Business
US Government ends White house Shutdown
WASHINGTON – The US government ended the shutdown on Thursday – just in the nick of time – averted a US debt default in a bipartisan deal that left Republicans little to show for the epic political drama that threatened to rattle the world economy.
The South African Reserve Bank said on Wednesday it was “closely monitoring the situation in the US”, saying it would take the “necessary actions” should the US default on its debt payments for the first time in history.
The Senate voted 81-18 to send the measure to the Republican-controlled House of Representatives, which passed it late Wednesday night 285-144.
President Barack Obama signed the measure – which adhered strictly to the terms he laid down when the twin crises erupted more than three weeks ago – shortly after midnight Thursday.
Congress had faced a deadline of 11.59pm on Thursday to raise the government’s borrowing authority or risk a default on its obligations.
The bill reopens the government through January 15 and permits the Treasury to borrow normally through February 7 or perhaps a month longer.
It includes nothing for Republicans demanding to eradicate or scale back Obama’s signature health care overhaul.
“We fought the good fight. We just didn’t win,” conceded House Speaker John Boehner as lawmakers lined up to vote on the bill.
At the White House, Obama hailed the Senate’s vote and promised to sign the legislation immediately.
“We’ll begin reopening our government immediately and we can begin to lift this cloud of uncertainty from our businesses and the American people,” he said.
‘Restoring sanity’
Less than an hour later, as debate began in the House, Republican Representative Harold Rogers said: “After two long weeks, it is time to end this government shutdown. It’s time to take the threat of default off the table. It’s time to restore some sanity to this place.”
The stock market surged earlier Wednesday at the prospect of an end to the crisis that had threatened to shake confidence in the US economy overseas.
The crisis began on October 1 with a partial shutdown of the federal government after House Republicans refused to accept a temporary funding measure unless Obama agreed to defund or delay his health care law, known as “Obamacare.”
It escalated when House Republicans also refused to move on needed approval for raising the amount of money the Treasury can borrow to pay US bills, raising the specter of a catastrophic default.
Obama vowed repeatedly not to pay a “ransom” in order to get Congress to pass normally routine legislation.
The hard-right tea party faction of House Republicans, urged on by conservative Senator Ted Cruz of Texas, had seen both deadlines as weapons that could be used to gut Obama’s Affordable Care Act, designed to provide tens of millions of uninsured Americans with coverage.
The Democrats remained united against any Republican threat to Obama’s signature program, and Republicans in the House could not muster enough votes to pass their own plan to end the impasse.
Furloughed
More than two million federal workers – those who had remained on the job and those who had been furloughed – would be paid under the agreement.
Boehner and the rest of the top Republican leadership told their rank and file they would vote for the measure.
But he vowed Republicans were not giving up on the fight to bring down US debt and cripple “Obamacare,” as the president’s signature health care overhaul is known.
“Our drive to stop the train wreck that is the president’s health care law will continue,” Boehner said in a statement.
Harry Reid, the Democratic Senate majority leader, thanked Senator Mitch McConnell, the Republican minority leader, for working with him to end what had become one of the nastiest partisan battles in recent Washington history.
“This is a time for reconciliation,” Reid said.
A long line of polls charted a steep decline in public approval for Republicans in the course of what Republican Senator John McCain pronounced a “shameful episode” in US history.
Standoff
The deal ends the bitter standoff for now, giving both parties time to cool off and come up with a broader budget plan or risk repeating the damaging cycle again in the new year.
Within moments of the House’s vote, Sylvia Mathews Burwell, director of the Office of Management and Budget, issued a statement saying “employees should expect to return to work in the morning.”
McConnell said the time had come to back away for now from Republican efforts to undermine “Obamacare.”
But the feisty minority boss said Republicans had not given up on erasing it from the legislative books.
Passage in the House depended heavily on minority Democrats to support it.
The risky move was seen as imperiling the House leadership, but Boehner was ready to end the crisis that had badly damaged Republican approval among voters.
Looking forward, lawmakers were also concerned voters would punish them in next year’s congressional elections. Polls show the public more inclined to blame Republicans.
Republican Senator Lindsey Graham said the party had hurt its cause through the long and dangerous standoff.
“This package is just a joke compared to what we could have gotten if we had a more reasonable approach,” he said. Sapa-AP
– REUTERS
The pull of market forces which moved the hands of the Nigerian National Petroleum Company Limited (NNPC Ltd) to reduce the price of Premium Motor Spirit (petrol) to N880 per litre in Lagos and N935 in Abuja appears to be a source of torture to independent markets.
Biztellers reports that the latest price review on Easter Monday saw NNPC retail outlets in Lagos drop from N925 to N880, while those in Abuja adjusted from N950 to N935.
The NNPC Ltd’s price reduction came barely a week after the Dangote Refinery lowered its ex-depot price from N865 to N835 per litre.
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In addition, the $20bn refinery also directed its partners like MRS, Heyden, and Ardova to sell a litre of petrol at the rate of N890 instead of N920 in Lagos, N900 in the South West, N910 in the South-South, and N920 in the North East.
Consumers can smile because with the reaction, the NNPC Ltd’s new price in Lagos is N10 lower than what the Dangote Refinery is selling at, which might lead to another reaction, as the price war between the two companies.
Though some NNPC Ltd’s retail outlets were observed selling at the old rate in Lagos, it was gathered that they were given the liberty to exhaust old stock before adjusting to the new prices.
Market sources are of the view that the current price war was ignited by the Federal Government’s implementation of the Naira-for-crude policy.
Gold soared to a record high of $3,500 an ounce on Tuesday, as mounting fears over a potential U.S. recession and escalating tensions between President Donald Trump and the Federal Reserve drove investors toward the traditional safe-haven asset.
The precious metal briefly touched an all-time high of $3,500.10 an ounce before retreating slightly to trade at $3,467.87.
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The rally marks the latest in a string of record-breaking gains for gold, fueled by a weakening U.S. dollar, sharp declines across global stock markets, and growing concerns over the health of the world economy.
Market sentiment took another hit this week after President Trump ramped up his trade war with China, slapping fresh tariffs on the world’s second-largest economy and intensifying fears of prolonged economic disruption.
Gold has surged more than 30 percent since the start of the year as investors seek refuge from mounting market volatility.
“The rally reflects ongoing recession fears in the U.S. economy and heightened political tensions, especially as President Donald Trump continues to attack Federal Reserve Chair Jerome Powell,” said Rania Gule, senior market analyst at trading group XS.com.
Concerns about the Fed’s independence were further stoked Monday, when Trump publicly lashed out at Powell on social media, branding him a “major loser” for not cutting interest rates — a move the president has repeatedly demanded.
The sharp criticism follows Trump’s recent suggestion that he might attempt to remove Powell from his post.
Klaus Schwab, the founder of the World Economic Forum (WEF), announced his resignation from the board on Monday, marking a significant moment in the organization’s history.
Schwab, who has been at the helm of the WEF for over five decades, confirmed he was stepping down from his position as Chair and leaving the Board of Trustees with immediate effect.
“I have decided to step down from the position of Chair and as a member of the Board of Trustees, with immediate effect,” Schwab said, noting that the decision comes as he approaches his 88th year.
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His resignation follows his stepping down as executive chairman in 2024, when former Norwegian foreign minister Borge Brende took over the day-to-day operations.
In response, WEF appointed Vice Chairman Peter Brabeck-Letmathe as interim chairman while a search committee was formed to find a permanent successor.
The WEF board lauded Schwab’s immense contributions, acknowledging his “outstanding achievements” over his 55-year leadership tenure.
“At a time when the world is undergoing rapid transformation, the need for inclusive dialogue to navigate complexity and shape the future has never been more critical,” the WEF stated.
“Building on its trusted role, the Forum will continue to bring together leaders from all sectors and regions to exchange insights and foster collaboration.”
Schwab, originally from Ravensburg, Germany, founded the precursor to the WEF, the European Management Forum, in 1971.
The first meeting drew fewer than 500 participants, but over the years, Schwab expanded the gathering into a prestigious platform that now attracts thousands of influential figures.
The Davos summit has become synonymous with global power brokers, offering opportunities for high-level networking, discussion, and collaboration on issues affecting the world.
Under Schwab’s leadership, the WEF grew to include regional meetings and established centers dedicated to pressing global topics such as cybersecurity, climate change, and financial systems.
The organization continues to uphold its mission of “improving the state of the world” by fostering dialogue and cooperation.
However, the WEF and Schwab have not been without their critics. Many argue that the forum has become a venue for corporate elites to exert influence over governments, with the term “Davos Man” often used to describe the affluent attendees.
Schwab has also faced the ire of conspiracy theorists, particularly following his promotion of the “Great Reset” following the COVID-19 pandemic.
These theorists have spread misinformation, alleging that Schwab and the WEF are part of a global elite aiming to control the world, with even Elon Musk weighing in on social media, claiming Schwab “wants to be emperor of Earth.”
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