German Parliament Approves Law To Hire Skilled Foreign Workers
The German parliament has approved immigration reforms designed to attract skilled workers into the country as it suffers from an unprecedented labor shortage. The notion garnered 388 votes of approval while 234 lawmakers voted against it and 31 abstained.
Stock Market Projections After Wild First Half
As a dizzying first half for U.S. stocks draws to a close, optimism that the U.S. central bank is approaching the end of its tightening campaign helped transform the technology-heavy gauge from 2022’s market underachiever to 2023’s early champion, with a surge of 36% erasing last year’s 33% slump.
Top Country Diplomat Stresses Warning On Weak Yen
The vice finance minister for international affairs told reporters that currencies should move stably, reflecting fundamentals after the Japanese yen weakened beyond 143 yen on Friday, a seven-month low against the dollar, and fell to a 15-year low beyond 155 yen against the euro.
Today’s News
The world’s largest wheat exporter, Rostov-on-Don in Russia was seized by rebel mercenaries over the weekend. This matter caught the world’s attention as oil, gas and grains flows in Rostov, Russia’s southern region, deeming it as a commodity hub. President Vladimir Putin vowed on Saturday to dispose of what was labelled as an armed mutiny after rebellious mercenary chief Yevgeny Prigozhin said he had taken control of the hub.
The hub’s main mode of transportation is through the Don river which connects the ports to the exporting vessels via the Azov Sea.
For the time-being, work and output were unaffected as the risks are unknown. Russia was backed into a corner to act, to swiftly keep the situation under control as questions are being raised on the stability of the country.
The mutiny was later reportedly aborted but the situation remains dire as the world puts Russia under a microscope, the situation has resulted in the following:
Concerns Are Rising On Country Stability
Investors were captivated by the shocking news of the Russian mutiny over the weekend and are currently paying close attention to the ripple effects in the market from the aborted mutiny in Russia, with some expecting a move into safe havens such as U.S. government bonds and the good old, mighty dollar.
Heavily armed Russian mercenaries withdrew from Rostov on Saturday under a deal that halted their rapid advance on Moscow. However, questions about President Vladimir Putin’s influence and power remains at large.
Oil Presses On While Stocks Dip After Mutiny
Stocks slipped slightly and oil rose in early trade on Monday, following the abortive weekend mutiny by Russian mercenaries raised questions about stability and crude supply. Brent crude futures rose by 1% to USD 74.55 a barrel and U.S. crude poked above USD 70, recouping a little of losses made last week. Japan’s Nikkei (.N225) fell by 0.2% and Australia’s ASX 200 (.AXJO) fell by 0.3% respectively.
The Japanese yen has also rose a bit, though it had help from hints at possible currency intervention from Japan’s top FX diplomat and a summary of opinions showing a central bank board member pushed for a debate on its yield curve control policy.
Is Putin’s Power And Influence Waning?
President Vladimir Putin has managed to avert an attack on Moscow with an eleventh-hour deal with his mutinous mercenary commander. But the uprising has put a stake through his total political dominance over Russia unlike any other event in his almost quarter-century career in power.
Insiders in Moscow were stunned that he’d ignored repeated warnings that Wagner chief Yevgeny Prigozhin was preparing to bring convoys of heavily armed fighters into the capital. Instead, the Russian leader allowed them into close proximity that the authorities had to deploy tanks and troops in an act of defense. That event alone had ignited the once unthinkable doubts on his legendary command of the country.
