Money Monday
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Market Data
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Global
*Data as of 4pm WAT
Market News
Local
Tinubu nominates Yemi Cardoso as CBN governor - Vanguard
Former Lagos State Governor Bola Tinubu has nominated Dr. Doyin Salami and Dr. Joe Abah to serve as chairman and deputy chairman, respectively, of the Central Bank of Nigeria (CBN) in the event that he becomes president.
NNPCL appoints three new executive vice presidents - Punch
The Nigerian National Petroleum Corporation Limited (NNPC) has appointed three new executive vice presidents. The appointees are Dr. Olumide Adeleke, Dr. Bala Wunti, and Engr. Abdullahi Ararume. They will oversee the Upstream, Gas and Power, and Corporate Services divisions, respectively.
NNPCL, Indorama sign agreement on gas supply - Premium Times
The NNPC and Indorama Eleme Fertilizer and Chemicals Limited have signed a gas supply agreement. This agreement will see NNPC supplying natural gas to Indorama's plant in Eleme, Rivers State, Nigeria. The gas supply is expected to enhance production at the fertilizer and petrochemical complex, boosting the country's agricultural sector and creating jobs.
Global
Student loan restart threatens to pull $100B out of consumers’ pockets - WSJ
The resumption of student loan payments in the United States is causing concern for some consumers who may face financial strain. This move also raises apprehensions among large retailers, as a potential spending slowdown could impact their businesses.
McCarthy demands 8% spending cut, border wall to avert shutdown - Bloomberg
House Speaker Kevin McCarthy has announced a plan to prevent a government shutdown on October 1 by temporarily funding the government for 31 days. This proposal includes an 8% temporary spending cut for domestic agencies and a resumption of border wall construction.
Weekly Investment Watchlist
Market Commentary:
Asia and Australia:
Asian equities mostly closed lower in a quiet Monday session. Hong Kong saw more losses, closing at its daily low, while mainland Chinese stocks ended slightly higher. The rest of the region, including South Korea and Taiwan, underperformed, possibly due to negative sentiment from the U.S. market on Friday. Japan’s market was closed for a holiday.
Some staff at China Evergrande’s wealth management unit have been detained, as announced in a statement by Shenzhen city police posted on WeChat. This development adds to the troubles facing the embattled property developer.
Top mainland Chinese property developers incurred nearly $3 billion in foreign exchange losses in the first half of the year, primarily due to yuan weakness. This further complicates their ability to manage mounting debts, although the actual impact depends on market conditions when these losses are realized.
Singapore’s August non-oil domestic exports (NODX) fell by 20.1% YoY, worse than the forecasted -15.8% decline and an upwardly revised 20.3% YoY drop in July. Singapore is a significant trading hub in Asia, and this decline in exports does not bode well for regional economic activity.
Striking workers at Chevron’s Wheatstone and Gorgon facilities in Australia, which supply around 7% of global LNG, are continuing their 24-hour stoppages that began over the weekend.
Europe, Middle East, Africa:
European equity markets ended lower, with losses led by the Technology Services, Consumer Services, and Retail Trade sectors. Adyen was among the worst performers in the Euro Stoxx 50, declining by 5.3%.
Chipmakers are in focus as Nordic Semiconductor issued a profit warning, citing lower demand. The company indicated an approximately 11% decline in revenues, with analysts suggesting that Q3 estimates may decrease by around 13% at the midpoint.
Swiss Steel issued a profit warning and withdrew its outlook for adjusted EBITDA for the full year 2023. The company cited profits in July and August that were below expectations.
Greece received an upgrade in its sovereign rating by Moody’s, moving from Ba3 to Ba1, with a stable outlook. However, this still leaves Greece’s bonds one notch below investment grade.
The Americas:
Morgan Stanley’s Wilson notes that the majority of its clients expect a U.S. recession next year, which could be negative for risk assets.
The UAW strike against automakers has entered its third day with no resolution in sight. The UAW chief rejected a 21% pay increase offer as a non-starter.
House Republicans are considering a short-term spending deal amid the looming threat of a government shutdown. This “continuing resolution” would fund the government for 30 days with a 1% across-the-board cut in federal spending for every agency, except the Departments of Defense and Veterans Affairs. The deal may face challenges in the Senate.
Gold miner Newmont Corp has received clearance from Australia’s Foreign Investment Review Board to proceed with its proposed A$26.2 billion ($16.86 billion) takeover of Australia’s Newcrest Mining.
Hedge funds reduced their net short dollar positions by nearly $5 billion last week, representing the most significant swing towards a more bullish stance on the dollar since May of the previous year.
The Week Ahead:
Monday:
Tuesday:
Harmonized Index of Consumer Prices (MoM) (EA)
Wednesday:
PBoC Interest Rate Decision (CN)
Consumer Price Index (YoY) (GB)
Fed Interest Rate Decision (US)
FOMC Press Conference (US)
Thursday:
Bank of England Minutes (GB)
Initial Jobless Claims (US)
Existing Home Sales Change (MoM) (US)
Friday:
GfK Consumer Confidence (GB)
Retail Sales (MoM) (GB)
HCOB Composite PMI (EA)
S&P Global Services PMI (US)
Investment Tip of The Day
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Meme of the Day
