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Divestment: NNPCL challenges Oando acquisition of Agip’s oil assets - Vanguard
NNPC Limited is challenging Oando's acquisition of Agip's oil assets, arguing that the deal violated its right of first refusal and breached the Nigerian Petroleum Act. The NNPC claims that the acquisition was not pre-informed to the union and could result in over 3,000 job losses, while Oando asserts that it followed all legal and regulatory processes in the acquisition.
Sanwo-Olu’s cabinet: Lagos Assembly confirms Omotoso, Abayomi, 13 others - Punch
The Lagos State House of Assembly has confirmed Abayomi Omotoso and 13 other nominees for various positions in Governor Babajide Sanwo-Olu's cabinet. This move comes after weeks of scrutiny and deliberations by the assembly, and the confirmed nominees will serve in key roles in the Lagos State government.
Nigeria records N1.3trn trade surplus in Q2’23 - Vanguard
Nigeria has reported a trade surplus of 1.3 trillion naira in the second quarter of 2023, indicating a boost in its trade balance. This surplus reflects increased exports and a reduction in imports during the period, possibly influenced by various economic factors.
NNPCL faults ENI, OANDO divestment deal - The Sun
The NNPCL raised concerns regarding the Eni-Oando divestment deal. The NNPCL claims that Eni did not follow the right process in divesting its stakes to Oando, and as a result, the transaction should be declared null and void. Oando, however, disputes these allegations and asserts that the transaction was executed transparently and in compliance with all applicable laws.
Nigeria’s Dateline Energy, Indonesia’s Citra Shipyard Seal Deal on LNG Coastal Carrier Barge in Singapore - This Day
Nigeria's Dateline Energy and Indonesia's Citra Shipyard have entered into an agreement to build an LNG coastal carrier barge in Singapore. This partnership aims to enhance Nigeria's LNG supply chain and maritime transportation infrastructure, promoting energy security and economic growth in the region.
Global
Apple grapples with turmoil in China days before iPhone 15 launch - Bloomberg
Apple faces uncertainty in China as officials instruct government agencies not to use Apple's iPhones and foreign-branded devices for work, possibly impacting the iPhone 15 launch amid escalating Sino-U.S. tensions.
US retail workers are fed up and quitting at record rates - Bloomberg
US retail workers are facing increasing challenges, from high prices to political tensions. A McKinsey study in 2022 revealed a 70% higher quit rate for retail workers compared to other industries. Part-time retail employee turnover, which was previously at 75%, has surged to 95% since 2020, leading to understaffed stores.
Weekly Investment Watchlist
Market Commentary:
Asia and Australia:
Asian equities closed lower on Friday. Disappointing Japan GDP data and increasing US-China technology tensions contributed to the negative sentiment. Mainland China markets also fell but recovered some losses by the close, while Hong Kong remained closed due to adverse weather. Australia experienced more losses to close a challenging week.
The offshore yuan hit the 7.36 per dollar level on Friday morning, surpassing the psychologically important 7.35 level and nearing its weakest point since the inception of the offshore market in 2010.
Alibaba is looking to regain momentum through a management shakeup.
Itochu plans to invest in battery farms to store energy from renewable sources, partnering with Australia-based Akaysha Energy.
Europe, Middle East, Africa:
European equity markets closed lower after failing to maintain early gains. Weakness in cyclicals, with a focus on the growth outlook, contributed to the decline.
Ahead of next week’s European Central Bank (ECB) policy decision, economists are divided on whether there will be a pause or a hike. Inflation reports have been mixed since June, with some economies, like Germany and the Netherlands, already falling into a recession, while others have barely grown or contracted.
In the UK, a survey by KPMG and REC revealed that hiring is declining at the fastest pace in more than three years.
European gas prices surged as Chevron failed to avert strikes at an LNG plant.
The euro is heading for an eight-week losing streak as the European economy faces challenges.
Citigroup reduced its 2023 euro area real GDP growth forecast to 0.4%.
The Americas:
Walmart has reduced starting pay for new hires, indicating a potential easing of the labor market, where companies may no longer need to offer higher wages to attract talent.
Goldman Sachs is preparing for another round of job cuts targeting underperforming employees.
Restoration Hardware reported Q2 EPS of $3.93 excluding items, surpassing FactSet’s estimate of $2.65. Revenue was $800.5 million, including a $25 million revenue benefit from faster-than-expected deliveries and a shift of approximately $40 million of advertising costs from Q2 to Q3, surpassing FactSet’s estimate of $790.7 million.
The US Commerce Department launched a new probe into Huawei following the release of a new smartphone.
Kroger will pay up to $1.2 billion to settle most nationwide opioid claims.
General Motors proposed a new contract for employees represented by the United Auto Workers, offering 10% wage increases for the majority of workers. Newer employees could be eligible for up to a 56% wage increase over the four years of the deal. UAW President Shawn Fain described the offer as “insulting.”
The Week Ahead:
Monday:
Tuesday:
Wednesday:
The Services PMI® surged to 54.5 percent, marking a notable 1.8-percentage point rise from the preceding July level of 52.7 percent.
US Employers added 187k jobs last month, unemployment rose to 3.8%.
Thursday:
In the week ending September 2, the advance figure for seasonally adjusted initial claims was 216,000, a decrease of 13,000 from the previous week's revised level
Friday:
Investment Tip of The Day
Active vs. Passive Management: Understand the pros and cons of active and passive management strategies to choose what suits your objectives. Active seeks to beat the market but may have higher fees, while passive mirrors market performance with lower fees.
Meme of the Day
