Finance Friday
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Market Data
Local
Global
*Data as of 6pm WAT
Market News
Local
NNPCL plans another $8bn international gas pipeline - Punch
The Nigerian National Petroleum Company Limited (NNPCL) plans to construct an $8 billion international gas pipeline, in addition to the ongoing Nigeria-Morocco gas pipeline project. The proposed pipeline will pass through Niger Republic to Algeria and then to Europe, as announced by NNPCL's CEO Mele Kyari at an OPEC seminar.
Rising inflation: Private sector demands more waivers as Tinubu suspends taxes – Punch
The private sector welcomed tax suspensions announced by President Tinubu but called for additional measures to address rising inflation and economic challenges. Tinubu signed executive orders suspending excise tax on telecom services and excise duties on locally-manufactured goods.
Global
US private sector added 497k jobs in June, smashing estimates - CNBC
In June, the U.S. labor market continued to thrive as private sector jobs surged by 497,000, the largest monthly increase since July 2022. Sectors like leisure and hospitality, construction, and trade saw significant job gains. Annual pay rose at a 6.4% rate, indicating potential inflationary pressures. Smaller companies led in job growth, while larger firms experienced job losses.
US layoffs fell to a seven-month low in June - Reuters
In June, American employers announced the lowest number of layoffs since October 2022, with 40,709 job cuts reported. This represents a 49% decrease from May. The labor market remains strong despite interest rate hikes, and the technology sector continues to downsize rapidly. Economists predict a decrease in unemployment and fewer jobs added in June compared to May.
US VC funding fell ~50% YoY in Q2 - Bloomberg
Global venture capital deal counts declined in Q2, with Europe and Asia experiencing slower investments. Exit activity was also subdued, and fundraising totals were impacted by slow fundraising in Europe and North America. The poor exit market and limited IPO options for VC-backed companies contributed to the challenging landscape.
US EV sales surged 50% in H1, but slower than H1 2022 - WSJ
Electric vehicle (EV) sales in the U.S. grew by 50% in H1 2023, but the pace slowed due to increased unsold inventory. Car companies offer discounts to boost demand, while traditional automakers compete with Tesla.
AI boom is boosting poor tech industry outlook - WSJ
Artificial intelligence (AI) is revitalizing the tech industry, driving share prices, growth prospects, and startup activity. AI research and development are fueling a turnaround, attracting investment and spurring the emergence of efficient startups in various sectors.
Threads became the most rapidly downloaded app - New York Times
Threads, Instagram's real-time conversation app, saw a record-breaking download spree, surpassing 30 million downloads within a day. The app aims to rival Twitter and attracted notable users. However, Meta, Instagram's parent company, received legal threats from Twitter, alleging the use of trade secrets to develop Threads.
Twitter threatens Threads lawsuit against Meta - Reuters
Twitter has threatened to sue Meta Platforms over its new Threads platform, accusing Meta of using trade secrets and confidential information obtained from former Twitter employees. However, Meta denies the claims, stating that no former Twitter employees are working on Threads.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
China Premier Li Qiang pledged to "spare no time" in implementing a batch of targeted policies to strengthen the economy's recovery from the pandemic.
Japan’s real wages remained negative for the 14th straight month, though improved to a 1.2% y/y decline from a revised 3.2% drop in April. Household spending remained depressed, falling 4.0% y/y in May vs expected 2.5% decline and 4.4% drop in April. Translated to the fourth consecutive slide in sequential terms. - This is not conducive to a revision in monetary policy.
China and South Korea maintain current bans on food imports from Japan due to safety concerns.
Historic China Heat Wave Takes Toll on Lives and Crops.
China likely to fine Ant Group at least CNY8B.
Europe, Middle East, Africa
No change in ECB's hawkish rhetoric with focus on tightening monetary conditions and bringing down inflation.
Chemical sector challenges continue as Clariant issues profit warning.
German industrial production for May came in (0.2%) m/m vs 0% expected and 0.3% rise in April. Remains 5% below pre-pandemic levels.
Data from accountancy firm BDO showed UK total like-for-like sales up 1.9% in June from last year's positive base of 8.4%.
UK Halifax house price data showed the biggest annual drop in price since 2011. Prices down 2.6% y/y in June, after 1.1% fall in May.
The Americas
Quits rate continues to fall, signaling end of great resignation.
US mortgage rate rises to 7.22% after positive economic data.
Uber, DoorDash file lawsuit against NYC over minimum wage law.
Investment Tip of The Day
Regularly contribute to your investments: Consistently contributing to your investments, even in small amounts, can have a significant impact on your long-term returns. Set up automatic contributions to ensure a disciplined approach.
Meme of the Day
