Think Thursday
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Market Data
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*Data as of 4pm WAT
Market News
Local
Nigerians spent N3.33tn on calls, data in 2022 — NCC - Punch
The Nigerian Communications Commission (NCC) has said that Nigerians spent a total of N3.33tn on calls and data in 2022. This is an increase of 13.86% from the N2.9tn spent in 2021. The increase in spending is attributed to the growing use of smartphones and the increasing availability of data plans.Nigeria, Ghana, others’ GDP to rise to 3.9% in 2023 — AfDB - BNR
The African Development Bank (AfDB) has said that the gross domestic product (GDP) of Nigeria, Ghana, and other West African countries is expected to rise to 3.9% in 2023. This is an increase from the 3.4% growth recorded in 2022. The increase in growth is attributed to the recovery of the global economy and the continued implementation of economic reforms in the region.China could influence Nigeria’s govt with its loans — U.S - BNR
The United States has warned that China could use its loans to Nigeria to influence the Nigerian government's policies. The U.S. has urged Nigeria to be careful about the terms of the loans it takes from China, and to ensure that the loans do not come with any strings attached.
Global
Biden restricts US investment in some Chinese tech, citing national security concerns - CNBC
President Biden's executive order aims to regulate US investments aiding sensitive Chinese tech development. The order targets semiconductors, quantum computing, and AI, with Treasury Secretary Janet Yellen overseeing its implementation. China opposes the move, while US officials stress its narrow focus to protect national security.Banks’ problems aren’t over, according to the bond market - WSJ
Moody's downgrade of 27 banks and credit rating concerns highlight risks in the regional banking sector, even as stocks rally. The bond market's focus on worst-case scenarios suggests a gap between debt and equity performance, indicating more work is needed to address underlying risks, including rising interest rates.Jamie Dimon, JPMorgan board defeat shareholders’ Epstein lawsuit - Reuters
A judge dismissed a shareholder lawsuit accusing JPMorgan CEO Jamie Dimon and board members of ignoring concerns about Jeffrey Epstein. The judge ruled that shareholders failed to address the bank's board before suing. The lawsuit sought damages for the benefit of shareholders.Slowing trade fuels fear of a fractured global economy - WSJ
Global trade slowdown, influenced by weak economic growth, raises questions about a shift from deep global integration to regional trading blocs. Geopolitical tensions, like Russia's invasion of Ukraine, contribute to curbs on China trade. Sluggish growth and potential bloc formations impact global trade's recovery and future.North Korea’s Kim dismisses top general, calls for war preparations - Reuters
North Korean leader Kim Jong Un replaces top military general, urges war preparations, weapons production boost, and expanded military drills. New plans to counter unnamed enemies discussed, emphasizing weapons capacity expansion. Kim targets missile engines, artillery, and more weapons.
Weekly Investment Watchlist
Market Commentary
Asia and Australia:
Asian equities traded with a mixed performance on Thursday. Japan managed to close at day’s highs despite a weaker opening, and Australia also saw a small gain.
A significant development was the US Biden Administration signing an agreement to halt US investments into certain sectors of China, including chips, microelectronics, quantum information technology, and AI. The aim is to safeguard national security and prevent US investments from potentially boosting China’s military capabilities. Chinese firms have already placed $5 billion in orders with NVIDIA for chips.
Higher US Treasury yields were noted by Bloomberg, which could potentially accelerate the recent selloff in Asian stocks by making valuations less attractive.
The Philippines’ economy grew by 4.3% YoY in Q2, falling short of the expected 6.0% and lower than the 6.4% in Q1. On a quarterly basis, the economy contracted by 0.9%. The Philippine economic planning secretary stated that the economy is feeling the effects of consecutive rate hikes but expressed confidence that the country can address the issues as decelerating inflation reduces pressure on the central bank to raise rates.
The Reserve Bank of India held the interest rate steady at 6.5%.
Europe, Middle East, Africa:
European equity markets traded higher, led by France and Spain, although they were off their best levels following a positive close on Wednesday. Regional bond yields rose in response to higher gas prices.
In the latest edition of the ECB’s Economic Bulletin, the Council reiterated its stance that inflation continues to decline but is still expected to remain too high for too long.
Natural Gas supply disruptions in Australia, particularly due to potential worker strikes at significant facilities, could impact nearly 50% of Australia’s total capacity and disrupt around 9.5% of global LNG supply, according to JPMorgan. European Natural Gas prices saw a strong rally on this news, and prices are expected to remain elevated even if the initial rally was overdone.
The Americas:
Disney reported mixed fiscal Q3 results, with revenue falling short but EBIT surpassing expectations. This was driven by better-than-expected direct-to-consumer (DTC) losses and a beat in the Parks segment, supported by International performance. The company maintained its full-year 2023 high single-digit revenue and operating income growth guidance, excluding $250 million of Star Wars hotel write-down costs. Focus was on key strategic initiatives, particularly Disney’s commitment to achieving DTC profitability by the end of 2024.
Tapestry, the owner of Kate Spade, agreed to a $8.5 billion deal to acquire the parent company of Jimmy Choo, Capri.
Illumina experienced a significant decline after cutting its guidance, citing cautious customer purchasing, a slower recovery in China, and the transition to NovaSeq X.
Wynn Resorts beat EBITDAR expectations with strong performance in Macau and Las Vegas.
The Week Ahead:
Monday:
Tuesday:
US consumer credit report rose: +$17.84b; est +$13.55b.
US July jobs report non-farm payrolls expanded 187k, unemployment is 3.5%; est: 3.6%.
Wednesday:
Consumer Price Index (China)
Thursday:
Consumer Price Index (US)
Economic Bulleting (EA)
Monthly Budget Statement (US)
Friday:
Gross Domestic Product (US)
Consumer Price Index (France)
Producer Price Index ex. Food & Energy (US)
Michigan Consumer Sentiment Index (US)
Investment Tip of The Day
Consistently review how your investments perform compared to appropriate benchmarks. This practice helps you gauge the success of your investment strategy and make informed decisions to ensure you're on track to meet your financial objectives.
Meme of the Day
