EU: No Decision On Oil Ban @ Today's Perm Rep Mtg, Slim Prospect Of Deal On Mon
May-13 08:48
Following a week of unsuccessful negotiation and dialogue with the Hungarian gov't, the EU has given up on trying to get a deal agreed on an embargo on Russian oil at today's Coreper II meeting of Permanent Representatives (member state ambassadors to the EU).
- There is a slim prospect that a deal could be reached at Monday's meeting of member state foreign ministers in Brussels, but at present Budapest is digging its heels in.
- Yesterday evening, Bloomberg reported that the EU is mulling whether to go ahead with the rest of the sanctions package without the oil embargo in order to ratchet up pressure on the Kremlin.
- The loss of the oil embargo could have several impactful outcomes on the bloc.
- It could galvanise other EU member states to significantly ramp-up pressure on Budapest, which remains subject to a rule of law mechanism triggered by the European Commission. The EU could seek to progress with economic punishments on Hungary, such as the withholding of structural funding or COVID relief in order to convince the Orban gov't to change tack.
- Alternatively, given that Hungary is the most vocal of a number of member states wary of cutting off Russian oil (Slovakia for one has raised concerns), it could result in a more fractured and less united EU front in the face of Russia's actions in Ukraine.
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AUD: AUDNZD test the 29/03/21 high
Apr-13 08:31
- NZDUSD extends losses, now down 0.83%, despite the higher than expected RNBZ hike.
- The pair now lowest since the 16th March.
- Small support moves up to 0.6768.
- Watch AUDNZD, testing the 29/03/21 high at 1.0947.
- This is also the highest print since 09/01/20.Next resistance is at 1.0960.
Chart source: MNI/Bloomberg
FINLAND: Gov't Set To Present White Paper On Security & NATO Membership Today
Apr-13 08:23
The Finnish gov't is set to present a white paper later today on the nation's security, which is set to officially start the debate on whether Finland should join the NATO alliance.
- Support for joining the defence alliance has soared in recent weeks, with the latest polls showing more than 60% of respondents in favour of joining, a 34% jump from autumn 2021. Of those in favour of joining, 41% believe the decisions should be made ASAP, with 19% in favour of joining by year-end and just 6% saying the decision should come after the 2023 parliamentary elections.
- The white paper will not make a decision on NATO membership, but will begin the parliamentary debate on the issue. Parliament will then give its recommendation on the subject to the gov't and president.
- Russia has sought to dissuade Finnish contemplation of joining NATO through threats and insinuation of difficulty ahead. Kremlin spox Dmitri Peskov stated on 7 April that Finland joining NATO would require a 'rebalancing' of the situation, adding that “we’ll have to make our western flank more sophisticated in terms of ensuring our security”.
- There is the prospect that Finland and Sweden seek NATO membership simultaneously, but at present it appears that the Swedish gov't is less progressed with its decision making on whether to join the bloc, and if so when.
MNI EXCLUSIVE: Chinese Advisors On Effect Of Covid On Growth And PBOC Policy
Apr-13 08:20
MNI speaks to Chinese advisors about the effect of Covid on growth prospects and the PBOC --On MNI Policy MainWire now, for more details please contact sales@marketnews.com
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