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Russian President Vladimir Putins special envoy Grigory Dmitriev: (Regarding the sanctions bill of the late Senator Graham) The bill hindered Russian-American investment cooperation, and more and more people in the United States are realizing that it was a mistake.Ukrainian President Volodymyr Zelenskyy on the 16th requested EU leaders to provide Ukraine with an additional 70 billion euros in funding next year to help the country continue its confrontation with Russia.California Governor Gavin Newsom: The Bryson fire is 17% contained.On October 16th, the Bank of Italy raised its economic growth forecast for the country, aligning it with the projections of Prime Minister Melonis government. In its latest economic bulletin, the Bank of Italy stated, "The upward revision of the 2026 economic growth forecast is mainly due to the weaker impact of the Middle East crisis in the first two quarters of this year compared to the June forecast, coupled with strong performance in investments related to digitalization and energy transition, and a positive trend in the summer tourism industry." The Bank of Italy expects the economy to grow by 0.9% this year, adjusted for working days, higher than the 0.5% forecast in June. Unadjusted growth is expected to reach as high as 1%, consistent with the governments forecast. The Bank of Italy stated that planned defense and energy spending will help drive economic growth. The economy is projected to grow by 0.7% and 0.8% in 2027 and 2028, respectively.On October 16th, Bank of America launched an investment-grade bond issuance, becoming the third major Wall Street bank this week to enter the volatile bond market after releasing its third-quarter results. According to a source with direct knowledge of the matter, Bank of America is promoting up to four different bond maturities, ranging from 3 to 11 years. The longest-term bond has an initial price that is approximately 1.2 percentage points higher than U.S. Treasury bonds. This unusual Friday bond issuance comes at a time when several companies have postponed the issuance of high-grade bonds in recent days. Stronger-than-expected inflation data and market concerns about artificial intelligence transactions have caused volatility in U.S. Treasury yields, prompting companies to postpone their financing plans. Bank of America is the only one of the Big Six Wall Street banks that did not enter the bond market in the third quarter, raising only $17 billion so far this year, the fewest among the Big Six. The banks most recent bond issuance was in April of this year, when it raised $10 billion.

Oil prices decline as the yuan increases and China's COVID-19 troubles intensify

Skylar Williams

Oct 11, 2022 11:35

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Oil prices fell by almost 2% on Tuesday, extending losses from the previous session, as a stronger U.S. dollar and an increase in COVID-19 cases in China fuelled fears of a global demand slowdown.


At 00:31 GMT, Brent crude futures fell 57 cents, or 0.6%, to $95.62 a barrel, after falling $1.73 in the previous session.


The price of U.S. West Texas Intermediate crude decreased by 55 cents, or 0.6%, to $90.58 a barrel, following a loss of $1.51 in the previous session.


The U.S. dollar rose for the fourth straight session on Monday as investors anticipated the release of high inflation statistics this week, resulting in the belief that the Federal Reserve will retain its aggressive monetary policy.


A strong dollar reduces the demand for oil by increasing its price for overseas consumers.


Monday, Lael Brainard, vice chair of the Federal Reserve, warned that recent rate hikes have begun to slow the economy and that the full impact of tighter policy will not be felt for several months.


ANZ Research analysts noted in a research, "Strong employment data has strengthened expectations for another 75 basis point rate hike at the Fed's meeting next month, generating negative risk for global oil demand."


Analysts said that China's continued zero COVID-19 policy prior to a Communist Party congress "does not assist" demand.


Since August, 19 cases have increased in the second-largest oil consumer in the world. For the first time in four months, its services activity decreased in September due to pandemic restrictions.


Since the beginning of October, thousands of cases caused by the highly transmissible Omicron sub-variants BF.7 have been documented in Inner Mongolia, making it the newest COVID epicenter in the country.


Last week, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, known collectively as OPEC+, decided to decrease their production target by 2 million barrels per day in an effort to prevent losses, thereby heightening fears on diminishing oil supplies.


"The supply concerns persist owing to sanctions on Russia, especially when the EU restricts Russian oil imports at the end of the year," said Tina Teng, an analyst at CMC Markets.


EU sanctions on Russian crude and oil products will take effect in December and February, respectively, and the bloc received final agreement last week for a new package of measures against Russia, including an export price ceiling.


Petroleum Minister Hardeep Singh Puri told Reuters that India has an "excellent relationship" with Russia and that it will assess any bids made following a restructuring of Sakhalin-1's ownership.


On Friday, Russia issued an order permitting it to seize 30% of Exxon Mobil's (NYSE:XOM) stake and granted a Russian state-owned business the authority to evaluate whether multinational shareholders, such as India's ONGC Videsh, may continue to participate in the project.

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