- Trade War May lead to recession Says Goldman Sachs
Goldman Sachs Inc, one of the world’s leading investment banks, on Sunday said there are signs that the ongoing trade war between the US and China may plunge the world into another recession.
In a note sent out to clients on Sunday, Goldman said it no longer expects a trade deal between the two world’s largest economies before the 2020 U.S. presidential election.
“We expect tariffs targeting the remaining $300bn of US imports from China to go into effect,” the bank said in the note.
This was after President Trump said he is no longer keen on reaching an agreement with China, however, threatened that additional tariffs would be added to the existing ones and promised to continue as long as China stays off the negotiating table.
The President had called China currency manipulator following continuous fall in the Yuan against the US dollar in the last few weeks to over 7.06 Chinese Yuan.
A weaker currency makes a nation’s exports cheaper compared to other nations with stronger currencies.
The People’s Bank of China, however, denied using their currency to undermine the US position and blamed fall in the Yuan on the trade war and disrupted economy.
Goldman Sachs, therefore, lowered its projection for U.S. economic growth in the fourth quarter by 20 basis points to 1.8 percent, citing larger than previously anticipated impact from the trade tensions.
“Overall, we have increased our estimate of the growth impact of the trade war,” the bank said in the note authored by three of its economists, Jan Hatzius, Alec Phillips and David Mericle.
The experts said the rising cost of logistics due to the disruption in supply chain could force businesses to cut down on domestic activity. Similarly, policy uncertainty is likely to compel companies to lower their capital expenditure, the economists added.
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Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption
The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.
The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.
The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.
The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.
This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.
Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.
The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.
Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.
Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion
The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.
Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.
During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.
He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.
Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.
The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.
Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.
The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.
The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.
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