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Russian Central Bank Intervenes After Currency Crashes, Halts "Manipulated" Equity Futures Trading
The Russian Ruble has collapsed this morning. Despite a modest dead-cat-bounce-like rally in crude oil, the Ruble is down almost 3 handles smashing through the 61/USD level for the first time ever. Minutes after flash-crashing to 61.46/USD, officials, according to Reuters, halted trading in certain instruments to “prevent possible manipulation of equity futures market." Russia's 5Y CDS has broken above 500bps for the first time since 2009 (+21bps today), the RTS stock market is down over 6%, and 5Y bond yields are pushing towards 13%. It seems Putin is increasingly being put under pressure to do something...
- RUSSIAN CENTRAL BANK SAYS ORDER TO MOSCOW EXCHANGE TO HALT TRADING IN CERTAIN INSTRUMENTS TO PREVENT MANIPULATION OF EQUITY FUTURES MARKET
The Central Bank of the Russian Federation (Bank of Russia) Press Service
On measures to prevent a possible market manipulation
In order to prevent possible manipulation during pricing expiry of futures contracts on the RTS Index RTS-12.14 equity markets included in the calculation base of the RTS Index as of 12.15.2014, the Bank of Russia sent an order to ZAO "MICEX" to suspend the trading of financial instruments near customers bidders whose actions in the equity markets have repeatedly directed action in times of determining the settlement price of the expiry of futures contracts on the RTS Index, ekspirirovavshihsya previously (2013-2014 gg.).
RTS is collapsing
The Ruble is crashing...
Then what apopeared to be intervention occurred...
Confirmed - BANK OF RUSSIA MAY HAVE SOLD $350M TO BOLSTER RUB: BCS' SAENZ
And default risk is spiking
Charts: Bloomberg
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Miketheterrible, do you see this as being a phase where russian companies or producers are using this as a way to invest in their production to compete with western goods?
There is interesting times for domestic companies. Since most foreign debt is private heald, they may default. Since credit from west cannot be had, in the end, wont matter to them as they are stuck with high interest rate loans from CB now and for a while to come. State run agencies are now doing import substitution or starting to turn a new production in import substituting, so next couple of years will see a resurgent of Russian made goods that were no longer made due to trade opening with west. Many enterprises still today have such previous experience for SU days.
Miketheterrible; would you own something like Gazprom shares, or Sberbank, at this point? I own the former and have no intention to sell but I am down better than 50%.
Maybe, if Putin posed shirtless and rassling a tiger in another contrived photo...that would help
Mabye if Obama posed shirtless wrestling his man wife,,, that would help.
Is the ZH Putin Mancrush team buying?
RTS down 8.5% today - loving it
Why many here jest and make fun of the american MSM economic tales they seem to take the view that everything said MSM writes of the Russian economy is as true and beautiful as the wind blown snow.
Things are not all rosy in Russia, but nothing close to problems of 90's. My family in rostov are farmers so they are making more money now than ever before, but yes, price of luxury items from europe is a fortune. Prices for clothing made in either Russia or India is up, but still cheap to get. Food prices in market has fluctuated with fish costing 40% more while bread about 2% more and other things like dairy and meats around 1% more. TV's not made in Russia has gone up an equivelent of $60 bucks average or so. Cars have gone up depending on model. But none of it is out of price range. At least ones made in Russia or countries with similar exchange rate. What a lot of Russians are crying about is now lack of raises (average wage growth was only 2% this last couple months), lack of newer jobs (new job rates have slowed down) and lack of ability to travel to switzerland to ski.
Putin - 62 years old
USD = 62 RUR
Brent - under 62 per barrel
YESSS
Fuck you! You don't have a heart! How can you be happy when my dear leader is being ***** world wide! You are bastard!
USD/RUB at 62.5. WOW!
The Lada Granta became the 6th cheapest automobile in the world. Its price is $4,000. The price will go down to $3,000 the next week.
It's a real automobile with 87-106 hp and an auto transmission unlike the cheapest Tata Nano. http://www.lada.ru/cars/granta/liftback/prices.html
And the Lada Niva is still in production http://www.lada.ru/cars/4x4/urban/about.html
Probably, Russian arms will cost little now too.
Mikhail Khodorkovsky just said on Bloomberg stated Putin backed government will be replaced by a 'Western' sponsored government within 10 years.
Jailing of Khodorkovsky Was Crucial for Russia's Prosperity
Khodorkovsky was the ringleader of the lobby that opposed taxation of oil .
Why are they keep doing this to my leader? WHY? Do something! I can't watch this! Please in the name of russian world - please stop this! Ohh my!
First of all, Russia needs to unload all of their US Treasury holdings and immediately declare that the ruble is now backed by gold. China would then soon follow, and not too long after that, the rest of the BRICs and then most of the world. The US, or should I say western banksters would be left standing with their dicks in their hands and a very sore asshole from the reaming that would ensure.
Putin holds the moral high-ground here and he has the ace of spades up his sleeve, in the form huge gold reserves. If the US tries to challenge Putin militarily through Ukraine, Putin would quickly take care of business there. The Ukies don't stand a change against the Russian Army. Putin could take Ukraine before Nato knew what hit them. I would personally like to see Putin judo-kick Porkyschenko in the nuts and then break his neck with his bare hands.
The bloodbath continues: ruble (should I call it Rubble from now on?) passed the 65 mark, flirting with 66 now, for a brief period it touched 67.
It lost 10% in a single day.
There was a post here on ZH few days ago, "When The Market Moves Fast, Stuff Blows Up".
Let's hope nothing nuclear blows up.
Over & back to popcorn.
Forgot to add: BTFATH signal?