Finance Friday
Ranora Daily - Your daily source for reliable market analysis and news.
Market Data
Local
Global
*Data as of 6pm WAT
Market News
Local
Subsidy removal: Govs plan cash transfers to poor households, dump Buhari’s list - Punch
The National Economic Council (NEC) has concluded plans for state governments to implement cash transfer programmes using state-generated social registers. The decision was made in response to the planned removal of fuel subsidies, which is expected to have a negative impact on poor households.Dangote cement completes first tranche of share buyback - Punch
Dangote Cement has completed the first tranche of its share buyback programme, repurchasing 40.2 million shares at an average price of N243 per share. The total value of the repurchased shares was N9.77 billion. The company said that the share buyback was part of its efforts to improve shareholder value.Desperate Oil Marketers Flood Aviation Industry with Off Spec Jet Fuel, Crash Prices - This Day
Oil marketers supplying low-quality jet fuel to the aviation industry caused prices to drop, compromising air safety as the fuel gradually damages aircraft engines. Some sourced the product from illegal facilities, leading to engine problems and grounding of planes.
NNPCL, UTM to build Nigeria’s first floating gas plant – Punch
The Nigerian National Petroleum Company Limited and UTM Offshore Limited signed an agreement for Nigeria's first indigenous 1.5 million tonnes per annum Floating Liquefied Natural Gas project. UTM Offshore had earlier partnered with the African Export-Import Bank to secure $2bn for the project.
Tinubu approves infrastructure support fund for States – The Guardian
President Bola Tinubu approved the Infrastructure Support Fund (ISF) for all 36 states in Nigeria to counter the effects of petrol subsidy removal. The fund will be utilized for critical areas like transportation, agriculture, health, education, power, and water resources.
Global
Biden creates team to find ways of ending debt ceiling standoffs - Bloomberg
President Biden forms team to prevent future debt-limit standoffs, exploring proposals like permanent debt ceiling raise or linking to economic growth, aiming to avoid economic impact and bipartisan agreement.
Asia's private credit market is thriving - Reuters
Asia's private credit markets thrive as borrowers seek capital. Factors like China's economic slowdown, shadow banking, and demand for alternative investments drive the market. Private credit from private investors becomes crucial for borrowers who can't access traditional bank financing, indicating investors' willingness to take risks despite economic challenges.
China's state banks selling dollars offshore to slow yuan declines - Reuters
China's state banks sell dollars offshore to curb yuan decline amid economic growth concerns. They use various channels, including interbank and offshore yuan markets, and increase US treasuries purchases to stabilize the currency.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
BOJ officials say they see little need to address side effects of its yield curve control programme for now although said they will continue to discuss issue. Core CPI rose 3.3% y/y in June, in line with consensus, following 3.2% in the previous month. Ex-fresh food & energy inflation edged down to 4.2% from 4.3% (post-1981 high), also as expected.
Exports from South Korea in first 20 days of July fell 15.2% y/y as slump in semiconductor sales continued.
Dalian Wanda Commercial Management Group (DWCM) sparks volatile trading in China dollar junk bonds over whether it will repay a $400M bond that matures Sunday. DWCM told creditors that firm expects to complete an undisclosed asset disposal and use proceeds for repayment due 23-Jul. DWCM is a Chinese real estate giant and defaulting on their bonds shows severe distress in the Chinese Property market, something we’ve been discussing for a while.
Europe, Middle East, Africa
UK Retail Sales number came in positive MoM rising 0.7%. This is the 3rd consecutive month of positive data. The YoY change still remains negative at -1% but improved from -2.3% last month. Better weather and summer sales seems to have driven the improvement.
A Bloomberg survey of economists showed most economists think the ECB is unlikely to keep interest rate at their peak for an extended period, as the economy slows.
The Gfk UK consumer confidence index record its largest drop in sentiment in over a year, down 6 points to -30 in July
The Americas
Apple iPhone 15 Pro and Pro Max screen issues could lead to shortages at September launch
Google and OpenAI pledge to promote safety and transparency in AI development
Blackstone becomes first private-equity firm to have $1T under management
AAII bullish sentiment jumped to 51.4% in week-ended 19-Jul from 41.0% in prior week. Marked highest reading since late-April 2021 and longest above-average streak since a 13-week stretch from February to May 2021.
The Conference Board US LEI (Leading Economic Index) declined yet again by 0.7% in June 2023 following a decline of 0.6% in May. The LEI provides an early indication of significant turning points in the business cycle and where the economy is heading in the near term and his flashing a recession signal for a while now.
The Week Ahead:
Monday:
China's Gross Domestic Product expanded by 6.3% year-on-year in Q2 2023
NY Empire State Manufacturing Index dropped to +1.1
Tuesday:
US Retail sales in the US rose 0.2% month-over-month in June of 2023
Wednesday:
UK Consumer price inflation dropped to 7.9 percent
US Building permits declined by 3.7% in June 2023 to an annual rate of 1.44 million
Thursday:
The People's Bank of China (PBoC) maintained lending rates in July, keeping the one-year loan prime rate at 3.55% and the five-year rate at 4.2%
US Initial jobless claims drop 9000 to 228k surpassing the forecast of 242k and showing a decline from the previous 237k.
US existing home sales dropped by 3.3% to a rate of 4.16 million units in June 2023
Friday:
UK GFK Consumer Confidence
UK Retail Sales
Investment Tip of The Day
Evaluate the historical performance, financial stability, and growth potential of a company before investing in its stocks. Consider factors such as revenue growth, earnings stability, and competitive advantages within the industry.
Meme of the Day
