Credit Suisse Reported Its Biggest Annual Loss Since The 2008, Ukrainian President Is Asking For Help And More Weapons In Brussels

Credit Suisse shocks with very bad results. Ukraine needs even more support.

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In this article:

• The crucial battle for Bakhmut is coming
• IMF forecasts
• The Loss

The crucial battle for Bakhmut is coming

Ukrainian President Volodymyr Zelensky is in Brussels, where he is the third stop on his tumultuous European journey, to ask for help and more weapons to help his forces fight Russia.

The stakes are high for Ukraine as it prepares for an expected large-scale offensive by Russian forces.

Russian and Ukrainian forces had been fighting hard for Bakhmut for months, and Moscow saw its capture as a strategic objective and a way to cut off Ukrainian supply lines in Donetsk. Russian officials recently claimed that Moscow's forces had almost completely surrounded Bakhmut.

Ukraine may soon face a critical decision regarding a tactical withdrawal from Bakhmut in eastern Donetsk Oblast as the city's fate hangs in the balance.

Russia is fighting wars despite economic difficulties. Dependent on exports, the Russian economy withstood the impact of the sanctions better than initially expected, but still recorded a decline in GDP of around 2.5%. While Russia's economic outlook is not so bleak this year, with Russia facing labor shortages, lower oil and gas revenues due to price caps and embargoes, and a rapidly growing budget deficit, 2023 presents new challenges for the government.

Zelenskyy on European mission for more aid, jets; Russian strikes intensify in Ukraine's east https://t.co/06AhAiudry

— CNBC (@CNBC) February 9, 2023

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IMF forecasts

Since the outbreak of the coronavirus pandemic, economic threats have accumulated. With inflation above the expected level of 2% and rising interest rates, an economic slowdown is expected.

The IMF projects global growth to fall from an estimated 3.4% in 2022 to 2.9% in 2023. This forecast is based on the current geopolitical situation, severe health impacts in China could hold back recovery, Russian war in Ukraine could intensify and tightening global financing costs could worsen debt problems.

Financial markets can also suddenly change prices in response to unfavorable inflation news, while further geopolitical fragmentation can hamper economic progress.

Achieving sustainable disinflation remains a priority in most economies facing the cost of living crisis. Stronger multilateral cooperation is essential to preserve the benefits of a rules-based multilateral system and to mitigate climate change by reducing emissions and increasing green investment.

Global growth is projected to fall from an estimated 3.4% in 2022 to 2.9% in 2023, before rising to 3.1% in 2024. Watch IMF Chief Economist @pogourinchas summarize the key findings of our World Economic Outlook Update: https://t.co/4ifKc9pKeL #WEO pic.twitter.com/YHBTCKzFxj

— IMF (@IMFNews) February 9, 2023

The loss

The Credit Suisse group posted its biggest annual loss since the 2008 global financial crisis. The bank, plagued by one scandal after another, saw a sharp acceleration in disbursements in the fourth quarter with an outflow of more than 110 billion Swiss francs ($120 billion). The bank's shares fell 5% in morning trading.

Credit Suisse warns of more losses after sliding deep into the red https://t.co/l6kxIXz4wX pic.twitter.com/xDKpVCsErF

— Reuters Business (@ReutersBiz) February 9, 2023