FG implements 7.5% VAT on diesel, Nigerians kick - Punch The Federal Government has begun implementing a 7.5% Value Added Tax (VAT) on diesel fuel, contrary to citizens' expectations. The Nigeria Customs Service confirmed the collection of VAT on diesel imports based on the VAT Modification Order 2021, sparking condemnation from the public.
5G access grows as Airtel launches network - Punch
Airtel Nigeria joins 5G network operators in Lagos, expanding coverage to Lagos, Ogun, Rivers, and the Federal Capital Territory. 5G offers revolutionary capabilities, supercharging internet speed and enabling advanced functionalities.
FG, Labour fix eight weeks for conclusion of subsidy removal talks - The Guardian
Organized labor demands resolution of concerns before agreeing on a framework for petrol subsidy removal. Talks continue for eight weeks, forming committees to address issues such as cash transfers, social investment, and cost of governance. Representation should be balanced.
Naira weakens to 770.38/$ at official market - Punch
Naira weakens to the dollar, closing at 770.38/$ on the investor & exporter forex window. Central Bank removes rate cap, allowing free float of the currency. All eligible FX transactions to be done via the I&E window.
Banks, telcos, others to pay huge fines as FG begins implementation of data protection law – The Sun
Banks and telecom companies in Nigeria could face fines up to 2% of annual revenue for data breaches, as per the recently signed Data Protection Act 2023. Sanctions will depend on impact and other factors, with CEOs held accountable. NDPC aims to create jobs and promote data privacy compliance.
Global
UK Cuts Tariffs On Products From Nigeria, Others – Leadership
UK simplifies trade rules, cuts tariffs for developing countries like Nigeria, benefiting businesses, consumers, and promoting exports, as part of the new post-Brexit Developing Countries Trading Scheme.
China cut key lending benchmarks to revive slowing demand - Reuters
China cuts lending benchmarks to support economic recovery, but smaller than expected. Rates lowered by 10 bps, aiming to reduce loan costs. Market reacts negatively. Further measures may be announced.
Investments in global ETFs hit a record $10.3T - Financial Times
Global exchange-traded funds (ETFs) reach a record $10.32tn due to stock market rallies and steady inflows. ETF industry success is attributed to investor preference and the structure's benefits, surpassing other fund structures. Global net inflows have continued for 48 consecutive months.
Alibaba names new chairman, CEO in surprise succession plan - Bloomberg
Daniel Zhang, long-time Alibaba veteran, will step down as chairman and CEO, with Joseph Tsai becoming the new chairman. Alibaba faces challenges, including slowed sales growth and competition from rivals.
IMF creating global platform for cross-border digital currency transactions - Reuters
The IMF is creating a global platform for central bank digital currencies (CBDCs) to enable cross-border transactions, emphasizing the importance of a common regulatory framework and asset backing.
Binance.US and the SEC struck a deal to keep US customer assets in the US until the SEC’s lawsuit is resolved - Reuters
Binance and Binance.US have agreed with the SEC to keep U.S. customer assets within the country until the resolution of the SEC's lawsuit. The agreement restricts access to assets and aims to protect investor funds.
After 5 months of delays, US Secretary of State Anthony Blinken finally made his much-anticipated trip to Beijing.
It was the highest-level visit by a US official to China in 5 years.
The visit aimed to establish better communications and prevent conflicts between the 2 countries.
Blinken met with Chinese President Xi Jinping where they reported progress and agreement on certain issues.
The talks set the stage for a potential meeting between Xi and Biden in November.
Consumer sentiment rose above expectations to its highest level in 4 months in June.
Improvements were seen in both the current conditions index as well as consumer expectations.
Importantly, expectations for year-ahead inflation fell for the second consecutive month to 3.3% (from 4.2%), the lowest since March 2021.
Long-term inflation expectations remain elevated at 3%
As the S&P 500 attempts to stretch its longest weekly winning streak (5) since 2021, cash is coming off the sidelines.
US money market funds saw the biggest outflows since mid-April last week, with total assets falling by $4.7 billion.
Much of that cash made its way into US equities which saw their biggest inflow since March 2022.
Meanwhile, the bulls are in full force: buying of call options tied to the S&P 500 hit a record 1.79 million on Thursday
Qatar and China are set to sign their second large liquid natural gas (LNG) supply deal in less than a year.
Under the new 27-year agreement, China National Petroleum Corporation (CNPC) will purchase 4 million tonnes of LNG a year from Qatar.
As part of the deal, CNPC will also acquire a 5% equity stake in one of Qatar’s LNG trains.
A leading exporter of LNG, Qatar is also close to inking long-term supply with several European countries.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
China lowered Loan Prime Rates in an effort to boost the economy: LPRs were lowered with 1y down 10 bp to 3.55% as expected, while 5y also down 10 bp to 4.20%.. China's delayed stimulus adds to worries over slowing economy
Australia higher following RBA minutes but the AUD was under pressure all day; RBA aiming for 4.5% unemployment rate to return inflation to target
Taiwan's May export orders fell 17.6% y/y to $45.7B, lower than April's 18.1% and consensus forecast of a 20% decrease
The 1-month Hong Kong interbank rate (Hibor) rose to 5.1%, its highest level in 14 years
Alibaba co-founder Joe Tsai to take over as chairman as Daniel Zhang steps aside to focus on cloud business
Warren Buffett increases stake to 8.5% in Japanese Trading Companies.
Europe, Middle East, Africa
Bank of Spain raises 2023 growth forecast to 2.3%, warns of risks
Two-year UK borrowing costs have edged out new highs after clearing the 5% handle for the first time in 15 years on Monday on BoE rate hike expectations.
UK inflation data due Wednesday, ahead of BoE decision on Thursday. Markets expecting headline to come in 8.4% y/y vs 8.7% prior, and core at 6.8% y/y vs 6.8% prior.
German PPI for May came in at the lowest in 2 years. Producer prices of industrial products were up 1.0% compared with May 2022, the Federal Statistical Office reported. That is the smallest increase since January 2021's rise of 0.9%.
Germany and Intel agree on chip plant subsidies worth €10B
Alsonside the BoE, Swiss National Bank (SNB) and Norges Bank also expected to hike rates by 0.25% to 1.75% and 3.50% respectively.
The Americas
US-China relations seemingly on a more stable footing following Secretary of State Blinken's visit to Beijing
Chair Powell will provide testimony and may face tough questions from Congress this week about possible further tightening
Pain trade/FOMO supported by nearly $40B of inflows to US equity funds in last three weeks, the best stretch since last October.
Investment Tip of The Day
Building and maintaining an emergency fund is crucial for financial security. Aim to save three to six months' worth of living expenses in a liquid and easily accessible account to cover unexpected financial setbacks.
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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