Finance Friday
Ranora Daily - Your daily source for reliable market analysis and news.
Market Data
Local
Global
*Data as of 4pm WAT
Market News
Local
Bolt Food pulls the plug on Nigeria operations - Tech Cabal
Bolt Food has decided to cease its operations in Nigeria, discontinuing its food delivery service. The move is part of Bolt's strategic decision to focus on markets where it can achieve long-term profitability. The company expressed gratitude to its users, restaurant partners, and the entire Bolt community in Nigeria for their support.
Me Cure Industries List N11.84bn Share Value On NGX - Leadership
Me Cure Industries, a healthcare and pharmaceutical company, has listed shares valued at N11.84 billion on the Nigerian Exchange Group (NGX). The company's debut on the NGX marks a significant milestone for Me Cure Industries in the Nigerian capital market, providing investors with the opportunity to participate in the growth of the healthcare sector.
$48.7m Tax Liability: MTN Files Appeal At Tax Appeal Tribunal - Leadership
MTN Nigeria has filed an appeal at the Tax Appeal Tribunal concerning a tax liability of $48.7 million imposed by the Federal Inland Revenue Service (FIRS). The company disputes the basis for the tax assessment and seeks a review of the decision, emphasizing its commitment to conducting its operations in compliance with relevant laws and regulations.
Global
IRS announces new income tax brackets for 2024 - CNBC
For the tax year 2024, the IRS has increased federal income tax brackets and standard deductions. The top rate of 37% for 2024 applies to individuals with taxable income exceeding $609,350 and married couples filing jointly earning over $731,200. The standard deduction has risen to $29,200 for married couples filing jointly and $14,600 for single filers.
Former Apple designers launch $700 Humane AI pin as smartphone replacement - CNBC
Humane, an AI startup, which raised over $200 million, founded by former Apple designers unveiled its first product, the $699 Humane AI Pin. requires users to pay a $24 monthly data subscription to T-Mobile. The lapel pin aims to replace smartphones, allowing calls, texts, and information access via voice controls, featuring a unique laser display on the palm.
Fed Repo facility sinks below $1T as bills stand out - Bloomberg
Federal Reserve's efforts to reduce liquidity have led inflows into the reverse repo facility below $1 trillion for the first time since late summer 2021. The facility, a vital part of the central bank's rate control toolkit, is seen as an indicator of excess liquidity. In recent months, funds flowing into the facility declined steadily from the record peak of $2.554 trillion on Dec. 30, 2022.
Weekly Investment Watchlist
Market Commentary:
Asia and Australia:
Asian equities experienced a decline across the region on Friday, as markets adopted a risk-off stance following Powell’s comments on interest rates. Japan’s Nikkei was set to close lower but off its trough, and Australia closed down. Hong Kong saw another sharply lower day, while mainland shares relatively outperformed. Sustained losses were observed everywhere else, although none exceeded a decline of over 1%.
PBOC Governor Pan Gongsheng stated that risks in China’s property sector are “manageable,” emphasizing significant long-term demand for residential housing upgrades to support the market. Pan highlighted an average reduction of 0.8 percentage points in interest rates for existing mortgages since the policy rollout in August, translating to an annual decrease of CNY170 billion ($23.3 billion) in interest payments for 50 million households. However, equity markets did not show significant enthusiasm for this news.
Concerns about tight liquidity conditions persisted in China, as Chinese banks doubled the issuance of negotiable certificates of deposit (NCD) to over CNY1 trillion ($137 billion) in the current week, marking the largest weekly issuance on record. Beijing’s authorization of a CNY1 trillion sovereign bond issue is believed to have constrained liquidity, leaving banks in need of cash and contributing to NCD borrowing costs reaching a six-month high.
The Reserve Bank of Australia released new inflation forecasts, indicating that inflation may not return to the 2-3% band until 2025. However, GDP forecasts were upgraded, and unemployment rate projections were lowered. The forecasts assume the cash rate peaks at around 4.50% (compared to the current 4.35%), hinting at a possible additional hike, potentially in February.
Europe, Middle East, Africa:
European equity markets trended lower, with consumer non-durables lagging while energy outperformed, experiencing a slight recovery in oil prices.
The UK narrowly avoided a recession, with 3Q Preliminary GDP Growth coming in at 0% quarter-on-quarter, compared to the estimated -0.1%. Consumer spending, business investment, and government spending all declined in Q3, leaving the economy supported by a better trade performance. Despite this, the economy faces challenges, and Q4 estimates are negative, projecting a potential winter recession.
Dutch TTF gas prices remained near the lowest levels in the past 12 months, but analysts observed increasing bullish arguments. In a recent note, Bernstein noted the first signs of structural recovery in demand in October, driven by the industrial and heating sectors. The start of the heating season in Europe was colder, with temperatures across NW Europe in October 0.6°C lower than in 2022.The Americas:
The Bank of Mexico kept rates at 11.25%, as expected. However, the policy statement was more dovish, signaling a possible change in stance early next year.
Initial claims for the week to November 4 were down 3K week-on-week to 217K, slightly below the consensus for 218K. Continuing claims for the week to October 28 increased by 22K week-on-week to 1.834 million, above the consensus for 1.819 million. The 4-week average provides more perspective, showing a steady rise, implying a weakening labor market and the likelihood of higher unemployment numbers in the future.
The Week Ahead:
Monday:
Tuesday:
Wednesday:
Thursday:
US Unemployment Claims Jobless claims dip to 217000
Friday:
UK Monthly real gross domestic product (GDP) is estimated to have grown by 0.2% in September 2023
Prelim UoM Consumer Sentiment (US)
Investment Tip of The Day
Assess Event Risk: Event risk pertains to unforeseen events such as natural disasters, pandemics, or major geopolitical events. While unpredictable, having a contingency plan can help mitigate the impact.
Meme of the Day
