“Russian politicians may be warning that U.S. sanctions will backfire and undermine the dollar, but to the middle classes, the appeal of investing abroad is only increasing,” Anna Baraulina reports for Bloomberg.
“TCS Group Holding Plc became Russia’s fifth-biggest brokerage by active clients in the space of just a few months by offering mostly foreign stocks,” Baraulina reports. “Its most popular investments include Apple Inc., Amazon.com Inc., Alphabet Inc. and Facebook Inc., according to Alexander Emeshev, vice president of Tinkoff Bank, which opened the trading unit in May… About half of the 13 billion rubles ($194 million) invested by TCS clients is in foreign companies, Emeshev said. It has accumulated more than 16,000 active clients, and about 80 percent of the stocks it offers are foreign, he said.”
“The demand for foreign shares runs counter to the Russian government’s party line, with Foreign Minister Sergei Lavrov warning this week that the abuse of sanctions by the U.S. will ultimately hurt the dollar’s credibility,” Baraulina reports. “Yet with Russian deposit rates declining, markets in turmoil with each new round of trade restrictions and the ruble sinking to a more than two-year low, more money is being sent overseas.”
Read more in the full article here.
MacDailyNews Note: More info about the latest round of U.S. sanctions against Russia via Bloomberg News here.
obviously the rich, powerful and the privileged in the Russian society are able to to such buying / spending, not the mere mortals in the street. Lenin is turning in his grave.
It was ever thus. In the 80’s I went with an amateur football team to Moscow. We were welcomed by the tourist bigwigs, stayed in a hotel normally available only to diplomats and party officials, ate food and drinks that were impossible to get on the street and never queued for anything anywhere. We could take photographs unhindered which was definitely banned for anyone else and I returned home with no jeans, no team attire and no boots – all snapped up by party members running the black market.
Two tiered haves/have nots society.
We were soundly hammered by their Moscow Dynamo team substitutes just to make sure we got the message.
“I returned home with no jeans, no team attire and no boots – all snapped up by party members running the black market.”
What are you complaining about, at least you have clothes on your back, not naked. lol.
However, that was typical of communist countries, they are so poor once they came to the West they are suffocated by the all the materials here, such as cars, handbags, clothes, jewellery, just to name a few.,
Who’s complaining?
The only drawback was being paid in roubles. We all cashed in and bought top quality vodka – enough to float a boat.
I worked in Moscow for six weeks for the 1980 Olympics. There were a lot of stories circulated in advance about how Levi jeans could be sold for a small fortune. The Russians decided to head that one off and made millions of copies of Levi jeans, effectively flooding the market with them. However although they made very convincing copies with what appeared to be the Levi logo on them, the material used was totally non-stretch, while the designs they copied relied on stretch denim for a good fit. As a result, you could spot the people wearing Russian Levis a mile off because they walked with a funny John Wayne sort of walk.
Yeah, Levis’ were we’re top er…rouble, tho’ Wrangler were also desirable. Ré my post above, we all knew about the black market before we left home. One team member took a largish roll of pre-scrubbed denim and cut-out patterns for men’s/women’s fit. He had to buy lots of vodka and carved chess sets to spend his gains. Even the coach driver took spares for Russian built Fiats. Digital watches and Walkmans were so valuable you could name your price.
Not sure what you’re trying to say here, but US and Russia’s GINI-coefficients are roughly the same …
With Donald’s “politic” the whole world is about turning the back on the USA. And the US$ will just sink.
Protectionism has never been the right way.
This is NOT protectionism in the sense that you are projecting it. In past 3 to 4 presidents and congresses, they gave away little by little secretly our rights AND jobs on the world stage. It is no-where near balanced, and yet if one hates the incumbent political scheme, this fact is FAR too often Overlooked and Dismissed in favor of political digs. I don’t hear you complaining about the 200% and more tariffs on American goods overseas. Having lived overseas more than 25 years, I know governments that want, try and do sell their goods here in the USA at no tariff/tax while they charge enormous tariffs on US goods. This is not a “one item” tariff either.
As to the world turning their back, you are hearing one news voice echo. Not the real world.
the syndrome, I mean. The TDS. Poor bloke…almost everything is affected.
Of course if you believe (also stupidly) that every counter opinion is “face news” then, you may be blind enough to see ONLY what happens in short inside some parts of America.
But the general picture given by the States since D.T. makes his own little play is looking VERY weird for responsible people around the world.
Just to show off with lots of $ won’t do any good for the future.
The investment world is not turning its back on the US according to Tinkoff; It’s rather rushing toward it. So a US Capitalist should like this unexpected turn of events while a Russian nationalist not.
“The investment world” is ready to destroy anything, only to get trillions together… Trillions that might well be worth absolutely nothing within few years…
Hey, that’s Capitalism, baby! Your insight could very well become true since the investment world is a mirage or a Ponzi scheme based on faith. Apple, which is fundamentally not, is even getting in on the action recently with buybacks and dividends. Jobs absolutely never handed out dividends because they were gamblers, caring mostly about profiteering.
Well, this “capitalism” is about destroying our planet… but obviously some people don’t care, as long as god $ rules.
Sad to see humanity sawing the branch it is sitting on!
(must be read with Russian accent)
Russians buying Apple shares is about as American as you can get, just like Apple Pie and Wall Street. Only one word can describe.
Collusion.
But who is doing the colluding? Collusion, by the way, is not illegal but I get the joke; The word just sounds like it means something sinister because it has only relative recently been introduced into popular discourse, and embarrassingly so by the whimpering Clinton/DNC/Podesta crime gang and their allies who can’t believe that Trump won the presidency and not the presumptive president, Hillary R. Clinton.
D.T. is just there for his own megalomania. In the long term, this will only make America a great mess.
This short view, in terms of quick profit, will fire back: It’s a hard rain a gonna fall…
D.T. and his fake news… Remember: he’s already been involved in many bankrupts before.