US officials warned that Russian forces remain on the brink of invading Ukraine as Joe Biden failed to make a breakthrough during an hour-long phone call with his Russian counterpart Vladimir Putin. The US president made a last-ditch attempt to persuade Putin not to attack Ukraine as governments began to withdraw diplomatic and military personnel from the country. Biden warned Putin that western countries would respond to an invasion with “severe” economic sanctions, but the White House said that his efforts had not changed the Kremlin’s position and an imminent attack remained a “distinct possibility.” US officials warned on Friday that Russia could launch a full-scale attack as early as this week. Putin agreed to consider some of Biden’s suggestions which the US hopes will satisfy Russia’s security grievances with NATO, Ushakov added. But he complained that Ukraine’s western backers were increasing the chance of open conflict by supplying it with sophisticated weaponry and modernising its armed forces. The US state department said most of its staff would leave its embassy in Kyiv, while American citizens would be offered emergency assistance from the western city of Lviv.
Boris Johnson announced the creation of two freeports in Scotland on Monday as he attempted to move on from questions about his leadership by focusing on domestic policy priorities. The UK prime minister is hoping the week-long parliamentary recess will give him some respite after facing intense pressure from backbenchers in recent weeks. Tory MPs are waiting for the Metropolitan Police’s investigation into the “party-gate” scandal to conclude before deciding whether to call for a no-confidence vote in his leadership. The police’s inquiries are not expected to be concluded until early March, according to those with knowledge of the process. The prime minister hopes to shore up his position with several announcements designed to appeal to backbench MPs. Steve Barclay, Number 10’s new chief of staff, pledged on Sunday that the Johnson government would “step back” and favour “a smaller state.” The plans for two Scottish freeports, special economic zones that benefit from lower taxes, follow the eight announced in England last year. The government said the programme would add £24bn to the UK economy and encourage £25bn of private sector investment.
Sterling is weaker than most major currencies in the early morning trade. UK financial regulators have warned banks looking to use artificial intelligence to approve loan applications that they can only deploy the technology if they can prove it will not worsen discrimination against minorities, who already struggle to borrow. Up to a quarter of a million of Britain’s poorest households stand to miss out on chancellor Rishi Sunak’s £200 reduction in October’s energy bills because of how they pay for electricity. Nearly two million households, often amongst the most vulnerable in the country, have old prepayment energy meters in their homes to which credit cannot easily be applied. The UK universities’ pension scheme has set new interim targets for reductions in carbon pollution to spur progress towards achieving a goal of net zero greenhouse gas emissions across its portfolio by 2050. Britain believes that Russia’s powerful FSB spy agency has been given the task of trying to engineer coups in Ukraine’s major cities in the immediate aftermath of any invasion launched by the Kremlin. Boris Johnson will hold talks with world leaders this week in an attempt to bring Russia “back from the brink” of war, as the Ukraine crisis enters a “critical juncture.”
Euro is stronger against sterling and weaker against the dollar this morning. Ukraine could drop its bid to join NATO to avoid war with Russia, in what would amount to a major concession to Moscow in response to the build-up of Russian troops on its borders. Olaf Scholz, German chancellor, is preparing to launch an attempt to deter Vladimir Putin from further invading Ukraine, as US officials warned Russia was on the brink of launching an attack on its western neighbour. Scholz will travel to Kyiv today before arriving in Moscow tomorrow, where the German leader is expected to urge Putin to de-escalate the situation. Meanwhile, Germany and Spain called on their citizens to leave Ukraine. The German foreign ministry said it was relocating a consulate in the eastern city of Dnipro to Lviv. European printers have warned that industries such as food and consumer goods could suffer significant disruption to their supply chains because of a growing shortage of paper. Many businesses are already feeling the effect of paper shortages and a quadrupling of some prices in the second half of last year. Asset manager Abrdn was recently forced to delay a vote on a £ 1.5bn deal, after struggling to produce the printed documents it is required to send out to shareholders.
The dollar is well bid against most major currencies overnight. President Joe Biden has moved to freeze about $7bn in assets held in US financial institutions by the Afghan central bank in the wake of the Taliban takeover, as he vowed to direct $3.5bn to humanitarian aid and preserve the rest for families of victims of the September 11 terror attacks. The busiest U.S.-Canada border crossing reopened late Sunday after protests against COVID-19 restrictions closed it for almost a week, while Canadian officials held back from a crackdown on a larger protest in the capital, Ottawa. The crossing normally carries 25% of all trade between the two countries, and the blockade on the Canadian side had disrupted business in both countries, with automakers forced to shut down several assembly plants. Meanwhile, President Biden responded to American frustration with pandemic restrictions, saying that it was still too soon to end measures like indoor mask mandates, while suggesting that other restrictions may soon be able to end. The governors of Maryland and New Jersey defended their moves to ease Covid restrictions, saying on Sunday that falling coronavirus cases in their states justified a change even as new cases and deaths remain fairly high in some regions of the United States.
Ballinger & CO. Morning Report- 14th February 2022
GBP>EUR – 1.1940
GBP>USD – 1.3509
EUR>USD – 1.1317
GBP>CAD – 1.7238
GBP>AUD – 1.9022
GBP>SEK – 12.692
GBP>AED – 4.9624
GBP>HKD – 10.542
GBP>ZAR – 20.514
GBP>CHF – 1.2494
· 8:30 a.m.: Switzerland Jan. producer & import prices
· 11:30 a.m.: Germany sells bills
· 1:00 p.m.: Turkey sells bonds
· 5:15 p.m.: ECB’s Lagarde speaks
· Germany’s Scholz travels to Ukraine for talks with President Volodymyr Zelenskiy
· So-called freedom convoys protesting vaccine mandates are expected to arrive in Brussels
· EIA releases monthly Drilling Productivity Report
· Earnings include Recruit Holdings, Tokio Marine, Kirin, Kubota, Arista, Japan Tobacco, Japan Post Bank, Adani Enterprises, Dai-ichi Life, Capgemini, Michelin, Continental Resources, Advance Auto Parts
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