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STOCKHOLM, March 3 – IKEA, the world’s largest furniture brand, is closing its stores in Russia and cutting off all supplies to the country and ally Belarus, joining a wave of Western companies restricting business with Russia following its invasion of Ukraine. .

The news, announced Thursday, came after manager retail owner of IKEA Ingka Group told Reuters, it is now expected producer of budget furniture to raise prices by an average of 12% this fiscal year, compared with 9% noted earlier amid rising raw material costs and supply chain disruptions. Read more

“The devastating war in Ukraine is a human tragedy and our deepest empathy and concern is for the millions affected,” Inter owner IKEA and Ingka Group said in a joint statement.

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“The war has both a huge human impact and serious disruptions in the supply chain and trade conditions, which is why groups of companies have decided to temporarily suspend IKEA’s operations in Russia,” they said.

Ingka Group, which is one of the largest owners of shopping centers in the world, said its 14 malls in Russia, called “Mega”, remain open.

While many international companies have already stopped its activities in Russia because of the war and subsequent sanctions against the country, IKEA is one of the first who also stopped business with Belarus. Read more

We could not offer safety and security to the people working in our supply chain – crossing the border, etc. it was just too risky. Then, on top of that, the consequences of various sanctions in general made it simply impossible to work anymore, “Inter IKEA’s chief business supply manager Henrik Elm told Reuters about Belarus.

Inter IKEA is responsible for the supply, while Ingka Group is a major global retailer with 17 stores in Russia and one distribution center. In the year to last August, Russia was the 10th-largest market for IKEA in retail sales of 1.6 billion euros (1.8 billion dollars), or 4% of total retail sales.

The company’s logo is seen outside the IKEA Group store in Saint-Herblain near Nantes, France, March 22, 2021. REUTERS / Stefan Mahe

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The decision to suspend operations in Russia affects 15,000 employees, and Ingka Group’s retail operations manager Tolga Onju said in a joint interview with Elm that all staff will be paid in rubles for at least the next three months.

“The groups of companies will provide employment and income stability and provide support to them and their families in the region,” IKEA said.

IKEA manufactures chipboard and wood products at three sites in Russia and has about 50 direct suppliers in the country that produce a wide range of goods. Most of the products made in Russia are sold in Russia.

Goods made in Russia and exported to other markets account for less than 0.5% of IKEA’s products. Most goods made in Belarus, which is a pure supply market for IKEA, are sold in Russia and consist mainly of wood-based products and mattresses and sofas.

Elm said the decisions were made before the European Union approved new sanctions against Belarus on Wednesday over its supporting role in Russia’s invasion of Ukraine. Read more

Elm said it was too early to say whether Inter IKEA would further raise prices for store owners as a result of the crisis in Ukraine.

Russia calls its actions in Ukraine a “special operation.” Read more

(1 dollar = 0.9028 euros)

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Report by Anna Ringström Edited by Mark Potter and Susan Fenton

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The 30-year fixed-rate mortgage averaged 3.76% in the week ending March 3, up from 3.89% the previous week, according to Freddie Mac.

Interest rates fell as a result of declining yields on US government bonds this week as investors switched to bond security amid growing tensions between Russia and Ukraine, said Sam Hatter, Freddie Mac’s chief economist.

“As long as inflationary pressures remain, the cascading effects of the war in Ukraine have created market uncertainty,” Hatter said. “Interest rates are therefore expected to remain low in the short term, but are likely to increase in the coming months.”

Experts and analysts have predicted a fairly steady rise in mortgage rates this year, but Russia’s invasion of Ukraine, followed by severe economic sanctions, has created uncertainty.

“Investors are concerned about the deepening conflict between Russia and Ukraine and rising oil prices and are wary of the side effects of growing economic sanctions,” said George Ratiu, economic research manager at Realtor.com.

He said markets are focused on rising inflation and expect the Federal Reserve to continue with a 25 basis point increase in its upcoming meeting later this month.

“Market volatility and rising oil prices are likely to lead to greater fluctuations in bond yields, while inflation will continue to push upward interest rates on mortgages,” Ratiu said.

Mortgage applications are declining

Mortgage applications fell in the last full week of February, according to the Mortgage Bankers Association, in part in response to rising interest rates.

Applications for home loans remain weak, said Joel Kahn, associate vice president of economic and industrial forecasting at the MBA. Meanwhile, the average loan size has risen again – to a new record of $ 454,400 – an indication that house prices are still rising and a larger share of mortgage activity is seen at the higher end of the market, he said.

“We will continue to assess the potential impact on mortgage demand from the sharp drop in interest rates this week due to the invasion of Ukraine,” he said.

Meanwhile, Ratiu said, real estate markets are seeing an early start to the spring shopping season, with unusually high demand and record low inventories continuing to boost house prices.

“At today’s rate, the average home buyer will pay more than $ 278 a month more than a year ago to pay off his mortgage,” Ratiu said. “Rising prices and higher prices are creating challenges for first-time home buyers, making them difficult to make in light of higher monthly spending on food, petrol, clothing, cars and healthcare.

Ned Davis US chief strategist Ed Klisold and Aegon Asset Management chief macro strategist Frank Rybinski discuss the impact of the Russia-Ukraine crisis on the Federal Reserve’s decision to raise interest rates and US markets.

US stocks gave up gains as oil prices remained high as Russia developed Ukraine. Investors are also watching Federal Reserve Chairman Jerome Powell, who is on Capitol Hill for a second day of economic testimony.

The Dow Jones industrial average fell above 100 points or 0.4%, down 200 points, while the S&P 500 and Nasdaq Composite fell 0.5% and 1%, respectively.

Powell said he supported the traditional 0.25 percentage point increase in interest rates instead of the larger increase recommended by some politicians. Powell also said the impact of the Russian attack on the US economy was “very uncertain”.

RUSSIA INVASES UKRAINE: LIVE UPDATES

Oil prices continued to rise as supply and supply concerns persisted due to Russia’s invasion of Ukraine.

US crude reached $ 113.06 a barrel before falling. Brent, based on the price of international oil, moved to $ 115.08 a barrel in London. As a result, large oil companies remain in focus.

POWER OF THE FED WILL OFFER 25 BPS Increase in the rate of the meeting in March

AG URGES BIDEN TO TAKE STEPS FOR ENERGY INDEPENDENCE WITH DECLARATION OF PERFORMANCE PRICES

OPEC and its allies, including Russia, have decided to maintain a 400,000-barrel-a-day increase in March despite rising prices and ignoring consumer calls for more crude oil.

In shares, Kroger shares rose after better-than-expected earnings and raised their forecast.

Best Buy also performed better than expected, and the forecast sent stocks higher.

Carmakers remain in focus after Ford Motor Co. said it is accelerating its transformation into an electric vehicle company and is dedicating its EVs and internal combustion operations to deal directly with Tesla.

In the economic news, the Ministry of Labor announced that the weekly unemployment applications were 215.00, a slight decrease of 232,000 in the previous week. Ongoing claims, which track the total number of unemployed workers collecting benefits, have changed slightly, to 1.476 million, which remains below pre-pandemic levels.

EMPLOYERS ADD 475,000 JOBS IN FEBRUARY: ADP

The big report for the month comes on Friday, when the government publishes the February Jobs Report. The US economy is estimated to have added 400,000 new non-agricultural jobs.

The “Now Hire” sign in a business in Richmond, Virginia. (AP Photo / Steve Helber / AP Newsroom)

Traders will also be able to examine several data points, including revised productivity and labor costs for the fourth quarter.

A key number to keep in mind is when the Supply Management Institute publishes its PMI for non-production in February. This important indicator for activity in the services sector is expected to rise to 61.0, slightly up from 59.9 in January.

The sales department will also publish data on factory orders in January. Watch for a 0.7% increase, reversing a 0.4% decline in December.

Bitcoin is trading over $ 43,000.

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Ken Martin of FOX Business and the Associated Press contributed to this report.

As coronavirus cases began to dwindle and mask mandates, a large Silicon Valley technology company set a date for employees to return to the office.

Google told its employees on Wednesday that the period of voluntary work from home, which was in force two years ago, will end on April 4, a company spokesman told SFGATE.

Employees in the San Francisco Bay Area and some of its other offices in the United States, Britain and the Asia-Pacific region will have to come to work in person three times a week. Employees can have two days of remote work.

“We plan to use the month of March to help employees move to their new routine activities and then strive to be fully functional in our hybrid work approach by April 4,” Google said.

Employees who enter physical workspaces need to be vaccinated, “because that’s one of the most important ways we can keep our workforce safe and keep our services running,” Google said.

Non-vaccinated staff with approved accommodation will need to follow specific protocols, including regular testing and wearing a mask.

The company said last year that it would introduce a hybrid model when it asked employees to return in person.

“I think people get a better balance in model three / two,” CEO Sundar Pichai told The Wall Street Journal’s Tech Live conference in October, Business Insider reported.

An email to officials in the San Francisco Bay Area said that “progress in prevention and treatment, the steady decline in the cases we continue to monitor, and the improved safety measures we have implemented … now mean that we can officially start the transition to the hybrid working week, “Reuters reported.

An email from John Casey, Google’s vice president of global benefits, says facilities such as cafes, restaurants, massages and shuttles are reopening at Google’s offices.

Google was one of the first technology companies to send employees home, and a two-year period of remote work has led many people to relocate. More than 14,000 Google employees have relocated or been completely removed during the pandemic, with 85% of applications approved, a company spokesman said.

In recent months, Salesforce has announced it will lure Zoom employees back to face-to-face meetings at a new new campus in the Santa Cruz Mountains. The Ranch Trailblazer in the Scotts Valley opens in March for adaptation, training, skills building, talent development and generally for personal connection with colleagues.

SF-based Twitter said their home work policies will continue indefinitely.

Shalanda Young, acting director of the Office of Management and Budget, spoke at a February 1 hearing of the Senate Committee on Homeland Security and Government Affairs in Washington, DC. (Al Drago / Bloomberg / Getty Images)

The White House has asked lawmakers to approve $ 10 billion in lethal and humanitarian aid to Ukraine as part of a $ 32.5 billion emergency funding request sent to Capitol Hill as Russia continues to advance against Ukraine.

The request was followed by weeks of discussions between White House officials and the legislature over the form of any potential emergency request, which was expected to focus heavily on the needs of Covid-19. But the escalating Russian invasion has dramatically increased the size of the demand specifically for Ukraine.

Lawmakers are in the midst of negotiating a long-term financing deal and face a March 11 deadline to reach an agreement.

Ukraine’s funds are expected to be attached to each final deal, but the process remains fluid.

“This request identifies an immediate need for $ 10.0 billion in additional humanitarian, security and economic assistance to Ukraine and Central European partners due to the unjustified and unprovoked invasion of Russia,” the official request was made Wednesday by the acting director of the Office of Management and Shalanda Young’s budget to the Congressional leadership says.

Young suggested that the initial $ 10 billion request for Ukraine would meet “immediate needs” and more funding could be needed.

“Given the rapidly evolving situation in Ukraine, I expect that additional needs may arise over time. “This request for funding is based on the administration’s best information on resource needs so far, and we will stay in touch with Congress in the coming weeks and months as we assess resource needs beyond those immediate needs,” she said.

More about the funding application: The detailed request provides $ 4.8 billion to the Department of Defense, including $ 1.8 billion to support the region as U.S. troops support European Command and the NATO Response Force, $ 1.3 billion for cybersecurity and more. defense support and $ 1.8 billion to replenish DOD stocks. He also called for $ 5 billion for the State Department and the United States Agency for International Development (USAID), including $ 2.8 billion in humanitarian aid such as food and other support, $ 500 million in military aid through the Foreign Military Funding Program and $ 1 billion. $ 8 billion in economic aid to help “maintain the continuity of government and resilience of the Ukrainian people, as well as the urgent needs of the region.”

The request also provides $ 21 million to the Department of Commerce to strengthen export controls, $ 30 million to the Department of Energy to provide “technical assistance for grid integration,” $ 59 million to the Department of Justice to support the newly announced job. the KleptoCapture group for imposing sanctions on Russia and other funding for the Multinational Working Group and $ 91 million for the Treasury Department to support sanctions and criminal investigations by the IRS, among other expenses.

Jane Fraser, CEO of Latin America at Citigroup Inc., smiles at the Milken Institute Global Conference in Beverly Hills, California, USA, on Monday, April 29, 2019. The conference brings together leaders in business, government, technology, philanthropy, academia and the media to discuss effective and collaborative solutions to some of the most important issues of our time. Photographer: Kyle Grilot / Bloomberg via Getty Images

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Citigroup CEO Jane Fraser called her first Investors Day conference a success, despite continued skepticism and unconvincing reactions from analysts covering the bank.

Fraser told CNBC’s David Faber in an interview Thursday that while it will take “several years” to achieve its return targets, investors will see revenue growth from its efforts “sooner or later.” The interview was broadcast on “Crackling in the Street”.

Asked how long Citigroup will continue to trade well below its book value, Fraser received the following answer: I realized, “she said.

Fraser, who began as CEO of Citigroup a year ago, held her inaugural investment conference on Wednesday. It was almost a full day in which Fraser and her deputies presented their vision of a simpler, more profitable institution focused on the bank’s strengths in global corporate banking and payments.

But some analysts were disappointed that Fraser had set a medium-term return target of 11% to 12%, saying it was difficult to recommend Citigroup shares because it would take several years to reach even that modest level. Two analysts downgraded the bank after the event.

“ROTCE’s uninspiring 11-12% medium-term target is simply not high enough to deserve a recommendation for overweight in the short term,” John Heigerty of Atlantic Equities said in a note Thursday.

Citigroup, which is traditionally the most global of major US banks, has 200 employees who continue to work in Ukraine despite Russia’s war there, Fraser said. They help customers with wages, supply chains and food, she said.

“I don’t think anyone knows how long it can last,” she said.

Meanwhile, both Citigroup and its customers are working to release their financial exposures to Russia, she said.

“There’s going to be a lot of relaxation,” she said.

This story is evolving. Please check again for updates.

Tesla (TSLA) – Take the report from Tesla Inc and CEO Elon Musk are officially very close to starting car production at the Berlin-based European factory.

After months of uncertainty, a key German regulator has approved a request from the Austin-based electric car maker, according to the German business newspaper Handelsblatt.

Tesla has been waiting for several months for permission from the German authorities to start production of vehicles in this giant factory, which will serve mainly the European market.

The company won final approval from the state environmental service in Brandenburg. Brandenburg Prime Minister Dietmar Voidke will comment on details of the decision to approve a press conference in Potsdam on Friday, Handelsblatt reported.

Tesla is not alone in expanding abroad

This news comes as Lucid Group (LCID) – Get Lucid Group, Inc. Report, one of Tesla’s main competitors, has just announced an agreement with Saudi Arabia to begin construction of its first international factory in the Kingdom in the current first half of the year. The company expects to produce up to 150,000 cars a year at the facility.

Lucid and its luxury electric sedans are considered one of Tesla’s most serious rivals. There is no doubt that with the support of Saudi Arabia, which is also a shareholder, the manufacturer in Newark, California, has the financial means to pursue its ambitions.

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Tesla, which disbanded its communications department last year, did not immediately respond to a request for comment from TheStreet.

The State Department of the Environment recently said Tesla would have to meet additional requirements and provide evidence before the plan could take effect, according to the newspaper, which did not provide further details.

Early action is possible if nothing fundamentally speaks against the project and the investor implements it at his own risk.

Objections to the environment and drought

Construction of the gigafactory began two years ago in Grünheide, about an hour southeast of Berlin. Musk had hoped to begin production on July 1 last year, but the approval process dragged on, in part because Tesla expanded its initial plans to include a battery factory. This led to additional hearings.

Until the beginning of February, the timing of the final approval from the state of Brandenburg was still unclear, as conservationists were still objecting, as Tony Owusu of The Street wrote.

Due to prolonged droughts in East Germany – even while there have been floods in the west – Berlin may miss the good old days of excess groundwater, environmentalists say.

Tesla was warned of this dynamic, but when Musk was asked last year if the construction of his factory in Brandenburg would deplete the area’s water supply, he burst out laughing, calling the idea completely wrong.

But with this approval, the last hurdle has already been removed.

Tesla plans to build a Model Y SUV on schedule. Its goal is to produce up to 10,000 cars a week.

The company’s plan to take over part of the European electric vehicle market rests on the shoulders of the Brandenburg plant, and Tesla is spending $ 5.7 billion to increase production.

If the plant reaches its full capacity, the 500,000 cars it will produce annually will double Germany’s electric car production in 2020.

Wall Street analysts have set their high targets for stock prices in part on the success of Tesla’s expansion in Germany.

Credit Suisse last month raised its share price target to $ 1,025 from $ 830 based on optimism about Brandenburg, with analyst Dan Levy writing that the plant “could serve as the most critical source of capacity for Tesla.”

Levy called the German market “the zero place for the global movement of electric cars.”

Tesla produced 930,422 cars in 2021.

• SocGen says it could lose Russian business in “extreme scenario”
• He says he has a $ 20 billion exposure to Russia, but he can handle it
• Intesa Sanpaolo is reviewing its presence in Russia
• The regulators are preparing for the possible closure of VTB Europe – sources
• Russia’s investment in the Norwegian Wealth Fund is useless – CEO

PARIS / FRANKFURT, March 3 – Societe Generale (SOGN.PA) warned on Thursday that Russia could deprive the bank of its local operations, in one of the most serious warnings so far from a Western company about the potential impact of the war in Ukraine.

The French bank, whose $ 20 billion exposure to Russia is one of the largest among foreign creditors, said it was working to reduce risks in the country as European banks reviewed business there amid escalating sanctions against the West.

“The group has more than enough buffer to deal with the consequences of a potential extreme scenario in which the group will be deprived of ownership of its banking assets in Russia,” Societe Generale said. Read more

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Meanwhile, Italy’s largest bank, Intesa Sanpaolo (ISP.MI), is conducting a strategic review of its presence in Russia following Moscow’s invasion of Ukraine, a spokesman said. read more Citigroup also warned of losses.

Bank stocks have been shattered in recent days amid fears of possible write-offs, lower incomes, weaker economies and the effects of sanctions. Their shares traded mostly lower on Thursday.

Regulators are also preparing for the possible closure of Russia’s branch of Russia’s second-largest bank, VTB Bank (VTBR.MM), amid growing concerns about the impact of Western sanctions on the bank, according to two sources familiar with the matter. Read more

If regulators decide to close VTB in Europe, it will mean the second bankruptcy of a major Russian bank in the region as sanctions put pressure on the country’s creditors. Sberbank, Russia’s largest bank, said earlier this week that it was closing most of its European operations. Read more

Many investors in recent days are trying to sell their Russian investments.

Russia’s assets of the $ 1.3 trillion Norwegian wealth fund, the world’s largest, have become useless and will take time to sell, according to government instructions, the fund’s chief executive said on Thursday. Read more

Fitch and Moody’s downgraded Russia’s rating by six notches to “junk” status, saying Western sanctions called into question its ability to service its debt and weaken its economy. Read more

A Societe Generale sign is visible in front of a bank building in Paris, France, August 1, 2021. REUTERS / Sarah Meyssonnier

The index of shares of leading European banks (.SX7P) fell 0.2% in afternoon trading, after small gains on Wednesday, which led only to a small depression in the sharp losses earlier in the week.

The trade took place on Thursday, when the invasion of Ukraine entered its second week and a day after Moscow said it had taken over the Black Sea port of Kherson. Russia calls its actions in Ukraine a “special operation.” Read more

Societe Generale, which earns nearly 3% of its profits in Russia, was one of the banks under pressure as the conflict escalated. Its shares are trading at 1.7% higher, but have fallen by about 20% since the beginning of the year. Read more

“The group conducts its business in Russia with the utmost caution and selectivity, while supporting its historic customers,” the statement said. Read more

The priorities are “to reduce risks and maintain the liquidity of its subsidiary by maintaining a diversified collection of deposits,” he added.

Citigroup Inc (CN) could face billions of dollars in losses in its Russian business and is helping some of its 200 employees in Ukraine leave the country after the Russian invasion, executives said on Wednesday. Read more

The bank’s total exposure to Russia was nearly $ 10 billion at the end of last year, she said on Monday, far higher than previously reported.

The London Stock Exchange Group said the imposition of financial sanctions on Russia would have only a minor impact on its business as it stopped more Russian listings. Read more

LSEG CEO David Schwimmer said the stock exchange had stopped trading 28 listings of Russian companies on Thursday, including energy giants Rosneft and Gazprom, as well as the country’s largest lender, Sberbank.

German bank Helaba said on Thursday that it would refrain from a specific profit forecast for the year, given the uncertainty caused by the situation in Russia.

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Report by Tom Sims, Tasilo Hummel, Gianluca Semeraro, Valentina Za, Frank Siebelt, Hugh Jones and Gwladis Fouche; edited by Mark Potter

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