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A world in crisis

The far-reaching repercussions of Putin's war
A world in crisis

Russia's invasion of Ukraine has not proved to be the quick exercise it appears the Kremlin was expecting it to be. Despite overwhelming firepower and numbers, tough Ukrainian resistance has slowed the Russian advance on several fronts. Meanwhile the international community has acted with somewhat surprising speed and unity to target financial sanctions at the Russian state and key actors in its leadership. 

 

The ripple effect of these economic sanctions is beginning to be felt worldwide, most notably in energy markets where oil and gas prices have spiked sharply as has the cost of wheat. Other commodities being dragged upwards in tandem as investors take stock of Russia's position of key producer across a wide range of key inputs. 

Equity investors have seen more volatility with selling accelerating into the end of the week. One of the major growing concerns is the prospect that the energy price shock will lead to inflation remaining higher for longer and this, combined with slowing growth, will lead to a period of stagflation - an issue investors have not had to grapple with for a generation or more. 

Our writers have assessed the impact across key investment sectors from commodities to equities and property as well as what moves investors could make to shift to a defensive stance, be in through gold or trying to seek out companies which could benefit from the structural changes we will see long after this conflict is resolved. 

Listen to our latest podcast:

Equities 

What next for shareholders in Raven Property - Raven shareholders down but not (completely) out

Alex Hamer on attempts to mitigate the energy crisis - Will massive North Sea investment solve the energy crisis?

The challenge to ESG investors - ESG put to the test

The effect on the travel industry - Travel bears Covid scars

The impact of sanctions on Europe's banks - Banks feel a chill wind from Russia

Alex Hamer assesses the energy price spike and what it could mean - Russian reckoning sends energy prices soaring

Russia's penchant for cyber warfare has put corporates on alert, and could benefit cyber security companies, according to Arthur Sants - Hybrid wars increase the need for cyber defences

Michael Fahy reports on a sea change in attitudes to defence spending, especially in Europe - "Overlooked" defence shares rally on higher spending prospects

Mary McDougall on the impact on platforms - Trade cancellations and forced sales add to Russian equities risks

 

See also: 

UK sanctions Abramovich and Deripaska, major Evraz and EN+ shareholders

BP announces Rosneft exit but it could be slow sale

Invasion triggers Russian sell off in London

BP vulnerable to Ukrainian escalation

 

Commodities

Alex Hamer on attempts to mitigate the energy crisis - Will massive North Sea investment solve the energy crisis?

Away from the headlines, prices have spiked across the commodities complex - The other commodities hit by war

Shareholders may have a long wait for resolution at Evraz - Future is cloudy for Evraz shareholders

Christopher Akers examines plans for Europe to wean itself off Russian gas - EU charts difficult pivot away from Russian energy

Alex Hamer examines the dramatic price movements in commodity markets - Higher metals prices come with a cost

Mark Robinson's Taking Stock column looks at the effect on soft commodities - Fertilizer in short supply, but sector could be fully priced

Why Joe Biden's timing was off in banning Russian oil - Too slow, Joe. Sanctions delay added more pain

 

Cryptocurrencies

Madeleine Taylor highlights the rebound in cryptocurrencies as traditional investments sank - Russia-Ukraine war shines spotlight on crypto risks to financial stability

 

Listen in to this week's Companies and Markets show

 

 

Gold

Chris Dillow looks at the prospects for the insurance policy for the ages in Gold's safe haven lustre

 

Property 

London has long been a haven for Russian oligarch's seeking prime property. Is this set to end? Alex Newman takes a closer look - Will sanctions chill London property? 

 

Investment strategies

Leonora Walters on how to react - How to handle your portfolio in extreme situations

Portfolio diversification can help in trying circumstances, but the options are shrinking, says James Norrington - Diversification's free lunch shrinks in a crisis-stricken world

Dave Baxter asks Which defensive funds are working?

What does the situation mean for emerging markets investors? Dave Baxter examines the fall out - The Russia fallout for emerging markets

ESG strategies are coming under scrutiny as the world changes rapidly, according to Mary McDougall - The changing face of ESG

 

Opinion

A lessons from history by Arthur Sants - Russian oil embargo won't be as damaging as 1973 oil crisis

Optimists believe the shock to the world economy may only be temporary - here's Chris Dillow's take

Companies editor Mark Robinson's Taking Stock column on volatility and how investors should react. 

The editor Rosie Carr's thoughts on Russia's invasion - A shameful assault with lasting consequences

Our resident economist Chris Dillow assesses The cost of war

How will central banks react to the threat of stagflation - Chris Dillow asks - Treading carefully

 

Meanwhile, listen in to our Companies and Markets show, recorded as the invasion was starting, which took a first look at the ramifications of Russia's aggression.