Bank Rates, Fed Minutes, Buffett's New Purchase: An Investor's Digest

Top 10 deposit rates. The Fed announced an accelerated tightening of monetary policy. Warren Buffett's Berkshire Hathaway buys HP shares. notable events,

Trading on the Moscow Exchange and St. Petersburg Exchange will be held in the same mode as on April 5.

SPB Exchange

SPB Exchange   will start exchange trading in the main trading mode according to the following schedule:

from 10:00 Moscow time — securities of TCS Group Holding and PJSC SPB Exchange; from 14:30 Moscow time — securities of 50 international companies; from 16:00 Moscow time — securities of more than 1,600 international companies.

Moscow Exchange

The Moscow Exchange will conduct trading on April 5–8, 2022 in a mode similar to that established on April 4, 2022; 44 traded mutual funds (UIFs) will circulate on the site . The list of all traded BPIFs is here. Top 10 rates on deposits and savings accounts

The average rate of the 54 largest deposit banks on deposits for a period of one year in the amount of ₽100 thousand as of April 7 is 9.67% per annum, according to the FRG100 index.

The most favorable deposit rate as of 04/07/2022 is 25% per annum.

Top 10 banks with high effective rates on deposits and savings accounts as of 04/07/2022:

Sinara - up to 25%; Vladbiznesbank — up to 24%; Tavrichesky Bank - up to 23%; OTP Bank — up to 23%; Eurofinance Mosnarbank - up to 22.50%; Realist Bank — up to 22.50%; Slavia Bank - up to 22.10%; Ural Bank for Reconstruction and Development - up to 22%; SBI Bank - up to 22%; BBR Bank - up to 22%.

Source: Banki.ru financial marketplace (the effective rate is calculated according to the Banki.ru methodology and is not an offer, detailed conditions are in credit institutions).

New US sanctions

On April 6, the United States introduced new anti-Russian sanctions. In particular,
the US authorities have introduced full blocking restrictions on Sberbank and Alfa-Bank. The sanctions include the freezing of bank assets and the imposition of a ban on US citizens and companies from doing business with them.

In addition, the US introduced:

prohibition of RUSSIA to make payments on debts with funds under the jurisdiction of the United States; full blocking sanctions against major major Russian state-owned enterprises, a ban on any US citizen from doing business with these entities, and a freeze on any of their assets subject to US jurisdiction.

The UK has taken similar measures along with a ban on the import of steel products.

"Minutes" of the US Federal Reserve

The American regulator published the minutes of the meeting held on March 15-16. The document indicates the possibility to start reducing the balance sheet from May by $95 billion monthly (treasury bonds   by $60 billion, mortgage bonds by $35 billion).

Now the balance is $8.93 trillion. In the last two years alone, due to support measures during the pandemic and QE (the procedure for buying assets from the market in order to support it), it has grown by 115%.

In addition, members of the Fed do not exclude the possibility of raising the rate by 0.5% at the May meeting at once. At a meeting in March, the regulator raised the rate by 0.25%.

“The indicated tightening of monetary conditions threatens the US economy with a recession   , and the stock market with a drop in liquidity   . As a result, medium-term risks for the S&P 500 remain high. At a minimum, in the current situation, there is no need to talk about the return of quotes towards historical highs. The most favorable option is to maintain the phase of a wide sideways trend, which has been observed since last autumn. But the risks of temporary deep drawdowns are still very high,” Vasily Karpunin, an expert at BCS World of Investments, commented on the news.

Warren Buffett's New Purchase

Warren Buffett's Berkshire Hathaway   acquired 120.95 million shares of PC and printer maker HP on April 6 for over $4.2 billion.

HP is another technology company after APPLE that was acquired by Berkshire Hathaway. Previously, Warren Buffett avoided investing in technology for a long time.

HP shares rose 9.94% postmarket on April 6 to $38.38 a share.

Berkshire Hathaway continues to grow stake in Occidental Petroleum Berkshire Hathaway , Occidental Petroleum , Banking & Finance , Warren Buffett , Stocks

Other important events

Micron : Last day to buy shares to receive dividends. The amount of dividends is $0.10 per share. The dividend payment date is April 26,
AFK Sistema: financial results for the 4th quarter and all of 2021.

How the previous trading session ended Moscow Exchange Index : 2611.43 (-1.93%) RTS Index : 1034.79 (+2.99%) S&P 500 : 4481.15 (-0.97%) DOW JONES Industrial Average : 34 496.51 (-0.42%) NASDAQ Composite: 13,888.82 (-2.22%) A term that refers to the likelihood of an asset being sold quickly at or near a market price. More A macroeconomic term that refers to a significant decline in economic activity. The main indicator of a recession is the decline in GDP for two quarters in a row. American businessman and one of the most famous investors in the world. Principal owner and CEO of Berkshire Hathaway investment holding. A regulated market where sellers and buyers meet, trading in various assets: stocks, bonds, currencies, futures, commodities. Everyone can become a participant in trading on the stock exchange - for this you need to open a brokerage account. Each transaction is concluded at a market price, is completed almost instantly, and is also registered and controlled. More Debt security, the owner of which has the right to receive from the person who issued the bond, its face value within the agreed period. In addition, the bond implies the right of the owner to receive a percentage of its face value or other property rights. Bonds are the equivalent of a loan and are similar in principle to the lending process. Both governments and private companies can issue bonds.