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Analysis: Investors await China’s response

Published

6 years ago

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Hussein Sayed, Chief Market Strategist at FXTM, comments on the latest developments in the U.S.-China trade war.

 

U.S. President Trump moved forward with imposing 10% tariffs on $200 billion of Chinese imports effective next week.

Trump’s move has obviously taken the trade war with China to a new level, and the confrontation may last longer than what was previously thought. There’s no doubt that China’s economy will begin feeling the pain given that the U.S. duties now cover almost half of its imports.

So, expect to start seeing more aggressive monetary and fiscal actions to reduce the ongoing impact of the trade war.

However, it remains unclear to what extent the U.S. economy will be hurt with these tariffs, but definitely corporate and consumer bills will be on the rise in the coming months.

Interestingly the impact on financial markets was muted after the announcement. While China’s major indices were slightly lower, stocks in Korea and Japan traded in green territory.

It seems as if the latest tariff announcement was largely priced in, but what remains uncertain is how Beijing policymakers will respond.

While China cannot match the U.S. tariffs dollar for dollar given the huge trade imbalance, it still has other weapons it could use, including boycotting U.S. products, increasing taxes on earnings of U.S. companies in China, refusing to grant approvals for M&A involving U.S. businesses, and reduce its U.S. debt holdings.

Chinese officials have also threatened to walk away from the negotiating table, as they seem to be betting on Republicans losing the midterm elections in November. Investors should be prepared for more short-term downside risks across equity markets given all these uncertainties.

There are also little movements in FX markets as traders remained on the sidelines. The dollar index was treading water after dropping 0.45% on Monday. However, expect the greenback to resume its uptrend if risk aversion dominates again.

Sterling was the best performing currency on Monday, rising to a six-week high against the dollar to trade above 1.3150. Despite no significant progress occurring in Brexit talks, it seems traders are optimistic that a deal will be struck in the coming days. If EU leaders continue to adopt a flexible approach during their talks this week, expect the pound to continue outperforming. However, risks remain within UK politics and that could lead to big swings in the coming weeks.

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Finance

Immigration Office Place Ex Governor, Yahaya Bello On Watchlist While IG Of Police Withdraws All Police Officers Attached To Him

Published

1 day ago

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April 19, 2024

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The Inspector General of Police, Olukayode Egbetokun, has withdrawn all police officers attached to the embattled former Governor of Kogi State, Yahaya Bello.

The order for the withdrawal was contained in a police wireless message. The document with reference number:

“CB:4001/DOPS/PMF/FHQ/ABJ/VOL.48/ 34 reads in part;“IG has ordered the withdrawal of all policemen attached to His Excellency and former Executive Governor of Kogi State, Alhaji Yahaya Bello. Acknowledge compliance and treat with utmost importance.

Please, above, for your information and strict compliance.”

Meanwhile, the Nigerian Immigration Service has placed the former governor on its watchlist.

This comes after the Economic and Financial Crimes Commission on Thursday, April 18, declared him wanted in connection to an alleged case of money laundering to the tune of N80.2bn.

From EFCC

In a circular signed by an Assistant Comptroller of Immigration, DS Umar, for the Comptroller-General, Kemi Nandap, the NIS detailed the former governor’s name, nationality, and passport number.

From National Immigration Office

And read;

“I am directed to inform you that the above-named person has been placed on the watch list.

Suffice to mention that the subject is being prosecuted before the Federal High Court Abuja for conspiracy, breach of trust, and money laundering vide letter Ref; CR; 3000/EFCC/LS/EGCS.1/ TE/Vide/1/279 dated April 18, 2024.

If seen at any entry or exit point, he should be arrested and referred to the Director of Investigation or contact 08036226329/07039617304 for further action.” the circular reads in part.

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Finance

BREAKING: EFCC Declares Former Kogi State’s Governor, Yahaya Bello Wanted

Published

2 days ago

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April 18, 2024

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The Economic and Financial Crimes Commission has declared a former governor of Kogi State, Yahaya Bello, wanted for offences relating to economic and financial crimes.

This was contained in a notice posted on the commission’s official Facebook page on Thursday.

The notice read, “The public is hereby notified that Yahaya Adoza Bello (former Governor of Kogi State), whose photograph appears above is wanted by the Economic and Financial Crimes Commission in connection with alleged case of Money Laundering to the tune of N80,246,470,089.88

“Bello, a 48-year-old Ebira man, is a native of Okenne Local Government of Kogi State.

“His last known address is: 9, Benghazi Street, Wuse Zone 4, Abuja.”

The notice asked anybody with useful information about the former governor’s whereabouts to contact any of the commission’s offices across the country.

The anti-graft commission had earlier stated that it would, on Thursday (today), arraign the former governor before a Federal High Court sitting in Abuja.

This was after the EFCC was granted a warrant of arrest by the Federal High Court in Abuja to apprehend the former governor.

Punch reported that The agency’s team of lawyers, led by Kemi Pinheiro, SAN, during the proceedings on Thursday, said that EFCC operatives were prepared to carry out the arrest warrant for the former governor, even if it requires the use of force.

Bello and three other suspects, Ali Bello, Dauda Suliman, and Abdulsalam Hudu, will be arraigned before Justice Emeka Nwite.

They face 19 counts related to money laundering to the tune of N80,246,470,088.88.

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Finance

Naira Abuse: Court Grants Cubana Chief Priest ₦10M Bail

Published

3 days ago

on

April 17, 2024

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The Federal High Court in Lagos State, on Wednesday, granted businessman and socialite, Pascal Okechukwu, popularly known as Cubana Chief Priest, N10m bail with two sureties in like sum.

On Tuesday, EFCC slammed him with 3 count charge over the abuse of naira and asked him to report to court.

In court, The celebrity bar man pleaded not guilty to tampering and abusing the naira during his trial.

Earlier on Sunday, the EFCC revealed that it was probing several celebrities over alleged abuse of Naira notes.

In a statement, its spokesperson, Dele Oyewale, said;

“Many of them have made useful statements to the commission and many more have been invited by investigators working on the matter.

“The EFCC will not relent in its no-sacred-cow mode of operations and the public should be wary of running afoul of laws against the crime.”

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