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Bread Production: Bakers Demand Price Reduction On Flour And Other Ingredients

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Bakers have called for a reduction in flour prices and urgent government intervention to address skyrocketing costs affecting their operations.

The Association of Master Bakers and Caterers of Nigeria has called on the Federal Government to intervene on the incessant increase in the prices of flour despite recent approval of duty-free importation waiver on wheat and maize.

The association therefore called on government to probe the activities of Flour Milling Association of Nigeria and sugar producers for causing the increases in the prices of bread.

The Chairman of the Association in Lagos State, Chief Matthew Ayoola and General Secretary, Abraham Alabi, who raised the observations during a press conference, proposed a reduction in the prices of wheat, flour and other ingredients used by bakers for smooth operation.

The event had as its theme, “Call For The Federal Government’s Urgent Intervention On The Incessant Increase Of Flour Prices Despite Recent Approval Of Duty-Free Importation Waiver On Wheat, Maize, Others.”

The text reads, “The record holds that Master Bakers and Caterers in Nigeria are the second largest employer of labour in Nigeria. This means that bakers’ shutdown of bakeries might pollute the society

“We sincerely appreciate the federal government of Nigeria upon the approval of a 150-day duty-free window to allow the importation of wheat, maize, and husked brown rice as part of measures to combat rising food inflation across the country effective August 1, 2024. However, the Nigeria Millers are yet to implement this on the price of their commodities.

“We are using this medium to call on the Federal Government to intervene in the operations of the Flour Milling Association of Nigeria (FMAN) as they are a major factor causing incessant increases in the price of wheat which falls to the high price of buying bread. It seems they intend to siphon money and milk the majority of Nigerians to live in abject poverty. Their current incessant increase of flour and sugar prices despite Government actions to ameliorate the cost of food items is a sabotage to the economy. The millers are taking advantage of government assistance to enrich themselves and make the good citizens starve.

“It’s imperative to note that in July the Federal Government of Nigeria announced the approval of a 150-day duty-free window to allow the importation of wheat, maize, and husked brown rice as part of measures to alleviate rising food inflation across the country. The government’s notable action should be to help bring down the prices of food items in the market, making some food items more accessible and affordable for the masses.

“However, our findings revealed some Millers chose to sell wheat to neighboring countries and some of them chose to ignore this waiver and instead continue to inflate the price of flour on a daily basis. This action has not only disregarded the Federal Government’s efforts to alleviate the suffering of Nigerians but also a severe blow to our industry. It’s a way of robbing innocent Nigerians. The millers did not consider our call for price reduction but rather advised us to inflate the price of bread more to inflict pain on the common man, which is an inhumane action to take.

“This constant increase in the price of flour by millers has made it impossible for Bakeries to operate and function smoothly which has also led to the shutdown of many bakeries and their staff being laid off. Lives are at stake when basic needs are scarce. Nigerians complain on a daily basis due to a lack of basic needs for survival and bread is one of them. The flour Millers are mounting pressure on human beings unnecessarily. Today, the price of flour has increased by 67,000 naira as against the last ten years’ price of 8,000.

“As flour is experiencing an increase so also are sugar, yeast, wheat, butter, nylon, and other ingredients needed, in fact, everything we use for production has increased. All the millers have declined our proposal for reduction of the cost of flour.

“We therefore call on the Federal Government to investigate the activities of the millers and sugar producers assess them and force them to do the needful because it seems they are more focused on making exorbitant and excess profits while they put the country at risk and chaos.

We appeal to the Ministry of Industry, trade, and Investment for urgent intervention in this matter.

“The smooth operations of bakers across the country are at risk due to the unjust practices of millers. Bakers need help to assist the masses cushion the effect of hunger in the land. Everything keeps increasing except workers’ income. Bread is common to Nigerians. It has an impact on both bakers and purchasers and there is a need for reduction of flour, wheat, and other materials. The inflating cost of bread saddens our hearts unfortunately the millers’ actions pose a greater challenge to us. For the public to experience adequate reduction of food items, the price of wheat must be reduced.

“Wheat is typically milled into flour which is then used to make a wide range of foods including bread, crumpets, muffins, noodles, pasta, biscuits, cakes, pastries, cereal bars, sweet and savory snack foods, crackers, crisp bread, sauces and confectionery (e.g. licorice).

“We request the Federal government to enforce the implementation of the waiver from the point of importation to the consumers for proper monitoring. The government should meet with the Millers on possible solutions to curb the incessant increase in the cost of flour and wheat. There should be a reduction in prices of wheat, flour, and other ingredients bakers use for smooth operations.

“We propose a reduced price range of between N30,000 and N40,000 per bag. To avoid a shutdown of bakers, the government’s 150-day duty-free window should reflect on the prices at which bakers purchase production commodities which would automatically reflect on the price at which Nigerians purchase breads and other consumables.

“We also demand a surplus in the distribution/accessibility of commodities to bakers. We also urged the Federal Government to take decisive actions to ensure that the waivers on wheat importations are enforced and that the millers comply with the intended purpose of reducing the cost of flour and wheat. The Federal government waiver should reflect the cost of food items bought.”

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Bitcoin soars past US$81,000 as Trump’s pro-crypto stance fuels buying spree

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Bitcoin reached a record high on Monday. Photo: Reuters
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The token climbed to an unprecedented US$81,497 early in the Asian day on Monday

Bitcoin rallied past US$81,000 for the first time, boosted by President-elect Donald Trump’s embrace of digital assets and the prospect of a Congress featuring pro-crypto lawmakers.

Trump’s decisive victory in the presidential election has prompted celebratory chest-thumping from the digital-asset industry, which spent over US$100 million backing a range of crypto-friendly candidates.

The largest token climbed as much as 6.1 per cent on Sunday, before extending the gain to an unprecedented US$81,497 early in the Asian day on Monday. Bullish sentiment lifted smaller coins too, including a surge in Dogecoin, a meme-crowd favourite promoted by Trump supporter Elon Musk.

Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.

“With the dust from Trump’s victory still settling down, it was only a matter of time before a run-up of some sort occurred given the perception of Trump being pro-crypto, and that’s what we’re seeing now,” said Le Shi, Hong Kong managing director at market-making firm Auros.

Trump vowed on the campaign trail to put the US at the centre of the digital-asset industry, including creating a strategic bitcoin stockpile and appointing regulators enamoured with digital assets. Jubilant traders for the moment are paying little heed to questions such as the speed of likely implementation or whether a strategic stockpile is a realistic possibility.

His broader agenda of stoking domestic economic growth, tax cuts and reducing red tape has fuelled a buying spree across stocks, credit and crypto. The S&P 500 stock index last week hit its 50th record this year.

Bitcoin has added about 92 per cent so far in 2024, helped by robust demand for dedicated US exchange-traded funds (ETFs) and interest-rate cuts by the Federal Reserve. The rise in the token, which scaled fresh records after Tuesday’s US vote, exceeds the returns from investments such as stocks and gold.

The ETFs, powered by BlackRock’s $35 billion iShares Bitcoin Trust, posted a record daily net inflow of almost US$1.4 billion on Thursday, according to data compiled by Bloomberg. A day earlier, the iShares ETF’s trading volume jumped to an all-time peak – all signs of how Trump’s victory is reshaping crypto.

Trump’s stance contrasts with a crackdown on digital assets under President Joe Biden. Securities & Exchange Commission Chairman Gary Genslerrepeatedly labelled the sector as rife with fraud and misconduct. The agency turned the screws on crypto following a 2022 market rout and a litany of collapses, notably the bankruptcy of Sam Bankman-Fried’s fraudulent FTX exchange.

Digital-asset companies spent heavily during the election campaign to boost candidates viewed as favourable to their interests. Against that backdrop, Trump did an about-face, becoming a supporter of an industry he once labelled a scam.

“Trump has promised supportive regulation, and the sweep of the House and the Senate makes the passage of crypto bills much more likely,” wrote Noelle Acheson, author of the Crypto Is Macro Now newsletter.

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China poised to approve more help for ailing economy

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China poised to approve more help for ailing economy
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China poised to approve more help for ailing economy

 

China is expected to unveil a huge support package for the struggling economy Friday as officials wrap up a key meeting with an eye on the possibility of intensified trade tensions with US president-elect Donald Trump.

Economists predict Beijing will approve hundreds of billions of dollars of help, with a focus on indebted local governments as well as cash for banks aimed at writing off non-performing loans.

Policymakers were keeping tabs on the US vote as they gathered in the Chinese capital this week for a meeting of the country’s top lawmaking body.

Trump promised during his campaign of punishing tariffs on Chinese goods that threaten further grief for the world’s second-largest economy, which is already grappling with a prolonged housing crisis and sluggish consumption.

Observers say Beijing could seek to cushion that blow with a long-awaited “bazooka stimulus” for the economy — though caution details might still take time.

The meeting, originally scheduled for late October, was likely pushed back to allow “policymakers a chance to address a possible Trump win”, Lynn Song, chief economist for Greater China at ING, said.

“In our view, the odds for a larger policy support package will rise somewhat with a Trump victory,” he added.

Trump’s victory is “not necessarily bad for China as this may ‘pressure’ Beijing for a bigger stimulus”, Qi Wang, CIO of UOB Kay Hian Wealth Management, said on X.

State media this week reported that officials had reviewed a bill to raise local government debt ceilings.

That move, touted last month, would allow authorities to borrow more to fund the acquisition of unused land for development — a move aimed at pulling the property market out of a prolonged slump.

Beijing in September began to unveil a raft of measures aimed at boosting economic activity, including rate cuts and the easing of some home purchasing restrictions, but analysts have bemoaned the lack of detail so far.

Trump’s re-election provides a need for greater urgency, experts say, though caution may still prevail as officials try to avoid piling on more government debt.

“Any potential stimulus size may be bigger, but so is the pressure,” Gary Ng, senior economist at Natixis, said.

“The market may still not get the economic boosters it wants,” he warned.

China’s Premier Li Qiang this week said he was “fully confident” that the country would hit its growth target of around five percent for 2024, even after figures showed the economy saw its slowest expansion in a year and a half during the third quarter.

And in a rare bright spot, data Thursday showed the nation’s exports surged last month at their fastest pace in more than two years.

But Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, warned “we cannot rely on exports to carry China’s economy”. “I expect fiscal policy will become more proactive next year as a pillar for growth,” he said.

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Nissan announces 9,000 job cuts, slashes sales forecast

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Nissan did not issue a net profit forecast on Thursday, having downgraded it in July to 300 billion yen. Photo: Yuichi YAMAZAKI / AFP Source: AFP
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Japanese automaker Nissan on Thursday announced 9,000 job cuts as it slashed its annual sales forecast, saying it was taking urgent measures to tackle “a severe situation”.

The company reported a 93 percent plunge in net profit in the first half as CEO Makoto Uchida told reporters that weak sales in the North American market were a major factor.

Nissan and its domestic rivals are also struggling to stand their ground in China, as fast-growing electric vehicle firms backed by Beijing race ahead.

“Facing a severe situation, Nissan is taking urgent measures to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market,” a company statement said.

“Nissan will cut global production capacity by 20 percent and reduce its global workforce by 9,000,” it added.

Uchida “will voluntarily forfeit 50 percent of his monthly compensation starting in November 2024 and the other executive committee members will also voluntarily take a pay reduction accordingly”, the statement said.

The firm now expects net sales of 12.7 trillion yen ($80 billion) — down from 14 trillion previously forecast.

But Nissan did not issue a net profit forecast on Thursday, having downgraded it in July to 300 billion yen. In the six months to September, net profit was just 19.2 billion yen.

“Net income is to be determined due to ongoing assessment of costs necessary for the planned turnaround efforts,” Uchida said.

Nissan’s “core” vehicle models are not performing as well as before in North America, he added. “From the cost perspective, and the brand-strength perspective, we will rebuild our brand in America,” Uchida said.

Among other measures, the automaker will reduce its stake in Mitsubishi Motors by selling shares back to the firm.

It said its stake in Mitsubishi will fall to around 24 percent from 34 percent currently. Uchida added that Nissan would keep close ties with the company.

Nissan has seen a turbulent decade that included the shock 2018 arrest of former boss Carlos Ghosn, who later jumped bail and fled Japan concealed in a music equipment box.

Ghosn remains an international fugitive in Lebanon and denies the allegations against him. He said he fled Japan because he did not believe he could receive a fair trial.

When asked about Donald Trump’s victory in the US presidential election, Uchida said Nissan was “hearing various things, like tariffs, but it’s not just us”.

“We will be lobbying, and the direction of our medium- to long-term plans should remain, but we will conduct our business while monitoring the situation carefully,” he added.

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