Think Thursday
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Happy New Year!
Thanks for an amazing 2023! Wishing you all the best as we head into a new year.
Market Data
Local
Global
x*Data as of 4pm WAT
Market News
Local
CBN Issues Fresh Guidelines on Cryptocurrency Operation- ThisDay
The Central Bank of Nigeria (CBN) yesterday released new guidelines to regulate the operations of bank accounts for Virtual Assets Service Providers (VASPs), otherwise known as cryptocurrency.
FG Orders Immediate Implementation of 50% Automatic Deduction from Agencies’ IGR - ThisDay
In a move to plug leakages and shore up revenue, the federal government has directed the Office of the Accountant General of the Federation (OAGF) to immediately commence the presidential directives on 50 per cent automatic deduction from the internally generated revenue (IGR) of Federal Government Owned Enterprises (FGOEs).
Seplat Energy completes ANOH gas plant - Punch
Seplat Energy PLC, an independent energy company in Nigeria, has announced the completion of its ANOH gas plant. Seplat Energy, in a release on Wednesday, disclosed that the ANOH gas plant installation works reached mechanical completion December 29, 2023, in line with its revised timetable.
Global
Oil prices settle up 3% on supply concerns after oilfield shutdown in Libya - Reuters
Oil prices surged 3% on Wednesday due to a Libyan oilfield shutdown and escalating Middle East tensions, particularly Israel's bombing in Gaza and Houthi attacks in the Red Sea. OPEC pledged continued cooperation but Angola's departure raised concerns. Lower US interest rates and falling oil inventories also boosted prices.
U.S. Awards Chip Supplier $162 Million to Bolster Critical Industries - New York Times
Biden admin awards $162M to Microchip Technology to expand US production of legacy chips, used in cars, appliances & military products, aiming to strengthen supply chain & decrease reliance on foreign facilities. Microchip plans expansions in Oregon & Colorado with expected 700+ new jobs.
Market Commentary:
Asia and Australia:
Asian markets display mixed performance.
China and Hong Kong decline, while the Nikkei closes higher on the first trading day of the year.
India sees gains, but the Kopi and Australia record losses.
December Caixin PMI for Services shows the fastest increase in 5 months, reaching 52.9, up from 51.5.
12th consecutive month of expansion.
Caixin covers smaller firms than the official PMI, which also signals expansion.
China front-loads oil import quotas for 2024, allocating 179.01 million tons (3.59 million barrels a day), slightly below 2023's 183.69 million tons.
Front-loading assists smaller private refiners in planning, stimulating production, and supporting capex expansion plans.
Europe, the Middle East, and Africa:
European markets soften, with France leading the decline and the UK lagging. Gilts experience steepening.
Early December CPI data from German regions show across-the-board increases:
Brandenburg's CPI rises to 4.5% Y/Y from 4.1%.
Bavaria sees an increase to 3.4% Y/Y from 2.8%.
Impact on Euro Area inflation, with official German numbers expected at 8 am ET.
France's December CPI reflects higher figures:
0.1% M/M from -0.2%.
3.7% Y/Y from 3.5%.
Driven by increased energy prices (5.6% vs. 3.1% in November) and services (3.1% vs. 2.8%).
The Americas:
Key House GOP lawmakers advocate for inserting restrictive border policies into government funding bills before the January 19th and February 2nd deadlines.
Corporate Bond market shows significant activity in the first week of the year:
Approximately $60 billion in global paper issued.
Around $37 billion in US Investment Grade supply.
US Investment Grade space remains lucrative, with companies refinancing at higher rates due to a corporate maturity wall.
The Week Ahead:
Monday:
Tuesday:
Wednesday:
US Job openings nudged lower in November, down to 1.4 per available worker
US Manufacturing PMI increased to 47.4 last month
Thursday:
ADP: US private payrolls up by 164,000 in December
US job cuts at 34,817 in December
Friday:
Average Hourly Earnings m/m (US)
Non-Farm Employment Change (US)
Unemployment Rate (US)
ISM Services PMI (US)
Investment Tip of The Day
Assess Geopolitical Arbitrage Opportunities: Geopolitical shifts can create arbitrage opportunities. Evaluate how changes in geopolitics may create advantageous investment opportunities, especially in emerging markets.
Service Spotlight of the week - Advisory Services
Meme of the Day
