Great Britain Pound (GBP) took a new direction after Bank of England (BOE) policy makers said China’s slowdown hasn’t shaken their conviction about rate increase this year, that the time to hike U.K first interest rate since 2007 is close.
The statement saw pound gained versus 14 majors as investors interpreted the news as positive economy even though the data released by the 9 member Momentary Policy Committee (MPC) does not confirmed the positive outlook yet. For instance, the 9 members agreed that MPC should continue asset purchase at the current rate. A little different outcome of the votes, like 0-1-8 or even 0-2-7 would have justified that statement better but not 0-0-9.
Also the manufacturing production data released on Wednesday, shows 0.8 percent dip from previous 0.2 percent, a figure that was last recorded in May 2013, over 2 years ago. If manufacturing production came out that low and trade balance’s deficit increased to 11.1 billion from 8.5 billion previously recorded, it is obvious demand has slowdown in the manufacturing sector which accounted for over 12 percent of the national output and 8.2 percent of the workforce.
Another important data released on September 3, 2015, services Purchasing Managers ‘ Index plunged to 26 months low, and this is a sector that represent 78 percent of the entire UK economy. It is still unclear the reason for the affirmative statement of the BOE on rate hike, let’s hope emerging market economic rout have no effect whatsoever on BOE rate’s decision.
“Markets have just been forced to re-correct an overly dovish interpretation going into the event” said head of foreign-exchange strategy at Canadian Imperial Bank of Commerce in London, Jeremy Stretch.
Currently, pound is trading above 1.5400 level against the US dollar as shown above, if 1.5454 which is a key resistant level can be sustained as the new support, the general overview of GBPUSD would be bullish and reinforce buyers upsurge for 1.5599 price level but failure to sustain 1.5473, 20 days moving average (MA) will cast doubt on possibility of pound strength to attain 1.5599 price level at this moment as it lacked enough fundamental to confirmed uptrend.
Nigeria’s Real Estate Sector Shrinks by 8.06% in the Third Quarter -NBS
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.
Nigeria Requires N400 Billion Annually to Maintain Federal Roads -Senator Bassey
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.”
Scarcity of Day-Old-Chicks Cripple Poultry Farmers in Akwa Ibom
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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