Dangote Refinery Opens, Targets Sourcing Crude from Three Continents - Punch
Dangote Refinery, starting operations today, will process oil from Africa, Asia, and America, providing a surplus of 38 million litres of fuel daily. It could create jobs, support filling stations, and offer a $21bn market for Nigerian crude oil yearly
Nigeria's Energy Transition Projects Receive $8.2bn Financing from Local and Foreign Partners - This Day
Nigeria secures $8.2 billion of the required $10 billion annually for its Energy Transition Plan, aiming for decarbonization and net-zero carbon status by 2060. The government emphasizes the importance of female energy professionals in realizing this ambitious national policy.
Slow Adoption of eNaira as 98% of Wallets Remain Inactive (IMF) - Punch
IMF report reveals low adoption of eNaira, Nigeria's central bank digital currency, with 98.5% of wallets remaining unused one year after launch. Despite initial glitches, no major risks were identified. Retail wallet downloads were only 0.8% of active bank accounts, indicating slow progress in adoption.
Global
China’s $23 Trillion Local Debt Mess Is About to Get Worse - Bloomberg
Meta was just hit with the EU’s largest penalty ever.
Privacy regulators say Facebook unlawfully stored data about European users on US servers.
The company was fined $1.3 billion for sharing that information with the US.
Meta has also been ordered to stop sending such information to the US and delete data already sent within 6 months.
The US, however, is currently working on a trans-Atlantic agreement with the EU to allow data transfers that would nullify the order.
G7 members offered harsh criticism of Beijing at their three-day summit in Hiroshima.
They expressed serious concerns over the militarization of the South China Sea and its use of economic coercion.
They also called on Beijing to push Russia to withdraw its troops from Ukraine.
At the end of the meetings, President Biden said he expects China-US relations to “thaw”.
In response, China immediately ordered its infrastructure companies to halt buying chips from US chipmaker Micron.
New FOMC minutes are scheduled to be released Wednesday afternoon.
We’ll get plenty of Fed talk before then with 6 officials (including 4 today) scheduled to speak over the coming days.
On Friday, Powell admitted that stresses in the banking sector could reduce the need for further interest rate hikes to fight inflation.
Also on Friday, one of the Fed’s biggest hawks—Neel Kashkari—conceded he was open to a pause/skip at June’s meeting.
Janet Yellen said the odds of the US being able to pay its bills by June 15 were “quite low”.
Goldman Sachs economists predict the Treasury’s cash levels will drop below the $30 billion minimum for meeting obligations by June 8 or 9.
As of Thursday, that cash balance sits at just $57.3 billion.
Meanwhile, the game of chicken between Democrats and Republicans continues, with the latter walking out of negotiations on Friday only to resume talks later that night.
After “productive” meetings between negotiators Sunday evening, President Biden and Speaker McCarthy are set for another talk today.
The S&P 500 may be close to 52-week highs but traders are cautious ahead of a potential debt ceiling debacle.
Equity funds have seen net outflows for 7 consecutive months, including ~$24 billion in the first 3 weeks of May.
Investors, meanwhile, are seeking safety in long-dated Treasuries.
The options market is also reflecting worries over a debt ceiling impasse: traders are using VIX call options to bet stock volatility will rise at its fastest rate since March 2020.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
India court finds no proof of stock price manipulation at Adani companies
Europe, Middle East, Africa
UK bond bears hunker down before big week for economic data. UK Inflation data expected on Wednesday.
Italy will not lose investment-grade status. Moody's currently assesses Italy at Baa1, just one notch above junk, with a negative outlook
The Americas
President Biden and Speaker McCarthy set to meet or talks on averting US default as time runs short and key differences remain. Biden hints at 14th Amendment authority in weekend remarks
Nvidia highlights supercomputer progress in a possible challenge for leaders Intel and AMD
Morgan Stanley's Wilson warns recent rally not the start of a new bull market
The Week Ahead:
Monday: Fed talk - Bullard, Barkin, Bostic, Daly
Tuesday: Redbook, S&P Global flash PMIs, new home sales, Richmond Fed manufacturing, API crude oil stock change
Wednesday: FOMC minutes
Thursday: Initial jobless claims, GDP growth, pending home sales
Friday: Core PCE, personal income & spending, durable goods orders, Michigan consumer sentiment
Investment Tip of The Day
Geopolitical events, such as trade disputes or political instability, can affect the global markets. Stay informed about these events and evaluate their potential impact on your investments.
Meme of the Day
Disclaimer: The information contained in this report is intended for informational purposes only and should not be considered as investment advice. The information is obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.
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