Sunday, 31 July 2016
Justin Bieber turned down $5M to perform at a Republican event during the GOP convention
This week’s Democratic national convention attracted a starry roster of performers, including one of the world’s biggest pop acts, Katy Perry. Third Eye Blind, meanwhile, were the most popular band to perform during the Republican national convention last week – but they used the opportunity to lambast the GOP.
According to TMZ, the Republicans had also attempted to book Justin Bieber, by offering the star $5m to play a 45-minute set at a venue near where the convention was held.
The money, allegedly bankrolled by GOP donors, was to be paid “up front” before Bieber arrived – with the donors also expected to cover production expenses. The one supposed condition: that Bieber could say nothing disparaging about Republican nominee Donald Trump or the party. He was allegedly assured that the performance would not be political, and that he didn’t have to publicly endorse Trump in order to take part.
Should he have accepted the offer, it would have marked Bieber’s biggest single payday.
Sources connected with CAA, the talent agency which represents the singer, told TMZ that Bieber seriously considered the offer. His manager, Scooter Braun, is said to have suggested that Bieber display a Black Lives Matter banner while performing – an idea the GOP shot down.
In the end, Bieber reportedly turned the show down at the behest of Braun, who is an avid Hillary Clinton supporter, having hosted a fundraiser in Los Angeles that attracted Kim Kardashian, Kanye West and Tom Hanks.
TMZ also reports that Republican officials tried further to entice Bieber by claiming LeBron James would attend an event near the convention welcoming the GOP, and, like Bieber, would not be required to announce a political stand. James’s team are said to have told Braun that they would not be in Cleveland for the convention, and urged Bieber not to attend.
Saturday, 30 July 2016
Elderly Afghan cleric arrested after marrying a six-year-old girl, claims she was a 'religious offering'
An elderly Afghan cleric has been arrested after he married a six-year-old girl, officials said Friday,July 30, in the latest case highlighting the scourge of child marriages in the Muslim country.
Mohammad Karim, said to around 60, who was being held in the central province of Ghor province, claimed her parents gave him the girl as a "religious offering". But officials cited the girl’s family on Fridayas saying that she was abducted from the western province of Herat.
"This girl does not speak, but repeats only one thing: ‘I am afraid of this man’," said Masoom Anwari, head of the women affairs department in Ghor.
The girl is currently in a woman’s shelter in Ghor and her parents are on their way to the province to collect her, the local governor’s office said.
"Karim has been jailed and our investigation is ongoing," said Abdul Hai Khatibi, the governor’s spokesman. The incidents highlight rising cases of child marriages in Afghanistan.
"In some regions because of insecurity and poverty the families marry off their daughters at a very early age to get rid of them," said Sima Samar, head of the Afghanistan Independent Human Rights Commission.
Afghan civil law sets the legal age of marriage at 16 for girls, yet 15 per cent of Afghan women under 50 were married before their 15th birthday and almost half were married before the age of 18.
"So many children who are married off at a young age are deprived of their right to education, safety and the ability to make choices about their future," the charity said.
"This is such a fundamental breach of a child’s basic right." Samar added.
Dogara- Jibrin: I am confident EFCC and ICPC will effect the arrest of Speaker
The Sacked Chairman of House of Representatives committee on Appropriation, Abdulmumin Jibrin, has released another statement. Read below...
"Yesterday we recorded huge success in our mission to get the Corrupt Speaker of the House Yakubu Dogara and his cohorts to face prosecution. On the request of my lawyers, the security agencies have promptly protected the appropriation secretariat, my office and house. Our petition to the EFCC and ICPC against Speaker Dogara, Lasun, Doguwa, Ogor and eight other members have been dispatched yesterday.
The case against them ranges from corrupt enrichment, abuse of office&public trust, living above means, massive movement of funds in budget. The members are Speaker Yakubu Dogara, Deputy Speaker Yusuf Lasun, Whip Alhassan Doguwa and Minority Leader Leo Ogor. Others include, chairman FCT Hon Herma Hembe, Chairman higher education Hon Zakari Mohammed, chairman health Hon Chike Okafor Chairman power Hon Dan Asuquo, Chairman marine transport Hon mohammed Bago, Chairman Police Hon Haliru Jika, Chairman interior Hon Jagaba Adams Jagaba and Chairman House services Hon Babanle Ila This is a defining moment in the struggle to cleanse the House,first time a member will drag 12 of his colleagues to the anti graft agencies.
This has opened a rare opportunity for the anti corruption agencies to decisively use this as a case study to send powerful signal. I also responded to another show of shame by 9 out of the 40member appropriation committee that addressed the press yesterday. They shamelessly allow themselves to be used after collecting $20,000 dollars each disbursed by DCOS to Speaker Hon CID Maduabum. Read my full response on both my private and public Facebook pages with documents published on different platforms including 111 projects demanded by my Deputy Hon Chris Azubogu. Speaker Dogara has resorted to blame of so called external forces, are those forces responsible for moving FG projects to his farm?and the 11 others to commence prosecution in earnest. I will share with you the contents of my petition to the EFCC and ICPC in due course and shall return with more shocking revelations.
DJ Calvin Harris and Cristiano Ronaldo having good time in LA
The World's highest paid DJ, Calvin Harris and the World's highest earning footballer Cristiano Ronaldo are seen hanging out at Warwick, Hollywood and the superstar DJ looked typically handsome in a plain dark green tee while his newly found pal Ronaldo chose an all black dressing. Calvin and Ronaldo who arrived differently, appeared deep in conversation on their phones as they made their way through the crowd. More photos after the cut.
Nigeria Minister of Women Affair, Aisha Alhassan, returns to Taraba state after a successful knee surgery in the US
End of the world? Doomsday believers predict the apocalypse
After 200,000 [mostly] fantastic years on planet Earth, the human race has just a few hours left on the Blue Marble, according to apocalypse believers.
A number of online theorists base their assertion on a supposed 'polar flip', subsequent global earthquakes and a 'rolling cloud' to destroy the Earth.
Nasa has conceded that an accelerated polar shift has been in place from July 14 but don't worry, they say this is a continual and gradual process.
A YouTube video uploaded by the End Times Prophecies asking ‘Why The World Will End Surely on 29 July 2016? Shocking Facts’ has racked up more than five million views, however Armageddon News referenced in the video deny this is the correct date.
The question is, what will you do for your last 24 hours on Earth?
The question is, what will you do for your last 24 hours on Earth?
Friday, 29 July 2016
Is This the Spokesperson in Chief You Want?
When Donald J. Trump made provocative remarks on Wednesday about Russian intelligence services and Hillary Clinton’s email, readers of The New York Times responded with a record number of comments.
More than 9,220 comments on the article were approved by moderators, who review nearly every one before they are published on The Times’s digital platforms. Thousands more comments were posted on The Times’sFacebook page.
The article became the most-commented on in The Times’s history.
At his news conference, Mr. Trump said he hoped Russian intelligence services had hacked Mrs. Clinton’s email, and encouraged them to publish whatever they might have stolen, essentially urging them to commit cyberespionage.
Here are excerpts from the comments, some of which have been lightly edited for clarity.
‘He seems to be totally unable to control his outbursts’
Some readers said Mr. Trump’s comments showed he lacked self-restraint and signaled that he could not be trusted to keep the nation’s secrets safe.
“Trump doesn’t seem to have a grasp on what comes out of his mouth. In his attempts to look strong, and always be talking over others, he seems to be totally unable to control his outbursts and totally ridiculous statements.”
Computer Systems Used by Clinton Campaign Are Said to Be Hacked, Apparently by Russians
WASHINGTON — Computer systems used by Hillary Clinton’s presidential campaign were hacked in an attack that appears to have come from Russia’s intelligence services, a federal law enforcement official said on Friday.
The apparent breach, coming after the disclosure last month that theDemocratic National Committee’s computer system had been compromised, escalates an international episode in which Clinton campaign officials have suggested that Russia might be trying to sway the outcome of the election.
Mrs. Clinton’s campaign said in a statement that intruders had gained access to an analytics program used by the campaign and maintained by the national committee, but it said that it did not believe that the campaign’s own internal computer systems had been compromised.
The Democratic Congressional Campaign Committee, the fund-raising arm for House Democrats, also said on Friday that its systems had been hacked. Together, the databases of the national committee and the House organization contain some of the party’s most sensitive communications and voter and financial data.
Meredith Kelly, a spokeswoman for the congressional committee, said that after it discovered the breach, “we immediately took action and engaged with CrowdStrike, a leading forensic investigator, to assist us in addressing this incident.”
The attack on the congressional committee’s system appears to have come from an entity known as “Fancy Bear,” which is connected to the G.R.U., the Russian military intelligence service, according to an official involved in the forensic investigation.
The same arm of Russia’s intelligence operation was also implicated in the attack on the national committee, in which it gained access to opposition research on Republicans, including the party’s presidential nominee, Donald J. Trump.
“It’s the same adversary,” the official involved in the forensic investigation said. “These are sophisticated actors.”
The F.B.I. said on Friday that it was examining reports of “cyberintrusions involving multiple political entities” but did not identify the targets of the attacks.
The reports of attacks against Democratic Party organizations began in mid-June, when the Democratic National Committee said its computer systems had been breached by two groups of Russian hackers working for competing government intelligence agencies. After that breach, WikiLeaks last week released some 20,000 committee emails, many of them embarrassing to Democratic officials, which led to the resignation of Debbie Wasserman Schultz, a Florida congresswoman, as the group’s leader.
source : The New York Time
Thursday, 28 July 2016
With Degree Debunked, Melania Trump Website Is Taken Down
PHILADELPHIA — Melania Trump’s cribbing last week of Michelle Obama’s lines was not the first time she claimed something that was not hers.
For months now, reporters have noted that Ms. Trump, who grew up in the small Slovenian town of Sevnica, did not obtain an undergraduate degree in architecture from the University of Ljubljana, as her professional website claimed she did. Instead, she left after her first year to pursue a modeling career in Milan.
As recently as a week ago, Ms. Trump’s website stated that she had obtained a degree before going on to become a philanthropist and skin care entrepreneur.
On Wednesday, The Huffington Post noticed that the site had been entirely scrubbed of its content. People clicking on its address are now redirected to the Trump Organization’s website.
In a Twitter post, Ms. Trump said the website had been removed “because it does not accurately reflect my current business and professional interests.”
Last week, Ms. Trump’s speech at the Republican National Convention contained a few lines from Michelle Obama’s speech at the Democratic convention in 2008. The Trump campaign initially denied that she had plagiarized the lines. Eventually a Trump employee who had helped write the speech, Meredith McIver, acknowledged using Ms. Obama’s lines and apologized, saying it was unintentional.
after WikiLeaks hacked into the US Democratic National Committee (DNC) emails and released their private email communication, they released voicemails of the DNC. The voicemails are related to the batch of about 20,000 leaked emails WikiLeaks published earlier this week, which revealed that people within the supposedly neutral DNC were in fact working to help Hillary Clinton secure the Democratic nomination against Bernie Sanders. According to CNN:
Wikileaks released a series of voicemails Wednesday from the Democratic National Committee hack showing donors plying top-level officials for favors, and one donor expressing outrage that Vermont Sen. Bernie Sanders had won a say in the drafting of the party's platform.
In one of the 29 voicemails released, a woman who donated $300 to Clinton called the party finance director Andrew Wright and said she was angry the party was acquiescing to Sanders by allowing liberal activist and prominent Sanders surrogate Cornel West to have one of 15 seats on the party's platform-writing panel.
"I'm furious about what you are doing for Bernie Sanders, he's getting way too much influence. I'm on a fixed income, I spent over $300, donated to Hillary, what I see is the DNC bending over backwards for Bernie and Bernie is the worst person in the world to even be running in the Democratic Party, because he's not a Democrat," said the unidentified woman in a voicemail that was sent to Wright's DNC email account.
In another voicemail, Bill Eacho, a longtime Democratic donor and former U.S. ambassador, inquired about the details of a "small dinner with President Obama."
The voicemails are related to the batch of about 20,000 leaked emails WikiLeaks published earlier this week, which revealed that elements within the supposedly neutral DNC were in fact working to help Hillary Clinton secure the Democratic nomination. Those emails ultimately led DNC Chairwoman Debbie Wasserman Schultz announcing her resignation. But most of the released voicemails amount to innocuous messages from one person trying to reach someone else.
A few of the messages highlight the relationships between donors looking for favors and goodies, and the party officials trying to bring in money to their coffers.The owner of WikiLeaks Julian Assange told CNN in an interview that DNC officials were taking advantage of the possibility of Russia's involvement in the hack to distract voters from the contents of the emails, which have revealed shocking internal discord and collusion.
Speaking from the Ecuadorian embassy in London, where Assange has resided for five years now, he said:
"It raises questions about the natural instincts of Clinton that when confronted with a serious domestic political scandal, she tries to blame the Russians, blame the Chinese, et cetera. Because if she does that while in government, it could lead to problems."
Source: CNN
Tuesday, 26 July 2016
The central Bank Of Nigeria(CBN), yesterday, jerked up its Monetary Policy Rate (MPR) to 14%, that causes critisims from business expect who predict that the hike will lead to increased corporate failure, unemployment and decline in the nation's stock market.
The CBN, raised the MPR from 12 % to 14% at the end of the Monetary Policy Committee(MPC) meeting that took place at Abuja, retaining the Asymmetric Window at +200 and -500 basis point rate.
The apex bank also retained the Cash Reserve Ratio (CRR) and the Liquidity Ratio at 22.50 per cent and 30.00 per cent, respectively. Governor of the CBN, Mr. Godwin Emefiele, who announced the outcome of the MPC meeting, said that the move was towards ensuring price stability as it would attract more inflow of foreign exchange into the country. Justifying the new rate, he said, “Basically, the issues were that you notice during the May meeting, the MPC decide to say look, if we notice the balance between inflation and growth that we should stay with growth and expect that growth. But given the fact that monetary authorities cannot directly influence, we expect that working with fiscal authorities, we can achieve growth But at this meeting, we took a lot of time to deliberate on whether to favour growth as against inflation. “We felt that there was a need in line with the CBN core mandate to look at price stability at a time- that if we favour price stability at this time and it signals an interest rate movement that will curtail inflation that when we curtail inflation, a lot more stakeholders interests would have been met, thereby encouraging in this case the inflow of capital into the country. “And as we have more inflow of foreign exchange into the country, what that does is that it deepens forex supply base and by deepening the forex supply base it makes forex available to end users , particularly to the manufacturing sector who need raw materials to boost manufacturing and industrial capacity and we are also hoping that when this is achieved, what you find is that naturally, prices would be affected downwards. “When you have a situation when foreign exchange is also made available to those who want to import agriculture inputs, insecticides or plants it helps to boost agric productivity which will also help to moderate the effects on prices downwards. “What this does is that it generally creates activities that would boost not just manufacturing outputs but will indirectly push growth forward. That was purely the essence of let’s push to the direction of inflation and price stability which was the focus of this meeting against growth. “It didn’t mean that we didn’t have growth at the back of our minds. But we felt let’s start by looking at price stability. Push towards curtailing inflation, and at the same time ultimately see how we can achieve growth in the same vein.” Hike will worsen economic situation Analysts however faulted the decision of the MPC to hike the MPR saying it would worsen the economic situation in the country. “This is not an answer to recession, the answer is to make more money available, but the CBN has decided to be tactical because growth is a long term goal”, commented Mr. Bismarck Rewane, Managing Director/Chief Executive, Financial Derivatives Limited “He stated that the MPR hike, “Is a formalisation of what is happening in the money market, where treasury bills rate are already higher than 14 percent hence it would not have effect on interest rate in the market. But it will increase cost of borrowing especially for small and medium enterprise (SMEs), increase default on debt, corporate failures and hence increase unemployment. It will also increase cost of borrowing for state governments. It will increase appetite for regulatory borrowing, because banks would now prefer to buy treasury bills and bonds which now offers higher rate. However it will make the naira to strengthen. According to the Managing Director, APT Securities and Funds, Mr. Garba Kurfi, “ The upward increase in interest rate by the CBN is not the best at the moment if government is serious in encouraging local production. This is because high interest rate will make the cost of production higher if producers are to get loan at higher rate from the financial institutions. The high interest rate will discourage investments in the capital market if one can get 14 per cent risk free from the money market. This move apparently is likely to promote money market but with the inflation rate at 16.5 per cent may encourage”. Also commenting, Head, Investment Research, Cowry Asset Management Limited, Mr. Edgar Ebinum said, “The reason for the hike is obvious but it is challenging for capital market, and it would stifle borrowing. While it is necessary to ensure a positive real return, by making the interest rate higher than inflation, but investors look beyond interest rate, the conditions in the economy is still not attractive to foreign investors The decision will cause the real sector to slow down, because there would be reduction in lending to the sector. In fact the hike makes lending more difficult for banks. The banks are already battling against rising non-performing loans and hence have reduced lending activities”. Speaking in the same vein, Managing Director, High Cap Securities Limited, Mr. David Adonri said, “The increase in MPR to nearly match inflation rate is expected response from the monetary authority. It will crowd out credit from real sector and depress equities market. The manufacturers would be affected as credit would be on the rise. Response of fiscal authority should be to reduce domestic borrowing and move towards fiscal consolidation” On his part, Mr. Kunle Ezun, a research analysts with Econbank Plc noted, “The decision was expected and the expectation has been factored into transactions in the money market. Remember that TBs were been sold at 14 per cent last week. That is why the market is calm. “I also believe that the 200 basis point raise is sufficient to address the rising inflation level now. The reality is that inflation level is more of consideration to foreign investors and they are not in the market now. The local guys don’t really bother about inflation.” The hike in MPR was however commended by Managing Director, Chief Economist,Africa, Standard Chartered Bank, Mrs Razia Khan. She said, “The decision to raise the monetary policy rate despite growth concerns will give investors a clear signal on the authorities’ intent to sustain FX reforms. This should be well-received. “Given the cost-push nature of inflation in Nigeria, which largely stems from the shortage of FX, we believe that this was the right thing to have done. Today’s monetary policy decision demonstrates a commitment to FX liberalisation, which alone will undo some of the bottlenecks that have contributed to inflation. “As Nigeria embarks upon the path of reform (FX liberalisation, fuel price deregulation, transparency initiatives, efforts to boost revenue mobilisation, power sector reforms), all with a view to easing the economy’s transition to lower oil prices, and creating the foundation for more sound long-term growth, we think that today’s MPC decision represented an important initial step in the right direction. Chief Executive Officer, SOFUNIX Investment and Communications Ltd and Chartered Stockbroker Mr. Sola Oni, said The Central Bank of Nigeria (CBN) has pushed up the Monetary Policy Rate (MPR) from 12 per cent to 14 per cent on the basis that the existing nominal anchor is a disincentive to investment for both foreign and indigenous investors, particularly, when compared to the current inflation rate. In portfolio management, the logical assumption is that relationship between interest rate and stock market is inverse. This implies that when interest rate is low, speculators move their funds from the money market instruments’ to the stock market to make a kill. As a corollary, the same speculators move from the stock market to other asset classes, especially, fixed income securities when the interest rate is high. By this logic, one can assume that the current increase in the MPR would boost investment in the fixed income securities while it may depress investors’ appetite for equity investment. But the fact remains that it is not always so as economists would say ceteris paribus which means all things being equall. There are many exogenous factors that affect investment decision at the level of investment objective. As for the economy, the stock market mirrors the economy. Therefore, it is not cast in iron to just conclude that the CBN’s increase of the MPC to a 10 -year high will have negative impact on the stock market.
Read more at vanguardngr
The CBN, raised the MPR from 12 % to 14% at the end of the Monetary Policy Committee(MPC) meeting that took place at Abuja, retaining the Asymmetric Window at +200 and -500 basis point rate.
The apex bank also retained the Cash Reserve Ratio (CRR) and the Liquidity Ratio at 22.50 per cent and 30.00 per cent, respectively. Governor of the CBN, Mr. Godwin Emefiele, who announced the outcome of the MPC meeting, said that the move was towards ensuring price stability as it would attract more inflow of foreign exchange into the country. Justifying the new rate, he said, “Basically, the issues were that you notice during the May meeting, the MPC decide to say look, if we notice the balance between inflation and growth that we should stay with growth and expect that growth. But given the fact that monetary authorities cannot directly influence, we expect that working with fiscal authorities, we can achieve growth But at this meeting, we took a lot of time to deliberate on whether to favour growth as against inflation. “We felt that there was a need in line with the CBN core mandate to look at price stability at a time- that if we favour price stability at this time and it signals an interest rate movement that will curtail inflation that when we curtail inflation, a lot more stakeholders interests would have been met, thereby encouraging in this case the inflow of capital into the country. “And as we have more inflow of foreign exchange into the country, what that does is that it deepens forex supply base and by deepening the forex supply base it makes forex available to end users , particularly to the manufacturing sector who need raw materials to boost manufacturing and industrial capacity and we are also hoping that when this is achieved, what you find is that naturally, prices would be affected downwards. “When you have a situation when foreign exchange is also made available to those who want to import agriculture inputs, insecticides or plants it helps to boost agric productivity which will also help to moderate the effects on prices downwards. “What this does is that it generally creates activities that would boost not just manufacturing outputs but will indirectly push growth forward. That was purely the essence of let’s push to the direction of inflation and price stability which was the focus of this meeting against growth. “It didn’t mean that we didn’t have growth at the back of our minds. But we felt let’s start by looking at price stability. Push towards curtailing inflation, and at the same time ultimately see how we can achieve growth in the same vein.” Hike will worsen economic situation Analysts however faulted the decision of the MPC to hike the MPR saying it would worsen the economic situation in the country. “This is not an answer to recession, the answer is to make more money available, but the CBN has decided to be tactical because growth is a long term goal”, commented Mr. Bismarck Rewane, Managing Director/Chief Executive, Financial Derivatives Limited “He stated that the MPR hike, “Is a formalisation of what is happening in the money market, where treasury bills rate are already higher than 14 percent hence it would not have effect on interest rate in the market. But it will increase cost of borrowing especially for small and medium enterprise (SMEs), increase default on debt, corporate failures and hence increase unemployment. It will also increase cost of borrowing for state governments. It will increase appetite for regulatory borrowing, because banks would now prefer to buy treasury bills and bonds which now offers higher rate. However it will make the naira to strengthen. According to the Managing Director, APT Securities and Funds, Mr. Garba Kurfi, “ The upward increase in interest rate by the CBN is not the best at the moment if government is serious in encouraging local production. This is because high interest rate will make the cost of production higher if producers are to get loan at higher rate from the financial institutions. The high interest rate will discourage investments in the capital market if one can get 14 per cent risk free from the money market. This move apparently is likely to promote money market but with the inflation rate at 16.5 per cent may encourage”. Also commenting, Head, Investment Research, Cowry Asset Management Limited, Mr. Edgar Ebinum said, “The reason for the hike is obvious but it is challenging for capital market, and it would stifle borrowing. While it is necessary to ensure a positive real return, by making the interest rate higher than inflation, but investors look beyond interest rate, the conditions in the economy is still not attractive to foreign investors The decision will cause the real sector to slow down, because there would be reduction in lending to the sector. In fact the hike makes lending more difficult for banks. The banks are already battling against rising non-performing loans and hence have reduced lending activities”. Speaking in the same vein, Managing Director, High Cap Securities Limited, Mr. David Adonri said, “The increase in MPR to nearly match inflation rate is expected response from the monetary authority. It will crowd out credit from real sector and depress equities market. The manufacturers would be affected as credit would be on the rise. Response of fiscal authority should be to reduce domestic borrowing and move towards fiscal consolidation” On his part, Mr. Kunle Ezun, a research analysts with Econbank Plc noted, “The decision was expected and the expectation has been factored into transactions in the money market. Remember that TBs were been sold at 14 per cent last week. That is why the market is calm. “I also believe that the 200 basis point raise is sufficient to address the rising inflation level now. The reality is that inflation level is more of consideration to foreign investors and they are not in the market now. The local guys don’t really bother about inflation.” The hike in MPR was however commended by Managing Director, Chief Economist,Africa, Standard Chartered Bank, Mrs Razia Khan. She said, “The decision to raise the monetary policy rate despite growth concerns will give investors a clear signal on the authorities’ intent to sustain FX reforms. This should be well-received. “Given the cost-push nature of inflation in Nigeria, which largely stems from the shortage of FX, we believe that this was the right thing to have done. Today’s monetary policy decision demonstrates a commitment to FX liberalisation, which alone will undo some of the bottlenecks that have contributed to inflation. “As Nigeria embarks upon the path of reform (FX liberalisation, fuel price deregulation, transparency initiatives, efforts to boost revenue mobilisation, power sector reforms), all with a view to easing the economy’s transition to lower oil prices, and creating the foundation for more sound long-term growth, we think that today’s MPC decision represented an important initial step in the right direction. Chief Executive Officer, SOFUNIX Investment and Communications Ltd and Chartered Stockbroker Mr. Sola Oni, said The Central Bank of Nigeria (CBN) has pushed up the Monetary Policy Rate (MPR) from 12 per cent to 14 per cent on the basis that the existing nominal anchor is a disincentive to investment for both foreign and indigenous investors, particularly, when compared to the current inflation rate. In portfolio management, the logical assumption is that relationship between interest rate and stock market is inverse. This implies that when interest rate is low, speculators move their funds from the money market instruments’ to the stock market to make a kill. As a corollary, the same speculators move from the stock market to other asset classes, especially, fixed income securities when the interest rate is high. By this logic, one can assume that the current increase in the MPR would boost investment in the fixed income securities while it may depress investors’ appetite for equity investment. But the fact remains that it is not always so as economists would say ceteris paribus which means all things being equall. There are many exogenous factors that affect investment decision at the level of investment objective. As for the economy, the stock market mirrors the economy. Therefore, it is not cast in iron to just conclude that the CBN’s increase of the MPC to a 10 -year high will have negative impact on the stock market.
Read more at vanguardngr