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Trump Discussed Possibility of Firing Jerome Powell Amid Stock Rout

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  • Trump Discussed Possibility of Firing Jerome Powell Amid Stock Rout

The report that president Trump is discussing the possibility of firing Federal Reserve Chair, Jerome Powell, sent global financial market shaking ahead of Christmas.

President Trump blamed the U.S. stock rout on Federal Reserve’s rate policy that has seen borrowing cost risen to 2.5 per cent after four consecutive hikes in 2019.

Federal Reserve had raised benchmark lending rate by 25 basis points last week, saying the economy continues to create jobs even as the unemployment rate remained at 49 year low of 3.7 per cent. Jerome Powell said wage growth ticked up to 3.1 per cent, suggesting that tight labour market has started forcing businesses to increase wages in order to attract skilled employees as projected in the first quarter of the year.

Despite strong economic numbers coming from the world’s largest economy, the stock market has declined by about $5 trillion in market value in the last three months. Putting President Trump, who has based his success in the last two years on stock performance, in an unlikely situation.

People familiar with the matter said the president has repeatedly discussed the possibility of firing the Central bank chief, Jerome Powell, in recent days.

“You would think that after coming off of the worst week for the markets since the financial crisis in 2008, he would look to create some stability,” said Chuck Cumello, CEO of Essex Financial Services. “Instead we get the opposite, with this headline and more self-induced uncertainty. This coming from a president who when the market goes up views it as a barometer of his success.”

Sensing potential disaster, Steven Mnuchin, Treasury Secretary stepped in to assure market participants that the Federal Reserve Chair, Jerome Powell, won’t be fired as the President does not have that authority.

Still, the uncertainty surrounding the administration has created a disconnect between positive US economic data and market perception. Majority of businesses believe growth will slow down in 2019 with huge capital outflow despite strong growth recorded in 2018, much of which they attributed to weak interest in U.S. assets and limited rate hike.

The tax cut has failed to stimulate growth as projected by President Trump, weak global growth due to trade protectionism keeps hurting global demands and expected to affect exports from the U.S. to Europe. OPEC cuts failed to lift oil price as Chinese imports, the largest importer of crude oil, is expected to drop in 2019.

The excess profit from tax cuts expected to be invested by businesses to sustain job creation and boost economic productivity was largely spent on stock buyback, putting business investment 28 per cent below Obama’s administration.

Going forward economic policy will dictate market’s direction, at least in the first half of 2019.

The S$P 500 slumped by 7.1 per cent last, while the Nasdaq Composite Index dipped into a bear market.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Arsenal Prepares €100M Bid for Napoli’s Victor Osimhen

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Victor Osimhen

Arsenal is gearing up to make a significant splash in the summer transfer market, with plans to submit a formal €100 million bid for Napoli’s prolific striker Victor Osimhen in the coming days.

This move underscores the Gunners’ determination to bolster their attacking options ahead of the new Premier League season.

The news, reported by Italian journalist Ciro Venerato, highlights Arsenal’s ambition to secure a world-class forward who can enhance their offensive prowess.

“Arsenal will make an attempt with Napoli in the next few days after many rumors,” Venerato stated, confirming the North London club’s interest in the Nigerian international.

Victor Osimhen, who has been a standout performer for Napoli, has a release clause set at €130 million (approximately £110 million).

If Arsenal were to meet this clause, it would make Osimhen the club’s most expensive signing, surpassing the £105 million paid for Declan Rice last year.

However, reports suggest that Arsenal is hoping to negotiate a lower fee, with an initial bid of around €100 million (£85 million) being prepared.

Osimhen has made no secret of his desire to play in the Premier League, and Arsenal’s interest aligns with his aspirations.

Despite missing 11 matches due to injuries and his participation in the 2023 Africa Cup of Nations, Osimhen managed to score 15 goals in 23 Serie A appearances in the recently concluded 2023/24 season.

Arsenal’s pursuit of Osimhen is part of a broader strategy to strengthen their squad after narrowly missing out on a top-four finish last season.

The club’s management is keen to add depth and quality to their roster, ensuring they can compete at the highest level domestically and in European competitions.

In addition to Arsenal, other top clubs have shown interest in Osimhen. Chelsea is reportedly monitoring the situation, while Paris Saint-Germain has also been linked with the striker as a potential replacement for Kylian Mbappe, who recently joined Real Madrid.

The potential acquisition of Osimhen would be a significant coup for Arsenal, signaling their intent to compete with the best in the Premier League.

The Nigerian striker’s blend of pace, power, and finishing ability would add a new dimension to Arsenal’s attack, complementing the talents of players like Gabriel Jesus, Bukayo Saka, and Martin Ødegaard.

As the summer transfer window progresses, Arsenal fans will be eagerly awaiting further developments. The club’s willingness to invest heavily in a player of Osimhen’s caliber demonstrates their commitment to returning to the pinnacle of English football.

If successful, this move could be a game-changer for the Gunners, providing the firepower needed to challenge for major honors in the upcoming season.

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Finidi George Resigns from Super Eagles Role, Confirms Toyin Ibitoye

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Finidi George

Finidi George has resigned from his position as the head coach of Nigeria’s national football team, the Super Eagles.

This news was confirmed by former Super Eagles media officer, Toyin Ibitoye, who announced the resignation on his social media account.

“News just in: Finidi George @FinidiGeorge_FG has resigned from his @NGSuperEagles manager position,” Ibitoye posted, causing a ripple of reactions among fans and football analysts.

Finidi’s resignation comes just days after the Nigeria Football Federation (NFF) disclosed plans to appoint a foreign technical adviser, a move seen by many as a shake-up intended to bolster the team’s performance.

This strategic decision by the NFF likely influenced Finidi’s choice to step down.

Appointed on April 29, 2024, Finidi’s tenure was notably brief. He succeeded Jose Peseiro, whose contract expired in February.

During his short spell, Finidi managed two World Cup qualifying matches, leading the Super Eagles to a 1-1 draw with South Africa and a 2-1 defeat to Benin Republic.

Despite the less-than-stellar results, Finidi’s appointment had initially been met with enthusiasm, with many hoping his extensive experience as a former international player and successful coach of Enyimba FC would translate into success for the national team.

The NFF’s decision to bring in foreign expertise highlights its commitment to enhancing the Super Eagles’ competitive edge on the international stage.

However, the timing of this announcement and Finidi’s subsequent resignation have sparked discussions about the stability and future direction of the team.

In response to the resignation, the NFF will need to expedite its search for a new head coach. This transition period is critical, especially with the ongoing World Cup qualifiers and other international fixtures looming.

Fans and stakeholders are watching closely, hoping that the new direction will bring positive changes and improved performances.

The NFF now faces the challenge of not only finding a suitable replacement but also ensuring that the transition is seamless to maintain team morale and focus.

The next few weeks will be crucial as the Super Eagles prepare under new guidance, aiming to meet the high expectations of their supporters and the nation.

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Woman Kills Boyfriend Over Dispute on ‘Yahoo Yahoo’ Earnings

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In a shocking turn of events, a 27-year-old woman, Oluchi Nzemechi, has been arrested for allegedly stabbing her boyfriend, Kelechi Nzemechi, to death over a disagreement on how to share the proceeds from their internet scam business, popularly known as ‘Yahoo Yahoo’.

The incident occurred in the Ikeduru Local Government Area of Imo State.

According to a statement released by the Police Public Relations Officer, ASP Henry Okoye, the suspect has confessed to committing the crime.

Oluchi revealed during interrogation that her boyfriend had introduced her to the world of cybercrime.

Their illicit activities recently culminated in the successful duping of an Indonesian victim out of 250 million rupiah (approximately $16,500 USD).

The fatal dispute arose when Oluchi and Kelechi were discussing how to divide the substantial sum. The argument quickly escalated, and in a fit of rage, Oluchi grabbed a kitchen knife and fatally stabbed Kelechi.

Realizing the gravity of her actions, she attempted to divert suspicion from herself by leaving a misleading note on Kelechi’s body, which read, “You think you can eat my money and go free? I am baba for the boys. I am coming for your wife and your child, including your family,” before fleeing the scene.

ASP Okoye’s statement also mentioned that Oluchi and Kelechi had been living together since 2019 and had a child together.

The police are currently taking necessary steps to recover the fraudulently obtained 250 million Indonesian rupiah to return it to the rightful owner.

The suspect is now in police custody and undergoing further investigation at the State Criminal Investigation Department. She will be arraigned in court once the investigation is concluded.

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