Economy | Asia-Pacific | US

US-Russia Summit could Pave Way for a De-Escalation of Sanctions

_{Posted on Jul 9, 2018}

US President Donald Trump and his Russian counterpart Vladimir Putin will hold a summit in Helsinki on 16 July 2018. Citi analysts believe this could pave the way for a de-escalation of sanctions.

Russia is motivated to de-escalate the situation because the costs of further sanctions are too high to bear. Russia has the means to de-escalate by virtue of its position in the Middle East and relationships with key regional players, which provide substantial leverage to exact benefits in exchange for helping the US in its objectives.

Impact on Commodities

Energy: The US could potentially support Russia’s oil market share via a more hawkish stance on Iran, while Russia could potentially reduce external military presence in Syria via its influence on key players. Russia is now a pivotal player in the OPEC+ decision making process, and can both add incremental oil to the market itself as well as add pressure to other OPEC members to do the same.

Metals: Russia is a substantial metals producer, most notably of palladium, platinum, nickel and aluminum, accounting for 37%, 11%, 9%, and 6% of global supply, respectively. Recent sanctions have significantly disrupted the global aluminum supply chain, driving prices higher. Citi analysts believe that risk premiums in metals markets, particularly in aluminum could decline following a successful Trump-Putin summit.

Impact on Equities

The US use of Specially Designated Nationals (SDN) sanctions against Russian entities has been a headwind for equities. While Citi analysts do not see the summit as likely to lead to an explicit agreement to work towards the removal of entities from the SDN list, the summit could increase that probability, potentially generating outperformance in equities. Citi analysts are overweight EM equities, and within EMEA, neutral Russian equities.

_{By Citi Global Wealth Investments | Apr 25, 2024}

Weekly FX Focus - AUDNZD – The Battle Of The Antipodeans

The AUDNZD cross remains resilient around the 1.0850-80 area due to the outperformance of the Australian economy. However, markets are pricing a higher terminal rate of 4.5% for the RBNZ by the end of H1 2025 compared to 3.75% for the RBA. Will the more attractive rates in NZD help to reverse the outperformance of AUD?

FX Economy

_{By Citi Wealth Insights | Apr 23, 2024}

Weekly Market Analysis - Be Ready for the Unexpected

In the hours after Iran launched missiles and drones at Israel on April 13, pundits were quickly jumping to conclusions. Some saw the moment as the tipping point for a far more destructive and wide regional conflict. Others were quick to dismiss it as a meaningless display of force.

Wealth Insights Weekly Market Analysis Economy Asset Allocation

_{By Citi Wealth Insights | Apr 22, 2024}

Japan’s nominal wage growth may set the BoJ to pursue a faster pace of tightening in H2’2024

JPY: Japan’s nationwide core CPI (excluding only fresh food) rises 2.6% YoY in March, down from a 2.8% YoY advance in February. The result is also slightly weaker than consensus expectations for a 2.7% YoY rise.

FX Economy

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Singapore: This communication is distributed in Singapore by Citibank Singapore Limited (“CSL”) to selected Citigold/Citigold Private Clients. CSL provides no independent research or analysis of the substance or in preparation of this communication. Please contact your Citigold/Citigold Private Client Relationship Manager in CSL if you have any queries on or any matters arising from or in connection with this communication. Investment products are not insured under
the provisions of the Deposit Insurance and Policy Owners’ Protection Schemes Act of Singapore and are not eligible for deposit insurance coverage under the Deposit Insurance Scheme.

This communication is for general information only and should not be relied upon as financial advice. The information herein has no regard to the specific objectives, financial situation and particular needs of any specific person and is not intended to be an exhaustive discussion of the strategies or concepts mentioned herein or tax or legal advice. Any person interested in the strategies or concepts mentioned herein should consult their independent tax, legal, financial or other advisors,
as appropriate. This communication does not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution or offer is not authorized or to any person to whom
it is unlawful to distribute such information or make any offer or solicitation.

Before making any investment, each investor must obtain the investment offering materials, which include a description of the risks, fees and expenses and the performance history, if any, which may be considered in connection with making
an investment decision. Interested investors should seek the advice of their financial adviser about the issues discussed herein as appropriate. Should investors choose not to seek such advice, they should carefully consider the risks associated
with the investment and make a determination based upon the investor’s own particular circumstances, that the investment is consistent with the investor’s investment objectives and assess whether the investment product is suitable for
themselves. Although information in this document has been obtained from sources believed to be reliable, CSL does not guarantee its accuracy or completeness and accept no liability for any direct or consequential losses arising from Its use.

CSL does not provide discretionary portfolio management services.

UAE: This document is distributed in UAE by Citibank, N.A. UAE. Citibank N.A. UAE is licensed by UAE Securities and Commodities Authority (“SCA”) to undertake the financial activity as Promoter under license number 602003.

Citibank N.A. UAE is registered with Central Bank of UAE under license numbers BSD/504/83 for Al Wasl Branch Dubai, 13/184/2019 for Mall of the Emirates Branch Dubai, BSD/2819/9 for Sharjah Branch, and BSD/692/83 for Abu Dhabi Branch.

This is not an official statement of Citigroup Inc. and may not reflect all of your investments with or made through Citibank. For an accurate record of your accounts and transactions, please consult your official statement. Before making any investment, each investor must obtain the investment offering materials, which include a description of the risks, fees and expenses and the performance history, if any, which may be considered in connection with making an investment decision. Each investor should carefully consider the risks associated with the investment and make a determination based upon the investor’s own particular circumstances, that the investment is consistent with the investor’s investment objectives.
At any time, Citigroup companies may compensate affiliates and their representatives for providing products and services to clients.

United Kingdom: This document is distributed in the U.K. by Citibank UK Limited and in Jersey by Citibank N.A., Jersey Branch.

Citibank UK Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our firm’s Financial Services Register number is 805574. Citibank UK Limited
is a company limited by shares registered in England and Wales with registered address at Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, Companies House Registration No. 11283101.

Citibank N.A., Jersey Branch is regulated by the Jersey Financial Services Commission. Citi International Personal Bank is registered in Jersey as a business name of Citibank N.A. The address of Citibank N.A., Jersey Branch is P.O. Box 104, 38 Esplanade, St Helier, Jersey JE4 8QB. Citibank N.A. is incorporated with limited liability in the USA. Head office: 399 Park Avenue, New York, NY 10043, USA.

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