Stock futures decline as Russia amps up Ukraine attacks, sanctions spur Russian financial meltdown; well-known hacker group Anonymous launches cyber war on Russia; Amazon lifts mask mandate for warehouse workers; and Target boosts wages.
Here are five things you must know for Tuesday, March 1:
1. — U.S. equity futures pointed to another down day on Wall Street Tuesday and oil surged past $100 a barrel as fighting between Russia and the Ukraine entered its sixth day and western world leaders continued to bolster moves aimed at isolating Moscow from the global financial system and crippling its economy.
On Wall Street, futures linked to the Dow Jones Industrial Average were priced for a 182-point opening bell decline, a move that would take the average to its lowest levels in around nine months, while those linked to the S&P 500 were priced for a 26-point drop.
Nasdaq Composite futures were indicating an 85-point decline for the tech-focused benchmark as 10-year Treasury note yields slipped to 1.733% in overnight trading.
Oil prices rallied, rising back above $100 a barrel before settling back to $98.30. Members of the International Energy Agency could agree as early as Tuesday to release supplies from oil reserves in an effort to keep a lid on rising crude prices, according to media reports.
Global stock indexes have been volatile since Russia invaded Ukraine last week as investors attempt to gauge the potential global economic and financial market impact from the biggest conflict in Europe since the Second World War.
Russia’s central bank on Monday was effectively blocked from accessing hundreds of billions of U.S. dollars stocked away to help defend its currency, with the ruble left to fall another 30% to an all-time low against the greenback as a result.
Several major Russian lenders, meanwhile, were locked out of the international SWIFT payment system, a move that added to the pressures on domestic financial markets and forced the central bank to raise its base lending rate to 20% — the highest since 2003 — and introduce capital controls in an effort to prevent a run on banks around the country.
2. — Russian Economy Slammed by Global Sanctions
Russia continued to scramble against an internal financial meltdown Tuesday as its economy was slammed by a broadside of crushing Western sanctions imposed over the weekend in response to the invasion of Ukraine.
President Vladimir Putin held crisis talks with his top economic advisers after the ruble crashed to a record low against the U.S. dollar on Monday, spurred the Russian central bank to more than double interest rates to 20%. The Moscow stock exchange was shuttered Monday and will remain closed Tuesday.
The biggest slam on Russia’s financial system stems from the expulsion of some Russian banks from SWIFT, a global financial messaging service which also has paralyzed assets of Russia’s central bank. That move was instituted on Saturday by the U.S., the EU, the U.K. and Canada.
One early casualty was the European subsidiary of Sberbank, Russia’s biggest lender that has been sanctioned by Western allies. The European Central Bank said Sberbank Europe, including its Austrian and Croatian branches, was failing, or likely to fail, because of “significant deposit outflows” triggered by the Ukraine crisis.
Sberbank (SBRCY) shares listed in London fell by nearly 70% Tuesday. Other Russian companies with foreign listings were also hammered. Gas giant Gazprom (GZPFY) dropped 37% in London trading. Shares in internet service provider Yandex (YNDX) – Get Yandex NV Class A Report were suspended from trade on the Nasdaq, along with seven other Russian companies listed in New York.
3. — Hacking Group Anonymous Declares Cyber War on Russia
An online group known as Anonymous is wading into the Ukraine-Russia conflict by declaring it is at cyber war against President Vladimir Putin and the Russian government.
Following Russia’s invasion of Ukraine, a Twitter post from an account named “Anonymous” — with 7.4 million followers and nearly 190,000 Tweets — summoned hackers around the world to target Russia, according to a report by CNBC.
A post from the account on Feb. 24 stated the group was gearing up for action against the country, “…and we will be retweeting their endeavors.”
Since then, posts by the account have claimed responsibility for disabling websites belonging to Russian oil giant Gazprom, the state-controlled Russian news agency RT, and numerous Russian and Belarusian government agencies, including the Kremlin’s official site, CNBC said.
Subsequent posts took credit for disrupting Russian internet service providers, leaking documents and emails from the Belarusian weapons manufacturer Tetraedr, and shutting down a gas supply provided by the Russian telecommunications service Tvingo Telecom.
“Anonymous has ongoing operations to keep .ru government website offline, and to push information to the Russian people so they can be free of Putin’s state censorship machine. We also have ongoing operations to keep the Ukrainian people online as best we can,” a post said.
“Russia may be using bombs to drop on innocent people, but Anonymous uses lasers to kill Russian government websites,” a post on Feb. 26 said.
4. — Amazon Ditches Mask Mandate for U.S. Warehouse Employees
Amazon (AMZN) – Get Amazon.com, Inc. Report will no longer require its U.S. warehouse employees to wear face masks in states where local laws do not require them, regardless of whether the employees are vaccinated or not.
The company informed workers of the updated policy over the weekend, according to an internal memo viewed by CNN Business. The change takes effect March 1.
In the memo, Amazon called the announcement an “exciting step in our path to normal operations.” Amazon said the change comes in response to the Centers for Disease Control and Prevention’s updated guidance that most people in the U.S. live in areas where they don’t need to wear masks indoors, if they’re healthy.
Amazon verified the accuracy of the internal memo to CNN Business but declined to comment further.
Since the start of the pandemic, Amazon has raced to hire hundreds of thousands of workers to help with its fulfillment needs amid a surging demand for its products and services. But it has also faced scrutiny during that time from its workers and public officials over its safety precautions.
In late May, Amazon lifted its mask mandate for its fully vaccinated warehouse employees only to revive its requirement at various points due to the spread of new coronavirus variants. Earlier this month, Amazon lifted its mask mandate for its fully vaccinated warehouse employees in states where local law permits, but the updated policy will extend to all such employees throughout the country, no matter their vaccination status.
Amazon noted in the memo to employees that while masks will not be required, those who wish to continue wearing face coverings are welcome to do so. It also “strongly recommended” that those who are not fully vaccinated to continue wearing masks at work.
5. — Target Boosts Some Starting Wages to $24
Retail giant Target (TGT) – Get Target Corporation Report is raising its starting wage for workers in some positions to up to $24 an hour.
The Minneapolis-based retailer made the announcement on Monday, saying the increase will apply to hourly workers at its discount stores, supply chain facilities and headquarters.
Target in 2020 set its minimum wage at $15. That will remain in place, but Target said some workers will qualify for higher starting pay based on the nature of their job and the prevailing competitive wages in their local market.
Under the plan, Target’s hourly employees who work a minimum average of 25 hours a week will be eligible to enroll in a company medical plan. That’s down from the previous requirement of 30 hours per week.
Target, which employs more than 350,000 workers and has over 1,900 U.S. stores, said the hike in some starting wages is part of its plan to spend an additional $300 million on its workforce. That investment also includes expanding access to healthcare benefits for hourly workers, beginning in April.
The retailer is also shortening the waiting period for eligible hourly team members to enroll in a Target medical plan. Depending on their position, employees will be able to get comprehensive health care benefits three to nine months sooner. Employees will also get faster access to 401(k) plans.
The changes come as more retailers and restaurant chains have moved to a $15 an hour minimum rate amid a tight labor market.
