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Wed, 26th April 2017

Anirudh Sethi Report

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Archives of “April 10, 2017” Day

North Korea-US duel elevates Asia tension to new heights

Amid rising tensions between the U.S. and North Korea, a U.S. aircraft carrier-led strike group has altered plans and headed toward the Korean Peninsula.

The USS Carl Vinson had just been in Busan, South Korea, in mid-March to participate in Foal Eagle, an annual U.S.-South Korea exercise. Afterward, the 6,000-crew warship moved to Singapore and was scheduled to make a port visit to Australia. 

 Instead, Adm. Harry Harris, the commander of the U.S. Pacific Command — which oversees all U.S. forces in the Pacific — instructed the Carl Vinson Strike Group on April 8 to sail north once again.

It is the latest measure taken by the Donald Trump administration to show the world, especially China, that the U.S. strategy toward North Korea has changed. North Korea has recently repeatedly tested ballistic missiles, threatening to test a intercontinental ballistic missile that could reach the U.S. Trump is signaling that his administration is not shy to use force to prevent such development. 

A mobile naval base, capable of carrying 90 aircraft to the enemy, the aircraft carrier is the Navy’s most visible display of power. Accompanying the Carl Vinson are the Arleigh Burke-class guided-missile destroyers USS Wayne E. Meyer and USS Michael Murphy, as well as the Ticonderoga-class guided-missile cruiser USS Lake Champlain.

Nigeria naira slides to 405 to dollar on black market

When it comes to Nigeria’s currency, mind the gap, again: the spread between the official and parallel market rates for the naira is widening once more.

During a more than two-week run, the naira strengthened to a six-month high of 390 per dollar on the black market – close to one of the multiple official exchange rates, but still far off the interbank rate of around 305 to the dollar.

However, the naira is weakening once more on the black market, slipping below 400 to the dollar, to 405 to the dollar on Monday, according to traders.

In the absence of adequate supplies of dollars in the official market, businesses and individuals have been forced to buy hard currency on the black market, stoking demand there and eventually weakening the naira to a record low of 520 in February. Analysts said the gap between the official rate of just over 300 to the dollar and the black market one indicated the scale of unmet demand for hard currency in Africa’s most populous nation.

OECD, ILO, WTO, World Bank and IMF warn against protectionism

Merkel in on it too

The 5 economic institutions are warning against more protectionism and Germany’s Merkel is on board.
Of course the world will be dealing with not only Brexit and the potential impact from it, but also President Trump who has his agenda on the unfairness of trade.  All that will be playing out over the course of the next months and years.  

S&P warns EU’s rating could be hit of Brexit goes badly

S&P warns EU’s rating could be hit of Brexit goes badly
  • Standard & Poor’s on the European Union

If Brexit negotiations go badly, the EU’s AA-rating could come under pressure, S&P warns.

They say the current EU rating assumes the UK will meet its financial obligations to the EU. The problem is that those commitments aren’t legally enforceable if May decides to get really tough.

What’s the chance of that? Very close to zero but the EU rating should be under pressure in any case with the political climate in Europe and the hole Britain is about to punch in its budget.

India : GOLD IMPORT SHRINKS 24 % TO $23 BN IN APRIL-FEB FY17

India’s gold import witnessed a fall of about 24 per cent to $23.22 billion in April- February period of the last fiscal, which is expected to keep a lid on the current account deficit.

Total import of the precious metal in the corresponding period of 2015-16 stood at $30.71 billion.

According to industry experts, softening prices of gold in the domestic and world markets could be the reason for the same.

The contraction in import helped in narrowing the trade deficit to $95.2 billion during the 11-month period of 2016-17 as against $114.3 billion in the same period of the previous fiscal.