Tag: us president joe biden

Russia-Ukraine war: Impact of US, EU sanctions on Russian banks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In response to Russia invading Ukraine, the US and the European Union (EU) have imposed a slew of economic sanctions on Russia with a view to cripple its economy, banking institutions and its access to technology. The move is expected to take a toll on Russia’s trade and stifle growth.

The US announced sanctions on some individuals, and on some Russian banks, while the EU has said that it will disconnect an unnamed list of Russian banks from the SWIFT payment system. Also, both the US and the EU have said that they will prevent Russia from accessing its reserves.

Preventing the central bank from accessing its reserves is by far the nuclear option in the financial sector. The removing of some people from the SWIFT or sanctioning those banks is important. Now what it means is that all dollar settlements are done by the US, by its clearing house. If one is a sanctioned entity, they cannot be a counterparty. So that means all the oil and commodities that are sold through those banks will not be settled at all. So, they are out of the financial sector.

The big unknown here is how does one prevent Russia from not accessing its reserves? There is a negative list in the US. If you are added to that list, you cannot transact whatever you have in those banks, so that becomes very clear. But what if Russia is not holding its reserves entirely in those banks. Also, Russia is holding a lot of gold- about 20 percent of the reserves are in gold. So technically, gold can be sold. Though one may still wonder who is going to pay them in dollars and how will that be settled. So perhaps it can still sell some of its gold or its other non-EU, non-US T-bill reserves, like China.

Also Read: Russia-Ukraine war: US imposes sanctions on Russian banks; no consensus on cutting off access to SWIFT payment system

Another unknown is, which are the banks that are removed from the SWIFT? Now deliberately the EU has not named which of the banks have been removed. So at the moment, the scale is big. It could be any of them.

There is one section in the financial sector that believes that it would be the same banks that the US has already named, and the US has only named three banks in the top ten. The first biggest bank, the second and the eighth and then there are smaller entities. So one can deal with the other banks.

Also Read: What is SWIFT and how does it affect Russia?

The best case for Russia is there are sanctions on all the banks. Therefore, the other banks will still be able to handle transactions and therefore gas and other commodities can be sold through those banks. The US will settle it in dollars and dollars will flow in. So some transactions can be met.

Also, if there is a crash on the ruble (Russia’s currency), which is very imminent, the ruble in some of the black markets was selling at 171 ruble to the dollar. On Friday, it closed at 83 ruble to a dollar, so already Russians are rushing in to draw dollars.

What is the worst-case scenario here- because the list is not named, nobody wants to deal with these banks, which is why you are seeing all commodity prices shoot up, especially gas and oil. When gas shoots up, oil shoots up immediately. So as a result, Russians are already withdrawing dollars in panic so the reaction would be that Russia could impose capital controls, not allowing its people to take out dollars; Indian companies registered there will also face a similar problem, but the situation is still fluid.

It is also possible that the EU wants to freeze Russian assets, not their own homes- when an economy is recovering, one doesn’t want to impose a recessionary trend. Also, an important point is that one wants a bargaining chip against Russia- if you have already pushed the economy out, there are no talks. Russia is not yet Iran. There are still some negotiating chips and no one knows what they are- only the EU knows and they may still be negotiating.

Watch the accompanying video of CNBC-TV18’s Latha Venkatesh for more details.

Catch all the live updates on Russia-Ukraine war here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Technology firms should contribute to preserving democratic societies: PM Modi at Biden’s virtual summit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Technology firms should contribute to preserving democratic societies as technology has the ability to impact democracy “positively or negatively”, Prime Minister Narendra Modi said on Thursday at a virtual summit hosted by US President Joe Biden. Biden hosted the summit for democracy and representatives from over a hundred countries are attending it.

In his address, Modi also outlined sensitivity, accountability, participation and reform orientation as four pillars of Indian democratic governance, sources said. He also stressed that principles of democracy should also guide global governance and highlighted India’s civilisational ethos as one of the original sources of democracy, they said.

The prime minister said that the democratic spirit, including respect for rule of law and pluralistic ethos, is ingrained in Indians, the sources said. The Indian diaspora carries it too, thereby contributing to the economic well-being and social harmony of their adopted homes, they said.

In his remarks, Modi recalled that exactly on this date 75 years ago, India’s Constituent Assembly had held its first session. The prime minister emphasised the need for democratic countries to deliver on values enshrined in their constitutions, the sources said.

“He stressed that principles of democracy should also guide global governance; and that given technology’s ability to impact democracy positively or negatively, technology companies should contribute to preserving open and democratic societies,” said a source.

As a special gesture, Modi was invited to participate in the main ‘Leaders’ Plenary Session’ hosted by President Biden. This closed-door session saw interventions from 12 select countries, including India.

On Friday, Modi will deliver India’s national statement. This will be open to the public.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Crypto lobbyists in US concerned about Biden’s infrastructure bill; here’s why

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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US President Joe Biden has signed the $1.2 trillion bipartisan infrastructure bill into law, which includes tax reporting provisions on digital assets such as cryptocurrency and nonfungible tokens, or NFTs.

The legislation expands the definition of a cryptocurrency broker, which are mainly exchange, for revenue purposes. Brokers are now required to issue a 1099-B form notifying the revenue department of all its customers and their transactions.

How will it work?

Under the new tax code, exchanges will have to report receipts of $10,000 in cryptocurrency each time.

“The bill will signify the end of hiding many gains for many crypto investors,” Grant Maddox, an independent CFP from South Carolina, told NextAdvisor, adding that the law may, however, give rise to tax reporting challenges for crypto investors.

Critics worry that the definition of a broker is too wide and requires more clarity. The current language could include entities such as miners who do not facilitate transactions or those entities that do not have the information needed to comply.

In August, however, the US treasury department had clarified that the bill would not target non-brokers such as miners, hardware developers and others.

The impact

According to Shehan Chandrasekera, head of the tax strategy at CoinTracker, the provision would still impact cryptocurrency investors.

Form 1099-B will be issued to both the Internal Revenue Service (IRS) and the customer by the broker. The customer will use the form to calculate their preliminary gains and losses to report their own tax return.

“These 1099s are going to be inaccurate for the most part, because these exchanges don’t have visibility into what you have in your self-custody wallet or what you’re doing in decentralised finance, or DeFi, applications,” Chandrasekera told CNBC.

Some customers also operate their self-custody wallets with private keys and do not take the help of a third party such as an exchange. Hence, for customers with both self-custody wallets and exchange wallets, these tax legislations could be tricky.

For instance, if an investor sells $100,000 worth of Bitcoin after shifting it from their self-custody wallet to their Coinbase wallet, Coinbase would issue the 1099 form reporting the transaction. However, Coinbase would not have information about the initial amount paid by the investor for the Bitcoin as it didn’t happen on the exchange. With the exchange not knowing the investor’s cost basis, 1099 may be overstated, Chandrasekera said.

New tax code

Another tax provision brings digital assets under the US tax code called 6050I. Under Section 6050I, people receiving more than $10,000 in cash and equivalents are required to verify the sender’s personal information such as name and social security numbers with the IRS. Under the new tax code, businesses and exchanges are now required to do so when they receive more than $10,000 in cryptocurrency.

Industry proponents like non-profit CoinCenter believe this surveillance rule is “unworkable and arguably unconstitutional”.

“Crypto people are privacy-conscious. Why would they want to give all their information to these businesses?” Chandrasekera said.

Meanwhile, a bipartisan team of US senators – Senate finance committee chairman Ron Wyden and Senator Cynthia Lummis – is working on a separate bill to narrow some cryptocurrency clauses laid out in the infrastructure legislation.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Global Eye: Joe Biden-Xi Jinping meet a win for China, says The Hindu; COP26 summit winding up and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The CNBC-TV18 special show Global Eye focuses on the big diplomacy push between the United States (US) and China. It also throws light on the upcoming meeting between US Trade Representative Katherin Tai and India’s Commerce Minister Piyush Goyal.

Moreover, as the COP26 Climate Summit is winding up in Glasgow, CNBC-TV18 also spoke to furniture maker IKEA’s parent company Ingka Group about the role of the private sector in climate action.

US President Joe Biden will hold a virtual meeting with his Chinese counterpart Xi Jinping next week. The meeting comes amidst trade tensions between the two countries and the US’ criticism of China’s military activities. China has also extended an olive branch with President Xi Jinping saying China is ready to manage differences with the US and enhance cooperation.

Ananth Krishnan, correspondent for The Hindu said just the fact that this summit is happening is a win for China and it is a little bit puzzling from an Indian observer’s point of view as to why the US is so keen to have this summit.

Krishnan believes there is very little scope of any major headwinds to be made in some of the issues which the US is concerned with, whether it is China’s economic practices, human rights, or Taiwan. “I am expecting very little from the summit beyond low-hanging fruits such as reopening consulates that were shut during the Trump administration time, maybe easing up of visa restrictions but the big structural problems aren’t going anywhere,” he said.

Meanwhile, US Trade Representative (USTR) Katherin Tai and India’s Commerce Minister Piyush Goyal will hold an in-person meeting in the third week of November when the USTR visits India on a two-day trip. The two held a virtual meeting on November 2 where they agreed to take a comprehensive look at ways to expand bilateral trade ties. The two countries also shared perspectives on how to reach meaningful outcomes at the upcoming World Trade Organization Ministerial Conference that will be held in Geneva from November 30 till December 3.

Commenting on the upcoming meeting, Mukesh Aghi, president of the US-India Strategic Partnership Forum, said it is important to understand that the trade between the two countries without a trade deal is growing, both on the services and goods side. It seems to move in a positive direction, he said.

As the COP26 summit is coming to a close, CNBC-TV18 took a look at the highlights. India committed to achieving net-zero emissions by 2070, China-US announced plans to work together to cut down methane emissions, over 100 global leaders pledged to end deforestation by 2030, China said it is targeting a 1.8 percent cut in average coal use at power plants by 2025, and China and Russia were criticised for missing the summit and for lack of urgency.

Juvencio Maeztu, the CFO and deputy CEO of Ingka Group, discussed the role of the private sector in climate action. He also shared his views on how the private sector can be made more accountable when it comes to reducing emissions.

For the entire show, watch the accompanying video.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top News of Oct 26: Cybercriminals find new targets, Covaxin review by WHO underway and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Bombay High Court on Tuesday temporarily barred Invesco, one of Zee’s largest investors, from calling an extraordinary general meeting of Zee Entertainment. A technical advisory group of the World Health Organisation was on Tuesday reviewing data on Covaxin for the emergency use listing of India’s indigenously-made vaccine. Nomura, a global financial services group has downgraded Indian equities as it believes Indian stocks are expensive, trading above their pre-Covid multiples. For all these stories and everything in between, here are some top news of the day

BUSINESS

Airtel opts for moratorium on AGR dues

MARKETS

After UBS, Nomura downgrades India

Nomura, a global financial services group has downgraded Indian equities as it believes Indian stocks are expensive, trading above their pre-Covid multiples. Dig deeper

CEAT tanks 10% after Q2 earnings

CEAT shares declined as much as 10 percent in the early trading session and became the worst performer on Nifty after the company reported lower-than-expected results for the September quarter. Dig deeper

Tech Mahindra at 52-week high. Buy or sell?

Tech Mahindra shares surged to 52-week highs a day after the IT major posted earnings for the September quarter. The shares surged over 7 percent in early deals. Dig deeper

INDIA

Review of Covaxin by WHO underway

A technical advisory group of the World Health Organisation was on Tuesday reviewing data on Covaxin for the emergency use listing of India’s indigenously-made vaccine and if it is satisfied a recommendation is expected within the next 24 hours or so, a spokesperson said. Read here

No bail for Aryan Khan; hearing adjourned till Wednesday

Bombay High Court on Tuesday adjourned the hearing on bail application of Aryan Khan, son of actor Shah Rukh Khan, till Wednesday. Continue Reading

UP elections 2022: Law and order likely to be a theme in political slugfest

In its bid to be re-elected, BJP’s Yogi-led government is likely to project maintaining law and order as among its biggest achievements, even as the Opposition could present a contrary picture of the deteriorating law and order in the state. Continue Reading

INTERNATIONAL

Japan’s unease at China-Russia joint naval drills explained

Democratic countries in the Indo-Pacific region — Australia, Japan, India, the US, Canada and the UK — are feeling the heat of China and Russia coming close to rival the US. For a clearer picture, read here

Princess Mako of Japan marries commoner, loses royal status

YOU & I

Banks to be closed on these 17 days in November

Public and private sector banks in the country will remain shut for 17 days in November as per a Reserve Bank of India (RBI) notification. Check out the list here

Here’s how to check ITR refund status

The IT department allows taxpayers to claim any excess payment of tax by filing an income tax return the deadline for which will end in December 2021. Check out more details here

Cybercriminals find new targets

Analysts from Check Point Research (CPR) have predicted supply chain cyberattacks with larger ransom demands in the coming year. Check here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Yes, US will defend Taiwan against China, says US President Joe Biden

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The US is committed to defending Taiwan if China were to attack the island nation, US President Joe Biden said on October 21, breaking away from the long-held official policy.

“Yes, we have a commitment to do that,” Biden said during a CNN town hall when asked if he would protect Taiwan, which the Chinese believe to be part of its territory.

A White House spokesperson later clarified to media outlets that US was “not announcing any change in our policy” on the Taiwan issue.

What’s happening in Taiwan?

Military tensions between China and Taiwan have been rising in the recent weeks, with Taiwanese Defence Minister Chiu Kuo-cheng describing the situation as the worst in more than 40 years.

China considers Taiwan as a break-away province that it would take back by force one day, if necessary, while Taiwan claims it is an independent country.

Beijing has flown in scores of warplanes into Taiwan’s air defence zone this month. The Chinese military exercise coincided with naval drills by the US and its allies — Japan and the UK.

US ‘ambiguity’

Although the US does not have any official diplomatic ties with Taiwan, it sells arms to the island nation under its Taiwan Relations Act.

China considers the Taiwan issue as the most sensitive and has denounced relations between Washington and Taiwan’s capital Taipei.

Till date, the US practised a “strategic ambiguity” on the issue of defending Taiwan, meaning it did not commit to what Washington would do if China attacked the island.

US involvement so far

The Taiwan Relations Act does not obligate the US to intervene in the event of an attack on Taiwan. In August, the Biden administration said its position was unchanged on the issues but equated the US’ security commitment to Taiwan with formal alliances with countries like Japan and South Korea.

Earlier this month, Biden also said he and Chinese President Xi Jinping had vowed to “abide by the Taiwan agreement” although there is no agreement between the two superpowers by that name.

Also read: US troops rotating into Taiwan for training

Biden may have referred in his statement to a series of US-China communiques made over the past four decades on the diplomatic ties between the two nations.

Murky waters

Last week, Chinese Foreign Ministry Spokesman Zhao Lijian blamed Washington for stoking tensions not just in Taiwan, but also in the South China Sea and the Taiwan Strait. “The US side should take China’s position and concerns seriously, earnestly abide by the one-China principle and the stipulations of the three China-US joint communiques, and stop making irresponsible remarks on Taiwan and maritime issues,” Zhao had said.

A key cornerstone of Sino-US relations, the One-China policy is a diplomatic acknowledgement by the US that there is only one Chinese government. Under the policy, the US recognises and has formal ties with China rather than the island of Taiwan. However, it is distinct from the One China Principle, by which China insists Taiwan is an inalienable part of the communist nation that will be reunified one day.

Acknowledging Biden’s support for Taiwan, a spokesperson for Taiwan’s presidential office said it would not give in to pressure nor “rashly advance” with help of allies. “Taiwan will show a firm determination to defend itself,” BBC quoted presidential spokesperson Xavier Cheng as saying.

Also read: Explained: How China is narrowing gap with US in military power

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Modi US visit Highlights: ‘When India reforms, the world transforms’, says PM Modi at UNGA

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Modi US Visit Highlights: Prime Minister Narendra Modi addressed the 76th session of the United Nations General Assembly (UNGA). Modi flew to New York from Washington after he held his first in-person bilateral meeting with US President Joe Biden since the latter assumed office in January. The prime minister also attended the first in-person Quad summit on Friday. Modi is in the US for a three-day visit. Stay tuned for all the updates

On Friday, Modi and Biden expressed “deep pride” and appreciation about their nations’ close cooperation to fight the deadly COVID-19 pandemic, as they noted that all sections of the society were mobilised in unprecedented ways to share emergency relief supplies during each country’s times of need.

Meanwhile, the Quad leaders have pledged to ensure a “free and open” Indo-Pacific, which is also “inclusive and resilient”, as they noted that the strategically vital region, witnessing China’s growing military manoeuvring, is a bedrock of their shared security and prosperity. The Quad or Quadrilateral Security Dialogue comprises India, the US, Japan and Australia.

Here are the highlights 

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Joe Biden sanctions cryptocurrency exchange over ransomware attacks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Biden administration on Tuesday will unveil sanctions against  cryptocurrency exchange over its alleged role in enabling illegal payments from ransomware attacks, officials said, part of a broader bid to crack down on the growing threat.

The Treasury Department accuses Suex OTC, SRO of facilitating transactions involving illicit proceeds for at least eight ransomware variants, marking its first such move against a virtual currency exchange over ransomware activity.

“Exchanges like Suex are critical to attackers’ ability to extract profits from ransomware attackers,” Treasury Deputy Secretary Wally Adeyemo said in a call with reporters previewing the announcement. “Today’s action is a signal of our intention to expose and disrupt the illicit infrastructure using these attacks.”

Also Read – Explained: US regulators issues with cryptocurrency trading platforms

Hackers use ransomware to take down systems that control everything from hospital billing to manufacturing. They stop only after receiving hefty payments, typically paid in cryptocurrency.

Attacks are increasing in scale, sophistication and scope, the Treasury said. In 2020 ransomware payments reached over $400 million, more than four times the level in 2019, Anne Neuberger, deputy national security adviser for cyber, told reporters on the call.

The officials said the administration is also updating guidance on sanctions to encourage victims of ransomware attacks to share information with law enforcement.

Here is a look at celebrities who promoted cryptocurrencies on social media

The Treasury said an analysis of known Suex transactions shows that over 40 percent of them involved illicit actors. While some exchanges are exploited by bad actors, others like Suex, “facilitate illicit activities for their own illicit gains,” the agency added in a release.

The sanctions, included in a 2015 executive order targeting cyber criminals, block Suex’s access to all US property and prohibit Americans from transacting with the company.

Suex OTC is a private company based in the Czech Republic, according to Refinitiv’s Eikon.

Also Read: The future of Bitcoin: From Ray Dalio to Cathie Wood, top investment pandits weigh in

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow