signs of a modest slowdown in the economy as demand weakens.
The official Purchasing Managers’ Index edged down to 50.2 in February from January’s 50.5, the National Bureau of Statistics said on Saturday, just ahead of market expectations of 50.1.
A PMI reading above 50 indicates expanding activity while one below that level points to a contraction.
A preliminary survey released last week by HSBC and Markit Economics showed that the factory sector activity hit a seven-month low of 48.3 from 49.5 in January.
The index for new orders dropped below 50 and employment reached its lowest point since the global financial crisis.
The new orders sub-index in the official PMI China fell to a 8-month low of 50.5 in February from 50.9 in January and the sub-index for export orders fell to 48.2 last month, also a 8-month low, from 49.3 in January.
“Judging from market demand and production in some industries, we expect economic growth to remain steady in the future,” said Zhang Liqun, an economist at the Development Research Centre, which helps compile the PMI.
US and EU Protectionism
An interesting follow up on January’s issue and the cold ghosts of yesterday are starting to pop up again in the Air Travel Industry.
Highly successful Norwegian (Norwegian Air Shuttle ASA) lead by clever and charismatic Mr. Bjorn Kjos, pilot and lawyer, is seeing Unions on both sides trying to stop them from flying to the US.
EC Funding Services
Shortly after the meetings Mr. Kjos got back and simply said; “Well, they may of course try to stop a European company, but they surely would not be able to stop an American company. We have been offered four companies in the US and we are ready to purchase one or more two reach our goals”. After that we have heard nothing from the union leaders.
We have made some radical changes in our funding polices.
We have made agreements with several major, fully licensed broker houses all around the world.
We are opening up for applications from 1M USD and upwards, but to qualify applicants must be prepared to deliver top class information. Our Funders can provide solid reference lists, but they all take under writing fees unless you are a listed Blue Chip company.
And updated brochure will be sent to all partners shortly and clients can request it by sending their details to our info address.
We have new suppliers here as well offering a wide range of trading opportunities. To qualify for participation applicants must follow procedure to the dot or else no admittance will be allowed.
Go to; http://economic-consultants.com/funding/trading-platforms/ and read all about it or download the brochure.
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