European financial institutions turn their backs on Russia

Italy’s growth is expected to slow due to the war in Ukraine; ECB sees no risk of stagflation — Macro Snapshot

RIYADH: While growth forecasts for Spain and Italy show a decline, the European Central Bank does not expect the war in Ukraine to push the euro zone into stagflation even if it pushes the inflation due to higher energy prices and depresses growth, said President Christine Lagarde quoted as saying on Saturday.

“Incoming data does not indicate a material risk of stagflation,” Lagarde said in an interview with Phileleftheros published by the ECB on its website.

Lagarde said growth in the euro zone could be as low as 2.3% in a severe scenario due to war in 2022, however, in all scenarios inflation is expected to decline and stabilize at levels around of the bank’s 2% target in 2024.

The Moscow exchange will resume

Russia’s central bank said on Saturday that the Moscow stock exchange would resume trading on Monday, with Russian stocks and bonds in normal mode, albeit for half a day.

He said the trading session will last from 9:50 a.m. to 1:50 p.m. Moscow time (06:50-10:50 GMT).

The Russian market is gradually reopening and returning to normal after a suspension caused by the broad Western sanctions that followed the start of what Russia calls “a special operation” in Ukraine on February 24.

iraqi raw

Jordan and Iraq have agreed to extend a memorandum of understanding signed between the two sides to import 10,000 barrels a day of Iraqi crude oil from Kirkuk, the official Jordanian news agency reported on Saturday.

The oil will be transported to the Jordan Petroleum refinery in Zarqa, he added.

Italy’s growth in 2022

Geopolitical tensions stemming from the war in Ukraine will dampen Italy’s growth this year, rating agency Scope said on Friday, echoing the views of other leading observers.

Russia’s invasion of Ukraine has inflated already sky-high energy prices, leading several think tanks to revise their forecasts for eurozone economies in 2022.

Scope Ratings analyst Giulia Branz told Reuters the group’s growth projection for Italy this year now stands at around 3%, down from 4-4.5% originally forecast at the start of the month. year.

Spain’s GDP

Spain’s economy grew 5.1% in 2021, revised official data showed on Friday, slightly higher than a preliminary estimate of 5% given in January, but still well below the 6.5% target of the government.

Gross domestic product rose 2.2% in the fourth quarter from the previous quarter, according to revised data from the National Institute of Statistics, against a flash estimate of 2%.

The INE also revised quarterly GDP data for the third quarter to an expansion of 3.5% from a previous growth projection of 3.4%.

Japanese fuel subsidies

Japan will extend its current fuel subsidies to cushion the impact of energy inflation on households and businesses until the end of April, Prime Minister Fumio Kishida said on Friday.

Kishida told reporters that he would order the government as early as next week to compile additional emergency countermeasures for rising prices of oil and other goods by the end of April.

Malaysia February CPI

Malaysia’s consumer prices in February rose 2.2% from a year earlier, below forecasts, according to government data.

February’s consumer price index is expected to rise 2.4%, according to 16 economists polled in a Reuters poll.

Marianne R. Winn