<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107029829-16472598662022-03-12t061542z_467857733_rc290t9vnin1_rtrmadp_0_health-coronavirus-china-820x547.jpeg" alt="" class="wp-image-416108" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107029829-16472598662022-03-12t061542z_467857733_rc290t9vnin1_rtrmadp_0_health-coronavirus-china-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107029829-16472598662022-03-12t061542z_467857733_rc290t9vnin1_rtrmadp_0_health-coronavirus-china-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107029829-16472598662022-03-12t061542z_467857733_rc290t9vnin1_rtrmadp_0_health-coronavirus-china-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107029829-16472598662022-03-12t061542z_467857733_rc290t9vnin1_rtrmadp_0_health-coronavirus-china-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107029829-16472598662022-03-12t061542z_467857733_rc290t9vnin1_rtrmadp_0_health-coronavirus-china-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107029829-16472598662022-03-12t061542z_467857733_rc290t9vnin1_rtrmadp_0_health-coronavirus-china-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via CNBC</figcaption></figure>



BEIJING — China’s biggest city Shanghai began a two-stage lockdown Monday as authorities attempt different strategies to maintain growth, while trying to control the country’s worst Covid-19 outbreak since the pandemic began.



Shanghai, a city of 26 million people on the southeastern coast of China, is a hub for finance and international business in the country. The city is also home to the world’s largest container-shipping port.



The lockdown measures include orders to work from home as well as the suspension of public transit and ride hailing, Shanghai city announced Sunday night. Previously, only specific neighborhoods had faced temporary lockdowns to control pockets of outbreaks.



The initial phase will run from Monday to Friday morning and apply to the eastern part of the city where the financial center is, the city said. The second phase will apply to the western part of the city, and run from Friday morning to the afternoon of the following Tuesday, April 5, municipal authorities said.



“The lockdown and mandatory testing district by district in China’s largest city, key transportation hub and financial center are highly likely to disrupt the city’s commercial activity,” said Bruce Pang, head of macro and strategy research at China Renaissance.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/russia-seeks-military-equipment-from-china-after-ukraine-invasion-reports/">Russia seeks military equipment from China after Ukraine invasion -reports</a></h3>



“We think that in the near term, China will stick to its zero-tolerance approach, pursuing [its] zero-Covid position as one of the world’s strictest virus elimination policies,” Pang said.



Tesla, whose Shanghai factory is located in the area covered by the first stage of the lockdown, reportedly halted production for at least a day on Monday, according to Bloomberg, citing sources. The electric car company did not immediately respond to CNBC’s request for comment.



The emergence of the highly transmissible omicron variant has made controlling outbreaks harder and increased uncertainty for business operations. Local governments across China have attributed the latest wave of cases to the omicron subvariant BA.2.



China has stuck to a strategy of lockdowns and quarantines to control Covid outbreaks, while maintaining economic growth. The policy helped the country rebound from the initial shock of the pandemic in early 2020, with relatively few infections and deaths compared with other parts of the world.



This time around, economists don’t expect lockdowns that last only a week or so to have a major impact on the national economy for the full year. Travel restrictions and stay-home measures affect consumer spending and services more than factory production, since workers can often stay on-site at industrial parks.



<h2 class="wp-block-heading" id="h-using-targeted-measures"><a></a>Using targeted measures</h2>



In Shanghai, officials have emphasized in the last few weeks how the city would not lock down and instead use a neighborhood-specific approach. Even in Sunday’s announcement, the city claimed the two-part lockdown was for conducting virus tests in batches.



Shanghai International Port Group, which manages the city’s ports, said in an online statement Monday that other than for extreme weather, production units maintained 24-hour operations.



And rather than a blanket ban on travel in and out of Shanghai during the two-stage lockdown, authorities said people in the city wanting to leave — by highway, train or airplane — will need a negative virus test within 48 hours of departure.



Shanghai’s two airports, including one focused on international travel, and three train stations are still operating normally, the municipal transportation authority said Monday morning.



<h2 class="wp-block-heading"><a></a>Surge in cases with no symptoms</h2>



New confirmed cases in the city have remained elevated, with even higher numbers of asymptomatic cases.



Shanghai reported 3,450 asymptomatic cases for Sunday, the most for any province-level region in mainland China. The city reported 50 new confirmed Covid cases for that same day.



All 3,500 affected individuals are in isolated treatment or isolated medical observation, the city said.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/u-s-warns-china-not-to-help-russia-as-anti-war-protest-disrupts-state-tv/">U.S. warns China not to help Russia as anti-war protest disrupts state TV</a></h3>



The latest update on March 15 to the national policy for Covid prevention and control said mild and asymptomatic cases can be managed at quarantine centers, rather than needing hospital care which would add to China’s already stretched health-care system.



Nationwide, the northern province of Jilin accounts for most of the new confirmed locally transmitted cases — 1,086 of the 1,219 reported for the mainland on Sunday. Although the latest Covid wave has touched provinces across China, the number of new confirmed cases a day in most regions is below 10.



The capital city of Beijing reported no new locally transmitted confirmed cases or asymptomatic cases for Sunday.



In an indication of how authorities are trying to limit cross-country travel, China’s national railway operator announced Saturday that travelers would not be able to book tickets for April 8 or future dates. Sales for those later times are set to resume April 2, the railway operator said.

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China is shutting down Shanghai in two phases to control Covid

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/48605395292_2412794aa7_b-820x547.jpg" alt="" class="wp-image-402446" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/48605395292_2412794aa7_b-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/48605395292_2412794aa7_b-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/48605395292_2412794aa7_b-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/48605395292_2412794aa7_b.jpg 1024w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>President Joe Biden
Photo: via Flickr</figcaption></figure>



President Joe Biden on Saturday said Russian leader Vladimir Putin “cannot remain in power,” ratcheting up international pressure and further uniting NATO allies against Putin over his invasion of Ukraine.



“A dictator, bent on rebuilding an empire, will never erase the people’s love for liberty,” Biden said at the end of a sweeping speech in Poland. “Ukraine will never be a victory for Russia, for free people refuse to live in a world of hopelessness and darkness.”



“For God’s sake, this man cannot remain in power,” Biden said.



Biden has hurled invective at Putin throughout the crisis in Ukraine, labeling him a “murderous dictator” and a “war criminal,” but has previously stopped short of calling for his removal from power.



Later Saturday, a White House official attempted to clarify that Biden “was not discussing Putin’s power in Russia, or regime change,” but rather was making the point that Putin “cannot be allowed to exercise power over his neighbors or the region.”



The president’s address at the Royal Castle in Warsaw marked the grand finale of a three-day trip to Europe. While in Poland, Biden met with Ukrainian refugees who had fled Russian aggression, as well as with U.S. troops stationed in Rzeszow, near Ukraine’s border.



In his speech, Biden urged democracies around the world to unify against Russia and commit to a historic battle against authoritarian aggression.



<h3 class="wp-block-heading" id="h-read-more-biden-says-u-s-will-sanction-russian-banks-sovereign-debt-and-individuals-after-ukraine-invasion">Read more: <a href="https://www.cnbcafrica.com/2022/biden-says-u-s-will-sanction-russian-banks-sovereign-debt-and-individuals-after-ukraine-invasion/">Biden says U.S. will sanction Russian banks, sovereign debt and individuals after Ukraine ‘invasion’</a></h3>



“In this battle, we need to be clear-eyed,” he said. “We need to steel ourselves for the long fight ahead.”



Biden directly and repeatedly condemned Putin throughout the speech, accusing the Russian president of “using brute force and disinformation to satisfy a craving for absolute power and control.”



Biden slammed Putin for invoking Nazi imagery as a pretext for an invasion, calling it an “obscene” lie. And he said it is “Putin who is to blame” for the mountain of international sanctions that are crushing Russia’s economy and its currency, noting that the Russian ruble has been reduced to “rubble.”



Biden also spoke past Putin, attempting to deliver an appeal to whichever Russian citizens may be able to hear the speech.



“This is not the future you deserve for your families and children,” Biden said. “I’m telling you the truth, this war is not worthy of you, the Russian people.”



Biden’s message to Ukraine was more direct: “We stand with you. Period.”

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Biden says Putin ‘cannot remain in power’ in sweeping speech on Russian invasion of Ukraine

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/WUYUY6XQ7FMIFBJ3JLHKTIOTZM-820x547.jpg" alt="" class="wp-image-416083" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/WUYUY6XQ7FMIFBJ3JLHKTIOTZM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/WUYUY6XQ7FMIFBJ3JLHKTIOTZM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/WUYUY6XQ7FMIFBJ3JLHKTIOTZM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/WUYUY6XQ7FMIFBJ3JLHKTIOTZM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/WUYUY6XQ7FMIFBJ3JLHKTIOTZM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>People and children walk at the border crossing between Poland and Ukraine, after Russian President Vladimir Putin authorized a military operation in eastern Ukraine, in Medyka, Poland, February 24, 2022. REUTERS/Kacper Pempel</figcaption></figure>



PRZEMYSL, Poland, March 25 (Reuters)&nbsp;&#8211;&nbsp;Ukrainian refugee Viktoria Lysykh had one message for world leaders after she crossed&nbsp;the border into Poland on Friday: &#8220;I want the war to end as soon as possible &#8230; In what way exactly? By any means.&#8221;



The 35-year-old arrived in Przemysl railway station with her teenage daughter and their two pet cats, as U.S President Joe Biden was preparing to visit the same frontier region to discuss the conflict with his Polish counterpart.



Asked what she hoped the high-level meeting would achieve, Lysykh laughed. The best hope was that the conflict would end &#8220;in the best way possible for Ukraine&#8221;. But above all, she just wanted to go back to her home in the Donetsk region.



&#8220;Let’s cease (fire) so that all of this will be over. In what way exactly this will be achieved doesn’t matter at all.&#8221;



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/russia-seeks-military-equipment-from-china-after-ukraine-invasion-reports/">Russia seeks military equipment from China after Ukraine invasion -reports</a></h3>



It had taken Lysykh and her daughter 19 hours to get to the frontier. She was planning to travel to Warsaw and then on to Germany where she was hoping to find work &#8211; her background is in human resources with a sideline as a beautician.



There were no friends or family waiting at their destination to take them in.



Around her in the station, more women and children kept arriving, loaded with bags. Around 32,500 refugees crossed into Poland on Thursday alone, border authorities said.



<h2 class="wp-block-heading" id="h-if-they-closed-the-sky">&#8216;IF THEY CLOSED THE SKY&#8217;</h2>



In all, Poland has taken in more than 2.23 million people,&nbsp;according to Poland&#8217;s border authority, more than half the refugees who fled Ukraine since Russia invaded.



Poland&#8217;s deputy education minister, Marzena Machalek, said on Friday around 700,000 Ukrainian children would be looking for places in local schools.



Biden was due to meet refugee organisations and sit down with Polish President Andrzej Duda in the town of Rzeszow, about&nbsp;80 km&nbsp;(50 miles) from the station.



His visit comes a day after he and other Western leaders put on a show of unity against what Russia calls its &#8220;special military operation&#8221; in Ukraine.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/african-students-wonder-what-next-after-ukraine-war-upends-education/">African students wonder what next after Ukraine war upends education</a></h3>



At an unprecedented triple summit in Brussels, NATO announced plans for new combat units in four eastern European countries near Ukraine, while the United States and Britain increased aid and expanded sanctions.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VR03A&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Biden annouced more plans on Friday, saying the United States will supply more liquid natural gas to the European Union to help it cut its reliance on gas supplies from Russia.<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VO03P&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Back at Przemysl, a 52-year-old refugee called Alla said there was only one thing that would stop the fighting quickly &#8211; something that Western powers have repeatedly ruled out &#8211; an NATO-enforced no-fly zone over Ukrainian territory.



&#8220;If they closed the sky, then they would stop bombing our cities &#8230; and then the war would end fast,&#8221;&nbsp;she said as she waited to get on another train deeper into Poland.



(Reporting by Anna Koper in Przemysl, Felix Hoske in Gdansk, Luiza Ilie in Bucharest, Robert Muller and Jan Lopatka in Prague, writing by Krisztina Than; Editing by Andrew Heavens)

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As presidents meet, Ukraine refugees just want fighting to end

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MYS3QSEAHFILLDMUWDPI2V7TJM-820x615.jpg" alt="" class="wp-image-416059" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MYS3QSEAHFILLDMUWDPI2V7TJM-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MYS3QSEAHFILLDMUWDPI2V7TJM-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MYS3QSEAHFILLDMUWDPI2V7TJM-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MYS3QSEAHFILLDMUWDPI2V7TJM-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/MYS3QSEAHFILLDMUWDPI2V7TJM.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Nkateko Muyimane a medical student who was studying in Ukraine before the war looks on during his interview with Reuters in Johannesburg, South Africa, March 18, 2022. REUTERS/Shafiek Tassiem</figcaption></figure>



JOHANNESBURG, March 24 (Reuters)&nbsp;&#8211;&nbsp;Nkateko Muyimane and six fellow African students hid in a subway while Russian shells pounded Kharkiv, before fleeing on a train to Budapest they very nearly failed to board.



Now their main concern is how to salvage the degrees they sacrificed so much to start.



South African Muyimane, 24, and classmate Mandisa Malindisa, 25, were both studying medicine with a year to go before graduating. Now, they say, there is no university left.



&#8220;It&#8217;s been bombed out and turned to rubble,&#8221; Muyimane said at his brother&#8217;s apartment in a northern Johannesburg suburb. &#8220;Even if we do continue online, medicine is practical: you need to be physically there with the patient.&#8221;



They are among tens of thousands of African students whose studies were upended by Russia&#8217;s war on its neighbour, many of whom were drawn to Ukraine&#8217;s world class educational facilities available at a fraction of the cost of Western universities.



Ukraine&#8217;s history of attracting Africans to its academies dates back to the Cold War, when Soviet states wooed students from newly independent African nations with the promise of a subsidised education.



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Like many parents, Malindisa&#8217;s mother, a nurse, and father, a civil engineer, tightened their belts, saved and borrowed to put her through Ukraine&#8217;s Kharkiv National Medical University.



&#8220;It was a big sacrifice for the school fees, and the apartment she was renting,&#8221; her mother Zandile told Reuters.



Malindisa&#8217;s anxiety about losing her qualification, after all her parents had invested, had kept her in Ukraine, but as war approached, she decided to fly out rather than risk staying.



Her mother booked her three tickets; all got cancelled. She, Muyimane and the five other African classmates endured days of bombardments before fleeing to Pivdennyi Vokzal station. There, they said, they had to fight to get on a train including against a passenger who bit one of them to try to prevent her boarding.



Compared with that horror, finding her a new school seems less daunting.



&#8220;I haven&#8217;t lost hope,&#8221; Zandile said. &#8220;Something will come up for her.&#8221;



<h2 class="wp-block-heading" id="h-online-option">ONLINE OPTION</h2>



Malindisa worries that she has no certificate to show prospective universities what she has accomplished &#8211; getting her transcripts from what is now a war zone isn&#8217;t going to be easy.



Her fears are shared by many students who returned from Ukraine in recent weeks.



Muyimane&#8217;s mother is a doctor, and she was proud to have a son follow in her footsteps, he said, adding: &#8220;I must make a plan: medicine is my dream&#8221;.



At her house in Ghana&#8217;s capital on March 5, 23-year-old medical student Maame Akousa Addo stood over two small duffel bags containing the few things she&#8217;d managed to bring back with her to Accra and wondered whether she would be able to go back after the war.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/south-africa-sees-food-inflation-opportunity-from-russia-ukraine-war/">South Africa sees food inflation, opportunity from Russia-Ukraine war</a></h3>



&#8220;We&#8217;re just waiting to hear from our schools,&#8221; she said. &#8220;To see if they will establish a sort of online option.&#8221;



For Nigerian student Joshua Adebowale, 32, the hope is that things will calm down soon so he can return to Kyiv Medical University, which his parents and brothers were paying for. &#8220;Otherwise these will be wasted years and money,&#8221; he said.



But for compatriot Jasper Ahamefula, 19, who had just started a business studies course, a degree no longer seems an option. He plans to try and start up a business &#8212; tailoring perhaps &#8212; without a qualification.



&#8220;It doesn&#8217;t matter,&#8221; he said. &#8220;My parents, yes it&#8217;s a lost investment, but they care that I&#8217;m alive. That&#8217;s great, I guess.&#8221;



(Additional reporting by Sisipho Skweyiya in Johannesburg, Cooper Inveen in Accra and MacDonald Dzirutwe in Lagos; Editing by Alexandra Zavis and Emelia Sithole-Matarise)

MYS3QSEAHFILLDMUWDPI2V7TJM

African students wonder what next after Ukraine war upends education

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/104521132-RTX38ZSF-mexico-sugar.jpg" alt="" class="wp-image-416018" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/104521132-RTX38ZSF-mexico-sugar.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/104521132-RTX38ZSF-mexico-sugar-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/104521132-RTX38ZSF-mexico-sugar-160x90.jpg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Workers spray fertilizer in a sugar cane field in Zacatepec de Hidalgo, in Morelos state, Mexico, May 31, 2017. Picture taken May 31, 2017. Edgard Garrido | Reuters</figcaption></figure>



LONDON — Supply shortages fueled by the Ukraine-Russia conflict, along with a host of pre-existing factors, have driven fertilizer prices to record highs.



Prices for raw materials that constitute the fertilizer market — ammonia, nitrogen, nitrates, phosphates, potash and sulphates — are up 30% since the turn of the year and now exceed those seen during the food and energy crisis in 2008, according to British commodity consultancy CRU.



Russia and Ukraine are among the most important producers of agricultural commodities in the world, with exportable supplies in global foodstuff and fertilizer markets concentrated in a small number of countries.



In 2021, Russia was the world’s top exporter of nitrogen fertilizers and the second-largest supplier of both potassic and phosphorous fertilizers, according to the U.N. Food and Agriculture Organization.



Trade between Russia and the rest of the world has not stopped, but has been severely disrupted as importers and vessel charterers steer clear of the country in light of the invasion of Ukraine, CRU Head of Fertilizers Chris Lawson said on Tuesday.



Russia, which accounts for around 14% of global fertilizer exports, has temporarily suspended outgoing trade, which is expected to have a strong ripple effect across global food markets.



“Furthermore, gas is a key input for fertilizer production. High gas prices have resulted in a curtailing of production in regions such as Europe, further constricting an already tight market,” Lawson said.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/world-bank-slashes-global-growth-forecast-and-warns-about-growing-inequality/">World Bank slashes global growth forecast and warns about growing inequality</a></h3>



Meanwhile, sanctions on Russian-ally Belarus have substantial implications for the potash market, with Russia and Belarus contributing a combined 40% of annual traded volumes.



“Since the beginning of 2020, nitrogen fertilizer prices have increased fourfold, while phosphate and potash prices over threefold,” Lawson explained.



“While farmers in developed markets have benefitted from high agricultural commodity prices, helping to partly offset high input prices, demand destruction is increasingly likely due to high prices and supply shortfalls.”



Economies around the world are already dealing with historically high inflation driven largely by soaring food and energy prices. The U.N. Food and Agriculture Index shows food prices are at an all-time high, and Lawson suggested that a prolonged period of fertilizer shortage will affect longer-term farming yields.



“Given the already tight grains and oilseeds market, and the importance of both Russia and Ukraine in those markets, food price inflation is an increasingly prominent risk,” he added.



Prior to the threat of reduced supplies from Russia and Belarus, fertilizer prices had already been facing upward pressure from global supply chain disruptions, a Chinese export ban and a Canadian rail strike.



<h3 class="wp-block-heading" id="h-more-severe-consequences">‘More severe consequences’</h3>



While much of the focus of discussions around price spikes in the wake of Russia’s invasion of Ukraine has been dominated by energy, the supply shock to fertilizer, wheat and other grains is expected to compound the problem.



In a research note earlier this month, Barclays Chief U.K. and Senior European Economist Fabrice Montagné and Head of Economics Research Christian Keller suggested that “the breadth and intensity of this supply shock could have more severe consequences than previous commodity price spikes, by broadening inflationary pressure.”



“Food and fertiliser production have a high energy content owing to mechanisation, industrialisation and transport, but they also compete with other industries for raw inputs: the production of biofuel, for example, diverts crops away from agri-food while the production of lithium-ion batteries requires chemicals used in the production of P-fertiliser,” they said.



“Finally, renewed shipping and transportation difficulties and, more importantly, the impact of Russian sanctions on global supply are set to stretch global markets even further, akin to the 2008 global food crisis.”



Global food prices increased sharply in 2007 and into the first quarter of 2008, triggering economic and political instability and social unrest across nations, both in developed and emerging economies.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/oil-prices-surge-as-russia-ukraine-crisis-escalates/">Oil prices surge as Russia-Ukraine crisis escalates</a></h3>



The impact, Barclays suggested, will be “extremely asymmetrical” with most emerging market economies disproportionately affected by food and fertilizer supply risks.



However, that is not to say that developed economies and investors will not be affected, with punitive Russian and Western economic sanctions inevitably reducing supplies of energy, grain and fertilizer.



In a note Friday, Wells Fargo Head of Global Real Assets John LaForge and Global Strategist Gary Schlossberg said given the weight of Russian supply, other countries will only be able to “partially” fill global supply gaps.



Wells Fargo expects the food impact to be felt globally, becoming particularly troublesome for select emerging countries.



“Overall, the current commodity wars, we believe, will lead to higher and more persistent inflation around the world, including in the U.S.,” they said.



“However, we think a U.S. recession is unlikely because low trade volumes with Russia should leave the U.S. in a comparatively stronger economic position.”

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Fertilizer prices are at record highs. Here’s what that means for the global economy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/FederalReserve-820x547.jpg" alt="" class="wp-image-416006" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/FederalReserve-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/FederalReserve-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/FederalReserve-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/FederalReserve-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/FederalReserve-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/FederalReserve-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A security guard walks in front of an image of the Federal Reserve following the two-day Federal Open Market Committee (FOMC) policy meeting in Washington, March 16, 2016. REUTERS/Kevin Lamarque </figcaption></figure>



NEW YORK, March 21 (Reuters)&nbsp;&#8211;&nbsp;Sharp moves in the U.S. Treasury market are increasingly pointing to the risk of an approaching recession, with &#8220;bond vigilantes coming out of the woodwork&#8221; and markets doubting the U.S. Federal Reserve&#8217;s plan to engineer a &#8220;soft landing&#8221; for the economy as it hikes interest rates to fight inflation, market experts said.



Fed Chair Jerome Powell said on Monday the U.S. central bank must move &#8220;expeditiously&#8221; to bring too-high inflation to heel and that it could use bigger-than-usual interest rate hikes if needed. Bond yields, which move inversely to prices, spiked while the U.S. Treasury yield curve continued its flattening trend.<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VO1LG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;The market seems to be challenging the soft-landing view for the U.S. economy that the Fed argued at the March FOMC meeting&#8221;, BofA strategists said.



The U.S. Treasury yield curve reflects &#8220;recession risks, and not just through the curve&#8217;s extreme flatness at the inception of the Fed tightening cycle,&#8221; the strategists said.



The closely followed part of the yield curve measured between 10-year and two-year Treasuries&nbsp;US2US10=TWEB&nbsp;has narrowed by about 60 basis points since the start of the year, with the longer-dated notes now yielding less than 20 basis points more than two-year debt.



Any inversion of that part of the curve, when shorter notes yield more than longer ones, is generally seen as presaging a recession by six to 24 months.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VJ3QT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;The yield curve does look ominous,&#8221; wrote Christopher Murphy, Co-Head of Derivatives Strategy at Susquehanna Financial Group, although he said an inversion does not always guarantee a recession.



Melissa Brown, Global Head of Applied Research at Qontigo, said the yield curve is reflecting a shift in market views on the ability of the Fed to tighten monetary policy just enough to reduce inflation without throwing the economy into a recession.



&#8220;The market perhaps is assuming that they can&#8217;t thread that needle &#8230; it&#8217;s going to be tough to not drive us into recession&#8221;, she said.



Still, Powell on Monday said he did not see an elevated likelihood of a recession in the next year and others are skeptical of such an event.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS0N2RG02R&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



That prompted Federal funds rate futures on Monday to raise the chances of a half percentage-point tightening at the next policy meeting in May.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VO23D&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Analysts at NatWest said Powell was clearly &#8220;warning of risks to 50bp hike(s) at the coming meetings,&#8221; which they said sent Treasuries into &#8220;free fall.&#8221;



When asked on Monday about concerns on what the yield curve is saying, Powell said that he focused on the short end of the curve, meaning the first 18 months of maturities.



Morgan Stanley said in a research note on Sunday that an inversion of the yield curve was possible in the second quarter this year, but that an inversion does not necessarily anticipate a recession.



&#8220;However, it does support our view for sharply decelerating earnings growth&#8221;, it said.



For Tim Holland, chief investment adviser at Orion Advisor Solutions, a recession is not imminent, despite the flat curve.



Another part of the curve which compares three-month bills with 10-year notes&nbsp;US3MUS10Y=RR&nbsp;has steepened this year, from 145 basis points on Dec. 31 to 181.54 basis points on Monday.



&#8220;If the past 30 years is any guide, both parts of the curve need to flatten and invert before we are at risk of recession&#8221;, he said.



Powell&#8217;s speech on Monday at a National Association for Business Economics conference caught some market participants off guard as they seemed more hawkish than his remarks after the Fed last Wednesday raised the federal funds rate by 25 basis points.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VO1UY&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Yields spiked on Monday with the 10-year benchmark note&nbsp;US10YT=RR&nbsp;up to a yield of 2.298% from 2.153% on Friday &#8211; the highest since May 2019. Yields of two-year Treasuries&nbsp;US2YT=RR, which more closely reflect monetary policy expectations, jumped to 2.111% from 1.942% on Friday.



&#8220;What you saw today is Powell basically throwing the towel, he said he&#8217;s going to do whatever it takes, and it took the market a little bit back&#8221;, said Andrew Brenner, head of international fixed income at National Alliance Securities.



Brenner described the bond market behaviour as that of bond vigilantes &#8211; when investors insist on high yields to compensate for the risk of inflation.



&#8220;Bond vigilantes have come out of the woodwork,&#8221; Brenner said, adding he saw a large amount of selling in the futures market, particularly concentrated in five-year futures.



(Reporting by Davide Barbuscia; additional reporting by Alden Bentley; Editing by Megan Davies, Hugh Lawson and Bernard Orr)

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Bond market fireworks highlight recession worries

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/105806925-1553186112904gettyimages-956518640.jpeg" alt="" class="wp-image-415995" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/105806925-1553186112904gettyimages-956518640.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/105806925-1553186112904gettyimages-956518640-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/105806925-1553186112904gettyimages-956518640-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>A MiG-31K fighter jet with a Kinzhal hypersonic missile flies over Moscow’s Red Square during the Victory Day military parade in 2018. Sefa Karacan | Anadolu Agency | Getty Images</figcaption></figure>



Russia’s purported use of hypersonic missiles in Ukraine in recent days is not only a sign that the military could be resorting to using more destructive weaponry, but also an opportunity for Russia to flaunt weapons it says it’s been developing for several years.



Russia’s Defense Ministry said on Friday that it had deployed “Kinzhal” (meaning “Dagger” in Russian) hypersonic aeroballistic missiles to destroy a large underground warehouse of Ukrainian missiles and aviation ammunition in Delyatin, in the Ivano-Frankivsk region of western Ukraine.



Then on Saturday, the ministry said it had used Kinzhal hypersonic aeroballistic missiles again to destroy a large Ukrainian storage base for fuels and lubricants in the Mykolaiv region; Russia’s Defense Ministry said in a statement it was the main fuel supply base for Ukrainian armored vehicles in combat areas in southern Ukraine.



Russian news agencies said the reported use of hypersonic missiles was the first time Russia’s military had used them in its invasion of Ukraine, which began on Feb.24.



CNBC was unable to immediately verify the claims of hypersonic weapon use. The Pentagon said it wasn’t able to either, but Russia has been flaunting the development of several types of hypersonic weapons for several years.



CNBC has a brief guide to hypersonic missiles and what Russia claims to have used:



<h2 class="wp-block-heading" id="h-what-is-a-hypersonic-missile"><a></a>What is a hypersonic missile?</h2>



A hypersonic weapon is classed as any missile that travels at least five times faster than the speed of sound, or Mach 5 (around 3836 miles per hour) or faster, meaning they can travel about one mile per second. They can also change direction mid-flight, making them a formidable strategic weapon and almost impossible to intercept, unlike conventional missiles.



Russia and China have been seen to be leading the way in the development of hypersonic missiles, much to the dismay of the U.S., a country arguably been behind the curve on this front.



In 2018, during his State of the Nation address, President Vladimir Putin bragged about Russia’s development of hypersonic missiles as he unveiled the Kinzhal and several other next-generation strategic weapons. Putin said at the time Russia had developed a new prototype missile that “can reach any point in the world” and a supersonic weapon that cannot be tracked by anti-missile systems.



The Center for Strategic and International Studies think tank noted in a February report that “hypersonic weapons combine the speed and range of ballistic missiles with the low-altitude and maneuverable flight profile of a cruise missile.”



<h2 class="wp-block-heading"><a></a>What is the Kinzhal hypersonic missile?</h2>



The&nbsp;Kh-47M2 Kinzhal hypersonic missile is an aeroballistic&nbsp;air-to-surface missile that Russia claims has a range of more than 2,000 kilometers, or 1,200 miles, and a speed of Mach 10 — that is, that they can travel ten times faster than the speed of sound.



The Kinzhal hypersonic missile is designed to be carried by MiG fighter jets, as seen in the image below, which shows MiG-31K supersonic interceptor aircraft designed to carry Kh-47M2 Kinzhal missiles.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107033407-1647783875802-gettyimages-956355786-AFP_14O7DL.jpeg" alt="" class="wp-image-415996" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107033407-1647783875802-gettyimages-956355786-AFP_14O7DL.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107033407-1647783875802-gettyimages-956355786-AFP_14O7DL-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107033407-1647783875802-gettyimages-956355786-AFP_14O7DL-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Russia’s MiG-31 supersonic interceptor jets carrying hypersonic Kinzhal missiles fly over Red Square during the Victory Day military parade in Moscow on May 9, 2018. Yuri Kadobnov | AFP | Getty Images</figcaption></figure>



Russian news agency Interfax cited the Russian military as suggesting that such missiles could be guaranteed to overcome all existing and developed air and missile defense systems.



Putin has made such remarks himself, saying in 2018 that these kinds of&nbsp;weapons provide “substantial advantages in&nbsp;an&nbsp;armed conflict.” He added that “its speed makes it invulnerable to&nbsp;current missile and&nbsp;air defence systems, since interceptor missiles are, simply put, not fast enough.”



“In&nbsp;this regard, it is quite understandable why the&nbsp;leading armies of&nbsp;the&nbsp;world seek to&nbsp;possess such an&nbsp;ideal weapon,” Putin said.



Russia has heavily invested in developing hypersonic weapons in recent years, with Putin also announcing in 2018 the development of the “impossible to intercept” Avangard hypersonic glide vehicle which has a range of over 6,000 km, and the Zircon hypersonic missile, as well as the Dagger.



<h2 class="wp-block-heading"><a></a>Should we be worried?</h2>



Russia’s Defense Ministry on Saturday released a video via Twitter that it claimed showed the missile strike on the arms depot. NBC News was unable to verify the claim, or when or where the explosion in the footage occurred, however.



The Pentagon said it could not refute or independently confirm their use in the strike.



A senior U.S. Defense official, who spoke on the condition of anonymity in order to share new details from the Pentagon’s ongoing assessment of the war, said it would be odd for the Kremlin to fire a hypersonic weapon.



“It’s a bit of a head-scratcher &#8230; Why you would need a hypersonic missile fired from not that far away to hit a building?” the official said. Since Russia’s Feb. 24 invasion of its ex-Soviet neighbor, the Pentagon has observed more than 1,100 Russian missile launches into Ukraine.



James Bosbotinis, a U.K.-based specialist in defense and international affairs, said on Twitter that “Russia’s reported use of a hypersonic air-launched Kinzhal against Ukraine is unsurprising,” adding it would act as both “a signal to Ukraine that Russia has options to escalate, and a message to NATO.”



The Kinzhal is Russia’s first operational conventionally-armed hypersonic weapon, Bosbotinis added but U.S. Defense Secretary Lloyd Austin said on Sunday he didn’t see the use of hypersonic missiles in Ukraine “as a game changer.”



“I think the reason he is resorting to using these types of weapons is because he is trying to re-establish some momentum,” Austin told&nbsp;CBS&nbsp;talk show “Face the Nation.”



Nonetheless, hypersonic missiles pose new dilemmas for national defense bodies and complex air defense around the world.



The Center for Strategic and International Studies said in its February report that “defending against hypersonic missiles is strategically necessary, technologically possible, and fiscally affordable, but it will not be easy.”



“While traditional defenses can handle these challenges individually, their combination will require new capabilities, operational concepts, and defense design. The same characteristics that make hypersonic missiles attractive may also hold the key to defeating them. Instead of thinking about hypersonic defense as an adjunct to the legacy ballistic missile defense problem, it might be better understood as a form of complex air defense.”



— CNBC’s Amanda Macias contributed reporting to this story.

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Russia says it fired hypersonic missiles in Ukraine. What are they and why would Moscow use them?

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106982305-1647881593675-GettyImages-1356399616r.jpg" alt="" class="wp-image-415991" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106982305-1647881593675-GettyImages-1356399616r.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106982305-1647881593675-GettyImages-1356399616r-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106982305-1647881593675-GettyImages-1356399616r-160x90.jpg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Federal Reserve Board Chairman Jerome Powell testifies during a hearing before Senate Banking, Housing and Urban Affairs Committee on Capitol Hill November 30, 2021 in Washington, DC. Alex Wong | Getty Images News | Getty Images</figcaption></figure>



Federal Reserve Chairman Jerome Powell on Monday vowed tough action on inflation, which he said jeopardizes an otherwise strong economic recovery.



“The labor market is very strong, and inflation is much too high,” the central bank leader said in prepared remarks for the National Association for Business Economics.



The speech comes less than a week after the Fed raised interest rates for the first time in more than three years in an attempt to battle inflation that is running at its highest level in 40 years.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/the-federal-reserve-is-scaring-markets-with-the-triple-threat-of-policy-tightening/">The Federal Reserve is scaring markets with the triple threat of policy tightening</a></h3>



Reiterating a position the Federal Open Market Committee made Wednesday in its post-meeting statement, Powell said interest rate hikes would continue until inflation is under control. He said the increases could be even higher if necessary than the quarter-percentage point move approved at the meeting.



“We will take the necessary steps to ensure a return to price stability,” he said. “In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so. And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well.”



A basis point is equal to 0.01%. FOMC officials indicated that 25 basis point increases are likely at each of their remaining six meetings this year. However, markets are pricing in about a 50-50 chance the next hike, at the May meeting, could be 50 basis points.



Stocks slipped to their lows of the session after Powell’s remarks while Treasury yields rose.



<h2 class="wp-block-heading" id="h-widely-underestimated-inflation"><a></a>‘Widely underestimated’ inflation</h2>



The sudden policy tightening comes with inflation as measured by the consumer price index running at 7.9% on a 12-month basis. A gauge that the Fed prefers still has prices up 5.2%, well above the central bank’s 2% target.



As he has before, Powell ascribed much of the pressures coming from Covid pandemic-specific factors, in particular escalated demand for goods over services that supply could not meet. He conceded that Fed officials and many economists “widely underestimated” how long those pressures would last.



While those aggravating factors have persisted, the Fed and Congress provided more than $10 trillion in fiscal and monetary stimulus since the pandemic’s start. Powell said he continues to believe that inflation will drift back to the Fed’s target, but it’s time for the historically easy policies to end.



<h3 class="wp-block-heading">Read more: <a href="e: Federal Reserve approves first interest rate hike in more than three years, sees six more ahead">Federal Reserve approves first interest rate hike in more than three years, sees six more ahead</a></h3>



“It continues to seem likely that hoped-for supply-side healing will come over time as the world ultimately settles into some new normal, but the timing and scope of that relief are highly uncertain,” said Powell, whose official title now is chairman pro tempore as he awaits Senate confirmation for a second term. “In the meantime, as we set policy, we will be looking to actual progress on these issues and not assuming significant near-term supply-side relief.”



Powell also addressed the Russian invasion of Ukraine, saying it is adding to supply chain and inflation pressures. Under normal circumstances, the Fed generally would look through those types of events and not alter policy. However, with the outcome unclear, he said policymakers have to be wary of the situation.



“In normal times, when employment and inflation are close to our objectives, monetary policy would look through a brief burst of inflation associated with commodity price shocks,” he said. “However, the risk is rising that an extended period of high inflation could push longer-term expectations uncomfortably higher, which underscores the need for the Committee to move expeditiously as I have described.”



Powell had indicated last week that the FOMC also is prepared to begin running off some of the nearly $9 trillion in assets on its balance sheet. He noted the process could begin as soon as May, but no firm decision has been made.

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Powell says ‘inflation is much too high’ and the Fed will take ‘necessary steps’ to address

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107007031-16432366092022-01-26t221901z_1399694438_rc277s9asz9g_rtrmadp_0_usa-stocks.jpeg" alt="" class="wp-image-415986" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107007031-16432366092022-01-26t221901z_1399694438_rc277s9asz9g_rtrmadp_0_usa-stocks.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107007031-16432366092022-01-26t221901z_1399694438_rc277s9asz9g_rtrmadp_0_usa-stocks-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107007031-16432366092022-01-26t221901z_1399694438_rc277s9asz9g_rtrmadp_0_usa-stocks-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>A trader works, as Federal Reserve Chair Jerome Powell is seen delivering remarks on a screen, on the floor of the New York Stock Exchange (NYSE), January 26, 2022. Brendan McDermid | Reuters</figcaption></figure>



LONDON – Just as many central banks had set their sights on normalizing monetary policy as economies emerged from the coronavirus pandemic, Russia’s invasion of Ukraine threw them another curveball.



The&nbsp;U.S. Federal Reserve&nbsp;last week approved its&nbsp;first interest rate hike in more than three years&nbsp;and penciled in further increases at each of its six remaining policy meetings this year, as it looks to rein in soaring inflation.



The&nbsp;Bank of England&nbsp;imposed its&nbsp;third consecutive rate hike but struck a relatively dovish tone, with the Russia-Ukraine conflict and its upward pressure on energy prices expected to keep inflation higher for longer.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/the-stock-market-slide-is-unlikely-to-budge-the-fed-from-tightening/">The stock market slide is unlikely to budge the Fed from tightening</a></h3>



European Central Bank&nbsp;President Christine Lagarde said last week that&nbsp;policymakers have “extra space”&nbsp;between the planned end of the ECB’s quantitative easing program this summer and a first hike to the cost of borrowing in more than a decade. The ECB earlier this month&nbsp;surprised markets&nbsp;by announcing it would end its asset purchase program in the third quarter of 2022.



So, while the Bank of England offered a slightly dovish surprise after its more hawkish start out of the blocks, the Fed and the ECB both surprised on the hawkish side, evidencing the balancing act facing policymakers.



Central banks the world over have been caught cold by a surge in inflation in the aftermath of the pandemic, which has sent annual consumer price increases to multi-decade – and in some cases, record – highs.



<h2 class="wp-block-heading" id="h-yet-to-walk-the-walk"><a></a>Yet to ‘walk the walk’</h2>



The risk, economists have suggested, is that by tightening policy aggressively even as growth is threatened by the conflict and financial conditions and the labor market tighten, central banks could inadvertently trigger “stagflation” — a period of high inflation, low growth and high unemployment.



However, most seem to have prioritized reining in inflation over concerns about economic growth and have remained undeterred so far by the potential impacts of the war.



Hugh Gimber, global market strategist at JPMorgan Asset Management, said Thursday that the latest round of central bank meetings showed policymakers are feeling “uncomfortably behind the curve” and are eager to normalize policy.



“Yet while policymakers have been talking tough, in reality monetary policy still remains very supportive of growth despite the latest rate increases. They may be talking the talk on tightening, but they’re yet to really walk the walk,” Gimber said.



This time last year, Gimber noted, patience was a central theme in policymakers’ messaging, meaning any policy error was likely to be the result of their moving too slowly rather than too quickly.



“Yet a year on, inflation is now running at multi-decade highs and labor markets have staged a remarkable recovery. ‘Patience’ has been abandoned – ‘optionality’ is the new buzzword,” he said.



“Further policy tightening lies ahead, and the central banks want the option to move more quickly if inflationary pressures don’t show signs of easing.”



<h2 class="wp-block-heading"><a></a>‘Division of labor’</h2>



Mario Centeno, Portuguese central bank governor and member of the ECB Governing Council, told CNBC last week that the conditions for a rate lift-off had not yet been met, with the normalization process remaining “neutral” and “data-dependent.”



Centeno said the euro area outlook depends on the duration of the conflict and the effects of Western sanctions against Russia.



“Unemployment is probably the best indicator for the European economy these days. We have a very strong labor market coming out of the recession — it was usually supported by fiscal policy measures, that’s why I think that’s why coordination is a very important issue in Europe,” Centeno said, suggesting that governments and central banks need to remain in lockstep.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/russia-central-bank-more-than-doubles-interest-rate-to-20-to-boost-sinking-ruble/">Russia central bank more than doubles interest rate to 20% to boost sinking ruble</a></h3>



“Even if it’s not probably the most likely scenario today, a scenario with low growth and high inflation is not out of the possibilities in the near future, and we must be very careful,” he added.



In the tug of war between supporting growth and containing inflation, policymakers appear to be favoring the latter. Brunello Rosa, CEO &amp; head of research at Rosa &amp; Roubini, agreed with this approach and the “division of labor” required between monetary and fiscal policy, telling CNBC that inflation is a more immediate threat.



“If you shave off some tenths of a percentage point or even a full percentage point of growth, due to the sanctions and potential effects of the war, you will still have a growth rate that is optically acceptable, I would say,” he told CNBC last week.



“Instead what is not optically acceptable is inflation reaching 8% in the U.S., 6% in Europe, 7% in the U.K., and what’s the danger of that? That higher inflation gets entrenched and then you enter into that wage price spiral that nobody wants to. Are we closer to that? Yes, we are.”



<h2 class="wp-block-heading"><a></a>Lessons from history are ‘troubling’</h2>



Neil Shearing, chief economist at Capital Economics, echoed this view in a research note on Monday, but said the more aggressive hikes in interest rates now being projected by Fed officials have raised concerns that the economy could be tipped into recession.



“This in turn raises the more general question as to whether, given the headwinds posed by the war in Ukraine and the spread of the Omicron variant in China, recoveries in major advanced economies are strong enough to withstand monetary tightening,” Shearing said.



He added that the lessons from history – notably the eight tightening cycles since the late 1970s in the U.S., five in the U.K. and three in the euro area – are “troubling.”



“This makes 16 tightening cycles in total – 13 of which have ended in recession. Soft landings are hard to achieve,” he added.

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Central banks face tough decisions after Russia’s invasion. Not everyone’s sure they’ll get it right

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106705643-1611772669606-pow-1-820x547.jpg" alt="" class="wp-image-415924" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106705643-1611772669606-pow-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106705643-1611772669606-pow-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106705643-1611772669606-pow-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106705643-1611772669606-pow-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106705643-1611772669606-pow-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/106705643-1611772669606-pow-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Photo: via CNBC</figcaption></figure>



The Federal Reserve on Wednesday approved its first interest rate increase in more than three years, an incremental salvo to address spiraling inflation without torpedoing economic growth.



After keeping its benchmark interest rate anchored near zero since the beginning of the Covid pandemic, the policymaking Federal Open Market Committee said it will raise rates by a quarter percentage point, or 25 basis points.



That will bring the rate now into a range of 0.25%-0.5%. The move will correspond with a hike in the prime rate and immediately send financing costs higher for many forms of consumer borrowing and credit. Fed officials indicated the rate increases will come with slower economic growth this year.



Along with the rate hikes, the committee also penciled in increases at each of the six remaining meetings this year, pointing to a consensus funds rate of 1.9% by year’s end. That is a full percentage point higher than indicated in December. The committee sees three more hikes in 2023 then none the following year.



The rate rise was approved with only one dissent. St. Louis Fed President James Bullard wanted a 50 basis point increase.



The committee last raised rates in December 2018, then had to backtrack the following July and begin cutting.



In its post-meeting statement, the FOMC said it also “anticipates that ongoing increases in the target range will be appropriate.” Addressing the Fed’s nearly $9 trillion balance sheet, made up mainly of Treasurys and mortgage-backed securities it has purchased over the years, the statement said, “In addition, the Committee expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting.”



Fed Chairman Jerome Powell at his post-meeting news conference hinted that the balance sheet reduction could start in May, and said the process could be the equivalent of another rate hike this year.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/the-federal-reserve-is-scaring-markets-with-the-triple-threat-of-policy-tightening/">The Federal Reserve is scaring markets with the triple threat of policy tightening</a></h3>



The indication of about 175 basis points in rate increases this year was a close call: The “dot plot” of individual members’ projections showed eight members expecting more than the seven hikes, while 10 thought that seven total in 2022 would be sufficient.



“We are attentive to the risks of further upward pressure on inflation and inflation expectations,” Powell said at the news conference. “The committee is determined to take the measures necessary to restore price stability. The U.S. economy is very strong and well-positioned to handle tighter monetary policy.”



Officials also adjusted their economic outlook on multiple fronts, seeing much higher inflation than they expected in December and considerably slower GDP growth.



Committee members bumped up their inflation estimates, expecting the personal consumption expenditures price index excluding food and energy to reflect 4.1% growth this year, compared with the 2.7% projection in December 2021. Core PCE is expected to be 2.7% and 2.3%, respectively, in the next two years before settling to 2% over the longer term.



“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” the statement said.



On GDP, December’s 4% was sliced to 2.8%, as the committee particularly noted the potential implications of the Ukraine war. Subsequent years were unchanged. The committee still expects the unemployment rate to end this year at 3.5%.



“The invasion of Ukraine by Russia is causing tremendous human and economic hardship,” the statement said. “The implications for the U.S. economy are highly uncertain, but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity.”



Stocks initially reacted negative to the announcement but then bounced back. Bond yields momentarily moved higher, with the benchmark 10-year Treasury note rising to 2.22% before receding.



“Ultimately, they’ve come through with a clear message, that the Fed has a path forward to continue to tighten in response to this overwhelming concern around inflation,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors. “The question is, will it be enough and are they even recognizing that they’ve &#8230; perhaps fallen behind the curve?”



<h2 class="wp-block-heading" id="h-changing-course"><a></a>Changing course</h2>



The central bank had slashed its federal funds rate in the early days of the pandemic to combat a shutdown that crippled the U.S. economy and financial markets while sending 22 million Americans to the unemployment line.



But myriad factors have combined to force the Fed’s hand on inflation, a condition that policymakers last year dismissed as “transitory” before capitulating. Officials over the past two months have strongly indicated that interest rate hikes are coming, with the main question left for investors being how many increases and how quickly they would come.



The current trend of price increases, at their fastest 12-month pace in 40 years, has been fed by demand that has far outstripped supply chains that remain clogged if less so than their pandemic-era peaks. Unprecedented levels of fiscal and monetary stimulus — more than $10 trillion worth – have coincided with the inflation surge. And the Ukraine war has coincided with a major spike in oil prices, though that has abated in recent days.



Heading into this week’s FOMC meeting, markets had been pricing in the equivalent of about seven 0.25% hikes this year, according to CME Group data. However, traders were split about 50-50 over whether the Fed might hike 50 basis points in May, as some officials have indicated could happen if inflation pressures persist.



Prices are up 7.9% year over year, according to the consumer price index, which measures a wide-ranging basket of goods and services. Energy has been the biggest burden, as gasoline prices have risen 38% in the 12-month period.



However, price pressures have broadened out from simply gas and groceries.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/global-markets-slump-on-hawkish-fed-minutes/">Global markets slump on hawkish Fed minutes</a></h3>



For instance, clothing prices, after plummeting in the early days of the pandemic, have risen 6.6% over the past year. Motor vehicle repair costs are up 6.3% and airline fares have jumped 12.7%. Rent of shelter costs, which make up nearly one-third of the CPI, have been moving up sharply in recent months and are up 4.8% year over year.



All of those cost increases have left the Fed’s 2% inflation target in the dust.



The Fed in September 2020 approved a new approach to inflation, in which it would let it run hotter in the interest of a full and, most notably, inclusive employment goal that spans across race, gender and wealth. However, the change in approach was followed almost immediately by more pernicious inflation than the U.S. economy had seen since the days of the Arab oil embargo and inflation that peaked in the early 1980s at nearly 15%.



In those days, the Paul Volcker-led Fed had to jack up interest rates to a point where they tipped the economy into recession, something central bankers now want to avoid. Back then, the funds rate eclipsed 19%.



Baird said the Fed will need to live up to its promise to be “nimble” if it is to continue to assuage market fears about runaway inflation.



“Will the path that they’ve laid out be enough to bring inflation back down to more comfortable levels in some reasonable time frame? The possibility certainly exists that they could get more aggressive,” he said.

106705643-1611772669606-pow-1

Federal Reserve approves first interest rate hike in more than three years, sees six more ahead

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-820x547.jpg" alt="" class="wp-image-415881" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/OY6W367VPRPLTIAYMISYI2L32Y-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Firefighters look at a residential building that was hit by a shell as Russia&#8217;s attack on Ukraine continues, in the Obolon district in Kyiv, Ukraine, March 14, 2022. REUTERS/Thomas Peter</figcaption></figure>



LVIV, Ukraine, March 14 (Reuters)&nbsp;&#8211;&nbsp;The United States warned China after &#8220;intense&#8221; talks on Monday against helping Moscow in its invasion of Ukraine, while an anti-war protester interrupted Russian state TV news in an extraordinary act of dissent.



Moscow has not captured any of the 10 biggest cities in Ukraine since beginning its incursion on Feb. 24, the most significant attack on a European state since World War Two.



It calls its actions a &#8220;special military operation&#8221; to &#8220;denazify&#8221; the country and has asked for military and economic aid from Beijing, according to U.S. officials.



Moscow denies that, saying it has sufficient resources to fulfil all of its aims. China&#8217;s foreign ministry labelled the reports on assistance as &#8220;disinformation.&#8221;



China had signalled willingness to provide aid to Russia, a U.S. official said, as national security adviser Jake Sullivan met with China&#8217;s top diplomat Yang Jiechi in Rome.



&#8220;We have communicated very clearly to Beijing that we won&#8217;t stand by,&#8221; State Department spokesperson Ned Price told reporters on Monday. &#8220;We will not allow any country to compensate Russia for its losses.&#8221;



The seven-hour meeting was &#8220;intense&#8221; and reflected &#8220;the gravity of the moment,&#8221; according to a U.S. official.



The West is weighing how to deal with any involvement from China, top global exporter and No.1 foreign supplier of goods to Americans.



In Russia, a rare anti-war protest occurred in a studio during the main news programme on state TV&#8217;s Channel One, which is the primary source of news for millions of Russians and closely follows the Kremlin line.



A woman held up a sign in English and Russian that said: &#8220;NO WAR. Stop the war. Don&#8217;t believe propaganda. They are lying to you here.&#8221;&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VE18M&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



The protester could be seen and heard for several seconds before the channel switched to a different report so she was no longer visible.



<h2 class="wp-block-heading">HUMANITARIAN TOLL</h2>



More than 2.8 million people have fled Ukraine.



Moscow on Monday allowed the first convoy to escape besieged Mariupol, home to the worst humanitarian crisis of the conflict.



&#8220;In the first two hours, 160 cars left,&#8221; Andrei Rempel, a representative of the Mariupol city council told Reuters.



But local authorities say as many as 2,500 civilians have died so far, a toll that cannot be independently confirmed.



Russia says it does not target civilians.



But Kyrylo Tymoshenko, a senior aide to Ukrainian President Volodymyr Zelenskiy, later said Russia had yet again blocked a humanitarian aid convoy trying to reach the city with supplies.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/russias-isolation-intensifies-as-ukraine-fighting-rages/">Russia’s isolation intensifies as Ukraine fighting rages</a></h3>



Obtaining safe passage for aid to reach Mariupol and civilians to get out has been Kyiv&#8217;s main demand at several rounds of talks. All previous attempts at a local ceasefire have failed.



The Ukrainian foreign ministry said a pregnant woman who was photographed being evacuated wounded from a maternity hospital in Mariupol bombed by Russia last week had since died along with her baby. Reuters was not able to verify this.<a href="https://www.reutersconnect.com/all?search=all%3AS8N2UZ0BO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Despite video showing at least two pregnant women being carried out of the ruins, Russia has said the hospital was not used at the time and had been occupied by Ukrainian fighters.



Drone video footage released by Ukrainian forces in Mariupol showed a desolate wasteland of bombed out buildings, many in flames, with smoke pouring into the sky.



Britain&#8217;s defence ministry said in an intelligence update on Monday that Russia could be planning to use chemical or biological weapons in Ukraine in response to a staged fake attack on Russian troops, without citing evidence. U.S. officials have made similar statements.



Russia has accused Ukraine of planning to use biological weapons. The United Nations on Friday said it had no evidence Kyiv had such a program.



<h2 class="wp-block-heading">MORE TALKS</h2>



In the latest bid to ease the crisis, Russian and Ukrainian delegations held a fourth round of talks on Monday &#8211; by video link rather than in person &#8211; but no new progress was announced. Discussions were due to resume on Tuesday.



Russia &#8220;still has a delusion that 19 days of violence against (Ukrainian) peaceful cities is the right strategy&#8221;, said Ukrainian negotiator Mykhailo Podolyak.



Russian negotiator Vladimir Medinsky wrote on social media: &#8220;We&#8217;re aiming to do everything possible for the achievement of the goals set by Vladimir Putin, for Russia&#8217;s peaceful future.&#8221;



EU member states had agreed on a fourth package of sanctions against Russia, according to France.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VH1SD&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Details were not officially disclosed, but diplomatic sources said they would include an import ban on Russian steel and iron, an export ban on luxury goods and a ban on investment in the energy sector.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/russia-seeks-military-equipment-from-china-after-ukraine-invasion-reports/">Russia seeks military equipment from China after Ukraine invasion -reports</a></h3>



Chelsea soccer team owner Roman Abramovich and 14 others would be added to the EU blacklist.



The war has caused a surge in commodity prices, threatening the global recovery as inflation in the developed world is already at its highest since the 1980s, many poor countries are facing a food crisis and the pandemic is still being felt.



Russia is the world&#8217;s biggest exporter of combined oil and gas, and Russia and Ukraine together supply nearly a third of the world&#8217;s grain exports, as well as metals and chemicals used worldwide in industry and agriculture.



On Monday, Moscow temporarily banned grain exports to ex-Soviet countries and most sugar exports.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VH1AO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Russia itself has been cast into economic isolation never before visited on such a big economy.



<h2 class="wp-block-heading" id="h-kyiv-apartment-block-hit">KYIV APARTMENT BLOCK HIT</h2>



Its forces have been bearing down on Kyiv but have made little progress so far towards the capital itself, despite heavy fighting that has reduced suburbs on its outskirts to rubble.



In Kyiv itself, an apartment block was hit by a missile overnight, killing at least one person, officials said.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VH0JV&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;The staircase was not there anymore, everything was on fire,&#8221; apartment resident Maksim Korovii said.



&#8220;We managed to put on whatever clothes we had at hand and made our way from balcony to balcony and in the end we climbed down by the next building&#8217;s entrance.&#8221;



In the south, where Russia has made more progress, residents of Odessa, a Black Sea port of 1 million people, fear their city could be next. They formed a human chain on Monday, singing patriotic songs as they carried sandbags from the beach.



In Donetsk, held since 2014 by Russian-backed separatists, Russia&#8217;s defence ministry said at least 20 people had been killed and 28 wounded by what it said was a Ukrainian missile with a cluster charge. It released footage of a missile on a busy street and vehicles destroyed by shrapnel.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VH0IA&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Ukraine accused Russia or its allies of carrying out that attack themselves as a pretext: &#8220;It is unmistakably a Russian rocket or another munition,&#8221; Ukrainian military spokesman Leonid Matyukhin said. Reuters could not verify either account.



(Reporting by Reuters bureaus; Writing by Peter Graff and Costas Pitas; Editing by Tomasz Janowski, Angus MacSwan, Grant McCool and Cynthia Osterman)

Firefighters look at a residential building that was hit by a shell in the Obolon district in Kyiv

U.S. warns China not to help Russia as anti-war protest disrupts state TV

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GNVUDTKFUNI5LONCZPQ4I3XVEU-820x536.jpg" alt="" class="wp-image-415877" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GNVUDTKFUNI5LONCZPQ4I3XVEU-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GNVUDTKFUNI5LONCZPQ4I3XVEU-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GNVUDTKFUNI5LONCZPQ4I3XVEU-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GNVUDTKFUNI5LONCZPQ4I3XVEU-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/GNVUDTKFUNI5LONCZPQ4I3XVEU.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>A man wearing a protective mask, amid the coronavirus disease (COVID-19) outbreak, walks past an electronic board displaying Shanghai Composite index, Nikkei index and Dow Jones Industrial Average outside a brokerage in Tokyo, Japan, March 7, 2022. REUTERS/Kim Kyung-Hoon</figcaption></figure>



NEW YORK, March 15 (Reuters)&nbsp;&#8211;&nbsp;Wild swings in asset prices following Russia&#8217;s invasion of Ukraine are prompting some investors to pare risk in their portfolios, fearing that the type of volatility seen in commodities in recent weeks could hit other markets.



At issue is liquidity – or the ease at which investors can buy or sell an asset without affecting its price. While episodes of low liquidity have contributed to sharp gyrations across markets over the last decade, signs of stress have become more plentiful in the last few weeks, exacerbated by everything from sanctions against Russia to expected central bank tightening.<a href="https://www.reutersconnect.com/all?search=all%3AL5N2V757K&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Should liquidity continue to deteriorate throughout markets, investors worry that other assets could be subject to the kind of violent price swings that have wracked commodities this month &#8211; which have included a one-day doubling in nickel prices and a surge in oil to 14-year highs.



&#8220;It isn&#8217;t always clear where the contagion risks lie,&#8221; said Frances Donald, Global Chief Economist at Manulife Investment Management. &#8220;This is why liquidity needs to be monitored, not just daily, but hourly at this point, for signs of challenges.&#8221;



Financial indicators are showing increasing signs of stress throughout markets.



The so-called FRA-OIS spread, which measures the gap between the U.S. three-month forward rate agreement and the overnight index swap rate was recently at its highest level since May 2020, while another closely-watched short-term funding stress gauge, the spread between the U.S. three-month Libor and the overnight index swap rate&nbsp;USDL-O3MF=R&nbsp;was at a similar high. Volatility in stocks&nbsp;.VIX, currencies&nbsp;.DBCVIX&nbsp;and U.S. Treasury yields&nbsp;.MOVE&nbsp;has also spiked.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VB2MX&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a><a href="https://www.reutersconnect.com/all?search=all%3AL5N2VE454&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



In another potential red flag, Barclays&nbsp;BARC.L&nbsp;on Monday suspended sales of two products linked to crude oil and market volatility, which some saw as a sign of lack of liquidity.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VH1DM&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Among the assets investors have been cutting are emerging markets bonds, which saw $3.54 billion in net outflows last week, the biggest reduction since April 2020. Treasuries, meanwhile, saw some $5.4 billion in inflows in the past nine weeks, according to BofA Global Research.



<h3 class="wp-block-heading" id="h-read-more-the-federal-reserve-is-scaring-markets-with-the-triple-threat-of-policy-tightening">Read more: <a href="https://www.cnbcafrica.com/2022/the-federal-reserve-is-scaring-markets-with-the-triple-threat-of-policy-tightening/">The Federal Reserve is scaring markets with the triple threat of policy tightening</a></h3>



Mike Vogelzang, Chief Investment Officer at CAPTRUST in Boston, said his firm had taken &#8220;aggressive action&#8221; in response to the Ukraine crisis to reduce the risk profile of its portfolios. That included cutting equity exposure and selling mortgages and a number of corporate bonds, replacing them with highly liquid short-term U.S. Treasuries.



&#8220;We&#8217;re worried about a potential liquidity scare on a global stage,&#8221; he said. &#8220;We were significantly underweight U.S. Treasuries to our benchmarks for years now, and so we really filled that bucket up and reduced the illiquidity potential in our portfolios.&#8221;



Vogelzang said events like last week&#8217;s spike in nickel prices – which came as one of the world&#8217;s top producers bought large amounts of nickel to cover bets on falling prices and cover costly margin calls &#8211; indicate the potential for &#8220;liquidity panic&#8221; in markets.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VB1UT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Investors also highlighted counterparty risk, referring to the probability of defaults in contractual obligations linked, in this case, to an underlying commodity. In a rare warning on Monday, the Securities and Exchange Commission said concentrated positions of prime brokerage counterparties pose particular concerns.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VH2UO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Bill Campbell, Global Bond Portfolio Manager at DoubleLine is concerned about the impact the Ukraine crisis is having on a &#8220;systemically important&#8221; part of global supply chains that affects not only energy prices but also vital commodities such as wheat, of which both Ukraine and Russia are major producers.



Campbell has reduced exposure to Eastern European countries in his portfolios and is looking to differentiate investment between commodity importing and commodity exporting countries to reduce risk.



&#8220;We need to become more comfortable that this crisis is going to be contained to the region,&#8221; he said.



Ryan O&#8217;Malley, a fixed income portfolio manager at Sage Advisory said the conflict had accelerated liquidity concerns in the corporate credit market, pushing him to shift his portfolio increasingly towards more liquid assets such as Treasuries.



&#8220;We&#8217;re trying to get more liquid,&#8221; O&#8217;Malley said.



(Reporting by Davide Barbuscia; editing by Ira Iosebashvili, Megan Davies and Richard Pullin)

GNVUDTKFUNI5LONCZPQ4I3XVEU

Investors see risks spiking, fear market-wide liquidity crunch

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-820x547.jpg" alt="" class="wp-image-414305" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/12/BE2FA7DW6VJP3AYQ5S5CUCMQO4.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



WASHINGTON, March 13 (Reuters)&nbsp;&#8211;&nbsp;Russia may default on its debts in the wake of unprecedented sanctions over its invasion of Ukraine, but that would not trigger a global financial crisis, International Monetary Fund Managing Director Kristalina Georgieva said on Sunday.



Georgieva told CBS&#8217;s &#8220;Face the Nation&#8221; program that sanctions imposed by the United States and other democracies were already having a &#8220;severe&#8221; impact on the Russian economy and would trigger a deep recession there this year.



The war and the sanctions would also have significant spillover effects on neighboring countries that depended on Russian energy supplies, and had already resulted in a wave of refugees compared to that seen during World War Two, she said.



Russia calls its actions in Ukraine a “special operation.”



The sanctions were also limiting Russia&#8217;s ability to access its resources and service its debts, which meant a default was no longer viewed as &#8220;improbable,&#8221; Georgieva said.



<h3 class="wp-block-heading" id="h-read-more-federal-reserve-points-to-interest-rate-hike-coming-in-march">Read more: <a href="https://www.cnbcafrica.com/2022/federal-reserve-points-to-interest-rate-hike-coming-in-march/">Federal Reserve points to interest rate hike coming in March</a></h3>



Asked if such a default could trigger a financial crisis around the world, she said, &#8220;For now, no.&#8221;



The total exposure of banks to Russia amounted to around $120 billion, an amount that while not insignificant, was &#8220;not systemically relevant,&#8221; she said.



Asked if Russia could access the $1.4 billion in emergency IMF funding approved for Ukraine last week if Moscow won the war and installed a new government, Georgieva said the funds were in a special account accessible only by the Ukrainian government.



An IMF official said that referred to the &#8220;internationally recognized government of Ukraine.&#8221;



The IMF last year blocked access to Afghanistan&#8217;s funds by the Taliban after they seized control of the government, citing lack of clarity over recognition of the Taliban rulers within the international community.



Georgieva last week said the IMF would downgrade its previous forecast for 4.4% global economic growth in 2022 as a result of the war, but said the overall trajectory remained positive.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VD2II&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Growth remained robust in countries like the United States that had been fast to recover from COVID-19 pandemic, she told CBS.



The impact would be most severe in terms of driving up commodity prices and inflation, potentially leading to hunger and food insecurity in parts of Africa, she said.



(Reporting by Andrea Shalal; Editing by Marguerita Choy and Daniel Wallis)

BE2FA7DW6VJP3AYQ5S5CUCMQO4

Russian default no longer ‘improbable’, but no trigger for global financial crisis- IMF

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028886-1646977114151-gettyimages-1169173985-AFP_1KE1QL.jpeg" alt="" class="wp-image-415847" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028886-1646977114151-gettyimages-1169173985-AFP_1KE1QL.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028886-1646977114151-gettyimages-1169173985-AFP_1KE1QL-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028886-1646977114151-gettyimages-1169173985-AFP_1KE1QL-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Chinese Premier Li Keqiang speaks during a meeting with Russian President Vladimir Putin at the Kremlin in Moscow on September 18, 2019. Pavel Golovkin | Afp | Getty Images</figcaption></figure>



BEIJING — China is “deeply” worried about the crisis in Ukraine, Premier Li Keqiang said Friday, warning that sanctions will hurt global growth.



“On Ukraine, indeed the current situation there is grave, and China is deeply concerned and grieved,” Li said in Mandarin, according to an official translation.



The premier was responding to two questions about the Ukraine war at the beginning of an annual press briefing. Since Russia’s attack on Ukraine about two weeks ago, Beijing has refused to call it an invasion and said China would maintain normal trade with both countries, without joining in on U.S., EU and other countries’ sanctions on Russia.



On Monday, Chinese Foreign Minister Wang Yi said relations with Russia were “rock solid.” He pointed to a joint statement with Russia issued after a high-level meeting in early February between Chinese President Xi Jinping and Russian President Vladimir Putin.



During the Friday briefing, Li maintained that China has “followed an independent policy of peace” and repeated Beijing’s line of encouraging Russia and Ukraine to negotiate. “The pressing task now is preventing tensions from escalating or even getting out of control.”



Li did not specifically say whether China would economically support Russia, but noted China supports “all efforts that are conducive to a peaceful resolution of the crisis.”



He added that the sanctions would only shock a world economy already struggling to recover from the coronavirus pandemic.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/biden-agrees-to-meet-with-putin-in-principle-if-russia-has-not-invaded-ukraine/">Biden agrees to meet with Putin ‘in principle’ if Russia has not invaded Ukraine</a></h3>



Over the weekend, the International Monetary Fund said the economic consequences of the war are “already very serious” with “adverse” shocks to inflation and business activity in many countries.



Last week, Oxford Economics estimated the war would reduce global GDP by 0.2%, with a decline of 0.6% this year if the fighting persists through 2023.



<h2 class="wp-block-heading" id="h-end-of-an-era"><a></a>End of an era</h2>



Li was speaking Friday at a press briefing held at the close of an annual parliamentary meeting.



This year marks Li’s final appearance at the briefing as premier, a position he’s held since 2013. The ruling Chinese Communist Party is set in the fall to select a new leadership team, although President Xi Jinping is expected to stay on for an unprecedented third term.



Li closed the roughly two-hour-long briefing with a pledge that China would continue to open up its economy regardless of changes in the international environment.



Foreign businesses have long complained about requirements of forced tech transfers and unequal access to the Chinese market, especially at a local implementation level. In the last few years, China has passed a law for improving the business environment and allowed foreign financial institutions full ownership of their local operations.



“It has been forty years since China has gotten on the journey of opening up,” Li said. “Opening up has brought benefits to the country and its people. We will not and must not close this door of opportunity. Thank you.”

107028886-1646977114151-gettyimages-1169173985-AFP_1KE1QL

China is ‘deeply’ worried about Ukraine crisis, Premier Li Keqiang says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="780" height="511" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-36.jpg" alt="" class="wp-image-415843" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-36.jpg 780w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-36-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-36-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/download-36-768x503.jpg 768w" sizes="auto, (max-width: 780px) 100vw, 780px" /><figcaption>FILE PHOTO: A serviceman of pro-Russian militia walks nest to a military convoy of armed forces of the separatist self-proclaimed Luhansk People&#8217;s Republic (LNR) on a road in the Luhansk region, Ukraine February 27, 2022. REUTERS/Alexander Ermochenko</figcaption></figure>



March 13 (Reuters)&nbsp;&#8211;&nbsp;Russia has asked China for military equipment since its Feb. 24 invasion of Ukraine, the Financial Times and Washington Post reported on Sunday, citing U.S. officials.



U.S. National Security advisor Jake Sullivan will be in Rome on Monday to meet with China&#8217;s top diplomat Yang Jiechi, the White House said earlier.



Russia,&nbsp;which calls its action in Ukraine a &#8220;special operation,&#8221;&nbsp;and China have tightened cooperation as they have come under strong Western pressure over human rights and a raft of other issues.



Beijing has not condemned Russia&#8217;s attack and does not call it an invasion, but has urged a negotiated solution.



The White House&#8217;s National Security Council declined to comment.



The Washington Post said the unidentified&nbsp;U.S. officials did not state the kind of weaponry that had been requested or how China had&nbsp;responded.



(Reporting by Costas Pitas in Los Angeles; Editing by Richard Chang)

download-36

Russia seeks military equipment from China after Ukraine invasion -reports

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028862-1646968527334-gettyimages-1297471865-_mg_0884-1.jpeg" alt="" class="wp-image-415836" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028862-1646968527334-gettyimages-1297471865-_mg_0884-1.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028862-1646968527334-gettyimages-1297471865-_mg_0884-1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028862-1646968527334-gettyimages-1297471865-_mg_0884-1-160x90.jpeg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Cyber warfare is being waged, not only between Ukraine and Russia, but on behalf of these countries by “digital soldiers” from around the world. Rapeepong Puttakumwong | Moment | Getty Images</figcaption></figure>



Cyber warfare related to the Ukraine-Russia conflict is surging as digital volunteers from around the world enter the fight.



The number of cyberattacks being waged by — and on behalf of — both countries since the outbreak of the war is “staggering,” according to the research arm of Check Point Software Technologies.



“For the first time in history anyone can join a war,” said Lotem Finkelstein, head of threat intelligence at Check Point Software. “We’re seeing the entire cyber community involved, where many groups and individuals have taken a side, either Russia or Ukraine.”



“It’s a lot of cyber chaos,” he said.



<h2 class="wp-block-heading" id="h-grassroots-global-uprising"><a></a>Grassroots, global uprising</h2>



In the first three days following the invasion, online attacks against Ukrainian military and governmental sectors increased by 196%, according to Check Point Research (CPR). They also modestly increased against Russian (4%) and Ukrainian (0.2%) organizations, according to the data, while simultaneously falling in most other parts of the world.



Since then, Ukrainian authorities estimate some 400,000 multinational hackers have volunteered to help Ukraine, said Yuval Wollman, president of cyber security company CyberProof and the former director-general of the Israeli Intelligence Ministry.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028852-1646966761586-Chart_1.jpg" alt="" class="wp-image-415837" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028852-1646966761586-Chart_1.jpg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028852-1646966761586-Chart_1-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/107028852-1646966761586-Chart_1-160x90.jpg 160w" sizes="auto, (max-width: 740px) 100vw, 740px" /><figcaption>Source: Check Point Research</figcaption></figure>



“Grassroots volunteers created widespread disruption — graffitiing anti-war messages on Russian media outlets and leaking data from rival hacking operations,” he said. “Never have we seen this level of involvement by outside actors unrelated to the conflict.”



Three weeks in, Ukraine continues to sustain a barrage of online attacks, with most aimed at its government and military, according to CPR’s data.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/nato-says-russia-is-increasing-troop-numbers-at-ukrainian-border-calls-for-talks/">NATO says Russia is increasing troop numbers at Ukrainian border, calls for talks</a></h3>



Moscow has consistently denied that it engages in cyberwarfare or assists cyberattacks. On Feb. 19, the Russian embassy in Washington said on Twitter that it “has never conducted and does not conduct any ‘malicious’ operations in cyberspace.”



CPR data shows attacks on Russia decreased over the same timeframe, said Finkelstein. There may be several reasons for that, he said, including Russian efforts to reduce the visibility of attacks or increased security to defend against them.



<h2 class="wp-block-heading"><a></a>‘IT Army of Ukraine’</h2>



As a long-time target of suspected Russian cyberattacks, Ukraine is seemingly welcoming the digital help.



Following a request posted on Twitter by Ukraine’s digital minister Mykhailo Fedorov, some 308,000 people joined a Telegram group known as the “IT Army of Ukraine.”  



One member of the group is Gennady Galanter, co-founder of information technology company Provectus. He said the group is focused on disrupting Russian websites, preventing disinformation and getting accurate information to Russian citizens.



“It’s working,” he said, clarifying that he’s acting in his own capacity, and not for his company. &nbsp;



Still, Galanter said he has mixed feelings about participating. One tactic employed by the group is distributed denial of service attacks, which try to make targeted websites inaccessible by overwhelming them with online traffic.



“It’s hooliganism,” he said, yet at the same time Galanter, who fled the Soviet Union in 1991 and whose wife is Russian, said he feels compelled to help do his part to “deliver truth and deny lies.”&nbsp;



He’s donated money, he said, but now, he added, “I’m doing this because I don’t know what else to do.”



Galanter said he’s concerned current efforts may be insufficient against Russia’s cyber capabilities. He also said he’s worried the group’s efforts may be dismissed as Ukrainian or Western propaganda or labeled a disinformation machine of the very type he says he’s fighting against.



“The reality is that a lot of my friends in Russia, my relatives … they’re completely misinformed,” he said. “They have a deeply inaccurate view of what’s going on — they just put to doubt what we say.”



Galanter said his company shut down its operations in Russia and helped to relocate employees who wanted to leave. He said the company told employees: “The world has become pretty white and black. Those of you who share our perception of reality, you’re welcome to join us.”



“Just like these people are now, I was a refugee,” he said. “What [Putin] wants to create is exactly what I escaped.”



<h2 class="wp-block-heading"><a></a>Moscow retaliation</h2>



It’s widely expected that Moscow and its supporters will retaliate against countries that side with Ukraine, and potentially the growing list of banks and businesses that are withdrawing from the country.



Elon Musk tweeted on March 4 that the decision to redirect Starlink satellites and deliver internet terminals to Ukraine meant that the “probability of being targeted is high.”



Experts warn reciprocal retaliation could lead to a “global cyberwar” between Russia and the West.



<h3 class="wp-block-heading">Read more: <a href="https://www.cnbcafrica.com/2022/russia-says-its-begun-partial-troop-pullback-from-ukraine-border-nato-urges-caution/">Russia says it’s begun partial troop pullback from Ukraine border; NATO urges caution</a></h3>



Russia is widely believed to be behind several digital attacks against Ukraine in the weeks prior to the invasion, but since then Russia has shown restraint, “at least for now,” according to Wollman.



Still, reports of growing anger inside the Kremlin over new sanctions, compounded by Russia’s military failures in Ukraine, may make cyber warfare one of few remaining “tools” in Putin’s playbook, he said.



“What tools does the Kremlin have against sanctions? They don’t have economic tools,” said Wollman. “According to some, a cyber response would be the likeliest Russian countermeasure.”



<h2 class="wp-block-heading"><a></a>Spillover to other conflicts?</h2>



The Ukraine-Russia war could inflame other long-standing territorial conflicts as well. Two Taiwanese tech startups, AutoPolitic and QSearch, announced last week they are providing free technology assistance to Ukraine and to “Ukrainian online activists around the globe” to counter Russian propaganda on social media.



“Being a Taiwanese who lived under constant propaganda and threats of invasion from our cousin-neighbor, I feel a special bond with Ukrainians and acidic anger at their invaders,” said AutoPolitic founder Roger Do, via a press release.

107028862-1646968527334-gettyimages-1297471865-_mg_0884-1

‘For the first time in history anyone can join a war’: Volunteers join Russia-Ukraine cyber fight

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="570" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/LBJHNU2QZJOVBGLYKPOOZTCJIM-820x570.jpg" alt="" class="wp-image-415784" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/03/LBJHNU2QZJOVBGLYKPOOZTCJIM-820x570.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/LBJHNU2QZJOVBGLYKPOOZTCJIM-300x209.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/LBJHNU2QZJOVBGLYKPOOZTCJIM-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/LBJHNU2QZJOVBGLYKPOOZTCJIM-768x534.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/LBJHNU2QZJOVBGLYKPOOZTCJIM-1536x1068.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/03/LBJHNU2QZJOVBGLYKPOOZTCJIM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption>Russian Foreign Minister Sergei Lavrov attends a news conference following talks with his Kyrgyz counterpart Ruslan Kazakbayev in Moscow, Russia March 5, 2022. Sergei Ilnitsky/Pool via REUTERS</figcaption></figure>



ANTALYA, Turkey, March 10 (Reuters)&nbsp;&#8211;&nbsp;Foreign ministers from Russia and Ukraine will meet in Turkey on Thursday in the first high-level talks between the two countries since Moscow invaded its neighbour, with Ankara hoping they could mark a turning point in the raging conflict.



Ukrainian Foreign Minister Dmytro Kuleba has tempered expectations for a ceasefire agreement or other results from the meeting with Russian counterpart Sergei Lavrov, on the sidelines of a diplomacy forum in Turkey&#8217;s southern province of Antalya.



Russia&#8217;s invasion has uprooted more than 2 million people in what the United Nations calls the fastest humanitarian crisis in Europe since World War Two.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N2VC07Z&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



NATO member Turkey had repeatedly offered to mediate between the sides and will host their top two diplomats after weeks of mediation attempts by world powers.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2VA2SZ&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Kuleba urged Lavrov to approach the talks &#8220;in good faith, not from a propagandistic perspective.&#8221;&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AC6N2V501P&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



&#8220;I will say frankly that my expectations of the talks are low,&#8221; Kuleba said in a video statement on Wednesday. &#8220;We are interested in a ceasefire, liberating our territories and the third point is to resolve all humanitarian issues.&#8221;



Moscow has said it is ready for talks with Ukraine, but that all of its demands &#8211; including that Kyiv takes a neutral position and drops aspirations of joining the NATO alliance &#8211; must be met to end its assault.



Delegations from the two countries have held three rounds of talks previously, two in Belarus and one in Ukraine. Despite some positive signs on humanitarian arrangements, those negotiations have had little impact.



Moscow calls its incursion a &#8220;special military operation&#8221; to disarm Ukraine and dislodge leaders it calls &#8220;neo-Nazis.&#8221; Kyiv and its Western allies dismiss that as baseless pretext for an unprovoked war against a democratic country of 44 million people.



<h2 class="wp-block-heading" id="h-turkey-s-balance">TURKEY&#8217;S BALANCE</h2>



Bringing Lavrov and Kuleba together marks &#8220;a step forward&#8221; and could escalate diplomacy at higher levels in Moscow, said Mustafa Aydin, professor at Kadir Has University in Istanbul.



&#8220;Russia is not yet close to entertaining peace, though it is slowly changing its stance,&#8221; he said. &#8220;Its initially uncompromising posture is slowly giving way to a negotiation stance though not yet enough for a concrete outcome.&#8221;



Turkey shares a maritime border with Russia and Ukraine in the Black Sea and has good ties with both. Ankara has called Russia&#8217;s invasion unacceptable and appealed for an urgent ceasefire, but has opposed sanctions on Moscow.



While forging close ties with Russia on energy, defence, and trade, and relying heavily on Russian tourists, Turkey has also sold drones to Ukraine, angering Moscow. It also opposes Russian policies in Syria and Libya, as well as its 2014 annexation of Crimea.



Turkish Foreign Minister Mevlut Cavusoglu said both Lavrov and Kuleba had requested that he attend the talks on Thursday, adding he wished the meeting could be a &#8220;turning point&#8221;.



At the weekend, Turkey and Israel ramped up their push for mediation. Turkish President Tayyip Erdogan urged Russian President Vladimir Putin to declare a ceasefire in a call on Sunday.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2V90AV&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



Israeli Prime Minister Naftali Bennett held talks with Putin in Moscow at the weekend, and later spoke to Ukrainian President Volodymyr Zelenskiy.&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL5N2V907K&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Additional reporting by Can Sezer and Birsen Altayli in Istanbul; Editing by Jonathan Spicer and Cynthia Osterman)

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International

China is shutting down Shanghai in two phases to control Covid

Biden says Putin ‘cannot remain in power’ in sweeping speech on Russian invasion of Ukraine

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Top Russian, Ukrainian diplomats meet for first time since invasion

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