TMS Ep124: Economic challenges, exit Russia, markets, NATO

Russia dropped another bomb on Monday. Not on the Ukrainian turf, but on the world economy. It threatened to shut the main gas pipeline to Germany and warned of crude oil price at $300 a barrel if the West banned its energy exports. Crude has already hit $130, the highest in 14 years. And back home in India, the signs of economic distress are quite imminent. The rupee has hit a lifetime low and inflation is soaring. The Indian economy could incur an additional 70-billion-dollar burden versus FY22 levels. 
 
BP, Shell, General Motors, Ford, Volkswagen, Nike and Netflix are among the flurry of companies which have decided to suspend their operations in Russia over its invasion of Ukraine. The list is getting longer by each passing day, putting Russia and Russians in a tight spot. 

Meanwhile, markets snapped the losing streak on Tuesday and ended in green. Nifty ended above 16,000 while Sensex gained 581 points, notwithstanding the global crisis. The country is now waiting for the next big event -- the outcome of assembly polls which will be announced tomorrow. But are markets excited about it, amid the global headwinds. Or it will be a non-event?

At the heart of Russia’s prickly ties with the West is NATO’s eastward expansion. It was also one of the triggers for Russia's invasion of Ukraine. While the Kremlin calls NATO a relic of the Cold War, its members justify its existence. Our next podcast offers a peek into this trans-Atlantic military alliance’s journey so far.

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