NNPCL issues directive to marketers on refund, new price - Punch
The Nigerian National Petroleum Company Limited (NNPCL) issued a circular to oil marketers, instructing them to merge orders or seek refunds due to revised fuel prices after the removal of fuel subsidy. Marketers expressed concerns about the financial burden and anticipated a decline in petrol consumption.
OPEC Cuts Nigeria’s Oil Quota By 20% To 1.38m Barrels - Leadership News OPEC and allies agreed to cut global oil production by 1.393 million barrels per day, reducing Nigeria's oil production quota by 20.7%, potentially impacting government revenue and economic stability. Nigeria's quota will decrease to 1.380 million barrels per day from January to December 2024.
NNPCL issues directive to marketers on refund, new price - Punch
he Nigerian National Petroleum Company Limited issued a circular to oil marketers, instructing them to merge orders or seek refunds due to revised fuel prices after the removal of fuel subsidy. Marketers expressed concerns about the financial burden and predicted a decline in petrol consumption.
Despite Liquidity Crunch, Banks Maintain Ratio at Above 30% - This Day
Nigerian banks maintain strong Liquidity Ratios and Capital Adequacy Ratios in 2022, exceeding regulatory requirements, indicating resilience despite economic challenges. Stanbic IBTC Holdings and Zenith Bank show high liquidity ratios, while UBA and GTCO lead in Capital Adequacy Ratios.
Godswill Akpabio Sworn-in As 13th Senate President - All Africa
Godswill Akpabio sworn in as the 13th Senate President, defeating Abdul'aziz Yari with 63 votes out of 109. Several governors from both APC and PDP were present to support Akpabio during the inauguration.
President Signs Student Loan Bill Into Law - All Africa
President Bola Tinubu signs into law the education bank bill, aimed at providing interest-free loans to Nigerians seeking higher education. The bill was introduced in 2016 by outgoing Speaker of the House of Representatives, Femi Gbajabiamila, and addresses funding gaps in the tertiary education subsector.
Global
This year has already seen more debt defaults in the US junk loan market (in number and total value) than all of 2021 and 2022 combined.
A rapid rise in interest rates over the past year has left junk-rated companies–many of which had loaded up on leveraged loans at floating rates–facing higher interest payments as slowing economic growth caps earnings.
Last month alone saw $7.8 billion in defaults, the highest since the pandemic.
Looking ahead, more defaults are expected as the Fed keeps interest rates higher for longer.
The S&P 500 and Nasdaq closed at their highest levels since April 2022 yesterday.
The rally is forcing investors off the sidelines, lest they miss out (aka FOMO is kicking in).
According to Deutsche Bank, positioning among discretionary investors has emerged into overweight territory for the first time in more than 16 months.
The same can be said for consolidated equity positioning which is now in the 54th percentile.
Pair that with increasingly bullish investor sentiment and “risk-on” has been activated across many corners of the market.
Oil traders are still ignoring Saudi Arabia’s production cuts.
Front-month Brent futures fell yesterday to their lowest since December 2021 as better-than-expected production and weak demand weigh on prices.
Prices for WTI crude are down ~11% since the end of March (just before OPEC’s surprise production cut).
Meanwhile, the EIA predicts US oil output will reach a new record in July, rising to 9.38 million barrels per day.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
China banks' new loans issuance for May missed market expectations.
PBOC Tuesday lowered 7D reverse repo rate 10 bps to 1.9% in move to aid economic recovery. This certainly gave the Chinese and Hong Kong markets a boost.
India's May inflation rate fell to 4.25% y/y from 4.7% in April, lowest level in two years and vindicating RBI's decision to hold rates steady last week.
German ZEW economic sentiment survey improved in June to -8.5 versus consensus -13.1 and prior -10.7.
UK labor market data surprised on the upside. May claimant count dropped 13.6K versus consensus for 21.4K gain. Number of people employed hit record high in latest quarter due to increases in both employees and self-employed workers.
The unexpected tightening in today's UK labor market data has accelerated BoE rate hike bets. Terminal rate pricing now up to high of 5.7% by February 2024 versus ~5.5% prior to the data.
Goldman Sachs noted that Investors have been cutting allocation to EU equities for weeks, in contrast with flows to EU bonds. Reasons reportedly weak sentiment, banking stress and China's softer patch following initial strong recovery from lockdown.
The Americas
BofA June Global Fund Manager Survey says pain trade for risk assets still higher
Hedge funds slash bearish bets and boost equity exposure ahead of US CPI, Fed rate decision
NYC office occupancy above 50% for first time since pandemic
Medtronic likely to spin off its patient-monitoring and respiratory-intervention operations as bidders lose interest
Goldman Sachs and Morgan Stanley see investment banking revenues increasing in coming quarters
The Week Ahead:
Tuesday: May CPI inflation data
Wednesday: Price Producer Index (PPI); MBA mortgage applications; US Fed FOMC meeting
Thursday: US initial weekly jobless claims; Retail sales data; Philadelphia Business outlook
Friday: OPEX expirations; New York Fed services business activity; University of Michigan sentiment and inflation expectations
Investment Tip of The Day
Your risk tolerance may change over time due to various factors. It’s important to reassess it periodically and adjust your investments accordingly to ensure they align with your comfort level.
Meme of the Day
Disclaimer: The information contained in this report is intended for informational purposes only and should not be considered as investment advice. The information is obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.
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