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*Data as of 4pm WAT
Market News
Local
Nigeria’s forex market needs restructuring—Tinubu’s aide - Business News Report
The Special Adviser to the President on Economic Affairs, Dr Tope Fasua, has called for a structural reform of Nigeria’s foreign exchange market. Fasua made the call at a roundtable organised by the National Policy Advocacy Centre (NPAC) of the Abuja Chamber of Commerce and Industry (ACCI) in Abuja.
Fuel subsidy, FX reforms will boost Nigerian Economy – IMF insists - Nairametrics
The International Monetary Fund (IMF) has again declared their support for the fuel subsidy removal and exchange rate unification, insisting that it will enhance the economic outlook of the country.
Reduce the number of BDCs from 5,000 to 200 – FG urges CBN - Nairametrics
The Federal Government has urged the Central Bank of Nigeria (CBN) to reduce the number of Bureau de Change (BDC) operating in the country from over 5,000 to about 200.
Global
HSBC to acquire Citigroup China consumer wealth business - Reuters
The transaction will also see Asia-focussed HSBC taking over "a few hundreds" of Citi's China-based staff, said one of the sources.
ChatGPT users can now browse internet, OpenAI says - Reuters
ChatGPT users will now be able to surf the web, Microsoft-backed OpenAI said on Wednesday, expanding the data the viral chatbot can access beyond its earlier September 2021 cutoff.
Elon Musk Wins US Space Force Contract for Starshield - Bloomberg
Elon Musk’s SpaceX has received its first contract from the US Space Force to provide customized satellite communications for the military under the company’s new Starshield program, extending the provocative billionaire’s role as a defense contractor.
Weekly Investment Watchlist
Market Commentary:
Asia and Australia:
Asian equities were mostly lower. The Nikkei selloff deepened, reaching a one-month low.
Hong Kong experienced intensified losses as property developers continued to drop, and the Hang Seng tech index saw sharp declines.
Mainland China saw slight gains to end a losing September.
Global funds sold a record amount of Japanese stocks last week, totaling ¥3.03 trillion ($20.3 billion), as reported by the Ministry of Finance.
China's Ministry of Culture and Tourism estimates that during the upcoming Golden Week (from 29-Sep to 6-Oct), there will be over 100 million trips a day. It's expected that 190 million passengers will travel by railway, and 21 million will travel by air.
China's government bond issuance in September totaled CNY 1.2 trillion ($164 billion), marking the largest YTD issuance and a 60% increase compared to the past three years' average.
Europe, Middle East, Africa:
European equity markets were mostly lower, with energy, basic resources, and media sectors leading, while travel/leisure, technology, and retail lagged.
Eurozone bond yields rose, with the Bund increasing by ~4 basis points to nearly 2.90%. Larger moves were seen in Italian BTPs and Spanish Bonos, up ~7 basis points.
Spanish inflation data showed an increase for the second consecutive month. Harmonized Headline CPI was at 3.2%, up from the prior 2.4%, just below the 3.3% median forecast, primarily due to higher electricity and fuel costs.
Inflation in Germany's bellwether industrial region, North Rhine-Westphalia, decreased to 4.2% YoY, down from 5.9% in the previous period.
European gas prices surged, with the October contract up ~4.5% on its last trading day before expiry. Dutch TTF gained approximately 15% during the month.
The UK's National Grid is preparing for a supply crunch due to several planned nuclear outages in January, coinciding with peak winter demand.
The Americas:
Pension rebalancing into the month-end had a minimal impact, with -$2 billion in equities to sell, according to GS.
Mexico's unemployment rate decreased to 3% in August, down from 3.10% in July 2023.
Micron's FQ4 results were better than expected, with a smaller-than-expected decline in EPS and revenue ahead. However, ASPs in both DRAM and NAND segments fell more than expected.
At its analyst meeting, Workday guided subscription growth to 17-19% through FY27, down from its prior long-term target of ~20% and below the 20%+ consensus. Additionally, it lowered its OCF margin target to 30% from 35%, while the 25%+ operating margin target also appeared underwhelming.
The Week Ahead:
Monday:
Tuesday:
US CB Consumer Confidence declines to 103.00 in September
Wednesday:
Thursday:
Final GDP q/q (US) 2.1%
Unemployment Claims (US) 204,000
Friday:
Core PCE Price Index m/m (US)
Revised UoM Consumer Sentiment (US)
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