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Dollar Gains for Seventh Day Against Yen

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Dollar

The dollar headed for a seventh straight gain against the yen, its longest streak since October, as speculation grew that the Federal Reserve has a stronger case for raising interest rates. The weakness in the yen sent Japanese shares higher, while oil advanced for the first time in three sessions.

The U.S. currency extended gains after the Bloomberg Dollar Spot Index capped its biggest weekly advance since November. Data on Friday showed the American economy expanded more than previously estimated, adding to evidence that the central bank may raise rates as early as next month. Chinese equities erased earlier gains that had been spurred by a jump in industrial companies’ profits. Trading volumes were light, with many financial markets across Asia and Europe shut following holidays on Friday.

“We’re now more conscious that there’s strength in the U.S. economy,” said Yoshinori Ogawa, a market strategist at Okasan Securities Co. “There were some views that the U.S. won’t be able to raise rates on economic concern, so the weakening dollar should take a break.”

Investors are weighing whether the U.S. economy is strong enough to withstand another rate increase. Asian stocks fell last week for the first time in a month and a half as Fed officials talked up the possibility of higher borrowing costs, comments that helped spur demand for the dollar. Investors will be watching China manufacturing figures on Friday as well as U.S. non-farm payrolls for a better idea of the strength of growth in the world’s two biggest economies.

The yen slipped 0.4 percent against the dollar as of 3:18 p.m. in Tokyo. Japan’s Topix rallied late in the day after briefly erasing losses. Gold futures lost 0.5 percent, trading near a one-month low. West Texas Intermediate crude was up 1.3 percent after the number of active rigs fell in the U.S., potentially easing a supply glut.

“The dollar does have some legs,” Jason Schenker, president and chief economist of Prestige Economics LLC, said in a Bloomberg TV interview. “It is all about Fed expectations. The fact that they did not move in March, but now it looks like they could move in April, that’s going to be what everyone is watching for this week. And that does have the potential to keep the dollar now only supported, but to send it higher in the week ahead.”

Bloomberg

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.

Finance

Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary

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stanbic IBTC Insurance

Stanbic IBTC Holdings Plc on Friday announced that it has obtained all required Regulatory Approvals and a license from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary, Stanbic IBTC Insurance Limited (SIIL).

In a statement signed by Chidi Okezi, Company Secretary, Stanbic IBTC and released on Friday, the bank said “The establishment of this new subsidiary essentially complements the bouquet of product offerings by Stanbic IBTC as it continues its goal of being the leading end-to-end financial solutions provider in Nigeria. In this regard, SIIL will aim to facilitate long term insurance for already financially included individuals and will seek to become the preferred Insurer in the Life Insurance Business.

“Stanbic IBTC Holdings PLC, a member of Standard Bank Group, is a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade deals between Africa, China and select emerging markets. Standard Bank Group is the largest African financial institution by assets. It is rooted in Africa with strategic representation in 21 countries on the African continent.

“Standard Bank has been in operation for over 158 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.”

 

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World Bank to Discuss New $1.5 Billion Loan Request From Nigeria

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Zainab Ahmed

The Finance Minister, Budget and National Planning, Mrs. Zainab Ahmed, on Friday said the Federal Government has met all the conditions for a fresh loan of $1.5 billion from the World Bank.

The minister disclosed this on Bloomberg TV.

She said the multilateral financial institution is in the final stage of approving the loan. The minister explained that the loan will be discussed in the bank’s next meeting and possibly be approved in the same meeting.

In June, the Senate approved the borrowing plans but the World Bank pushed back demanding Nigeria fulfill the conditions attached to the $3.4 billion loan received from the International Monetary Fund (IMF) in May.

Some of the conditions were to increase revenue generation by upping VAT, the introduction of tariff reflective electricity bill, the removal of subsidy and the unification of the nation’s foreign exchange.

Most of which the Federal Government has done despite protests from most Nigerians who called the new policies anti-people given their current situation.

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Nigeria Realises Over N400 Billion from Company Income Tax in the Third Quarter of 2020

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The Federal Government realised N416.01 billion from Company Income Tax (CIT) in the third quarter of the year, according to the latest report from the National Bureau of Statistics (NBS).

This was 3.48 percent higher than the N402.03 billion generated in the second quarter of the year and represents a decline of 20.13 percent year-on-year from N520.89 billion realised in the third quarter of 2019.

A breakdown of the report showed the professional services sector including the telecoms generated the highest amount of CIT at N55.52 billion during the quarter, while the manufacturing sector followed with N42.03 billion.

The banking and financial institutions realised N24.05 billion while the mining generated the least and closely followed by Textile and Garment Industry and Local Government Councils with N120.93 million, N167.51 million and N321.72 million generated, respectively.

The report added that out of the total amount realised during the quarter under review, a sum of N244.70 billion was generated as CIT locally. The federal government collected N70.34 billion as foreign CIT payment and the remain N100.97 billion was received as CIT from other payments.

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