Sheremetyevo Airport has set two records for daily traffic; on September 14th, 726 takeoff and landing operations were conducted, and on September 16th, the airport served over 100 thousand passengers for the first time in its history.

Do not dwell in the past, do not dream of the future, concentrate the mind on the present moment. Buddha

Slight nervousness but positive momentum intact. After such a strong bounce in markets over the latter part of last week, we may encounter some reluctance to follow through today. This is evident in mixed trade across Asia this morning. But while few believe that the measures announced represent the needed major structural changes in the global economy, the level of coordination and determination shown on both sides of the Atlantic over the past 10 days can keep confidence high and generally sustain positive momentum. The odds on setting a new market high for 2012 are very good. In Asia trade this morning, Chinese markets are lower on concerns over the outlook for growth and because of the threat of an escalation in the dispute with Japan. The Tokyo bourse is closed for a holiday and other Asian markets are only marginally better. Brent is also a little lower but consistent with the drift lower we see elsewhere so far this morning. We reprint below the scenario analysis (from our recent report "Strategy Quarterly - Russia's Conflicting Personas" of September 14) for global markets and the trickle down to Russia sentiment and the RTS Index.

The Finance Ministry reports that the fiscal surplus widened in 8m12 to nearly R530 bln, implying strong absorption of liquidity from the system. Revenue flows remain stable and consistently exceed R1 trln per month (R1.1 trln in August). Given that budget revenues have already reached nearly R8.4 trln, it is very likely that total revenues will approach R13 trln by year end (as tax collection soars in December), above the government's target (just below R12.7 trln). With expenditures budgeted at slightly over R12.7 trln, the budget should be in surplus to the tune of around R300 bln by year end.

The EBRD is stepping up its support of Ukrainian agribusiness with a new deal within the framework of its Private Sector for Food Security Initiative.The EBRD is providing a US$ 50 million revolving loan facility to Alfred C. Toepfer (Ukraine) Ltd (ACTI Ukraine) to finance the company’s working capital needs associated with production of agricultural commodities in Ukraine.

The website of the Eurasian Economic Commission has reported that at the meeting between the Director of Agrarian Policy Department of CES Nadezhda Kotkovets with the General Director of the Russian Poultry Union Galina Bobyleva and her deputy Yelena Ivanova, attendees have discussed the integration of the Customs Union and the Common Economic Space member states in the poultry industry and the creation of the Union of poultry farmers as part of the Customs Union.

A recent survey conducted by recruitment consultants Antal Russia discredits the widespread assertion that moving to competitors is regarded by former employers as "treason". 61% of employers believe that the moving of employees to competitors is ethical, and only 20% of companies use policies that prohibit staff from moving to competing organizations for a certain period of time after the termination of employment.

Strategy Quarterly. September 2012

Russia has become something of a bipolar investment market. On one hand, there is the side of Russia than mandates a higher risk premium to that of EM peers. It is the Russia that provides the regular stream of negative international headlines and it is the portion of the stock market mainly perceived to be vulnerable to a global economic slowdown. On the other hand, Russia is quietly going about its business. It enjoys an expanding domestic economic base, a fast-growing consumer story and a stable economy.

As part of the Sberbank of Russia and Troika Dialog integration process, Peter Holowka has been appointed Head of E-FX, Managing Director. Peter joined the company on September 10 and will report to Maxim Safonov, Head of FICC, Managing Director. In his new position Peter will develop the E-FX trading strategy and build upon the Fixed Income, Currencies and Commodities (FICC) team’s extensive global offering.

Two senior strategic hires as part of the continued build out of the sector expertise and industry capabilities at the combined Sberbank of Russia and Troika Dialog platforms strengthens the unit. Max Kolodkin and Sergei Chinkis join as Managing Directors, Co-Heads of Sector Investment Banking, for the company’s Investment Banking platform. Max and Sergei will both start in September, reporting directly to Todd Berman, Head of Investment Banking.

"If the world should blow itself up, the last audible voice would be that of an expert saying it can't be done" : Peter Ustinov

Hoping the ECB has started a positive momentum. The story of Russian equity performance has been very straightforward all year. The market outperformed peers as global markets rallied when risk phobia fell, while the market underperformed when risk aversion rose. The specific headlines from Russia (the positive economic and earnings momentum, and the negative politics) have had relatively little impact. At the start of the summer, the hope was that policymakers would finally stop procrastinating, and take more pragmatic steps to start dealing with slowing economies and the Eurozone risk.