Premium: Putin’s drive into Donbas gets Mr Market into a frightful pickle

The news cycle has entered warp speed after a belligerent Russian president told the world a story nobody in the West is prepared to believe, least of all Mr Market..After massing troops on the Ukrainian border for some weeks, Vladimir Putin yesterday sent them into the Donbas region, to support Moscow-aligned separatists who have been waging war with Kyiv since 2014 after Russia annexed the Crimea. The rebels control around a third of Donbas but are claiming the other two thirds of this region in eastern Ukraine. The war has already claimed 14,000 lives..It's complicated, as such things always are, but the map below provides context. Last night Putin stated he will not invade the rest of Ukraine and this action was to recognise the independence of the region and protect it against "Ukrainian aggression". US president Joe Biden says Putin is lying and warns full scale war is imminent. The Ukrainian Parliament yesterday voted to mobilise its army. More in the FT piece below, just published on its website..___STEADY_PAYWALL___.Given all this, it's not surprising Mr Market is in panic mode. Analysts say this distant and until now forgotten war in a small corner of Eastern Europe had long been discounted by US investment markets. However, ramped up media speculation on the consequences together with allegations of Moscow's modern day Anschluss has had a predictable impact..The message for rational investors is the same as always. Take a deep breath, recall why you chose to buy shares in companies you co-own, and most of all, remember equity markets reward those who resist the temptation to panic. This too shall pass. More on the topic at today's monthly share portfolio update webinar at noon. Only for Premium members, but you do need to register beforehand. Click here..More for you to read today:.Rise in Non-Covid-19 Deaths Hits Life Insurers. Companies believe lack of medical treatment during pandemic has contributed to deaths from other causes.Microsoft's New Security Chief Says It Is Time to Take Shelter in the Cloud. As security challenges grow, Charlie Bell is building tools that can be used on rivals' cloud networks.Justin Trudeau's Liberal Tyranny. The Editorial Board of the WSJ contends the Canadian leader is now freezing bank accounts as if the truckers are terrorists.U.S. Stocks Extend Slide Over Ukraine Concerns. All three major U.S. indexes declined on Wednesday, a day after the S&P 500 entered a correction..PS If you missed yesterday's post-Budget webinar, no problem. Click above or here to watch the recording on BizNews TV on YouTube. The audio is ropey for the first couple minutes, but much improved thereafter (once I was reminded to bring the mic closer…).From the FT: Vladimir Putin orders start of 'military operation' in eastern Ukraine.Russian president demands Kyiv lay down arms and warns foreign powers not to interfere.By Max Seddon in Moscow, John Reed in Kyiv and Demetri Sevastopulo in Washington for the Financial Times.Vladimir Putin said he has ordered the start of a "special military operation" in eastern Ukraine's Donbas region and demanded Kyiv's army lay down its weapons..In an address broadcast on Russian state television shortly before 6am local time, Russia's president claimed he was not planning to occupy the country.."All responsibility for the possible bloodshed will be fully and completely on the conscience of the ruling regime," he said..Putin warned other countries against "the temptation of meddling in the ongoing events" and said Russia's response will "lead you to consequences that you have never encountered in your history"..In Kyiv before dawn on Thursday morning, Financial Times reporters heard explosions in what appeared to be a sign of military action. Social media users in Ukraine reported hearing blasts in other cities, including Kharkiv and the Ukrainian-controlled eastern city of Kramatorsk in the Donbas..US president Joe Biden said the "prayers of the entire world are with the people of Ukraine tonight" as he accused Putin of launching a "premeditated war that will bring a catastrophic loss of life and human suffering".."Russia alone is responsible for the death and destruction this attack will bring, and the United States and its allies and partners will respond in a united and decisive way. The world will hold Russia accountable," Biden said in a statement several minutes after Putin spoke on Russian television..Biden said he would meet G7 counterparts on Thursday morning and would then reveal further measures to punish Russia for the invasion..Brent crude prices rose above $100 a barrel for the first time since 2014 in the minutes following Putin's announcement..The international oil benchmark hit $100.07, up about 3 per cent, before trading lower again..Crude oil prices had risen in recent days as tensions escalated and western governments imposed sanctions on Russia following Putin's recognition of two breakaway regions in eastern Ukraine..The US has said that it could release oil from its emergency stockpile in the event of any disruption to energy supplies..NB FOR YOUR WALL STREET JOURNAL ACCESS….As a Premium subscriber you are entitled to full membership of wsj.com (normal price $29 a month). Be sure to action your access through the Premium link on the BizNews website. Because of The Wall Street Journal's credential requirements, be sure to create a password which has at least 8 characters and includes at least one letter and one number – NB it MAY NOT contain any special characters (ie #, !, @ etc). To maintain access to WSJ.com, you MUST enter our partner's website via BizNews Premium at least once a month. A final PS, if you had previously signed up for WSJ you'll need to clear the cookies from your device. Our help desk can assist – support@biznews.com..If you'd like to help sustain our independent voice, why not share the love by making a gift that keeps giving? Click here to access the BizNews Premium subscription signup form, and be sure tick the relevant box. At R100 a month and inclusive of full membership of The Wall Street Journal, it's a mind-expanding gift at an incredibly modest price.

Premium: Putin’s drive into Donbas gets Mr Market into a frightful pickle

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