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Brits Across Europe “Financially Fearful” of no-deal Brexit

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Britons Living in the European Union are Financially Fearful

The majority of the estimated 1.8 million Britons living in the European Union are “increasingly financially fearful – and rightly so” over the rising risk of no-deal Brexit, warns the world’s largest independent financial advisory and fintech organisation.

The warning from James Green, deVere Group’s divisional manager of Europe, comes after last week’s latest round of critical talks – the seventh – between the UK and EU ended, again, in deadlock.

On Friday, the UK’s chief negotiator David Frost told reporters a deal “will not be easy to achieve. Substantive work continues to be necessary across a range of different areas of potential UK-EU future cooperation if we are to deliver it.”

For his part, the EU’s chief Brexit negotiator Michel Barnier said he was “disappointed” by the lack of progress.

Mr Green observes: “With just months to go until the end of the transition period, the risk of a no-deal Brexit is real and it’s rising.

“Currently, there seems little hope of a deal getting done as both sides are showing no indications of altering their positions.

“This saga is making Britons living across Europe increasingly financially fearful – and rightly so – as they could be disproportionately affected by the UK crashing out of the EU.”

He continues: “There are major concerns that existing payments from UK organisations to those living within the European Economic Area (EEA) could be disrupted or even made impossible.

“As such, in the event of a no-deal Brexit, many UK expats could find that their pensions, insurance and healthcare provision could be adversely affected.”

In addition, says James Green, the “already Brexit-pummelled pound” is likely to shed more value.

“This would, again, mean that those who live in the eurozone and receive UK pensions or income will be financially hit.

“Their purchasing power has already been significantly reduced ever since the 2016 EU referendum – the last thing they need is for the pound to fall further still.”

According to research from deVere Group published in mid-July, 36% of UK clients who live overseas (globally) have actively sought to mitigate the financial impact of Brexit, or are currently doing so.

“In the circumstances, it’s perhaps no surprise that those most likely to be adversely affected are taking measures to create, build and protect their financial assets in a likely no-deal era,” says Mr Green.

Against this backdrop, deVere Europe reports a 15% increase in business.

He concludes: “It’s sensible for these people to ensure financial strategies are best-positioned for any outcome of the Brexit talks.

“This exploration of options is likely to include considering all their international opportunities – especially as they can often capitalise on their expat status for their financial benefit.”

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

COVID-19 Vaccine: Crude Oil Extends Gain to $48 Per Barrel on Wednesday

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Oil prices rose further on Wednesday as hope for an effective COVID-19 vaccine and the news that the United States of America’s President-elect, Joe Biden has begun transition to the White House bolstered crude oil demand.

Brent crude oil, a Nigerian type of oil, gained 1.63 percent or 78 cents to $48.64 per barrel at 11:50 am Nigerian time on Wednesday.

The United States West Texas Intermediate (WTI) crude oil rose by 1.36 percent or 61 cents to $45.52 per barrel.

OPEC Basket surged the most in terms of gain, adding 3.16 percent or $1.37 to $44.75 per barrel.

This was after AstraZeneca, Moderna and Pfizer-BioNTech announced the positive results of their trials.

Moderna and Pfizer had claimed over 90 percent effective rate in trials while AstraZeneca said its COVID-19 vaccine was 70 percent effective in trials but could hit 90 percent going forward.

The possibility of having a vaccine next year increases the odds that we’re going to see demand return in the new year,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.

Also, the decision of President-elect Joe Biden to bring Janet Yellen, the former Chair of Federal Reserve, back as a Treasury Secretary of the United States is fueling demand and strong confidence across global financial markets.

President-elect Biden’s cabinet choices, particularly Janet Yellen’s Treasury Secretary position, are adding to upside momentum across a broad space of asset classes,” said Jim Ritterbusch of Ritterbusch and Associates.

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Economy

Seyi Makinde Proposes N266.6 Billion Budget for Oyo State in 2021

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The Executive Governor of Oyo State, Seyi Makinde, has presented the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly on Monday.

The proposed budget titled “Budget of Continued Consolidation” was said to be prepared with input from stakeholders in all seven geopolitical zones of Oyo state.

Governor Makinde disclosed this via his official Twitter handle @seyiamakinde.

According to the governor, the proposed recurrent expenditure stood at N136,262,990,009.41 while the proposed capital expenditure was N130,381,283,295.63. Bringing the total proposed budget to N266,6444,273,305.04.

The administration aimed to implement at least 70 percent of the proposed budget if approved.

He said “The total budgeted sum is ₦266,644,273,305.04. The Recurrent Expenditure is ₦136,262,990,009.41 while the Capital Expenditure is ₦130,381,283,295.63. We are again, aiming for at least 70% implementation of the budget.”

He added that “It was my honour to present the Oyo State Budget Proposal for the 2021 Fiscal Year to the Oyo State House of Assembly, today. This Budget of Continued Consolidation was prepared with input from stakeholders in all seven geopolitical zones of our state.”

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Economy

World Bank Expects Nigeria’s Per Capita Income to Dip to 40 Years Low in 2020

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The World Bank has raised concern about Nigeria’s rising debt service cost, saying it could incapacitate the nation from necessary infrastructure development and growth.

The multilateral financial institution said the nation’s per capita income could plunge to 40 years low in 2020.

According to Mr. Shubham Chaudhuri, Country Director for World Bank in Nigeria, the decline in global oil prices had impacted government finances, remittances from the diaspora and the balance of payments.

Chaudhuri, who spoke during the 26th Nigerian Economic Summit organised by the Nigerian Economic Summit Group and the Federal Government, said while the nation’s debt is between 20 to 30 percent, rising debt service remains the bane of its numerous financial issues and growth.

Nigeria’s problem is that the debt service takes a big part of the government revenue,” he said.

He said, “Crisis like this is often what it takes to bring a nation together to have that consensus within the political, business, government, military, civil society to say, ‘We have to do something that departs from business as usual.’

“And for Nigeria, this is a critical juncture. With the contraction in GDP that could happen this year, Nigeria’s per capita income could be around what it was in 1980 – four decades ago.”

Nigeria’s per capita income stood at $847.40 in 1980, according to data from the World Bank. It rose to $3,222.69 in 2014 before falling to $2,229.9 in 2019.

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