- Trump Bans Flights From Europe to Curb Coronavirus
President Trump on Wednesday announced a 30-day ban on flights from European nations, except the United Kingdom and Ireland.
The President, who had said Americans have very low chances of been infected, changed his tune on Wednesday after the total number of infected Americans rose over 1,200 with at least 37 deaths.
According to several reports, global cases rose more than 126,000 this week with over 5,000 deaths. Businesses and new investments are going to be affected by the new travel ban as business people can no longer visit the world’s two largest economies, the US and China.
Global business confidence would nosedive while growth is expected to contract to a record low despite measures by central banks to contain the situation. The impact of the fast-spreading coronavirus continues to grow with more countries from Africa to Oceania recording their very first case.
The European Stoxx 600 index plunged by 10 percent on Thursday morning while shares of European airlines declined by 20 percent. The uncertainty is expected to weigh on new job creation, profitability and new investments in the aviation sector in 2020.
According to U.S data, the travel and tourism market between the United States and Europe (including the U.K and Ireland) was estimated at $130 billion per year. A huge amount that would hurt both regions if they failed to develop an effective solution for the virus.
Consumers have sustained the American economy up until now, however, analysts says consumer spending “has effectively held up the economy in what has been a manufacturing recession. Anything that jeopardizes that will be problematic,” said Shaun Roache, chief economist at S&P Global.
“Probably the biggest effect will be on confidence,” Mr. Roache said, referring to Mr. Trump’s ban. “The more you see these kinds of measures, the less you’ll have people willing to venture out of the house. That hits consumer spending.”
For multinational companies, this goes beyond consumer demand as a ban on travel would hurt research and development for companies that have laboratories across the world. This would also affect bankers’ ability to audit or work on financial details of mergers and acquisitions.
“Just imagine as a businessman, you cannot visit the largest market in the world and the second-largest market in the world. How much worse can it get?” said Jörg Wuttke, president of the European Chamber of Commerce in China.
Oil Prices Decline on Rising COVID-19 Cases
Global Oil Prices Dipped on Friday as New COVID-19 Cases Jump Globally
Global oil prices decline on Friday as the number of confirmed COVID-19 cases surged across the world.
Brent crude oil, against which Nigerian oil is priced, declined from $43.47 per barrel it traded on Thursday during the Asian trading session to $41.60 per barrel on Friday at around 11:39 am Nigerian time.
Oil traders and investors are worried that the rising number of COVID-19 new cases would disrupt demand for the commodity and force refineries to shut down once again.
“I do not suspect many oil traders will be looking to place significant bids in the market today, suggesting prices may continue to wallow into the weekend,” said Stephen Innes, chief global markets strategist at AxiCorp.
Despite efforts by both OPEC plus and other top oil producers to halt falling oil prices and reduce global oil glut, the lack of a cure for COVID-19 remained global concerns.
As previously stated on this platform, until a cure is found the world would have to find a way to either work through COVID-19 or shut down activities completely.
This is coming a day after the Federal Government of Nigeria announced that it was putting school resumption plan on hold following the latest COVID-19 report that shows Nigeria’s confirmed cases crossed 30,000 on Wednesday.
In the United States, more than 60,000 new COVID-19 cases were reported on Thursday, forcing lawmakers to start contemplating the second phase of COVID-19 lockdown.
We Are Losing N13.9bn Monthly Because FG Caps Tariff – Discos
Discos Says it is Losing N14bn Monthly Because of NERC Capped Tariff
The Nigerian power Distribution Companies (Discos) have said they a losing N13.9 billion in revenue every month because the Nigerian Electricity Regulatory Commission, limited how much they can charge for consumption.
Ernest Mupwaya, the Managing Director, Abuja Electricity Distribution Company, made the statement during a presentation on behalf of the Discos to the House of Representatives Committee on Power.
The statement was after the Discos demanded realistic indices before the implementation of the proposed service reflective tariff, which was supposed to be implemented on July 1.
Mupwaya said there were some outstanding requirements before the service reflective tariff could be implemented.
“One of them is the removal of estimated billing caps. The financial impact of the Capping Order is an average loss of N13.9bn monthly, thereby, undermining or jeopardising the minimum remittance requirement,” Mupwaya stated.
The July 1 service tariff implementation was halted by members of the National Assembly, who prevailed on the Discos to shelve the date to the first quarter of 2021 due to the current economic challenges in Nigeria.
Gbajabiamila Says Nigeria Can’t Compete in AfCFTA With Weak Industries
Nigeria Must Ramp up Industrialisation to Prevent Dumping by Other Nations
The Speaker of the House of Representatives, Femi Gbajabiamila, has said the nation can not compete effectively in the African Continental Free Trade Area (AfCFTA) with weak industrialisation and manufacturing activities.
Gbajabiamila disclosed this while receiving Adesoji Adesugba, the newly appointed Managing Director of the Nigeria Export Processing Zones Authority.
The details of the visit were made public on Thursday in a statement titled, “AFCFTA: House Speaker tasks Nigeria on industrialisation through free trade zones.”
Gbajabiamila was quoted as saying “We must act proactively so that we don’t become a dumping ground for other African nations.
“Our best option in this circumstance is to immediately set machinery in motion to ensure the effective functioning and flourishing of our export processing zones.
“We must remove all bottlenecks and perfect all stumbling blocks. We will then be fully prepared for AfCFTA and also generate massive jobs for our unemployed youths and enhance our foreign earnings.”
He added that the nation must as a matter of national emergency ramp up industrialisation through free trade zones and other effective means to compete with South Africa, Africa’s most industrialised economy and other African nations.
Finance6 days ago
DSS Arrests EFCC, Acting Chairman, Magu
Forex3 days ago
Naira-USD Exchange Rate to Hit N430 – Report
Forex6 days ago
CBN Starts Using N380/$ Official Rate, Expects to Make it Official Soon
News1 week ago
Fire Guts Central Bank of Nigeria Office in Gombe
Finance5 days ago
CBN Spends $11.5bn in Q1 2020 to Support the Economy and Dwindling Naira
Stock Market6 days ago
Flour Mills, Dangote Cement, Vitafoam Disclose Insider Dealings
Technology1 week ago
Jeff Bezos Sets a New Record as Net Worth Hits $172bn
Economy5 days ago
Nigeria’s Inflation to Average 12.2 Percent in 2020 Says PwC