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Ford hopes to create two different business cultures in Blue and Model e. Part of the reason, Farley said, is in the hope that software and electric vehicle experts can be attracted to the more entrepreneurial mindset of the individual Model e division. Startups have succeeded in electric vehicles, Ford executives said, attracting people they may have never seen in the automotive industry.

“We want the best people,” said Doug Field, who has been appointed Chief Electric and Digital Officer at Model e. “I don’t care if they come to work on bunny slippers, but we need to have the best people.”

Ford expects half of its sales to be electric vehicles by 2030.

The two divisions will be fed to each other. Model e, for example, will develop software systems that can also be used in Ford gas-powered cars. Meanwhile, Ford Blue will negotiate with suppliers of parts to purchase items that can also be used in electric vehicles, such as suspension or interior elements. Ford Blue will also work to improve the quality of Ford’s “legacy” products, Farley said, and reduce costs. Warranty repair costs, for example, are currently higher than competitors, he said.

Model e will work with suppliers of parts and consumables critical to electric vehicles, such as components for batteries and electric motors. The unit will work deeper into the supply chain, executives said, working with suppliers to find the best components and save costs. Model e will also work on software for buying and buying cars.

Ford expects half of vehicle sales to be electric vehicles by 2030.

The new divisions will begin reporting separate financial results from the first quarter of 2023. Ford’s commercial vehicle division, Ford Pro, will also begin reporting separate financial results at that time.

• The Russian ruble has fallen to a record low since the invasion of Ukraine as sanctions bite.
• Wealthy Russians are buying luxury jewelry and watches as a repository for the crumbling currency.
• Bulgari, owned by LVMH, said Bloomberg’s sales have increased in recent days.

Wealthy Russians are buying luxury jewelry and watches, while the ruble remains at record lows after extensive Western sanctions following the invasion of Ukraine.

Sales at Italy’s Bulgari, owned by LVMH, have risen in recent days, Jean-Christophe Babin, the jewelry company’s chief executive, told Bloomberg.

“In the short term, this has probably stimulated business,” Babin told the media.

Adam Tuz, director of the European Institute at Columbia University, wrote on Monday that people in Moscow were “panicking” into buying luxury products over the weekend, which could have high resale value as they fear a further devaluation of the ruble after the currency fell last week just after Russia’s attack on Ukraine.

The rolls extended the decline by another 30% on Monday.

Babin told Bloomberg that Bulgari is likely to raise prices to offset the fall in the Russian currency. “If the ruble loses half its value, our costs remain in euros, we can’t lose money from what we sell, so we will have to adjust prices,” Babin told Bloomberg.

Gold and jewelry are traditional repositories of value to investors in times of turmoil. The price of gold, a safe haven, has risen by more than 5% this year on the spot market. The market for the resale of luxury watches is also booming, Business of Fashion reported in January.

In recent months, imported luxury items have been in demand by those affected by currency fluctuations. In Turkey, where the pound has lost more than half its value against the dollar since 2020, people are buying high-end electronics such as Apple products as a means of storing value, Reuters reported in November.

While Western corporations – such as consumer goods giants Apple and Nike – are rapidly withdrawing or shutting down business in Russia, this seems to be largely the case for luxury brands that are not covered by European Union sanctions.

“We are there for the Russian people, not for the political world,” Babin told Bloomberg. “We operate in many different countries that have periods of uncertainty and tension.”

But it may be more difficult for luxury brands to operate logistically in Russia, as Western countries have removed selected banks from the international banking system SWIFT. The world’s largest shipping companies – including Maersk, MSC and CMA CGM – have also stopped shipping to and from Russia. Many countries, including the United States and the European Union, have also closed their airspace to Russia.

“It is difficult to say how long this will last, because indeed, with SWIFT measures fully implemented, this could make it difficult, if not impossible, to export to Russia,” Babin told Bloomberg.

ETF Trends CIO and Research Director Dave Nadig join Yahoo Finance Live to discuss Russian ETFs and energy ETFs as MOEX remains closed and the Russia-Ukraine war continues.

Video transcript

KARINA MICHEL: Okay, now we’ll turn things around. It’s time for the ‘ETF Report’ provided by Invesco QQQ. And I want to attract our guest, Dave Nordic, CIO, Director of Research for ETF Trends. Thank you so much for being here, Dave, today. The Russian stock market is still closed, isn’t it, for one day? So what does this mean for Russian ETFs in general, as they are broken?

DAVE NADIG: Yes, so not only is it closed, but it will be closed tomorrow. They announced this a few minutes ago. I think we will be shocked if they open for a session on Friday before going to the middle of the war weekend. So I think it is safe to assume that the Russian market is closed for the foreseeable future.

The big ETFs that track this space are in an interesting position. The largest in space is the RSX, this is the VanEck Russia ETF. Until the last few days it was about $ 1.5 billion, now it’s about $ 200 million for obvious reasons. These funds usually do not have the share capital in MOEX, in the Moscow Stock Exchange itself. They tend to have GDRs, global depositary receipts either in London or sometimes in the United States.

And they are still being traded. The challenge is that they are now trading at really affordable prices. So something like Gazprom, which used to trade for a few dollars, trades in dollars in London, now trades for pennies. And we have Sberbank, which is now withdrawing from Europe, trading and actually bidding 0 for part of the day and bidding a penny for most of the day. Obviously, these are no longer viable securities.

So what is happening in this environment is that the ETF is becoming a price discovery for the Russian market as a whole. So when looking at something like RSX, it’s important to focus on what’s being traded, and not try to worry about net asset values ​​or what the fair value could be. market because there is no fair market for these underlying securities at the moment. This is one of those cases where ETFs are really becoming a whole market.

The story continues

KARINA MICHEL: If this conflict continues for a long time, what impact will global companies withdrawing from Russian oil projects such as Gazprom affect the sector as a whole?

DAVE NADIG: Well, I mean, we’re really unfamiliar territory. I want to say that the last time we really pushed to create an effective pariah state from a connected country was probably in the late 1970s in Iran, when global markets obviously did not look the way they do now. In fact, I was somewhat shocked by the speed with which the global financial community is moving, not only at the regulatory level, as something like official sanctions, but also at individual companies announcing that they are selling individual projects, especially in the energy sector.

I think it’s very difficult to say what that means with something like big air quotes around it. I think we are really in unexplored territory. So I … what I’m telling people these days is to be very, very careful, trying to call the top or the bottom in every part of it. I think it’s a very dangerous time to start trying to play energy and oil. I think it is a very dangerous moment to try to pay off the bottom of Russian stocks. I think there are too many shoes to throw here.

KARINA MICHEL: How difficult is the position of index providers at the moment, MSCI is removing Russia from its index, and others are under pressure like JP Morgan?

DAVE NADIG: Yes, I think it puts index providers in an interesting position because things have developed so fast. What we have seen that most index providers have said or announced so far is to virtually end all changes to existing indices, meaning MSCI has a Russian index, they are not repealing the Russian index, they are simply saying we will freeze it for a while. time. We will not make any changes, additions, rebalances, corporate actions. It will remain static. This is what the MVIS index, which is behind the big Russian ETF, does. It’s kind of a minimum condition, it’s just something like stepping down from the desk and seeing what the world will look like in a few days.

The bigger question as they move towards the rebalancing period, say towards the end of this month, as they start to look at a market that may not reopen to foreign investors at all, this raises interesting questions about what you are doing. with Russia, say in a broad emerging market index? Do you say it right away? Are you passing? This is a very difficult situation.

It is not even clear to me what a large fund for emerging markets would do with its Russian stocks if they were thrown out of the market – thrown out of the index, because at the moment there is literally nowhere to sell them.

KARINA MICHEL: There are only about a minute left, but I want to ask you what does this do with energy ETFs, especially renewables in the face of this conflict?

DAVE NADIG: Yes, I mean there is– today I read notes from bankers on both sides of this issue. The thing I was looking at that I think is very interesting is KRBN, which is KraneShares Carbon’s credit ETF. It was, sorry, a play on words, a little canary in the coal mine for the reaction here. You’d think that with oil prices, and frankly, all fossil fuels going through the moon, you’d think there would be that repulsion and that need for carbon credits as you move to dirtier and dirtier fuels like coal to make up the difference. But what we’ve actually seen is that they’re swapping down.

I think that, to a large extent, financial players are moving aside to see whether or not we will see a change, especially in the EU’s commitments on renewable energy. The EU was a huge driver for this. It is not unthinkable to think that these rules can at least be delayed or changed after, say, the exclusion of all Russian fossil fuels. But we still don’t know enough. So I think it’s a very difficult sector to call right now. I would honestly advise people to stay away from it if you are not in it. And be careful with the sale, if you already have.

KARINA MICHEL: Okay, keep the words in mind. Thank you so much. We’ll have to leave it there. Dave Nadig, CIO, Director of Research for ETF Trends. Thanks for your time today.

Toyota cars for sale in Moscow, Russia, July 8, 2016. REUTERS / Sergey Karpukhin

March 3 – Japan’s top carmakers, including Toyota, have been forced to suspend production in Russia as Western sanctions following its invasion of Ukraine disrupted logistics and disrupted supply chains, deepening the country’s economic isolation.

Toyota Motor (7203.T) also said that car exports to Russia were suspended indefinitely after similar actions by local competitors Honda Motor (7267.T) and Mazda Motor (7261.T). Read more

Many Western companies rejected Russia after its attack, with some saying they would give up investing there, but some Japanese companies took a more ambiguous stance.

“Toyota is monitoring the current events in Ukraine with great concern for the safety of the people of Ukraine and hopes for a safe return to peace as soon as possible,” the statement said.

Toyota is the leading Japanese brand in Russia, producing about 80,000 cars at its plant in St. Petersburg, which employs 2,000 people.

Global car companies, including Mercedes-Benz (MBGn.DE), Ford (FN) and BMW, have also stopped producing and exporting cars to Russia and the world’s largest shipping lines, MSC and Maersk (MAERSKb.CO) have suspended deliveries of containers to and from the side.

Maersk said on Wednesday that shipments of food and medical supplies to Russia risk being damaged or spoiled due to significant delays in ports and customs. Read more

Western sanctions, including the exclusion of some Russian banks from the global financial network SWIFT, have forced dozens of global companies to suspend exports and suspend operations in the country, hit the ruble and forced the central bank to raise interest rates.

Amazon.com Inc said Wednesday that it is using its logistics capabilities to deliver supplies to those in need and cybersecurity expertise to help governments and companies as part of its support for Ukraine. Read more

Supply chains already disrupted by the pandemic are facing more stress as airspace closures affect the airline industry and airlines responsible for about one-fifth of the world’s air cargo are affected by sanctions. Read more

Japan Airlines (9201.T) and ANA Holdings (9202.T), which typically use Russian airspace for their flights to Europe, said they would cancel all flights to and from Europe on Thursday, joining other carriers that are canceled or diverted flights between Europe and North Asia. Read more

Fitch and Moody’s on Wednesday downgraded Russia’s sovereign credit rating by six notches to “junk” status, saying Western sanctions called into question Russia’s ability to service its debt and weaken its economy. Read more

CORPORATE ACTION

Moscow has responded to the growing exodus of Western investors by temporarily restricting sales of Russian assets by foreigners.

Meanwhile, Russian companies are feeling increasingly pressured.

Sberbank (SBER.MM), Russia’s largest lender, said on Wednesday it was leaving the European market as its subsidiaries face large cash flows. Read more

Russia has continued what it calls a “special operation” in Ukraine, although its one-week invasion was condemned by the UN in a historic vote and dozens of countries have targeted Moscow to investigate potential war crimes. Moscow says it seeks “demilitarization” of Ukraine and denies targeting civilians. Read more

Corporate condemnation of Russia is heavy and heavy.

The US energy company Exxon Mobil (XOM.N), which will leave Russia like Britain’s BP and Shell (SHEL.L), said: “We deplore Russia’s military action, which violates Ukraine’s territorial integrity and threatens its people.” .

The Swedish fashion group H&M (HMb.ST), which has stopped sales in Russia, said it was deeply concerned about the tragic events in Ukraine and “stands by all the people who are suffering”.

Spotify (SPOT.N) said it had closed its office in Russia indefinitely in response to what it called “Moscow’s unprovoked attack on Ukraine”. Read more

Apple (AAPL.O) has stopped sales of iPhones and other products in Russia. Boeing (BA.N) has stopped support and technical support for Russian airlines.

Airbus SE (AIR.PA) said that while suspending supplies of parts and services to Russia, it was also analyzing whether its engineering center in Moscow could continue to provide services to local customers. Read more

Citigroup Inc (CN), which said it could face billions of dollars in losses from its exposure to Russia, said it wanted to leave Russian assets. Read more

Cruise operators Royal Caribbean Group and Viking Cruises have canceled their voyages to Russia, joining many Western cruise companies that have taken St. Petersburg off their summer routes.

Report by Satoshi Sugiyama in Tokyo and Jamie Fried in Sydney; Additional reports by Jamie Fried in Sydney, Mehr Bedi in Bengaluru, Megan Davis in New York; Writing by Sayantani Gosh; Edited by Lincoln Feast & Simon Cameron-Moore

Our standards: ‘ principles of trust.

Fanatics Inc. raised $ 1.5 billion from a group of large investors, raising the sports merchandising giant’s estimate to $ 27 billion as it works to expand beyond its core business, according to people familiar with the matter.

Investors in the latest round include Fidelity Management & Research Co, a fund managed by BlackRock Inc.

and Michael Dell’s family office, known as MSD Capital LP, people said.

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As sanctions against Russia cause the ruble to collapse and keep stock markets closed, the country’s rich are turning to luxury jewelry and watches in a bid to preserve the value of their savings.

Sales at Bulgari SpA’s Russian stores have risen in recent days, the Italian jeweler’s chief executive said after the international response to the nation’s invasion of Ukraine severely curtailed cash flows.

“In the short term, this has probably stimulated business,” Jean-Christophe Babin said in an interview with Bloomberg, describing Bulgari jewelry as a “safe investment”.

“It is difficult to say how long this will last, because indeed, with SWIFT measures fully implemented, this could make it difficult, if not impossible, to export to Russia,” he said, given Russia’s restrictions on access to SWIFT. … messaging system.

Even when consumer brands from Apple Inc. to Nike Inc. and energy giants BP Plc, Shell Plc and Exxon Mobil Corp. withdrawn from Russia, the largest luxury brands in Europe so far are trying to continue to operate in the country.

Bulgari, owned by LVMH SE, is far from alone. Ricier’s Cartier still sells jewelry and watches, and Swatch Group’s Omega watches are still available, as are Rolexes.

“We are there for the Russian people, not for the political world,” Babin said. “We work in many different countries that have periods of uncertainty and tension.”

Like gold, which can serve as a means of storing value and hedging against inflation, luxury watches and jewelry can hold back or even rise amid economic turmoil caused by wars and conflicts.

Popular watches can change the owner of the secondary market for three or four times the retail price. However, the impact of the invasion on the value of luxury items poses a potential public relations problem.

“It is true that luxury brands may decide not to serve the Russian market. Rationally, this would be a price for them, probably outweighed by the positive communication image they receive in other markets, “Bernstein analyst Luca Solka said in an email.

Sales in Russia and to Russians abroad account for less than 2% of LVMH and Swatch Group’s total revenue and less than 3% for Richemont, a “relatively insignificant” level, according to a report this week by Edward Auben and colleagues. analysts from Morgan Stanley.

This is due in part to Russia’s differences in income and wealth, with a small number of billionaire oligarchs living beyond the means of ordinary people. The average monthly salary in Moscow is about 113,000 rubles ($ 1,350 at the exchange rate before the invasion) and is much lower in rural areas.

A Swatch Group spokesman said the company was monitoring the situation in Russia and Ukraine very closely and declined to comment further. Speakers from Richemont, Rolex, Hermes, LVMH and Kering SA declined to comment on their operations in Russia.

The pressure on big brands is growing. The LVMH-backed Business of Fashion called on retailers to close Russian stores and not deliver products online. In a widely circulated editorial, editor-in-chief Imran Amed said the move would be “largely symbolic” but would show “commitment to a strong moral position”.

So far, the reaction has been silenced. Balenciaga, whose creative director Demna Gvasalia is Georgian, removed all fashion content from his Instagram page days before his autumn-winter show in Paris. In its place is the Ukrainian flag and a call for donations to the World Food Program. LVMH said it was donating 5m euros ($ 5.6m) to the International Committee of the Red Cross to help war victims. LVMH also provides financial and operational assistance to its 150 employees in Ukraine, he added.

Bulgari, founded in 1884 by Sotirio Bulgari and bought in 2011 by LVMH, is likely to raise prices in Russia at some point, according to the CEO.

“If the ruble loses half its value, our costs remain in euros, we cannot lose money from what we sell, so we will have to adjust prices,” he said.

No matter what the jump in sales may be, luxury watch and jewelry manufacturers may soon have difficulty filling stores. Moscow has closed its airspace to European Union countries, and the continent’s largest logistics companies have cut off supplies to Russia. Burberry Group Plc said it had suspended all supplies to Russia until the next order amid operational challenges.

Bulgari plans to keep its stores open and continue to develop a new hotel in Moscow despite the war. However, if the crisis lasts for months, “it will be difficult to supply the country,” Babin said.

(Adds statements from LVMH, Burberry)

“With the help of Jonathan Roeder.”

Changpen Zhao, Binance’s chief executive, outlined his cryptocurrency exchange’s policy toward Russia, arguing that a total ban on Russian consumers would be “unethical.”

Zhao says Binance is complying with the sanctions

In an interview with Bloomberg, Zhao said that Binance complies with sanctions that restrict the financial activities of Russian individuals.

He also said that extending these restrictions beyond those sanctioned would be “unethical for us”.

“I just don’t think it’s our decision to freeze user accounts,” Zhao said. He later reiterated this view, saying that “it is not for us to unilaterally freeze the bank accounts of some Russian citizens.”

Zhao also added that many Russian consumers do not support their country’s aggression against Ukraine and that “the most vulnerable groups have little influence over international affairs.” He noted that a total ban is likely to force legitimate Russian consumers to switch to smaller, less compatible trading platforms.

Zhao said that Binance follows the same rules as banks and that “at the moment … most banks follow the same list of sanctions as us.”

As to whether the sanctioned Russian oligarchs can trade anonymously on Binance, Zhao said his entire exchange relies on identity checks. Although Binance once had limited measures for KYC, the exchange increased its requirements last August.

Zhao said he personally did not know how many accounts Binance had frozen so far and said the Binance compliance team was responsible for implementation.

Binance and other exchanges follow sanctions

Earlier, Binance and its representatives made more limited statements on sanctions against Ukraine. Binance said it was “blocking the accounts of those on the sanctions list” in a statement to Reuters. He also said he would not “unilaterally freeze millions of accounts of innocent users” in a statement to CNBC.

At the time, Jesse Powell, chief executive of rival Kraken, also commented. Powell said Kraken cannot freeze consumer funds unless it is legally required to do so.

Coinbase made similar statements on Tuesday, saying it would not “impose a total ban on all Coinbase transactions involving Russian addresses.”

Ukraine has also asked six other exchanges to block Russian consumers, according to reports from Coindesk. These other exchanges include Huobi, KuCoin, Bybit, Gate.io, Whitebit and Kuna.

Disclaimer: At the time of writing, this author held less than $ 100 Bitcoins, Ethereum and Altcoins.