Finance Friday
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Market Data
Local
Global
*Data as of 6pm WAT
Market News
Local
CAC to delist 100,000 companies from database - Punch
The Corporate Affairs Commission plans to remove 100,000 registered companies from its database for failing to file annual returns. Companies will be notified before being struck off and can be relisted after settling outstanding debts. The commission introduced Africa's first Beneficial Ownership Register to combat corruption and money laundering.
Reduce govt borrowing from CBN, W’Bank tells Nigeria - Punch
The World Bank Group has urged Nigeria to reduce government’s borrowing from the Central Bank if it wants to reduce the inflationary pressure on the economy.
Northern Independent Petroleum Marketers seek payment of unpaid N250 billion bridging cost – The Sun
From Desmond Mgboh, Kano The Northern Independent Petroleum Marketers Forum has expressed deep concern over the failure of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to settle their outstanding bridging claims.
Global
Sequoia Capital Slashes Crypto Fund as It Downsizes Amid Startup Crunch - WSJ
The storied venture firm’s brand has come under scrutiny for the first time in years following a series of controversial decisions.
Bank of Japan monetary policy tweak sends bond yields to 9-year high - FinancialTimes
The Bank of Japan has eased controls on its government bond market, altering a cornerstone of its ultra-loose monetary policy and prompting a surge in the country’s benchmark bond yields to the highest level in nine years.U.S. bank regulators unveil proposal to hike bank capital - Reuters
U.S. bank regulators released a proposal Thursday that would direct the nation's largest banks to raise their capital, arguing a larger cushion is needed to ensure stability.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
Asian equities ended mixed Friday in a strong catalyst-based trading day. Nikkei and Topix closed lower on BOJ YCC news but rallied sharply in the final hour of trading and came close to erasing losses at one point.
Greater China indices regained strong upward momentum on signals Beijing is following through with pledges to help the property sector.
Tokyo core CPI rose 3.0% y/y in July, compared with the consensus of 2.9%, and follows 3.2% in the previous month.
China asks internet giants to showcase investments in consumer, telecom, and media companies
Australia's June retail sales shrank 0.8% m/m in June compared to the consensus for a flat result and May's upwardly revised 0.8% increase - adds to the case for an RBA pause.
Europe, Middle East, Africa
European equity markets are mostly lower. UK’s FTSE 100 bucks trend on positive earnings to hit nine-week high. Banks leading in EU trade as earnings supersede ECB's move to eliminate remuneration on minimum reserves, as the impact is seen as limited. Chemicals outperform; Technology, Retail, and Real Estate lag.
Mixed takeaways from yesterday's ECB policy decision, which saw a 25-bp rate increase to take the deposit rate to 3.75% and tweak in rate guidance. The statement said rates are to be set at sufficiently restrictive levels, rather than brought to sufficiently restrictive levels, which opens the possibility of a pause.
The publication of preliminary Q2 GDP updates from leading Eurozone economies showed growth remains underpinned despite weakness in leading indicators
German GDP stagnated in Q2 with a 0.0% reading versus consensus for 0.1% expansion and prior 0.1% contraction revised from the 0.3% fall initially reported.
French Q2 GDP expanded 0.5% versus consensus for 0.1% expansion and prior 0.1% increase, with foreign trade contributing positively and a bounce back in exports
Spanish GDP expanded 0.4% in Q2, in line with consensus and compared with the prior 0.5% increase revised from 0.6%. Spanish economy also benefited from stronger exports and tourism.
Austrian, one of the smallest euro area economies, saw growth contract by 0.4% due to a slowdown in construction and industry
The Americas
A sweeping overhaul of bank capital rules proposed by regulators includes changes to requirements for residential mortgages, making them more stringent. Banks will need to set aside higher levels of capital for riskier mortgages and first-time buyers. The adjustments go beyond international standards — the Basel III framework — by about 20 percentage points.
Intel reports Q2 EPS $0.13 ex-items vs FactSet ($0.04); Revenue $12.95B vs FactSet $12.12B
T-Mobile US exceeds Q2 profit estimates and raises its subscriber forecast for the year
Ford delivers Q2 beat and boosts guidance, but sees more losses in EV unit
Cash parked at money market funds hit a fresh all-time high after the latest Fed rate hike reaching $5.49 trillion
The Week Ahead:
Monday:
Tuesday:
US Consumer confidence came in at 117; est: 112 (2-year high).
House Price Index
Wednesday:
US Federal Reserve raises the benchmark rate to .25bps and is now at a 22-year high.
US new home sales come in at 697k; est: 725k
Thursday:
US weekly jobless claims come in at 221k; est: 235k.
European Central Bank (ECB) raises its benchmark rate to .25bps.
US Advanced Q2 GDP comes in at 2.4%; est: 1.8%
Friday:
Core PCE Price Index YoY
Investment Tip of The Day
Consider the potential benefits of investing in emerging markets, as they can offer attractive growth opportunities due to factors such as population growth and rising consumer spending.
Meme of the Day
