14 January 2020

1) Ford Motor Company’s sales in China has declined for the third straight year, falling by 26.1%. The company has been trying to revive sales in China after the decline started in 2017 and plans to introduce thirty new models in the next three years, with a third being electric models. General Motors has also experienced a decline in sales of 15% this last year.

2) One of the largest suppliers of parts to Boeing’s 737 MAX, Spirit AeroSystems, is laying off 2,800 workers. Based in Wichita Kansas, will eliminate 20% of its workforce. Smaller layoffs will happen at its facilities in Tulsa and McAlester, with half its annual sales from parts for the 737 MAX. Since last February, Spirit’s stock has fell from a high of $100 a share to $71.50 on news of the layoffs.

3) Expectations are that the U.S. will remove China from its list of currency manipulators two days before the signing of initial U.S. – China trade agreement. Part of the agreement is that both nations will not devalue its currency to gain a competitive advantages of exports. Labeling China a currency manipulator was viewed largely as a symbolic action.

4) Stock market closings for – 13 JAN 20: Stocks are up 495% in the past decade.

Dow             28,907.05    up    83.28
Nasdaq          9,273.93    up    95.07
S&P 500         3,288.13    up    22.78

10 Year Yield:    up   at    1.85%

Oil:    down   at    $58.12

DEVALUATION BETS RISE UPWARD AS DEVALUATION OF NAIRA IS ASSURED:::::::::::::::

Naira currency

By: Economic & Finance Report

The Naira forwards rose immensely as global traders believed the devaluation of the Naira was going to occur. This being the truth as the Naira is now 290 to USD $1.  Naira bonds have lost close to 10% this past year alone.

The Naira has been hovering between $197-$199 but in the black market it has been pegged even higher over $300/USD $1. Analysts have indicated that Nigeria had to devalue the Naira to allow growth in a country whose growth stymied around 2-3%.  The devaluation recently of the Naira allow currency market FX better positioning and flexibility into its fold. -SB

NIGERIAN CENTRAL BANK HAS NO PLANS TO DEVALUE THE NAIRA……..

Nigeria Naira

By: Economic & Finance Report

The Nigerian Central Bank has made strong indications that they would not devalue the Nigerian Naira. They have maintained over the last 4-5 months that they will be monitoring speculation and stabilizing the Naira against currency fluctuations.

The Central Bank has indicated it sees no reason currently to devalue the currency,  and the effect seems to be holding up… The question many analyst have indicated, is how long will this go forward????? The Naira has been flat since  March 2015. It has hovered around$198-$199 to $1 USD. Time will tell what will eventually occur. -SB

ASIAN CURRENCIES DROP AS THE CHINESE YUAN IS DEVALUED!!!!!!!!!!!!!!!!!

China Yuan

By Economic & Finance Report:

It seems Asian currencies are free falling, as the Chinese Yuan is being devalued. The Chinese central bank devalued the Yuan Monday, August 10, 2015.  The Central Bank of The Federal Republic of China devalued the currency so it will be more market adaptable., some analysts have indicated. 

The Yuan is currently now weaker then the U.S. Dollar, by about 2%. Equitable markets will be focused now on the moves of Central Banks around the world, as currency inflation seems to be constantly changing. Much of the change was also affected by the market trading information that came out over the weekend in China, which was highly negative in reporting. A weaker Yuan will definitely demobilize and create instability in the Asian markets going forward. -SB