Archives for September 2015

“Central Bank of Russia (CBR) governor Elvira Nabiullina is using orthodox but painful policy measures to combat the oil- and sanctions-driven storm that is ravaging the economy,” the magazine said Wednesday.

The publication appreciated Nabiullina and her team for their crisis-fighting skills, with the CBR’s dramatic moves last year to stabilize the domestic currency through interest-rate rises, and efforts to boost local-currency and hard-currency liquidity for financial institutions.

Those measures combined with the decision to implement a free-floating  exchange rate and an inflation-targeting regime, stabilized the financial system and boosted foreign-investor confidence, according to the publication.

READ MORE: Russia’s top banker debuts in Forbes list of most powerful women

“The CBR played their hand well: it stopped intervening uselessly, deployed reserves far more effectively by means of the FX repo and took the long view by tightening interest rates,” Paul McNamara, an emerging markets debt portfolio manager at global asset management group GAM told Euromoney.

Euromoney has nominated a Central Bank Governor of the Year for more than 30 years, coinciding with World Bank and IMF meetings.

Awards for Excellence cover more than 20 global product categories, best-in-class awards in all regions and the best banks in close to 100 countries around the world.

“This award is a great honor for me, as well as, definitely, the high evaluation of the Central Bank of Russia’s overall team performance,” Nabiullina told the magazine.

READ MORE: Nabiullina takes over Russia’s Central Bank’s top post

The Russian economy has faced up to serious challenges to its financial system, which requires tough decisions both in monetary policy and banking regulation, according to Nabiullina.

She added that global markets had entered the territory of uncertainty, calling on Russia to stay prepared for new challenges to come. In that context, the award of the Central Bank’s Governor of the Year means additional responsibility.

A former economic advisor to Russian President Vladimir Putin, Elvira Nabiullina became the first woman to run the Central Bank of Russia in 2013. She was Russia’s Minister of Economic Development and Trade in 2007-2012.

Article source: http://www.rt.com/business/315692-cb-russia-award-euromoney/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The austerity package is designed to balance the harsh economic downturn of the seventh-largest economy, whose sovereign credit rating was cut to ‘junk’ status last week.

The measures are going to freeze public sector salaries, cut jobs, eliminate ministries and axe social programs.

Brazil officially entered recession last month. The country’s GDP grew by only 0.1 per cent last year and is predicted to fall by 1.49 per cent in the near future. Commodity prices are falling and oil major Petrobras is involved in a corruption scandal.

READ MORE: Brazil’s credit rating cut to ‘junk’

“We must cut the deficit of $8 billion and manage a favorable balance of $9 billion. Overall, these measures will cost us $17.3 billion,” said Brazilian Planning Minister Nelson Barbosa following the announcement.

“We know this effort to cut spending will only take us so far, so as would happen in any country in the world in a moment of reduced economic activity and tax income, you have to seek out other resources,” said Brazilian Finance Minister Joaquim Levy to Bloomberg.

Brazil needs to pair austerity with an agenda for growth – tax reform, more trade, slashing horrid bureaucracy. Gotta show a bright future

— Brian Winter (@BrazilBrian) 13 сентября 2015

READ MORE: Petrobras CEO, 5 top managers resign amid Brazil’s biggest corruption scandal

The government’s attempt to pull the economy out of recession includes cutting the number of government ministries from 39 to 29, trimming 1,000 public sector jobs and freezing pay raises for the remaining state employees.

The plans must have the approval of the Brazilian Congress before they are implemented.

Article source: http://www.rt.com/business/315504-brazil-economy-austerity-crisis/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

“I have truly enjoyed owning the Miss Universe, Miss USA, and Miss Teen USA pageants. When I purchased the pageants many years ago, they were in serious trouble. It has been a great honor making them so successful … The pageants are now in the hands of a great company that will shepherd them to even greater levels of success,” Trump said.

Last week the billionaire bought back a 51 percent stake from NBCUniversal, ending a 13-year partnership with the company. The sides did not disclose the price of the purchase.

Just purchased NBC’s half of The Miss Universe Organization and settled all lawsuits against them. Now own 100% — stay tuned!

— Donald J. Trump (@realDonaldTrump) September 11, 2015

READ MORE: NBC severs business ties to Donald Trump after insulting Mexicans

Business relations between Trump and his former partner TV network NBC soured in June when the broadcaster refused to air the Miss USA pageant. This followed Trump’s controversial statements about Mexican immigrants when he announced his presidential run.

“They’re bringing drugs. They’re bringing crime. They’re rapists,” Trump said, adding “some, I assume, are good people.”

Donald Trump Presidential Announcement Full Speech, insults about Mexico begin 07:26

This also caused Univision, the largest Spanish language TV network, to end its relationship with Trump calling his comments insulting.

Trump acquired 100 percent ownership of the Miss Universe Organization in 1996. Seven years later he sold a stake to NBCUniversal when the network started broadcasting the Miss Universe and Miss USA pageants.

READ MORE: The Donald declares: Trump announces presidential bid

The Miss Universe Organization, which includes the Miss USA and Miss Teen USA pageants, has a value between $5 million and $25 million, according to Trump’s financial disclosures. The organization generated $3.4 million in income for Trump last year.

Property tycoon Trump, whose net worth is estimated at $9 billion, is running for the Republican candidature in the 2016 presidential election. In 2012 he fueled speculation about running for president, but didn’t enter the race.

Article source: http://www.rt.com/business/315391-trump-beauty-pageant-sell/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The Federal Anti-Monopoly Service (FAS) ruled that the “Google company has been found responsible for the violation of Part 1 of Article 10 of the law ‘On protection of competition’,” Vladimir Kudryavtsev, head of the FAS information technologies department, told RIA Novosti.

READ MORE: EU formally charges Google over search ‘abuse’ 

Furthermore, Google Inc., Google Ireland Ltd. and OOO Google have been accused of abusing their dominant position in the market with regards to the way the internet giant bundles its own applications with the Android operating system, while pushing out third parties like the Russian search engine and software company Yandex.

Yandex accused Google of prohibiting Android-based smartphone manufacturers from pre-installing Yandex products, after three smartphone vendors in Russia – Fly, Explay and Prestige – were prevented from offering pre-installed Yandex applications on their devices. The Russian company said that Google was forcing the pre-installation of the Google search engine as the default one as well as giving the US company’s application icons preferential placement on mobile devices.

The FAS says it will issue a full ruling within the next 10 days which will include a list of recommendation to prevent Google from abusing their market position.

READ MORE: India investigates Google over search results rigging 

“In particular, FAS could prescribe [Google] to adjust its agreements with manufacturers of mobile devices, eliminating those clauses that restrict pre-installation of applications and services by other developers,” according to Deputy Head of FAS Alexey Dotsenko.

“We have not yet received the ruling,” Google’s Russia spokeswoman said. “When we do, we will study it and determine our next steps.”

While FAS found Google guilty of abusing its dominant position in Russia, the regulator did not find the Mountain View company guilty of “unfair competition practices,” the watchdog told The Wall Street Journal.

Meanwhile Yandex, which filed the antitrust complaint back in February, welcomed the move saying that the company believes “the FAS decision will serve to restore competition on the market.”

READ MORE: Russian ‘Google-killer’ Yandex expands to China 

“In addition, the investigation confirmed the existence of agreements on prohibition of pre-installation of competitors’ apps,” Yandex said.

While Yandex continues to dominate Russian online searches, Google has emerged as a true competitor in the mobile search sector with Android operating system controlling more than a 60 percent of the market share in the country, according to Statista Inc.

Article source: http://www.rt.com/business/315352-russia-monopoly-watchdog-google/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Huge volumes of data have been collected during the probe, with 121 bank accounts brought to investigators’ attention. House searches have been conducted in Switzerland in order to get further evidence.

“Where proportional and needed, financial assets have been seized, including real estate, for example flats in the Swiss Alps. At this point I would like to emphasize that investments in real estate can be misused for the purpose of money laundering,” Swiss Attorney General Michael Lauber said Monday.

READ MORE: Red card! Swiss justice office freezes implicated FIFA officials’ bank accounts

He added that huge amounts of electronic data, at around 11 terabytes, have been seized so far, with more people been questioned.

The attorney general, however, did not specify the figure of frozen assets, saying it was too early and he preferred not to share the information.

READ MORE: FIFA officials arrested on corruption charges, face extradition to US

Criminal investigations have been ongoing for several months after a massive corruption scandal rocked FIFA on May 27. The scandal was prompted by a wave of accusations against the organization’s senior figures. Fourteen FIFA-linked officials and businessmen have been accused by the US of bribery, fraud and money laundering. Seven high-ranking officials were arrested in a Zurich hotel, where they had gathered ahead of the body’s general meeting.

READ MORE: Putin: ‘Europe should be more independent, defend own interests’

Russian President Vladimir Putin hinted that he views the allegations against FIFA as politically motivated, because the investigation began after the organization’s head Sepp Blatter pledged his support of Russia hosting the 2018 World Cup.

Article source: http://www.rt.com/business/315313-fifa-assets-seized-probe/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The city was recognized for its exceptionally rich history, centuries-old traditions and bright future, according to the travel industry’s most prestigious awards program.

It’s the first time a Russian city has won this category in the award’s 22-year history. St Petersburg triumphed over London, Paris, Amsterdam, Venice and others from the list of 13 nominees.

The red carpet ceremony took place in Sardinia, rewarding leaders in tourism, airlines, and hotel and hospitality sectors.

Meanwhile, statistics from the Federal Tourism Agency showed that the number of tourists visiting Russia’s Northern capital has increased by almost 60 percent in the first quarter of the year compared with the same period in 2014. Tourists from Germany, Ukraine, Turkey, Armenia, Italy, China and India visited St Petersburg which is considered Russia’s cultural heart. About 23,500 Chinese tourists came to Russia in the first three months of this year, according to the Russian travel association World Without Borders.

The overall number of foreign tourists in Russia increased by 16 percent in the first six months of 2015. The weaker ruble was a key factor in attracting tourists to the country. The ruble has lost more than the half of its value in just over a year.

Russia has become more affordable. Staying in Russian hotels during the Christmas holidays was 40 percent cheaper than in other European cities. The average price was about $55 (3,400 rubles) per day.

Russia is among the top ten countries for the number of tourist visits, with statistics showing rapid growth. The number of tourists in the country is expected to show more growth in the short-term.

Article source: http://www.rt.com/business/315245-russia-tourism-awards-city/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

October Brent fell $1.03 to $47.86 a barrel in Friday’s trading session at 14:00 GMT. US benchmark WTI futures for October were down $1.09 at $44.83.

READ MORE: Crude’s biggest rally in 25 yrs on possible ease in global glut

“The oil market is even more oversupplied than we had expected and we now forecast this surplus to persist in 2016 on further OPEC production growth, resilient non-OPEC supply and slowing demand growth, with risks skewed to even weaker demand given China’s slowdown and its negative EM feedback loop..,” Goldman analysts said.

The bank cut its 2015 Brent price forecast to $53.70 a barrel from $58.20, and predicted 2016 Brent prices at $49.50, down from its earlier $62 forecast. It also cut its 2016 estimate for West Texas Intermediate oil to $45 a barrel from an earlier projection of $57.

READ MORE: July OPEC output hits 3yr-high as Iran oil returns to market

OPEC’s kingpin Saudi Arabia said the cartel’s meeting would fail to produce concrete action towards defending oil prices, Reuters reported, citing unnamed sources. The comments followed a meeting of Gulf oil ministers in Doha, where Venezuela’s proposal for an OPEC and non-OPEC summit was discussed.

OPEC, which is expected to boost crude production despite the glut in the global oil market, earlier this month signaled a possible change of stance. The cartel said it might cut output and stands ready to talk to all other producers. Experts, however, say the OPEC’s statements are not important without a change of policy by its largest producer Saudi Arabia.

The cartel of the world’s 12 major oil producers, OPEC is currently pumping at near-record levels. The output hit a three-year high in July when it pumped almost 32 million bpd, which is two million more than the targeted 30 million.

Article source: http://www.rt.com/business/315032-oil-plunge-predictions-opec/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Nord Steam is an offshore gas pipeline that goes from Vyborg in Russia to Griefswald in Germany under the Baltic Sea bypassing Ukraine.

“What does the construction of Nord Stream-2 mean for the EU? This means that the EU loses the possibility of direct gas supplies through Ukraine via the shortest route. The amount of such a loss is 140 billion cubic meters of gas that could go through the Ukrainian gas transportation system” said Yatsenyuk on Thursday, adding that Ukraine would lose $2 billion in transit fees.

“This means that the construction of the Nord Stream 2 jeopardizes the security and continuity of gas supplies to the countries of South-Eastern Europe,“ said the Prime Minister.

Moscow has repeatedly expressed concerns over the reliability of gas transit via Ukraine. Gazprom switched Ukraine to a gas prepayment scheme last June due to Kiev’s failure to pay its gas bills. In 2019, the Russia-Ukraine gas transit contract expires and negotiations on its extension are now in a deadlock.

In September, Gazprom signed a deal to launch a joint company to construct the new pipeline. The new project will include two pipes that will deliver 55 billion cubic meters of gas annually from Russia to Germany via the Baltic Sea.

Among the shareholders in the project company named New European Pipeline AG will be Gazprom, E.On, Shell, OMV, BASF/Wintershall and Engie (former GdF Suez). Gazprom will hold a 51 percent stake, E.On, Shell, OMV and BASF/Wintershall will have 10 percent each, while Engie will take 9 percent. The project’s route is expected to follow the 1,224 kilometers of Nord Stream which opened in 2010. Nord Stream targets markets in Germany, France and the UK, and other EU countries.

On Friday, Gazprom CEO Aleksey Miller, Russian Energy Minister Aleksandr Novak and European Commission Vice President for Energy Union Maros Sefcovic are holding talks on the winter period, the transit of gas through Ukraine, and relations with it as a whole. Nord Stream-2 will also be discussed.

LISTEN MORE:

Article source: http://www.rt.com/business/315019-yatsenyuk-ukraine-nord-stream-gas/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

While the rating agency warned about a possible downgrade less than two months ago, the move came sooner than expected. At the time, SP revised Brazil’s outlook to negative from stable. The outlook on the new rating remains negative, which means that further downgrades could follow. SP awarded Brazil its investment-grade credit rating in 2008, and has become the first agency to downgrade the country back to junk.

READ MORE: Moody’s downgrades Brazil to near-junk status

In early August, international rating agency Moody’s downgraded its credit rating for Brazil to its lowest investment grade. The agency then gave a stable outlook on the rating.

“It’s a major defeat for the government, a major stigma for the Rousseff administration that puts the government even more on the defensive,” Thiago de Aragão, an analyst at political consulting firm Arko Advice told the Wall Street Journal.

READ MORE: ‘No to coup!’ Rousseff supporters hit streets of Brazil following anti-govt protests

Brazil’s economy, the world’s seventh-largest, has slipped into recession in the second quarter of 2015, with gross domestic product contracting 1.9 percent from the first quarter. The construction sector has been hit by a government corruption investigation, retail sales have retreated while consumer confidence has fallen to record lows. The country’s currency plunged to a nearly 13-year low against the US dollar last week.

The current recession is expected to become deeper and longer than expected, with no recovery before 2017.

A spreading corruption scandal involving state-controlled oil company Petrobras  and the stagnant economy have led the country’s president to a record-low approval rating. Dilma Rousseff is also under threat of impeachment over fiscal mismanagement charges from her first term.

Massive protests against Rousseff began in March, with over one million Brazilians taking to the streets to voice their anger. Another 600,000 took part in a similar demonstration in April.

Article source: http://www.rt.com/business/314924-brazil-agency-downgrade-junk/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

The group which is going by the name “DD4BC” or “DDoS for Bitcoin” (Distributed Denial of Service for Bitcoin) is responsible for a large number of bitcoin extortion attempts dating back to 2014. It is responsible for almost 150 attacks, 58 percent of which have targeted financial service companies, Akamai’s Prolexic Security Engineering Research Team (PLXsert) reported on Wednesday.

READ MORE: Australia pushes to recognize bitcoin as regular currency

Initially the group hit media, entertainment, online gaming and retailers, and bitcoin mining companies. However, over the last few months “DD4BC” has turned its attention to financial institutions like banks, brokers and automated clearing houses in Europe, Australia and US.

“DD4BC has been using the threat of DDoS attacks to secure bitcoin payments from its victims for protection against future attacks,” said Stuart Scholly, Senior Vice President General Manager, Security Division at Akamai. “The latest attacks—focused primarily on the financial service industry—involved new strategies and tactics intended to harass, extort and ultimately embarrass the victim publicly.”

The group’s method is quite simple; it picks the victim organization and threatens exposure via social media. It uses email to inform the target that a low-level DDoS attack will be set up against the victim’s website. The group can even starts a small “demonstrative” attack that lasts less than an hour, to show its capabilities. After the threat it demands a bitcoin ransom to protect the company from a larger DDoS attack which can make its website inaccessible. The ransom usually goes from 25 bitcoins ($6,150) to 100 bitcoins ($25,000), with an implied deadline.

READ MORE: First Bitcoin-based security starts trading on Nasdaq Nordic

The DD4BC’s goal is said to attract more attention to its ability to create service disruptions by publicly embarrassing the target and damaging the company’s reputation.

The group shows a medium level of technical competence, enough to understand bitcoin and to switch between a range of DDoS techniques to find the website’s weak spot, security experts told Bloomberg. It has already attracted the attention of law enforcement and intelligence agencies which warn never to pay such ransoms.

While financial organizations can avoid DDOS attacks by extra server capacities and defense systems, there are also other cyber-threats such as banking Trojans that can do far more harm.

Article source: http://www.rt.com/business/314892-bitcoin-cybercriminals-ransom-finance/?utm_source=rss&utm_medium=rss&utm_campaign=RSS