Companies are spooked by volatile Ukraine
GLOBAL companies are watching developments in Ukraine nervously, as markets react with uncertainty to the standoff between Russia, Ukraine and the rest of the world.
Yesterday car manufacturer Renault scaled back its growth forecast to just under two per cent, citing volatility in emerging markets. The warning comes despite the car market picking up across Europe in recent weeks.
Renault is one of the biggest car sellers in Russia and confirmed it is watching events in the country closely. The weakening of global currencies, linked to the instability in the Ukrainian region, is a major source of concern for many large companies. Chief executive of VW, Martin Winterkorn, echoed his competitor’s remarks, adding: “We’re a major trade partner of Russia and are looking at the Ukraine and Russia with concern.”
More broadly, despite a slight recovery of markets yesterday in light of President Putin’s comments about use of force being a last resort, investors are said to be cautious amid concern that America may demand EU backing for economic sanctions on Russian in days to come.