GRBusiness

China and South Africa attract the negative spotlight of global markets

Published

6 years ago

October 9, 2018

. What this implies

Jameel Ahmad, Global Head of Currency Strategy & Market Research at FXTM, comments on the start of the new trading week.

It’s been an interesting start to the new trading week with a number of different markets across the globe suffering weakness.

Headlines range from Chinese stocks getting slammed lower as trading resumed from a week-long holiday, the Euro retreating on the news that the European Commission has expressed concerns about the Italian budget deficit, and the South African Rand declining as much as 1% on reports that South African Finance Minister Nhlanhla Nene has asked President Cyril Ramaphosa to release him from his position.

Other risks include the Oil markets behaving sensitively to the headlines that the United States might grant some waivers to Iranian Oil sanctions and attention remaining on Brazil following the first round of the Brazilian election.

Let’s also not forget that a number of emerging market currencies across the APAC region resumed their position of pointing lower to begin the new week, while these same currencies might also face risks from developments that the Chinese Yuan has fallen to its lowest level against the Dollar in nearly two months.

All in all the early part of Monday has already showed that the combination of different themes and financial risks for markets could mean that this week is a nervous one for traders.

The largest takeaway due to its standing as the second largest economy in the world will be the movements in Chinese markets today. The latest round of selling in China can’t be dismissed and has resulted in Chinese stocks suffering their worst start to October in a decade.

While some of today’s losses in China can be attributed to the market playing “catch-up” to being absent from trading due to a week-long public holiday last week, it can’t be understated that Chinese markets as a whole are under tremendous pressure.

The Shanghai Composite Index has lost 23.28% year-to-date at time of writing, which is double the losses seen in the German DAX during the same period at 11.15%.

Away from the brutal headlines that the Shanghai Composite Index lost 3.7% on Monday, the implications that this has on other equity markets across the globe will be what traders are watching next. We have seen a trend in the past where weakness in China has resonated on other global markets, and we did encounter selling throughout the Asian region to begin the week.

The trend of weakness in China has come in spite of the PBoC cutting the RRR requirement for the fourth time in 2018 over the weekend. I wouldn’t say that the latest monetary policy action from the PBoC is the reason behind the selling in China, but it has opened up suggestions that policymakers might be concerned over signs of slowing momentum for the Chinese economy.

These concerns can also be seen in the offshore Chinese Yuan, with the USDCNH advancing above 6.90 for the first time in nearly two months.

If the Yuan continues to ease from this point, it does paint a picture of more possible pain for emerging markets across the globe this week.

The initial selling reaction in the South African Rand on reports that its Finance Minister has asked to be sacked will encourage investor caution that South Africa could be in store for another round of political risk.

Of course, South Africa is no stranger to political headlines but the initial concern could be that the reaction to the Rand to a possible replacement of its finance minister could be similar to what sparked a severe sell-off back in March 2017.

When you consider that the removal of respected Finance Minister Pravin Gordhan all the way back in March 2017 was part of a wider cabinet reshuffle of the unpopular ex-President Jacob Zuma you can’t really compare the news of then and today so closely. I would instead monitor to see how this report develops before becoming concerned that another Rand slump could be upon us due to internal political risk.

The South African economic calendar for this week is mostly thin in volume when it comes to tier-one releases until Manufacturing Production numbers on Thursday, where economists will be closely looking for signs that the economy could exit its first technical recession since 2009.

Away from political developments, I would look to see if the Rand reacts to any global uncertainties, specifically the sharp sell-off in Chinese markets and whether this spreads into other emerging markets.

Finance

EFCC Chairman Tasks Nigerian Youths Against Crimes And Fraudulent Acts

Published

8 hours ago

May 4, 2024

Alice Ginika Simon

The Chairman of Economic Finance Crime Commission (EFCC), Ola Olukoyede, has stressed the need for Nigerian Youth to see themselves as agents of positive change that have a lot to contribute to the socioeconomic development of the Nation.

Speaking at the 2nd edition of a Leadership Trainings Programme in Abuja, Olukoyede, who was represented by the Head Enlightenment and Re-orientation unit, (EFCC), Aisha Mohammed, said the commission’s dream is to see the youth contribute meaningfully to the society, emphasizing on the need to work together in bringing positive change to society.

The Economic and Financial Crimes Commission Boss declared the readiness of his agency to work with all Stakeholders, including the youth towards changing the narrative and reposition the country to greater exploit.
Also speaking, the representative of the Executive Secretary of Tertiary Education Trust Fund (TETFUND), Sonny Echono, appealed to the youths is to eschew social vices that could deter their full potential in life.

Other speakers at the event, including the Chairperson, Zero Tolerance for Social Immoralities Initiative (ZEITI) Africa, Rasak Jeje called on all stakeholders to join hands in collective pursuit of empowering new generation of leaders to curb the rising tides of social Vice among Nigerian youths.

The Chairperson, Zero Tolerance for Social Immoralities Initiative (ZEITI) Africa, Rasak Jeje made the call while addressing journalists at the 2nd edition of it Leadership Trainings Programme in Abuja on Thursday.
He said the training was aimed to intimate students leaders with knowledge and insights that will help them drive positive change and become exemplary leaders in their respective spheres.

Finance

AISA Has Refunded The Fees Paid By Yahaya Bello To EFCC

Published

1 week ago

April 27, 2024

Alice Ginika Simon

The Economic and Financial Crimes Commission (EFCC) says the American International School Abuja (AISA) has refunded the fees paid by the immediate past governor of Kogi state, Yahaya Bello, for his children attending the school.

In response to a letter addressed to the Lagos zonal commander of the EFCC, the school said $845,852 was paid in tuition “since the 7th of September 2021 to date”.

AISA said the sum to be refunded is $760,910 because it had deducted educational services already rendered.

“Please forward to us an official written request, with the authentic banking details of the EFCC, for the refund of the above-mentioned funds as previously indicated as part of your investigation into the alleged money laundering activities by the Bello family.

Since the 7th September 2021 to date, $845,852.84 (Eight Hundred and Forty-Five Thousand, Eight Hundred and Fifty Two US Dollars and eighty four cents) in tuition and other fees has been deposited into our Bank account.

We have calculated the net amount to be transferred and refunded to the State, after deducting the educational services rendered as $760,910.84. (Seven Hundred and Sixty Thousand, Nine Hundred and Ten US Dollars and Eighty Four cents).

No further additional fees are expected in respect of tuition as the students’ fees have now been settled until they graduate from ASIA.”

In a chat with The Cable, the spokesperson of the EFCC, Dele Oyewale, confirmed that the school has refunded the money.

‘’The money has been paid into public account,” Dele Oyewale was quoted as saying

Finance

Godwin Emefiele Disobeyed Direction Of Law With Intent To Harm The Public, He Printed ₦684.5M Using ₦18.9B Says EFCC in fresh charge

Published

2 weeks ago

April 23, 2024

Alice Ginika Simon

The Economic and Financial Crimes Commission has filed a fresh charge at the High Court of the Federal Capital Territory against the embattled former governor of the Central Bank of Nigeria, Godwin Emefiele.

EFCC in the charge accused Emefiele of approving the printing of N684,590,000 at the rate of N18.96 billion.

EFCC also alleged that Emefiele broke the law with intent to harm the public during his implementation of the naira swap policy of the administration of former President Muhammadu Buhari.

The anti-graft agency also accused Emefiele of unlawfully approving the withdrawal of N124.8 billion from the Consolidated Revenue Fund of the Federation.

EFCC’s top prosecutor, Rotimi Oyedepo, SAN revealed that Emefiele will be arraigned on a new four-count charge before Justice Hamza Muazu

Counts one to four of the charge, read,

“STATEMENT OF OFFENCE: Public Servant disobeying direction of law with intent to cause injury to the public contrary to and punishable under Section 123 of the Penal Code Law, Cap. 89 Laws of the Federation, 1990.

“PARTICULARS OF THE OFFENCE: That you GODWIN IFEANYI EMEFIELE between the 19th day of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the CBN Act, 2007, by approving the printing of N375,520,000.00 pieces of colour swapped N1, 000, at the total cost of N11,052, 068,062 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.”

This and three other charges were stated against him. They read;

“COUNT 2: “That you, GODWIN IFEANYI EMEFIELE, between the 19th of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the Central Bank of Nigeria Act, 2007, by approving the printing of 172,000,000 pieces of colour swapped N500 (Five Hundred Naira) Notes, at the total cost of N4, 471,066,040 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.

“COUNT 3: “That you GODWIN IFEANYI EMEFIELE between the 19th day of October 2022 and 5th March 2023 in Abuja, knowingly disobeyed the direction of Section 19 of the CBN Act, 2007, by approving the printing of 137,070,000 pieces of colour swapped N200 (Two Hundred Naira) Note, at the total cost of N3, 441, 005, 280 without the recommendation of the Board of Central Bank and the strict approval of the President, Federal Republic of Nigeria which conduct of yours caused injury to the public and you thereby committed an offence.”

“COUNT 4: “That you, GODWIN IFEANYI EMEFIELE, on or about the 7th day of October 2020, in Abuja, within the jurisdiction of this Honorable Court, knowingly disobeyed the direction of Section 80 of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended), by approving the withdrawal of the total sum of N124, 860, 227, 865.16 from the Consolidated Revenue Fund of the Federation in a manner not prescribed by the National Assembly, which conduct of yours caused injury to the public and you thereby committed an offence.”