14 May 2019

1) China has countered U.S. tariffs imposed last Friday with tariffs on $60 billion dollars of U.S. imports to China. About 10 to 15% of America’s import revenues come from China, and while the trade war is high stakes and risky, it’s the only real tool America has to deal with China, because China ignores the world trade organization rulings.

2) Fears are increasing that China may not buy as many U.S. treasury notes as she has in the past, which would force America to increase the prime interest rate. There are even fears that China might not buy any bonds at all, or even start selling off bonds she now holds in retaliation for the tariffs. It’s reported that China is also buying up gold.

3) Boeing aircraft is fearful of being a target for tariff reprisals, who holds substantial orders from China. Apple, who gets 20% of its revenues from China, and Caterpillar are also facing business downturns if China places tariffs on imports of their products.

4) 13 MAY 19 Stock market closings: China’s tariffs announcement turns markets downward.

Dow               25,324.99    down    617.38
Nasdaq            7,647.02    down    269.92
S&P 500           2,811.87    down      69.53

10 Year Yield:     down   at    2.41%

Oil:     down   at    $60.97

NAIRA BONDS UP THIS YEAR IN 2015…. BEATING ESTIMATES….

Naira bonds

By: Economic & Finance Report

Nigerian bonds are up over 7% this year  alone.  In October Naira bonds beat the US stock market over 24% according to data provided by Standard & Poors report, first reported by Channels Tv online.

Nigerian bonds have beaten other African bonds in yield, surpassing South Africa and Kenyan bonds collectively. Kenyan and South African bonds have returned negatively in the red by 13%, while Naira bonds have gained a respective positive 7%.-SB 

*( reporting & data provided by Channels Tv & S&P index)*

THE FAMOUS INVESTMENT MANAGEMENT FIRM PIMCO, NO MORE IN STOCKS… FOCUS ON BONDS

pimco pic

By: Economic & Finance Report

The investment management firm that is known in the finance world as Pimco, has decided to shut down its equities units. The firm indicated they will focus on key financials, such as their bonds and investment management divisions.

They will be liquidating their equity market units, and their Chief Investment Officer Virginie Maisonneuve has also decided to step down from the CIO position. Maisonneuve oversaw one of their equity units which focused on Emerging Markets around the globe.

Pimco manages 1.59 trillion dollars in complex assets, while they are also trying to diversify and be more broad in investment strategy and stock diversification.-SB