After months of turmoil driven by the prospect of tighter Federal Reserve policy, investors this past week confronted a fresh challenge when Russia invaded Ukraine. The geopolitical crisis threatens to crimp economic growth in Europe at a time when inflation is at a 40-year high and the Fed is poised to raise interest rates for the first time since 2018.
Investors Bet Oil Still Has Room to Run After Touching $100
On Wall Street, there is a bet that $100 oil is just the beginning.
Crude prices swung sharply and eclipsed $100 a barrel last week for the first time in about eight years after Russian airstrikes hit Ukraine and threatened to disrupt the movement of oil and other materials from the region.
EU, U.K., Canada, U.S. Plan to Cut Some Russian Banks From Swift
BERLIN-The U.S., European Union, Canada and U.K. announced new sanctions against Russia, saying they planned to cut some Russian banks off the Swift financial network and would take actions to prevent Russia's central bank deploying its more than $600 billion in reserves to help Russia's economy.
The joint statements in Washington and Brussels late Saturday-as Ukrainian and Russian forces fought for control of Ukraine's capital, Kyiv-sent a powerful signal of how the West could flex its collective muscle, after debating how to respond to the Russian aggression. They marked a significant step-up in efforts by western capitals to punish Russia for its invasion of Ukraine and pressure Russian President Vladimir Putin to seek a diplomatic off-ramp to the crisis.
With Agricultural Commodities Volatile, U.S. Seeks New Markets
Earlier this month, the first shipment of American wheat arrived in Ho Chi Minh City since Vietnam dropped its tariff on such imports in December.
The delivery comes at a time of widespread inflation, global unrest, snarled supply chains and rising commodity prices. It also reflects a Biden administration push to reduce U.S. reliance on exports to China, the biggest buyer of U.S. agriculture.
BP to Exit From Stake in Russia's Rosneft Following Pressure From U.K.
British energy giant BP PLC said Sunday it will exit its nearly 20% stake in Russian government-controlled oil producer Rosneft, days after it was pressured to unload the holding by U.K. officials amid Russia's invasion of Ukraine.
The British company faces a potential loss of as much as $25 billion-encompassing the maximum possible impact of selling the Rosneft stake, valued at $14 billion, plus a big expected charge related to foreign-exchange losses. Currently, BP relies on Rosneft for roughly one-third of its oil-and-gas production.
As War Reshapes Europe, Germany Pivots on Defense, Aid
BERLIN-Three decades after a Soviet-built wall crumbled in this city, Germany shook up its defense and energy-security strategies in response to Russia's invasion of Ukraine, a historic reversal of a foreign-policy tradition that long substituted trade and dialogue for hard power.
Chancellor Olaf Scholz, addressing Germany's Parliament, said Europe's economic powerhouse would nearly double its military spending, buy U.S.-made fighter planes for the first time in decades and create strategic energy reserves while shifting energy purchases away from Russia.
Russian Planes Barred From Airspace Over Europe, Canada
The European Union and Canada on Sunday said they would bar Russian planes from entering their airspace, joining other countries in choking off Russia's access to global aviation routes in response to its invasion of Ukraine.
The EU announced the step amid a host of other actions, including financing the purchase and delivery of weapons in a show of support for Ukraine. In closing its airspace, the EU banned not only commercial airliners but any plane owned, registered or controlled by Russians, European Commission President Ursula von der Leyen said.
Germany to Raise Defense Spending Above 2% of GDP in Response to Ukraine War
BERLIN-Germany will boost military spending above 2% of GDP and create a strategic natural-gas reserve, Chancellor Olaf Scholz said Sunday, marking a significant shift in the country's defense and energy policies in reaction to Russia's war in Ukraine.
The measures, all of which had long been resisted by successive governments and will now be reflected in this year's budget, underline how profoundly Russia's attack on Ukraine is upending European politics after almost eight decades of nearly uninterrupted peace on the continent.
Facebook, Apple and Other Tech Giants Face Rising Pressure Over Ukraine
U.S. tech giants are under pressure from both Russia and the West to respond to the conflict in Ukraine, highlighting their power over global discourse but also escalating a recent trend in which their businesses are squeezed by geopolitical events.
Analysts say the conflict could accelerate the fracturing of the internet, which not so long ago was largely split between China and the rest of the world. Increasingly, big tech companies are beholden to a patchwork of local rules, leading some to believe the "splinternet" is coming closer to reality.
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Expected Major Events for Monday
05:30/NED: Jan PPI
05:30/NED: Jan Retail turnover
06:00/FIN: Jan PPI
06:00/FIN: 4Q GDP
07:00/SWE: Jan Foreign trade
07:00/SWE: Jan Retail sales
07:00/DEN: 4Q Preliminary GDP
07:00/SWE: 4Q GDP
07:00/TUR: Jan Foreign Trade
07:00/NOR: 4Q Credit Indicator C3
07:00/NOR: Jan Credit Indicator C2
07:00/NOR: Jan Retail Sales
07:00/TUR: 4Q GDP
07:30/SWI: Jan Retail Sales
08:00/SPN: Feb Flash Estimate CPI
08:00/SWI: Feb KOF economic barometer
08:00/SVK: Jan PPI
08:00/SWI: 4Q GDP
09:00/BUL: Jan PPI
09:00/POL: 4Q GDP
09:00/ICE: 4Q GDP
10:00/MLT: Jan PPI
10:00/MLT: Jan RPI
10:00/CYP: Jan PPI
10:00/GRE: Jan PPI
10:00/GRE: Dec Turnover Index in Retail Trade
10:00/LUX: Jan PPI
11:00/POR: 4Q GDP
11:00/IRL: Jan Retail Sales Index
11:00/POR: Jan Retail trade
16:59/SPN: Dec Monthly Balance of Payments
16:59/SWI: 3Q Locational & Consolidated banking statistics
16:59/SWI: 4Q International debt securities statistics
16:59/SWI: 4Q Exchange-traded derivatives statistics
16:59/SWI: 3Q Domestic debt securities statistics
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February 28, 2022 00:15 ET (05:15 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.