HSBC is buying a plot of virtual real estate in an online gaming space called The Sandbox for an undisclosed sum, the bank's first major foray into the metaverse as it shrinks its UK branch network, Reuters reported. The digital push will enable HSBC to engage with sports, e-sports and gaming fans via its slice of turf in The Sandbox, a virtual space majority-owned by Hong Kong-based Animoca Brands.

Russians are starting to feel the economic pinch after Western countries imposed an unprecedented set of sanctions over Moscow’s invasion of Ukraine, Al Jazeera reported. Following weeks of mounting tensions, Russian President Vladimir Putin ordered a land, sea and air invasion on February 24, triggering a wave of financial restrictions that have plunged the value of the rouble, skyrocketed inflation and left many jobless.

Italy's biggest bank Intesa Sanpaolo will detail the impact of the Ukraine conflict on its 2022 earnings when it reports first-quarter results in May, its CEO told a financial conference, according to a person who attended the event, Reuters reported. Addressing the Morgan Stanley European Financials conference on Thursday, CEO Carlo Messina confirmed the bank's financial targets but said details on the net income impact for this year would be provided when Intesa next reports earnings.

The Bank of England raised interest rates on Thursday for a third meeting running, as expected, but softened its language on the need for further increases from here, Reuters reported. Eight out of nine members of the Monetary Policy Committee (MPC) voted to raise the Bank Rate to 0.75% from 0.5%, following the U.S. Federal Reserve's decision on Wednesday to raise borrowing costs for the first time since the COVID-19 pandemic. Deputy Governor Jon Cunliffe voted to keep rates on hold, warning of a big hit to demand from higher commodity prices.

Intesa Sanpaolo said on Wednesday that its loans to Russian and Ukrainian clients amounted to 5.1 billion euros net of guarantees from credit export agencies, which is around 1% of the total for Italy's biggest bank, Reuters reported. Intesa added in a statement it was analyzing its exposure to Russia and Ukraine to understand how to better handle risks in light of the European Union's decision to phase out Russian fossil fuels by 2027. Of the overall loan figure, some 4 billion euros are cross-border, with oil and gas firms accounting for half of the total.

Russian steel and mining company Severstal has received permission from Moscow to make a $12.6 million interest payment due Wednesday on its dollar bonds, but the firm warned that paying and transfer agent Citigroup Inc. may refrain from processing the transaction, Bloomberg reported. “At the moment we certify that there are no obstacles from Russian law side for the company to make the payment,” Severstal said in a Wednesday filing. But, it added, “given the recent developments around the company, we have grounds to believe that” Citigroup won’t process the coupon payment.

Annual inflation in Russia accelerated to 12.54% as of March 11, its highest since late 2015 and up from 10.42% a week earlier, the economy ministry said on Wednesday, with the weakening rouble sending prices soaring amid unprecedented Western sanctions, Reuters reported. Inflation accelerated sharply as the currency fell to an all-time low and amid signs of increased demand for a wide range of goods, from food staples to cars, on expectations that their prices will rise further.

BMW and Volkswagen warned this week that Russia’s invasion of Ukraine is causing shortages of some vital components, forcing them to reduce vehicle production in Europe, the Associated Press reported. The two German carmakers said the war is having a “negative” effect on auto supply chains, which have already been battered by shortages of semiconductors. BMW said Wednesday that bottlenecks at its suppliers in Ukraine have forced the automaker to adjust or interrupt production at a number of factories, which is likely to have a negative impact on vehicle sales figures.

Russia is due to pay $117 million in interest on two dollar-denominated sovereign bonds on Wednesday — the first such payments since its invasion of Ukraine which sparked a raft of sanctions from Western capitals and countermeasures from Moscow, according to a Reuters analysis. Russia's finance ministry said on Monday it had sent an order to a correspondent bank for the payment of coupons on eurobonds amounting to $117.2 million, which are due on Wednesday.

Credit ratings agency Fitch said on Tuesday that if Russia were to make two U.S. dollar bond coupon payments due Wednesday in roubles, it would constitute a sovereign default after a grace period expiration, Reuters reported. Russia's invasion of Ukraine last month triggered sanctions from across the world that have limited Moscow's ability to access and allocate cash. "The payment in local currency of Russia's U.S. dollar Eurobond coupons due on 16 March would, if it were to occur, constitute a sovereign default, on expiry of the 30-day grace period," Fitch said in a statement.