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Analysts warn more detail needed on new China economic measures

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Analysts gave a cautious welcome to China’s announcement Saturday of fresh fiscal stimulus to revive its ailing economy but warned that more details — and specific headline figures — were needed before its effect could be fully assessed.

At a highly anticipated news conference, Beijing said it would issue special bonds to boost the capital available to banks, as well as allow local governments to borrow more.

The moves add to a series of measures unveiled in recent weeks that have included interest rate cuts and liquidity injections for banks, all aimed at kick-starting China’s dragging economy.

Leaders said recently that the government’s official growth target for this year of about five percent was within reach.

But economists have warned that a robust fiscal stimulus programme is necessary in order to boost domestic spending and achieve the full post-pandemic recovery that has so far eluded policymakers.

‘Devil in details’

“The surprise today is that there is no specific number,” Heron Lim of Moody’s Analytics told AFP after the Saturday press conference, saying it looked like the government was “still working on the minute details of the fiscal stimulus”.

“Unfortunately for China, the devil is in the details. It would be preferable that they do have some headline numbers for people to chew on,” he added.

“In the meantime, investors might be taking a step back until they are absolutely certain of the direction fiscal support is taking.”

Although Saturday’s news conference did not unveil a “bazooka” stimulus package, which investors have been clamouring for, comments by officials on expanding central support for the economy received some praise.

Finance Minister Lan Fo’an said the government was “accelerating the use of additional treasury bonds, and ultra-long-term special treasury bonds are also being issued for use”.

The debt ceiling of local governments would also be increased, in theory empowering them to spend more on infrastructure and protect jobs.

“These policies are in the right direction,” said Pinpoint Asset Management’s Zhang Zhiwei in a note.

“While (Lan) didn’t say explicitly that they will raise fiscal deficit, I think his comments imply that it is possible the government will raise fiscal deficit above three percent for next year,” he wrote.

Such a move would represent a “meaningful shift” in Beijing’s fiscal policy approach, said Zhang, helping to “boost domestic demand and mitigate the deflationary pressure in the economy”.

But the impact of new policies on China’s broader economic outlook will depend on their “size and composition” — again, details that have yet to be announced — he said.

Long-term change ahead?

A major focus of Saturday’s news conference was the government’s efforts to shield local authorities from spiralling debt that could have negative spillover into the economy.

Xing Zhaopeng, senior China strategist at ANZ, said the messaging showed officials were focused on “derisking local governments”.

A new quota for treasury and local bonds, as well as a debt swap programme that could reach 10 trillion yuan ($1.42 trillion) in the coming years, is expected, he said.

Such moves would represent “long-term and structural change”, Xing added, noting that “local governments are the growth drivers in China”.

Other headwinds — including sluggish consumption and high youth unemployment — threaten to dampen economic vitality.

“Fiscal commitment needs to be more robust to offset the drag from households and the private corporate sector,” Gary Ng, senior economist at Natixis, told AFP.

Beijing had not yet decided on the size of its eventual fiscal stimulus package, said Ng, “meaning the impact on growth will depend on whether such announcements are enough to boost confidence.

“More needs to be done regarding implementation and injecting actual new fiscal money.”

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“We no lose o” — VeryDarkMan sings and dances after court hearing against Femi Falana and Falz held today.

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November 14, 2024

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"We no lose o" — VeryDarkMan sings and dances after court hearing against Femi Falana and Falz held today.
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VeryDarkMan’s court hearing against Femi Falana and Falz took place today, and he seems to be celebrating. However, the court actually ruled in favor of Femi Falana, ordering VeryDarkMan to delete defamatory videos about him.

It appears VeryDarkMan had made some allegations against Falana and his son, Falz, which the court deemed defamatory. The court also granted Falana’s request to serve VeryDarkMan with court processes through his lawyer, Deji Adeyanju Esq.

Despite the court’s ruling, VeryDarkMan seems to be in high spirits, singing and dancing after the hearing. It’s unclear what the outcome of the case will be, but for now, VeryDarkMan appears to be taking it in stride.

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GUNMEN ATTACK MILITARY CHECKPOINT AT ABIA AND IMO BOARDER, ALLEGEDLY KILL TWO SOLDIERS…

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November 14, 2024

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GUNMEN ATTACK MILITARY CHECKPOINT AT ABIA AND IMO BOARDER, ALLEGEDLY KILL TWO SOLDIERS
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Ekwutosblog gathered that Gunmen attacked an army checkpoint earlier today, Wednesday 13th November, 2024 at Ekenobizi, a border community between Abia and Imo states in Umuopara, Umuahia South Local Government Area, killing two soldiers.

A military source, who spoke on the condition of anonymity, said the attack occurred around 6:18 am. The gunmen arrived in a white Lexus (350/400) model, although the exact number of attackers could not be confirmed.

Confirming the incident in a press release on Wednesday, Lieutenant Colonel Jonah Unuakhalu of the Joint Task Force South East Operation UDO KA said: “In the early hours of today, 13 November 2024, troops of the Joint Task Force South East Operation UDO KA, deployed at a checkpoint along the Umuahia – Owerri Road in Umuahia South Local Government Area of Abia State, came under attack by faceless group.

“During the attack, the gallant troops were able to repel the assault, forcing the attackers to retreat in disarray with gunshot wounds, abandoning one Sienna and one Lexus Jeep used in the attack. However, in the ensuing firefight, two soldiers paid the supreme price.”

The Joint Task Force appealed to residents of the South East, particularly those in Abia State, for credible information to help track down the fleeing attackers and combat criminal elements in the region.

The force reiterated its commitment to protecting lives and property in line with global best practices and the rules of engagement.

Kindly follow ekwutosblog on Instagram and Facebook for verified News and Current Affairs in addition to insightful contents that inform, inspire, educate and entertain you always.

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TV chef found dead in hotel aged 52 after criticising Vladimir Putin

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November 14, 2024

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Alexei Zimin has died
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A TV chef who fled to London after his opposition of Vladimir Putoin has been found dead while on a promotional tour

A Russian TV chef who criticised Vladimir Putin has been found dead in a Belgrade hotel

Alexei Zimin, 52, died suddenly on a promotional tour to the Serbian capital. Authorities have said his cause of death is currently “unclear”.

Zimin fled Russia to London after his oppositions of Putin. Zimin was once a popular figure on Russian cooking shows. He also owned Zima restaurant in Soho, which he founded after he had left Russia following Putin’s invasion of Crimea.

In a statement released by Zima magazine today, a spokesperson said: “Alexei Zimin, the project’s editor-in-chief and the chef of the Zima restaurant, has passed away. Alexei was not only a colleague, he was our friend, a close person with whom we were lucky to go through a lot – both good, kind and sad.”

London-based exiled Russian TV chef, editor and restaurateur Alexei Zimin, dies at 52.

It concluded: “Thank you to everyone for the words we received today about Alexei. We are hurting together with you.”

Zimin had also been editor-in-chief of the Russian edition of GQ magazine.

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