Above the Fold

Russia Threatens to Steal the Golden Arches and Lock Up Managers

McDonald’s was just one of many western companies warned by Russian prosecutors over the last week against ceasing operations in the country. Prosecutors sent letters, emails, phone calls and even paid visits to large American companies, including International Business Machines, Coca-Cola Co, Procter & Gamble Co., Yum Brands and others, informing them that the Russian state would sue the companies, seize their assets (property, trademarks and more), and even jail corporate leaders who left the country over its invasion of Ukraine. 

According to the Wall Street Journal, several entities expedited closures and quickly moved executives out of the country, while others have created information barriers and limited communications between Russian operations and the rest of the world for fear of corporate espionage. 

The bold moves by Putin and his government are likely to have long-lasting negative ramifications for Russian commerce, as global corporations rethink their exposure in the country across a multitude of sectors, including apparel, food, banking and technology. Putin endorsed a plan to nationalize these “stolen” assets entities so Russians can stay employed and the country can continue to produce necessary goods and services. Such a move could force temporary closures, such as those at McDonald’s restaurants, to potentially become permanent. 

Three Things 

1. Nickel the Latest to Go Parabolic – Prices of the key industrial metal had soared 400% last Tuesday before the London Metal Exchange (LME) halted trading and canceled orders, marking nickel’s price at $48,078 a metric ton, the previous record closing price. The sharp surge, triggered by massive trades by China’s Tsingshan Holding Group, is creating a myriad of disturbances, including supply, in an already challenged marketplace. And the recent trading fiasco is undermining the reliability of the LME as a bonafide place for industry players to lock in prices and hedge delivery of this critical metal.
2. Ford Continues to Expand Electric Offerings, Eyes Europe – As part of Ford’s ambitious plans to be an all-electric, carbon-neutral company by 2035, the company is setting its sights on the European marketplace with a $2 billion investment. In less than four years, Ford expects to sell 600,000 battery-powered vehicles on the continent, with that number quickly expanding to 1.2 million by the six-year mark. The up-and-coming lineup will include nine different vehicles ranging from the sub-compact Puma to Ford’s large E-Transit van. 
3. Rate Hike Expected, but Will the Fed Have “One More Thing”? – The Federal Reserve begins its two-day meeting today. With inflation surging across most sectors, the Fed is widely expected to begin hiking rates for the first time in three years. But will a slow, steady rise in rates be enough to tame the problematic, widespread and turbulent price increases? Could the central bank take more aggressive action to quell the issue without throwing consumers yet another curve ball? Unfortunately, the Federal Open Market Committee members face a daunting task as the cure for inflation could do more damage to an already fragile economic expansion. 

Did You Know? 

The Godfather Turns 50 

On this date in 1972, the first Godfather movie, directed by Francis Ford Coppola, premiered to universal acclaim. The mafia-centered drama went on to win three Academy Awards, but neither the words “mob” nor “mafia” were spoken in the film. Marlon Brando, who won an Oscar for his role as Don Vito Corleone, declined acceptance of the award to protest the treatment of Native Americans in cinema. And yes, the horse head in the movie was real…