Wealth Wednesday
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Market Data
Local
Global
*Data as of 4pm WAT
Market News
Local
Forex crisis: BDCs ask CBN to increase its minimum capital to N350 million - Naira Metrics
Bureau de Change operators in Nigeria have requested that the Central Bank of Nigeria (CBN) raise the minimum capital requirement for their operations from ₦35 million to ₦350 million due to the ongoing forex crisis. They believe this increase would help weed out non-serious operators and enhance transparency in the sector, potentially stabilizing the foreign exchange market.
Customs to allow Nigerians to clear goods from Cotonou ports - Naira Metrics
The Nigerian Customs Service is reportedly considering a policy that would allow Nigerians to clear their goods from Cotonou ports in Benin Republic, aiming to ease congestion and delays at Nigerian ports. This policy could alleviate some of the challenges faced by importers and exporters due to inefficiencies in Nigerian ports.
Presidential panel plans 83% cut in taxes, levies - Punch
The Presidential Enabling Business Environment Council (PEBEC) in Nigeria is considering an 83% reduction in taxes and levies imposed on businesses in the country to enhance the ease of doing business. This reduction aims to stimulate economic growth, boost business activities, and attract more investments into Nigeria by reducing the financial burden on businesses.
MTN acquires 2.6GHz spectrum to accelerate broadband penetration in Nigeria - The Sun
Telecom giant MTN Nigeria has acquired additional spectrum in the 2.6GHz band to accelerate broadband penetration in Nigeria. This move aims to improve the quality and speed of internet services, enhancing connectivity for Nigerian users and promoting digital inclusion in the country.
Global
US Core CPI Picks Up, Keeping Another Fed Hike in Play This Year - Bloomberg
US core inflation, which excludes food and energy costs, accelerated by 0.3% in August, marking its first uptick since February, according to data from the Bureau of Labor Statistics. On an annual basis, core inflation reached 4.3%, in line with estimates. The overall CPI increased by 0.6% month-on-month, the highest in over a year, primarily driven by higher energy prices.
Banks load up on $1.2T in risky ‘hot’ deposits - WSJ
US banks collectively held over $1.2 trillion in brokered deposits in Q2 2023, marking an 86% increase from the previous year. Smaller regional banks, in particular, are relying more heavily on these deposits, leading to regulatory concerns.
House speaker Kevin McCarthy launches formal Biden impeachment inquiry - WSJ
House Speaker Kevin McCarthy announced that House committees would open a formal impeachment inquiry into President Biden, focusing on his son Hunter Biden's overseas business affairs. However, no concrete evidence has emerged to show wrongdoing by President Biden.
Weekly Investment Watchlist
Market Commentary:
Asia and Australia:
Asian equities were slightly lower on Wednesday, with Japan’s Nikkei and Topix indices closing mixed and Australia’s ASX 200 index finishing lower.
The Hang Seng index in Hong Kong was flat, while mainland Chinese markets were notably lower.
A Reuters Tankan survey showed that Japanese manufacturer confidence fell by the most in eight months, while services sector sentiment also dropped sharply.
China said it is not barring iPhone purchases, but it flagged security incidents.
Hong Kong-listed automakers fell sharply after the European Commission said it would launch an anti-subsidy investigation into Chinese electric vehicles.
The latest Reuters consensus poll found that economists expect China’s GDP growth to slow to 5.0% in 2023, down from 5.5% in 2022.
Offshore yuan borrowing costs in Hong Kong surged this week as China ramped up its efforts to prevent the currency from depreciating further.
Europe, Middle East, Africa:
European equity markets were lower on Wednesday, with the retail sector, industrial goods and services, utilities, and construction sectors all under pressure. Banks were the only sector in positive territory.
UK GDP data came in lower than expected, with the economy shrinking by 0.5% in August.
Reuters sources said that the European Central Bank expects inflation to remain above 3% in the coming months, which has reinforced expectations that the ECB will raise interest rates again on Thursday.
Eurozone industrial production also missed expectations, falling by 1.1% in August.
Credit Suisse said that it still sees a recession in Europe as likely, citing a number of factors, including weak PMIs, a flattening yield curve, and declining real money supply.
BofA’s latest European fund manager survey showed that while a majority of investors see European equities falling in the coming months, fading bets on a recession have led an increasing number to take a more optimistic view on stocks in the medium term.
The Americas:
Apple held its annual product event on Tuesday, unveiling new iPhones, Apple Watches, and AirPods. The iPhone 15 Pro Max was priced at $100 more than its predecessor.
Boeing delivered 35 aircraft in August, down from 43 in July and 60 in June. The company is facing supplier-related issues with its 737 MAX jets.
CBRE, a real estate services company, pushed back its call for a US recession to late 2023 or early 2024.
American Airlines revised its guidance for the third quarter, saying that it expects adjusted earnings per share of 20 cents to 30 cents, down from 85 cents to 95 cents previously.
The Week Ahead:
Monday:
Tuesday:
Wednesday:
Manufacturing Production (YoY) (GB)
Industrial Production (MoM) (EA)
The consumer price index, rose 0.6% for the month, and was up 3.7% from a year ago.
Thursday:
Employment Change s.a (AU)
Retail Sales (MoM) (US)
Friday:
Industrial Production (YoY) (CN)
NY Empire State Manufacturing Index (US)
Industrial Production (MoM) (US)
Michigan Consumer Sentiment Index (US)
Investment Tip of The Day
Stay Disciplined for Long-Term Success: Maintaining discipline in your investment approach is key to achieving your long-term financial goals. It involves adhering to your carefully crafted investment plan and resisting impulsive reactions to short-term market fluctuations and noise.
Meme of the Day
