Greetings,
Global Developments: According to the Russian government’s news agency, TASS, …
Putin decided to conduct an operation to denazify and demilitarize Ukraine. …Russia will not allow Ukraine to have nuclear weapons.
The term “denazify” suggests that Putin intends to remove the Ukrainian government by force, which means a full-scale invasion (the Kremlin has been labeling the Ukrainian government “Nazis” for years to justify incursions).
![The Daily Shot Brief – February 24th, 2022](https://thedailyshot.com/wp-content/uploads/EM-RU-ST2202240426.png)
The attacks have started.
![The Daily Shot Brief – February 24th, 2022](https://thedailyshot.com/wp-content/uploads/GL-RU-ST2202240426.png)
The markets were taken by surprise, with many hoping that Russia’s incursion would be limited. Brent crude oil blasted past $100/bbl.
![The Daily Shot Brief – February 24th, 2022](https://thedailyshot.com/wp-content/uploads/GL-M-Brent2202240426.png)
Emerging Markets: Russia’s central bank is trying to stabilize the ruble (Russia has massive FX reserves).
![The Daily Shot Brief – February 24th, 2022](https://thedailyshot.com/wp-content/uploads/EM-RUB2202240426.png)
Russian USD bond spreads have exploded. Russia is likely to be shut out of the Eurobond market.
![The Daily Shot Brief – February 24th, 2022](https://thedailyshot.com/wp-content/uploads/EM-RU-Spread2202240426.png)
Energy: The WTI-Brent spread has widened most since US crude prices went negative during the COVID selloff.
![The Daily Shot Brief – February 24th, 2022](https://thedailyshot.com/wp-content/uploads/EN-WTI-BRent-Spread2202240426.png)
Equities: All of a sudden, corporate profits matter. Unprofitable growth companies have sharply widened their underperformance on Wednesday.
![The Daily Shot Brief – February 24th, 2022](https://thedailyshot.com/wp-content/uploads/EQ-Nonprofitable2202240426.png)
Eurozone: The ECB is expected to hike rates this year. Will the Ukraine situation delay the process?
![The Daily Shot Brief – February 24th, 2022](https://thedailyshot.com/wp-content/uploads/EZ-ECB-Forecast2202240426.png)
Food for Thought: Previous US sanctions on Russia:
![The Daily Shot Brief – February 24th, 2022](https://thedailyshot.com/wp-content/uploads/VTG-AAA-Previous-US-sanctions-on-Russia2202240426.png)
Edited by Daniel Moskovits
Contact the Daily Shot Editor: Editor@DailyShotLetter.com