Money Monday
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Market Data
Local
Global
*Data as of 6pm WAT
Market News
Local
FG deploys more mini-grids in rural areas - Punch
The Federal Government increases deployment of mini-grids in rural areas to enhance power supply and mitigate the impact of petrol subsidy removal. Mini-grids will provide round-the-clock electricity, reducing reliance on petrol. Read more here.Q1 2023 debt servicing rose to N1.24tn –Report - Punch
Nigeria's debt servicing cost rises by 55.71% to N1.24tn in three months. The country spent N874.13bn on domestic debt servicing and $801.36m on external debt servicing between January and March 2023. The IMF projects that 82% of government revenue will go towards interest payments in 2023. Read more here.CBN, Bill Gates to collaborate on financial inclusion - Business News Report
The Central Bank of Nigeria (CBN) and the Bill and Melinda Gates Foundation (BMGF) have discussed strategies to enhance financial inclusion in Nigeria. The CBN expressed commitment to partnering with BMGF to address challenges in achieving widespread financial inclusion.
S/Africa seeks collaboration with Nigeria on PPPs for infrastructure development - Business News Report
The South African Government seeks collaboration with Nigeria on infrastructure development through Public Private Partnerships (PPPs), with a focus on financing and technical support. Both countries aim to strengthen their relationship and explore opportunities for joint projects.
Nigeria’s Public debt hits N49 trn - Business News Report
Nigeria's total public debt reached N49.95 trillion ($108.30 billion) in March, highlighting the need for increased revenues to sustain debt. Recent government policies aim to manage expenditures and boost revenue.
Bank customers kick against CBN’s addition of social media handles to KYC requirements - The Sun
The Central Bank of Nigeria's decision to require customers' social media handles as part of Know-Your-Customer (KYC) requirements has faced criticism from finance experts and bank depositors. They argue that it hinders financial inclusion and see it as an unnecessary obstacle.
Global
Prigozhin turns forces back in deal with Kremlin to drop charges - Bloomberg
Roadblocks set up on highways leading to Moscow have been dismantled after the Wagner Group mercenary leader, Yevgeny Prigozhin, halted his advance towards the capital. As part of a deal brokered by Belarus President Alexander Lukashenko, criminal charges against Prigozhin and his fighters would be dropped, and they would be allowed to leave for Belarus.
US business activity fell to a three-month low - Reuters
U.S. business activity declined in June as services growth slowed and manufacturing contracted further. However, overall economic growth improved in the second quarter, primarily driven by the services sector, despite concerns about the Federal Reserve's interest rate increases.
Corporate bankruptcies and defaults are surging - CNBC
Rising interest rates are causing an increase in corporate default rates in the U.S. and Canada. Companies are struggling with higher borrowing costs and an uncertain economic outlook, leading to a rise in bankruptcies across various industries.
Vladimir Putin had quite the weekend.
On Friday, Yevgeny Prizogozhin, the leader of Russia’s private militia, released a video accusing Russia—among other things—of deliberately attacking his forces, known as Wagner Group.
He also warned Putin that “25,000 of us” were marching on Moscow to “sort things out”, aka a mutiny was underway.
After 24 hours of confusion and uprising, Putin struck a deal at the eleventh hour and avoided an attack.
The rebellion represents the biggest challenge to Putin’s power in his nearly 25 years as Russia’s president.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
Asian equities closed mostly lower Monday. Mainland China markets down the most as they mark-to-market from last week's falls in Hong Kong, reaching five-month lows.
Japan: Vice finance minister Kanda told reporters Monday that yen depreciation vs dollar is "rapid and one-sided" while warning that "no options are ruled out" when asked about the possibility of FX intervention. The JPY gained some strength on that news.
PBOC looks to support onshore yuan after last week's offshore weakening, setting the reference rate higher.
GIC, HSBC, Blackstone bosses met China's sovereign fund as markets lose allure
Europe, Middle East, Africa
European equity indexes lower Monday. STOXX 600 posted longest daily losing streak since mid-March last week
Germany's Ifo institute said its Business Climate index fell to 88.4 in June vs consensus 90.7 and prior revised 91.5 from 91.7. Weaker-than-expected Chinese reopening, looming US recession and ongoing monetary policy tightening seen to be weighing on German sentiment.
Greece's conservatives win election majority to secure second term
German Bundesbank may need recapitalisation to cover bond-buying losses
Russia instability brings geopolitical uncertainty back into focus
The Americas
Market getting Fed's message as swaps traders have pushed out the expected cuts until next year.
IBM nearing a deal to buy software company Apptio for ~$5B as part of push deeper into automation technology
Goldman Sachs not likely to push CEO David Solomon out anytime soon; Goldman Sachs cutting ~125 managing directors globally amid deals slowdown
Junk-rated companies still borrowing, but offering more protections for lenders via collateral, shorter maturities
The Week Ahead:
U.S Economic Events
Tuesday
9:00 am S&P Case-Shiller home price index (20 cities)
10:00 am New home sales
10:00 am Consumer confidence
Wednesday
8:30 am Advanced U.S. trade balance in goods
9:30 am Fed Chair Powell speaks
Thursday
2:30 am Fed chair Powell speaks
8:30 am Initial jobless claims
10:00 am Pending home sales
Friday
8:30 am PCE index
8:30 am Core PCE index
8:30 am PCE (year-over-year)
8:30 am Core PCE (year-over-year)
9:45 am Chicago Business Barometer
10:00 am Consumer sentiment (final)
Investment Tip of The Day
Educate yourself on investment taxes: Learn about investment taxes, including capital gains tax, dividend tax, and tax implications of different investment vehicles. Understanding the tax implications can help you make more informed investment decisions.
Meme of the Day
