10 April 2019

1) The IMF (International Monetary Fund) has reduced their forecasted for world economic growth from 3.5% to 3.3%, which is the third reduction since last October. It forecasted 2.3% growth for the US economy, as well as reduced growth forecast for Germany and Great Britain.

2) Walmart is rolling out thousands of robots for use in their retail stores across America. These robots will automatically scan shelves and clean floors. With a million employees, Walmart is seeking ways to keep labor cost down.

3) Bank of America is raising it’s minimum wage to $20 an hour over the next two years. Starting the first of May, the rate will increase to $17 per hour. The bank has 205,000 employees.

4) 9 APR 19 Stock market closings: Markets pulled down by industrial sector.

Dow             26,150.58    down    190.44
Nasdaq          7,909.28    down      44.61
S&P 500         2,878.20    down      17.57

10 Year Yield:    down   at    2.50%

Oil:    up   at    $64.24

9 April 2019

1) In ten years, the US debt to GDP ratio will be equal (100%). The debt to GDP ratio is presently 78%, the highest since the end of World War II, but it’s anticipated to be 96% by 2028. To bring this into perspective, countries with sever economic problems such as Greece have a ratio of 188%, Italy 130%, Portugal at 120% and Spain with 97%. On the positive side, Germany has a ratio of 59%. The IMF is warning of the problem for America if the ratio is left to continue as is. A high ratio hinders a government’s ability to counter any economic downturn. America’s entitlements is the principle cause for the increase, because when Social Security was started, there were 16 workers to support each retiree, now there are just 2.6 workers.

2) European Union borrowers are eager to see how a Brexit extension will effect markets, by possibly reducing the uncertainty that Brexit has brought on. This spring, the IMF and World Bank will be meeting for their annual conference on world economic matters.

3) Tesla, the maker of electric automobiles, is starting its new quarter with another round of cuts of sales staff following poor deliveries. The company is closing some of it’s show rooms in favor of online sales. These actions are rattling investors by stoking confusion.

4) 8 APR 19 Stock market closing:

Dow                          26,341.02     down     83.97
Nasdaq                       7,953.88           up     15.19
S&P 500                      2,895.77           up       3.03

10 Year Yield:    up   at    2.52%

Oil:    up   at    $64.46

29 January 2019

1) Brexit, now on going for 2 ½ years, is dividing the British people in strife, the debate impacting and dividing family relationships across the country. The web site eHarmony reports one and a half million relationships have broken up over Brexit.

2) American retail workers face mass layoffs. In addition to the traditional after Christmas layoffs of seasonal workers, many permanent workers face significant reduction in work hours per week, if not actual layoffs in retail giants such as Amazon, Target and Walmart.

3) Stocks close lower because of Caterpillar and Nvidia announcing significantly lower profits than was expected. Caterpillar was down 9% and Nvida down 13.8%, with expectations of further poor performance in 2019. Caterpillar is considered a economic bellwether, and together with the IMF, is warning of international economies slowing down faster than expected.

4) 28 JAN 19 Stock market closing:

Dow                 24,528.22    down    208.98
Nasdaq              7,085.68    down      79.18
S&P 500             2,643.85    down       20.91

10 Year Yield:     down   at    2.74%

Oil:    up   at    $52.04

NIGERIA BIGGEST ECONOMY IN AFRICA AGAIN: TWICE IS A CHARM!!!!!!!!

nigeria

By: Economic & Finance Report

Nigeria reclaimed its numero uno status as the biggest economy in Africa again, last week. The IMF indicated that Nigeria’s GDP contracted to $415 billion, while #2 runner up South Africa had $280 billion and rounding off #3 was Egypt, (which data has not come out yet when writing this piece).

The International Monetary Fund (IMF) also indicated Nigeria should be out of their recession by early 2017. Nigeria has seen recession before; during 1982-1984 when current Nigerian President Muhammadu Buhari was military head of state then, and in 1991 when Ibrahim Babangida was also head of state at the time. -SB

BECAUSE OF NIGERIA’S RECESSION… THE COUNTRY WILL NEED TO FOCUS ON NON OIL SECTORS!!!!!!!!!!!!!!!!!!

Nigeria economy

By: Economic & Finance Report

One of the biggest economies in Africa has recently hit recession.  The GDP fell over 2% in the second quarter of 2016. The International Monetary Fund believes Nigeria will see negative -1.8% in its real GDP for the rest of the 2016 year.

The recession in Nigeria may be the very worst to hit the country since the 1980s, probably as bad as 1987.  Nigeria Finance Ministry has indicated that Nigeria will borrow close to 10 billion dollars USD, which over $5 billion dollars USD being borrowed from foreign lenders.  The government has indicated the money borrowed will be used on domestic projects such as power, agriculture, mineral and infrastructure development.

It is also to be noted, that Nigeria’s service sectors represents about 50% of the country’s GDP to date. The service sector in Nigeria will have to take the lead in developing jobs and other attributable assets, to get Nigeria growing and prospering from its recession. -SB

THE NAIRA DROPS INSTANTLY AFTER BEING DEVALUED……………

CBN pic

By: Economic & Finance Report

The Naira devalued over 30% instantly on Monday, June 20, 2016.  It dropped 260 to 1 USD. The Central Bank of Nigeria last week insisted that it would remove restrictions on the Naira and allow it to “float freely” against the dollar.  The move was applauded by traders, analyst, the IMF (International Monetary Fund), whom all have indicated for over a year to allow the Naira to drop because of depleting oil prices.

On Monday, the dollar went skyrocketing against the Naira, some indicated they expected a drop, but not a 30% drop perhaps.  Many analysts including credit rating agency Moody’s; believe devaluing the Naira is a step forward in helping to stabilize Nigeria’s economy; which took a major hit the past few years because of declining oil prices. -SB

US DOLLAR STILL #1 RESERVE CURRENCY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

US dollars

By: Economic & Finance Report

The IMF (International Monetary Fund) has placed the Chinese yuan as one of the few reserved currency for an international scope.  Though the yuan has been added the US Treasury has indicated that the US dollar will continuously be the #1 currency reserved used around the globe. 

The yuan and other reserved currencies have a long way to go to catch up to the dollar; as the dollar weighting system is 41.7%. Other currencies that follow behind the US dollar are; the Euro (30.9%), the yuan (10.9%), yen (8.3%) and the British pound (8.1%). -SB

GREECE STILL NEGOTIATING WITH CREDITORS ON ITS DEBT!!!!!

Greek debt pt 2 pic

By Economic & Finance Report

Greece is still in negotiations with creditors about the debt it has encountered. Finance Minister, Yanis Varoufakis has indicated that the country is close in securing deals with many of its creditors and resuming relations with its creditors. 

Greece still may be facing bankruptcy because of the risk of defaulting on their international creditors. In June, Greece finance treasury has to start repaying  back  the IMF (International Monetary Fund) and the ECB (European Central Bank). As currently Greece will have to choose in either paying back the IMF & ECB or paying off their own citizens pensions and wages.  -SB

Latin America’s Economy May Be Affected By China’s Slowdown

latin america gdp

By Economic & Finance Report

It has been perceived that China’s economic  slow growth recently may be affecting the Latin America’s economy, because of the lack of China’s purchasing raw materials in Latin America.  Raw materials such as soybeans (Argentina), copper (Chile), coffee (Brazil) have seen recent drastic declines, especially since China’s has reduced its  ability to purchase these lucrative commodities.

Countries such as Venezuela have been hit hard by the recent slowdown especially with the declining of oil and other precious resources. The IMF has predicted a country such as Venezuela will be contracting for the next two years, this year and next year.

It is stated that Latin America has focused to heavily on raw material output and not enough on  diversifying other sectors in regional production. Many analysts speculated that China’s cheap labor eventually would outcompete  Latin America’s labor force, which it did and the manufacturing sector in Latin America’s economy has suffered horribly for it.

A growing and stable China helped cultivate  and economize many Latin American countries, and it is without this growth that stagnated the continent as well.Though it is implied by economists that Latin America may now need to focus more on regional development export and imports in the regional instead on dependency that has been plagued for decades by China, since the 1970s.

China has rebutted that the economic slowdown will be a long term effect to Latin America. They insist that the commodities that are exported to China serve as a mutual benefit for both Latin America and China, even more so then exports to the United States. As time passes and trade is one of the main focal points between China and Latin America, it remains to be seen how this economic barrier or stagnation  develops itself, if or when it does…

-SB