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BoE MPC Official Bank Rate out

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Economy

The UK Monetary Policy Committee (MPC) voted to hold current bank rates at 0.5 percent, the minutes shows that no member of the MPC voted in support of interest rates increase and so is the vote for decrease in rates. All the MPC voted to hold current rate.

The MPC members have said the policy decision for this month was clear cut. Although, few members of policymakers thinks the risks of inflation rising above the bank’s 2 percent target was rising, the reason they attributed to Greece’s debt stand-off that has crippled the whole Europe region in months.

The minutes showed that most members of the MPC thinks decision to keep bank rate at current percentage would still have been appropriate even without China’s financial volatility and Greece crisis. Market traders believes BoE is maintaining this current rate because the economy cannot sustained itself at a rate above 0.5.

A MPC member, David Miles said “holding off on bank rate hike for too long could be a bad mistake”.

But raising rates means cutting loans since financial institutions won’t want to take loan at a higher rate like they are currently doing, which means job would be drastically affected and so would the wages dropped. This is similar to what US FED, Yellen said that they have to see substantial improvement in the economy before rate hike decision can be considered.

BoE seems to be implementing similar measure to be sure the economy can sustain itself if there is rate hike, which is good to ensure job growth continue and unemployment rate continue to reduce.

Italy Retail Sales

Retail sales dropped from 0.7 percent last month to minus 1 percent, this shows that people have not been purchasing at retail level compared to previous month. This is the major gauge of consumer spending which accounts for over economy activities. It usually have little or no effect on the single Eur currency considering the size of the Italy economy in the region.

Apple Shares

Apple shares has lost $60 billion since the released of its third quarter earnings. The company failed to meets target on its key product, Iphone, sales came in at 47.5 million units while expected target was 48.8 million. The company made its highest fiscal profit ever, though it failed to help the company’s falling shares.

This is due to the fact that Iphone is Apple mean product and any sign of decline in sales would impacts overall company performance. Several analysts interviewed by Bloomberg have said Apple is financially well position, that this is expected because of its position in the market. It set the pace and been judged by it.

Tim cook, Apple CEO defend the company report, he said sales of Apple wristwatch exceed expectation and the growth is good enough going by global economy situation.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Economy

Nigeria’s Real Estate Sector Shrinks by 8.06% in the Third Quarter -NBS

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Economic uncertainty plunged Nigeria’s real estate sector by 8.06 percent in the third quarter of the year, according to the National Bureau of Statistics (NBS).

Nigeria’s statistics office said “In nominal terms, real estate services recorded a growth rate of –8.06 per cent in the third quarter of 2020, indicating a decline of –11.78 per cent points compared to the growth rate at the same period in 2019, and by 9.12 per cent points when compared to the preceding quarter.

“Quarter-on-quarter, the sector growth rate was 18.92 per cent.

“Real GDP growth recorded in the sector in Q3 2020 stood at -13.40 per cent, lower than the growth recorded in third quarter of 2019 by –11.09 per cent points, but higher relative to Q2 2020 by 8.59 per cent points.

“Quarter-on-quarter, the sector grew by 17.15 per cent in the third quarter of 2020.

“It contributed 5.58 per cent to real GDP in Q3, 2020, lower than the 6.21 per cent it recorded in the corresponding quarter of 2019.”

Nigeria’s economy contracted by 2.48 percent in the first nine months following a 6.10 percent and 3.62 percent contraction in the second and third quarters respectively.

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Economy

Nigeria Requires N400 Billion Annually to Maintain Federal Roads -Senator Bassey

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The Chairman of the Senate Committee on road maintenance, Senator Gersome Bassey, on Friday said Nigeria requires about N400 billion annually to maintain federal roads across the country.

The Senator, therefore, described the N38 billion budgeted for road repairs in the 2021 proposed Budget as grossly inadequate. According to him, nothing meaningful could be achieved by the Federal Roads Maintenance Agency (FERMA) with such an amount.

He said, “For the 35 kilometres federal roads in the country to be motorable at all times, the sum of N400bn is required on yearly basis for maintenance.”

Bassey “What the committee submitted to the Appropriation Committee in the 2021 fiscal year is the N38bn proposed for it by the executive which cannot cover up to one quarter of the entire length of deplorable roads in the country.

“Unfortunately, despite having the power of appropriation, we cannot as a committee jerk up the sum since we are not in a position to carry out the estimation of work to be done on each of the specific portion of the road.

“Doing that without proposals to that effect from the executive, may lead to project insertion or padding as often alleged in the media.”

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Economy

Scarcity of Day-Old-Chicks Cripple Poultry Farmers in Akwa Ibom

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Despite billions of Naira spent on Akwa Prime Hatchery and Poultry Limited by the Executive Governor of Akwa Ibom State, Udom Emmanuel, poultry farmers in the state said they had to order day-old-chicks from outside the state as the 200,000 capacity poultry farm developed specifically to make day-old-chicks and other poultry products available at affordable prices is almost empty at the moment.

The farmers expressed frustration over many challenges they face in the course of bringing day-old-chicks from outside the state. Usually, Ibadan, Enugu and sometimes as far as Kaduna, while the hatchery built and inaugurated in 2016 remains idle.

Mr Ekot Akpan, one of the poultry farmers who spoke with the pressmen said the state had not had it this bad.

Akpan said: “For the 12 years that I have been in poultry farming, this is the first time that poultry farmers have been so harshly affected by both economic and non-economic factors. And, quite unfortunately, nobody is available to offer any explanation.

“Farmers have been left at the whims and caprice of owners of the means of production.

“There seems to be no government regulation of the poultry industry. How, do you explain a situation where you wake up suddenly and the price of a day old chick is selling for N600, a bag of feed goes as high as N6,000.

“And, in a state that government claims to be pursuing agriculture as one of his cardinal programmes.

“For instance, in 2016, the state government said it has constructed an hatchery, and the intention according the government was to ensure availability of day old chicks at affordable price to farmers, but, quite, unfortunately, that effort has not yielded any tangible result.

“Farmers are still getting their day old chicks from Ibadan, Kaduna, and Enugu. So, the question now is where is the hatchery?

“One would have expected that farmers would be buying old chicks at humane prices, but, from all indications they acclaimed hatchery is a ruse. So, which one is the Akwa Prime Hatchery producing,” he said.

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