The press release states, “State Corporation “Bank for Foreign Economic Affairs” (Vnesheconombank), The Russian Direct Investment Fund (RDIF), China Investment Corporation (CIC) and The Russia-China Investment Fund (RCIF) have today signed a Memorandum of Understanding (MOU), which sets forth a number of principles to promote future cooperation on investments into infrastructure projects and projects in the Russian Far East Region.
Parties have set out three main investment themes that will provide the foundation for a range of future investments in the region. Investments will be focused on projects with growing demand for new infrastructure, logistics, as well as high value-added development and processing of natural resources, and leading manufacturing and services companies with strong credentials.
The signing ceremony took place in Moscow today in the presence of the Russian President Vladimir Putin and the President of the People’s Republic of China Xi Jinping.
Vladimir Dmitriev, chairman of Vnesheconombank, said: “Together with our partners in China we have been financing Russian-Chinese development projects in priority sectors of the economy. These are primarily technology, innovation and energy efficiency amongst others. Our partnership is an important step towards greater economic cooperation between Russia and China.”
Kirill Dmitriev, CEO, The Russian Direct Investment Fund (RDIF) commented: “This opportunity will help to further attract long-term investments into the Russian economy, and will concentrate on investment and development of Russia’s Far East, including the implementation of large-scale infrastructure projects.”
Gao Xiqing, Vice Chairman and President, China Investment Corporation (CIC) said: “This memorandum gives further impetus to the ongoing cooperation between CIC and its partners in Russia to jointly seek investment opportunities with attractive returns and win-win solution”.
Hu Bing, Co-CEO, The Russia-China Investment Fund (RCIF) commented: “Today’s memorandum marks another significant step for the Russia-China Investment Fund. The growing demand for infrastructure in the Russian Far East offers excellent opportunities to deliver on the objectives set out in the memorandum to promote economic development and to achieve strong risk-adjusted returns for our investors”.
State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ was established in spring 2007 in accordance with the Russian Federal Law “On the Bank for Development” on the basis of Vnesheconombank USSR. The Bank’s activity is designed to remove economic growth infrastructure restrictions, modernize and boost non-raw materials economy, high-technology industries as well as to stimulate innovations and the export of high-tech products and implement projects in the special economic zones, projects in environment protection, provide support for small and medium-sized enterprises.”
Read more: Russian Direct Investment Fund Press Release
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The Cassa Depositi e Prestiti Group (CDP) and its investee companies, which include Fincantieri, Italgas, Snam, and Terna, have reached an agreement with the Municipality of Naples and the Authority of the Central Tyrrhenian Sea Port System. The entities will cooperate to provide for the development of Naples and its surrounding area. There will be a focus on helping the institutions and the community at large through financial support, real estate, and infrastructure investment, and support for local businesses. Signatories can help to provide technical expertise and planning, loans, and oversee public projects. Further, assistance and consulting will be provided, particularly as they relate to interventions and renegotiation of contract terms for the purposes of freeing up capital. Sustainable mobility will be a priority, with natural gas and biomethane forming the core fuels of the future. The group will be developing the ports, which will include the construction of emission-reducing structures.
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The Federal Reserve made a decision to hold interest rates steady and indicated that no more hikes will be coming for 2019. Federal Reserve Chairman Jay Powell addressed the media saying that the Chinese and European economies have slowed ‘substantially’. Despite low U.S. employment, Powell explained to the media that the U.S. has the lowest labor force participation rate among developed nations.
There were four interest rate hikes in 2018.
The Federal Reserve committee intends to conclude the reduction of its aggregate securities holdings in the System Open Market Account (SOMA) at the end of September 2019. Essentially, the Federal Reserve is ending quantitative tightening in September 2019. Furthermore, the committee intends to slow the reduction of its holdings of Treasury securities by reducing the cap on monthly redemptions from the current level of US$ 30 billion to US$ 15 billion beginning in May 2019.
In a March 20, 2019 statement called “Balance Sheet Normalization Principles and Plans”, a portion of it reads, “The Committee intends to continue to allow its holdings of agency debt and agency mortgage-backed securities (MBS) to decline, consistent with the aim of holding primarily Treasury securities in the longer run.
Beginning in October 2019, principal payments received from agency debt and agency MBS will be reinvested in Treasury securities subject to a maximum amount of $20 billion per month; any principal payments in excess of that maximum will continue to be reinvested in agency MBS.
Principal payments from agency debt and agency MBS below the $20 billion maximum will initially be invested in Treasury securities across a range of maturities to roughly match the maturity composition of Treasury securities outstanding; the Committee will revisit this reinvestment plan in connection with its deliberations regarding the longer-run composition of the SOMA portfolio.
It continues to be the Committee’s view that limited sales of agency MBS might be warranted in the longer run to reduce or eliminate residual holdings. The timing and pace of any sales would be communicated to the public well in advance.”
source: Federal Reserve website
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