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Local
Nigeria election tribunal upholds President Bola Tinubu’s victory - Aljazeera
Nigeria's presidential election tribunal dismissed opposition parties' claims of electoral malpractice against the governing APC in the February elections. Former Lagos governor Tinubu's win was challenged by opposition candidates Abubakar and Obi, but the court rejected their allegations of irregularities and ineligibility.
Nigeria gets $14 billion investment pledges from India, seeks economic pact - Reuters
Nigeria has secured nearly $14 billion in investments from Indian companies like Jindal Steel, Indorama Corp, Skipperseil Ltd, and Bharti Enterprises. President Bola Tinubu seeks these funds to develop infrastructure and create jobs, part of broader economic reforms in Nigeria, including reviving a struggling economy and considering G20 membership.
Nigeria’s refining capacity crashes to 6,000b/d – OPEC - Punch
Nigeria's crude oil refining capacity has dropped to just 6,000 barrels per day in 2022, down significantly from 33,000 bpd in 2018, according to OPEC's Annual Statistical Bulletin. This 33% decrease reflects ongoing challenges despite government-owned refineries.
Global
China bans iPhone use for government officials at work - WSJ
China has reportedly instructed officials at central government agencies to refrain from using Apple's iPhones and other foreign-branded devices for work or bringing them to the office. This directive, part of China's ongoing efforts to reduce reliance on foreign technologies, could heighten concerns among foreign companies amid escalating Sino-U.S. tensions.
US service gauge rises to six-month high, topping all forecasts - Bloomberg
In August, the US service sector showed strong activity growth, hitting a six-month high with an Institute for Supply Management (ISM) services index of 54.5, surpassing all estimates. Consumer demand, hiring, and backlogged orders have all contributed to the sector's resilience, despite rising costs for materials and wages, which could potentially keep inflation elevated.
Weekly Investment Watchlist
Market Commentary:
Asia and Australia:
Asian equities declined; Hang Seng and mainland stocks dropped despite a property sector rally. Japan and Australia also saw losses.
China banned Apple phones in government and sensitive sectors as a response to US actions, impacting China's semiconductor stocks, including SMIC (-7%).
China's exports shrank by 8.8% YoY for the fourth consecutive month, better than the expected 9.2% fall. Imports also fell by 7.3%, marking the sixth consecutive month of decrease.
The trade surplus decreased more than expected, down to $68.36 billion.
Results from the 30-year JGB auction showed low demand, causing prices to drop and yields to rise.
Bank Negara Malaysia maintained its overnight policy rate at 3.0% as forecast.
The Australia gas strike was delayed.
Headline inflation in Emerging Asia increased due to higher food and energy costs.
August YoY CPI readings:
Taiwan: 2.3% (up from 1.9% in July)
Indonesia: 3.3% (up from 3.1% in July)
Vietnam: 3.0% (up from 2.1% in July)
Thailand: 0.9% (up from 0.4% in July)
South Korea: 3.4% (up from 2.3%)
Europe, Middle East, Africa:
European equity markets were mixed, with basic resources and tech sectors declining, while defensives and insurance strengthened.
Eurozone final Q2 GDP came in lower than expected at 0.1% q/q (versus 0.3% expected), raising concerns about balancing growth and conquering inflation.
Poland unexpectedly cut interest rates from 6.75% to 6% despite high inflation (10.1% YoY), possibly due to upcoming elections.
Luxury stocks in Europe were affected by remarks suggesting that inflation is impacting luxury demand.
Expectations for a Bank of England (BoE) rate hike dipped to their lowest level since June; the terminal rate is now expected to be under 5.75%.
Saudi Arabia raised Asia crude selling prices for the fourth consecutive month, with a smaller-than-expected increase.
German industrial production numbers were weaker than expected at -0.8% (versus -0.5% expected).
The Americas:
The Bank of Canada maintained rates at 5%, seen as a hawkish pause.
The US Trade Deficit was slightly higher than expected at -$65 billion.
The FTC was reportedly preparing an antitrust lawsuit against Amazon, targeting its marketplace and calling for structural remedies.
The Biden administration canceled Alaskan oil leases to limit Arctic drilling.
The Fed's Beige Book reported modest economic growth during July and August, with stronger consumer spending in tourism but slower retail spending in discretionary items. Some reports suggested consumers may have exhausted pandemic-era savings.
The Week Ahead:
Monday:
Tuesday:
Wednesday:
The Services PMI® surged to 54.5 percent, marking a notable 1.8-percentage point rise from the preceding July level of 52.7 percent.
US Employers added 187k jobs last month, unemployment rose to 3.8%.
Thursday:
Unemployment Claims (US) 216K
Friday:
Investment Tip of The Day
Reinvest Dividends for Compounding: Reinvesting dividends means using the dividend payments received from your investments to buy additional shares of the same investment.
Meme of the Day
