Unemployment Down in June While Spending, Output Rise
20 July 2011
Bloomberg
Unemployment fell to the lowest level in almost three years in June and retail sales grew for an 18th month, helping bolster an economic expansion in the world's biggest energy exporter.
The jobless rate dropped to 6.1 percent in June, the lowest since August 2008, from 6.4 percent a month earlier, the State Statistics Service said Tuesday by e-mail.
Accelerating job growth is helping sustain household spending, benefiting retailers such as X5 Retail Group and Magnit. Slower inflation, led by an easing in food prices, is boosting incomes and supporting consumer confidence.
"The economy has finally come to the phase of the cycle where it is more self-driven," Aurelija Augulyte, an emerging market analyst at Nordea Bank in Copenhagen, wrote in an e-mail. "Consumers will remain supported going forward by better labor market conditions."
Real disposable incomes unexpectedly grew in June for the first time since February, rising 0.7 percent, and real wages advanced 4.2 percent. Retail sales rose 5.6 percent from a year ago and 1.2 percent from May.
"Consumer demand will remain strong," Ivan Tchakarov, chief economist at Renaissance Capital, said in a research report before the release. Growing retail trade is "pointing to stable consumer demand."
Corporate investment grew for a third straight month in June, rising 4.7 percent, down from a 7.4 percent increase in May, the report showed.
Industrial output accelerated in June for the first time in five months, led by manufacturing, after domestic demand strengthened, according to a report published July 15.
Read more: http://www.themoscowtimes.com/business/article/unemployment-down-in-june-while-spending-output-rise/440800.html#ixzz1ScstzuzL
The Moscow Times
Gov't mulls selling entire state stake in Rostelecom
http://www.rbcnews.com/free/20110720115448.shtml
RBC, 20.07.2011, Moscow 11:54:48.The Russian government could privatize the entire state stake in national long-distance telecommunications operator Rostelecom in two or three years, leaving the golden share, RBC Daily reported today citing an investment fund manager managing a minority stake in Rostelecom and a source on the operator's board of directors.
This option has been recently discussed by the relevant ministries. The golden share could be assigned to state-controlled Sberbank, one of the sources said.
The shareholders of Rostelecom include state-controlled Svyazinvest with a 40.07% stake, National Settlement Depositary with 22.56%, Depositary Clearing Company with 11.99%. State-owned Vnesheconombank nominally holds 6.86% and owns 2.26% in Rostelecom, according to Rostelecom's website.
Avtovaz, Novatek and Gazprom: Russian Stock Market Preview
http://www.bloomberg.com/news/2011-07-19/avtovaz-novatek-and-gazprom-russian-stock-market-preview.html
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By Stephen Bierman - Jul 19, 2011 10:01 PM GMT+0200
The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close of trading.
The 30-stock Micex Index rose 0.7 percent to 1,700.13. The dollar-denominated RTS Index climbed 1.2 percent to 1,926.23.
OAO AvtoVAZ (AVAZ) : The Russian carmaker, 25 percent- owned by Renault SA, will likely post a 2 billion ruble ($71 million) profit for the first half of the year, Interfax said, citing Igor Komarov, the head of the company. AvtoVAZ fell 0.7 percent to 31.30 rubles.
OAO Novatek (NOTK RX): EnBW Energie Baden-Wuerttemberg AG has offered a stake up to 25 percent in Verbundnetz Gas AG to Novatek, Handelsblatt reported, without citing anyone. Russia’s second-largest natural gas producer rose 0.6 percent to 369 rubles.
OAO Gazprom (GAZP RX): Ukraine’s NAK Naftogaz Ukrainy is seeking a 120 million hryvnia ($15 million) loan from the state- run Export-Import Bank for Russian natural gas imports this month, the Ukrainska Pravda newswire said, citing company documents. Russia’s largest gas producer rose 0.9 percent to 199.87 rubles.
To contact the reporter on this story: Stephen Bierman in Moscow sbierman1@bloomberg.net.
To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net.
Russia's Severstal raises $500 mln via Eurobond-sources
http://af.reuters.com/article/metalsNews/idAFLDE76J0BY20110720
Wed Jul 20, 2011 7:45am GMT
MOSCOW, July 20 (Reuters) - Russian steel maker Severstal priced its Eurobond close to the lower end of yield guidance while cutting the size of the issue, banking sources told Reuters on Wednesday.
Severstal, which reopened books on the issue after postponing it last week due to poor market conditions, set the yield at 6.25 percent for the five-year Eurobond worth $500 million, sources said.
Severstal had been initially guiding investors towards a yield of at least 6 percent, increasing the premium to 6.25-6.375 percent in an effort to raise $700 million.
Russia's mid-sized Credit Bank of Moscow may also issue a Eurobond, a source told Reuters earlier.
Gazprombank, Russia's No.3 lender by assets, plans to start a non-deal roadshow in Asia and the United States on July, 25, another source told Reuters.
Russian borrowers have raised around $20 billion via Eurobond issues so far this year. (Reporting by Oksana Kobzeva, writing by Katya Golubkova)
KazakhGold to buy 10% from Polyus Gold minorities
http://www.rbcnews.com/free/20110720105331.shtml
RBC, 20.07.2011, London 10:53:31.KazakhGold will purchase 10% from the minority shareholders of Russian gold producer Polyus Gold as part of their reverse takeover, the Kazakh gold company said in a statement. Settlements will shareholders are expected to be completed by July 26.
Thus, KazakhGold will own 88.85% in Polyus Gold after the completion of the reverse takeover. KazakhGold has an option to acquire a 73.2% stake in Polyus Gold through a private exchange offer from Russian businessman Suleiman Kerimov and Mikhail Prokhorov's Onexim Group, as well as 5.65% of quasi-treasury shares held by Polyus Gold's subsidiary Jenington.
Following the reverse takeover the two gold producers will establish Polyus Gold International, which will be registered in the U.K. Island of Jersey and listed on the London Stock Exchange. The transaction is expected to be finalized by July 25.
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