Russia, David Ware, Ukraine discussed on Morning Edition

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The biggest drop in a week in a single week for stocks since the pandemic with the S&P down 5.7% in just the last 5 days This morning market participants are seeing more reasons to move away from riskier assets like stocks with the news the U.S. is telling families of its diplomats in Ukraine to leave that country in case of Russian hostilities Right now London's 100 share index down 1.9% Germany France and Amsterdam all down in a similar range Add to this a U.S. Federal Reserve policy meeting on interest rates and inflation later this week Here's marketplace's nova sapho David ware money is flowing in and out of tells you a lot right now oil prices are around a 7 year high as Russia is threatening military invasion of Ukraine Russia is of course a major oil and gas supplier the U.S. and Europe have promised a strong response The question is what would it look like if Russia and fates what would that response be And what would it do if anything to global oil supplies We just don't know yet Meanwhile stocks are in a sell off especially tech stocks which reached very high prices during the pandemic so many investors see them as riskier now especially if the fed starts raising interest rates sooner and faster than Wall Street has been expecting The NASDAQ composite index which includes a lot of tech companies is down about 13% for the year That's in just three weeks It's only late January It's been a rough few weeks for tech stocks Yeah and recently when we've seen dips in prices investors look for bargains and there's a jump in buying the next day not so much in recent days Yeah not so much that pattern doesn't appear to be holding this time around at least not on a big scale They've also been some disappointing headlines with regards to recent corporate earnings reports Netflix last week of course as we reported surprised by projecting subscription growth will be slow a lot over the next few months That adds to the uncertainty suggesting the effects of pandemic are a stimulus are waning What might change the narrative is the fed We'll see what comes out of their policy meetings tomorrow on Wednesday All right nova thank you The key stock index on the Moscow exchange is down more than 4% right now that would be as if the Dow Jones Industrial Average were to drop 1400 points The Dow future is down 227 points or 7 tenths of a percent The S&P future is down 1.1% The NASDAQ future is down one and a half percent Not a how bugs a terrible storm in Western Canada last year and pandemic distortions are contributing to sky high lumber prices in the U.S. wood is up by almost a third since September affecting new home prices and the cost of fixing up older ones Here's marketplaces Justin hoe A lot of what's been going on with lumber prices has to do with the supply of Canadian lumber Mark Fleming is chief economist at first American Canadian pine is highly sought after for home building because of its strength And in November a major storm hit British Columbia Washing out the rail lines that lumber mills rely on Brian Leonard is a lumber analyst with RCM alternatives It stopped shipments by a good 20% and a 100% certain places Leonard says that complicated the supply chain problems the lumber industry had already been dealing with Less truckers less rail employees because of COVID showing up things like that So the whole system kind of broke down At almost the same time last year a 40 year ongoing trade dispute with Canada came to a head says Rachel Brewster a professor at duke law school The core of the dispute between the United States and Canada is whether or not Canada subsidizing their lumber industry And in November the commerce department doubled its tariff on Canadian softwood lumber imports to almost 18% Doubling the tariff rates I mean that is going to increase the price of lumber This is also happening while the Canadian lumber industry is dealing with another older problem A beetle infestation that's been devastating pine forests in Canada since the 1990s leaving behind millions of dead trees and the risk of wildfires Since economist Mark Fleming with first American Increased risk of wildfires increased devastation of wildfires in the 2017 and 2018 error has effectively created now a shortage of trees to be cut down in Canada and exported to the United States Fleming says this is different from the supply chain problems that have caused shortages of other home building materials during the pandemic How do you fix a supply shortage driven by a sheer lack of something like a tree which takes a long time to grow And in the meantime Fleming says demand for new homes will continue to.

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