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Ranora Daily - Your daily source for reliable market analysis and news.
Market Data
Local
Global
*Data as of 6pm WAT
Market News
Local
FG to collect VAT from market traders, others – Punch
The Nigerian Government has introduced the VAT Direct Initiative to collect Value Added Taxes from the informal sector and reduce multiple taxations. The Federal Inland Revenue Service will partner with the Market Traders Association of Nigeria to collect and remit VAT using a unified systems technology.
Economy awaits Tinubu’s fiscal direction as uncertainty trails FX liberalisation – The Guardian
Since the Central Bank of Nigeria (CBN) halted foreign exchange trading, liquidity challenges have intensified, affecting individuals and businesses. Both official and unofficial segments of the market are experiencing a severe shortage of foreign exchange, leading to postponed trips and dilemmas for companies relying on imports.
Business confidence nears record-low, says Stanbic IBTC - Punch
The removal of fuel subsidy in Nigeria led to increased price pressures in June, causing a dip in business confidence and encouraging companies to expand inventories. The Purchasing Managers Index (PMI) remained above the no-change mark but slightly decreased from May.
4.95 million mobile subscriptions lost in five months, says NCC – Punch
Nigeria experienced a decline in mobile subscriptions, losing 4.95 million subscribers in the first five months of 2023. MTN Nigeria recorded the largest loss, while Airtel remained relatively stable. Globacom and 9mobile saw slight increases in their subscription numbers.
Global
Key Fed inflation measure shows prices rose just 0.3% in May - CNBC
US inflation pressures eased in May as consumer spending slowed. Core PCE increased 0.3% for the month, while overall inflation rose 0.1%. Spending rose 0.1% and personal income accelerated.
Tesla beat Q2 delivery estimates as price cuts pay off - Reuters
Tesla delivered a record 466,140 vehicles in Q2 2023, surpassing market estimates. Price cuts and US federal credits boosted sales. The company produced more vehicles than it delivered, narrowing the gap from the previous quarter.
Goldman Sachs may exit partnership with Apple - WSJ
Goldman Sachs is reportedly considering ending its partnership with Apple, which includes offering an Apple-branded credit card and other consumer products. Goldman's consumer banking efforts have faced challenges, leading to discussions about moving its Apple offerings to American Express. No deal is imminent, and any changes would require Apple's approval.
BoE considers forcing foreign banks to replace branches with subsidiaries - Financial Times
The Bank of England is reportedly considering plans to require more international banks to establish subsidiaries in the UK, following the collapse of Silicon Valley Bank earlier this year. This move would make it easier for local regulators to take control in case of failure. The Bank of England has not commented on the matter.
US looks to curb China’s access to cloud computing - WSJ
The Biden administration is reportedly planning to restrict Chinese companies' access to U.S. cloud-computing services provided by Amazon, Microsoft, Google, and others. This move aims to control the use of advanced artificial intelligence chips by Chinese customers.
Airbus trials new wing designs in technology race with Boeing - Reuters
Airbus is intensifying testing of innovative wing technology for its future aircraft, aiming to create longer, lighter, and more efficient wings. The company faces the challenge of reducing costs while developing composite technologies for weight reduction. The focus is on a potential successor to the A320 series.
Meta unveils Threads app to take on Twitter - New York Times
Meta, the parent company of Facebook and Instagram, is releasing Threads, a new app connected to Instagram that aims to compete with Twitter in real-time public conversations, capitalizing on Twitter's recent turmoil under Elon Musk's ownership.
Cocaine was found in the White House - Bloomberg
The White House was briefly evacuated after suspicious powder was found, later identified as cocaine. The substance was discovered in a common area, not in any specific office. Further investigation is underway.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
The Caixin China General Services PMI fell to 53.9 in June 2023 from 57.1 in the previous month. While the number still remains in expansionary territory, we're still seeing a gradual decline in the numbers which is not encouraging for consumption and economic growth.
Investors lower expectations for Asian equity gains on faltering China growth, tight monetary policy. Geographically India and Japan stocks may benefit from economic growth and supportive policies.
Singapore central bank chief says economic outlook dimmed for the country
RBA paused hikes yesterday but left the door open for further hikes.
Shein in talks with banks and exchanges about US IPO
Europe, Middle East, Africa
China's rare earth metal export ban poses disruption and risks for European semiconductors
The Eurozone’s Global Composite PMI falls to 49.9 into contractionary territory.
Upcoming Q2 reporting season previews in the spotlight. Refinitiv I/B/E/S data showed Stoxx 600 Q2 earnings are expected to fall 7.4% from a year earlier but analysts noted that these low expectations does offer opportunities for Corporate Europe to deliver profit beats.
UK flow data shows equity funds dumped in favor of high yields, safe havens; The risk for UK interest rates is skewed to higher for longer levels as the BoE grapples with high inflation.
Eurozone inflation may be running high, but real economy showing clearer signs of demand and credit stress, highlighted by PMIs and bank lending surveys. This could compel the ECB to pause sooner than expected.
JPMorgan flags risks to UK housebuilders due higher rate environment. Sector valuations still above October 2022 levels, but sees potential softening in sales rates due to uncertainty on rates.
The Americas
It’s a slow newsday in the US, after the July 4th holiday.
US preparing to restrict Chinese companies' access to cloud-computing services
Talks collapse between UPS and Teamsters
Rivian Automotive: Amazon (AMZN) rolls out first electric delivery vans from Rivian in Europe
Investment Tip of The Day
Review your insurance deductibles and assess if adjusting them can save you money on premiums. Increasing deductibles can lower your insurance costs, but ensure you have sufficient savings to cover potential expenses.
Meme of the Day
