Following the outbreak of the war in Ukraine, Western countries unanimously unleashed sanctions on the Kremlin, ranging from restricting seven Russian banks from accessing SWIFT and blocking the transfer of euros to Russia, to restrictions on industry and trade.
Two years into the coronavirus pandemic, the world is facing a new negative external shock following Russia’s military invasion of Ukraine.
This week the consumer price index (CPI) data for March was released, and the figure came in at 9.8%, the highest level seen since 1985 and very close to the double-digit figure that many analysts had estimated for the month.
One of Warren Buffett’s most famous quotes (echoing Benjamin Graham) is “Price is what you pay; value is what you get.” For most people it’s difficult to separate a company’s stock’s price from what it is worth.
Stock markets continue to recover from the early weeks of conflict. In fact, the vast majority of indices have returned to pre-conflict levels.
Emerging countries are once again on the tips of investors’ tongues. After its central bank announcement indicating a more favorable position to the market, China’s stock markets surged ahead by close to 9%.
Although it’s still too early to anticipate developments, there are some indications that the negotiation of an end-of-war pact in Ukraine is closer than was thought a few days ago.
A new central scenario is taking root among analysts. They have already started to envision a context of reduced growth expectations and inflation that should surge even higher.
At the beginning of 2022, analysts were predicting that this would be the year of recovery: robust growth in much of the world. The global economy, which had already passed the Covid test and was already looking towards a calmer future, has been dealt a new unexpected reality check (again) by the Russian invasion of Ukraine.