Business
World stocks lose grip on gains, euro scales heights
LONDON – The euro reached a five-year peak against the yen and a six-week high against the dollar on Tuesday, as focus intensified on the dwindling level of spare cash in the euro zone’s banking system and the ECB’s apparent lack of concern.
Stocks consolidated some of their gains of the last two days as caution also ticked-up before the Federal Reserve’s meeting next week amid talk of a tentative scaling-back of its stimulus from some of its policymakers.
After a subdued day for Asian stock markets, Germany’s DAX and France’s CAC 40 and Britain’s FTSE 100 all opened little changed to get the pan-regional FTSEurofirst 300 index off to a steady start.
Investors were poised for a busy day of data on some of the countries still struggling in the euro zone, as well as some interesting money market operations at the ECB where liquidity levels are now the tightest in two years.
Slightly weaker-than-expected French industrial production got things off to a shaky start though equivalent data from Italy was better ahead of its final third quarter GDP number later at 1000 GMT.
France’s disappointing figures did little to rattle the strong euro, or the region’s main bond markets as they continued to add to the minor gains of recent days.
The euro, at $1.3737, was at its highest level since late October versus the dollar and a five-year high of 142.19 yen as anticipation of further moves from Tokyo to boost growth kept the Japanese currency on the back foot.
“It is hard to say the euro will weaken unless the ECB does something,” said Laurent Fransolet, an interest rate strategist at Barclays in London.
“The bar for them (to carry out quantitative easing or other types of aggressive easing measures) is quite a bit higher compared to the Fed or Bank of England.”
Last week after the ECB kept rates on hold, the bank’s head Mario Draghi said he was satisfied with goings-on in the money market and on Monday, one of the bank’s other top policymakers Yves Mersch stressed the hurdles to further aggressive easing measures.
One factor that has been driving the euro higher is that, in sharp contrast to the Fed, the ECB’s balance sheet has shrunk 8 percent this year as banks have started paying back the 1 trillion euros they took at the peak of the euro crisis.
The amount of excess ECB cash that has long kept bank-to-bank borrowing rates pinned down is now at its lowest level since late 2011.
Analysts will be watching closely to see exactly how tight things have got later when the ECB attempts to get banks to park cash with it to offset its controversial sovereign bond purchases of the past.
GLOBAL IMPROVEMENT
Benchmark U.S. Treasury yields were steady at 2.8243 in early European trade and Wall Street was expected to inch higher when it resumes later after the S&P 500 drifted to another record high on Monday.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent, though the session’s moves were small as trading was cautious before next week’s U.S. Federal Reserve meeting.
The Nikkei stock average gave up 0.3 percent, pulling back from a one-week high as investors booked gains before the year-end, though Japan’s benchmark was still on track for its best yearly performance since 1972.
A spate of data released by China late in the session reassured investors worried that the world’s second-largest economy might be slowing. Industrial output was slightly shy of market expectations, but retail sales cheered.
“It’s hard to see this causing any anxiety to the authorities or causing them to see the need for policy change,” Tim Condon, economist at ING in Singapore, said about the Chinese data.
FED FOCUS
Signs of improvement in the global economy have provided fitful support to riskier assets in recent weeks as markets have been buffeted by uncertainty over the Fed’s tapering timeline.
A Reuters poll showed on Monday showed it was still expected to start the process in March, but some economists now say that it might do so as early as this month.
Several Fed officials also lent credence to the idea that a tentative reduction was on the near-term horizon on Monday.
St. Louis Fed President James Bullard said the bank could slightly reduce its monthly bond purchases this month, while Dallas Federal Reserve Bank President Richard Fisher also said tapering should start next week.
On the commodities front, Brent oil was back up to $110 a barrel though U.S. crude edged up to $97.79 per barrel on expectations of a second weekly drop in U.S. crude inventories.
Spot gold hovered to $1,240 an ounce, after gaining over the last two sessions on short-covering, technical selling and some fund-buying.
Copper was steady at $7,137.25 a tonne, near a one-month high as steady consumer buying from China put a floor under prices.
– REUTERS
The Dangote Petroleum Refinery and Petrochemicals is of the view that deregulation should not be used as a justification for the importation of off-spec petroleum products or the undermining of Nigeria’s national interests.
This was contained in a statement on Tuesday by Dangote’s Group Chief Branding and Communications Officer, Anthony Chiejina.
The counsel came in response to remarks by Chief Executive Officer of Pinnacle Oil and Gas Limited, Robert Dickerman, on the importation and blending of petroleum products, which he framed within the context of a “deregulated commodity market.”
However, the Dangote Petroleum Refinery is of the view that his argument for a deregulated market could not obscure the serious implications of his actions, which, it claimed, not only threatened the integrity of Nigeria’s energy sector but also endangered the welfare of its citizens.
While reiterating support for deregulation and industrialisation, the Dangote Refinery emphasised that the support must be grounded in a commitment to the sustainable growth of Nigeria’s economy, while shielding the people from exploitation.
The refinery made it clear that the health and safety of Nigerians should never be compromised in the pursuit of profit.
According to the statement, “The Dangote Petroleum Refinery and Petrochemicals Company has long been an advocate for deregulation and industrialisation in Nigeria, but our support is rooted in a commitment to the sustainable growth of the country’s economy and the protection of its people from any exploitation. Unlike Dickerman’s view, deregulation should not be a licence for the importation and distribution of off-spec products or the subversion of national interests.”
The company also noted that, as an American, Dickerman should be well aware of how his own country protects its industries. It pointed to several recent examples from the United States to underline the point.
For instance, U.S. President Joe Biden recently opposed the sale of U.S. Steel to Japan’s Nippon Steel, stressing the importance of maintaining strong American steel companies supported by American workers — an example of protectionism that prioritises national economic interests over short-term profit.
Similarly, the U.S. has taken action to restrict the use of Chinese-made cranes in its ports, citing national security concerns. The U.S. has also imposed a 100% tariff on electric vehicles and a 50% duty on medical equipment imported from China, further demonstrating its commitment to safeguarding domestic industries.
The U.S. has also ramped up efforts to boost its own production of computer chips and medical supplies, driven by national security concerns and the need for economic self-sufficiency. Furthermore, during his presidency, George W. Bush used anti-dumping laws to impose tariffs on a range of Chinese goods that were considered to be unfairly priced.
“It is therefore perplexing that Dickerman, with all his experience in the U.S. market, would advocate for the importation and blending of petroleum products to Nigeria under the claim of deregulation and a free market. The fact is that he had deceitfully approached us and pleaded that we extend the pipeline from our refinery to Pinnacle’s tank farms for the purpose of blending our high-quality products with their imported products and selling them to Nigerians. We categorically rejected his request to extend our pipeline to their tank farms for such devious purposes because it would be a betrayal of the Nigerian people’s trust. The health and safety of Nigerians cannot—and should not—be compromised for profit,” the statement added.
The company also raised concerns over Pinnacle Oil’s decision to lease its tank farms to a company without any retail outlets in Nigeria, questioning the strategic intent behind such actions, particularly given that the farms are located just 500 metres from Dangote’s refinery.
It expressed its vigilance regarding the coordinated efforts to undermine the Dangote Refinery, drawing parallels to the fate of refineries in Port Harcourt, Kaduna, and Warri.
Consequently, the Dangote Petroleum Refinery called on the government, patriotic Nigerians, and local businesses to remain steadfast in defending the country’s sovereignty and economic independence.
“The choice we face is between fostering industrialisation or allowing Nigeria to remain a dumping ground for inferior products while exporting jobs. For nearly three decades, cartels and their collaborators have sabotaged efforts to develop Nigeria’s refining capacity, keeping the country dependent on imported products. The time has come to end this cycle of exploitation and ensure that Nigeria’s energy sector works for the benefit of its people,” it added.
Reiterating belief that a strong, self-sufficient energy sector is vital for Nigeria’s economic growth, the Dangote Refinery affirmed that it will continue to advocate for policies and practices that protect both industries and the well-being of all Nigerians.
The company also expressed its support for healthy competition that drives innovation and quality, and looked forward to the upcoming commissioning of the four state-owned refineries, as promised by the NNPC Ltd.
“At Dangote Petroleum Refinery, we are committed to ensuring that Nigeria becomes self-reliant in petroleum production, and we welcome competition that drives innovation and quality. However, we will never allow the continued importation and blending of petroleum products, nor the deliberate destruction of our national economy. We believe that a strong, self-sufficient energy sector is vital to Nigeria’s economic growth, and we will continue to advocate for policies and practices that protect our industries and the well-being of all Nigerians.
“We eagerly anticipate the coming on stream of the Kaduna, Warri, and Port Harcourt refineries before the end of this year, as promised by the Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari. This milestone will not only end all baseless rumours of monopoly but also position Nigeria as a refining hub for petroleum products in Africa,” it concluded.
Chevron Nigeria Limited (CNL), operator of the joint venture between the Nigerian National Petroleum Company Limited (NNPC Ltd) and CNL, has expressed commitment to providing a seamless and inclusive experience for all applicants participating in the selection tests for its available job opportunities.
According to the General Manager, Policy, Government and Public Affairs, at CNL, Olusoga Oduselu, the company strategically achieves this by leveraging reputable organizations and technology.
Biztellers reports that the CNL retained Dragnet Solutions Limited (DSL), a provider of online assessment services with relevant expertise, to administer aptitude tests to candidates for its available job opportunities.
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Olusoga explained that the online assessments allow candidates to participate from various locations to save time and promote inclusivity for candidates who are constrained to participate in physical assessments.
He maintained that this strategy “provides equal opportunities for all candidates, including those with disabilities.”
According to Oduselu, the CNL was aware of some complaints of challenges by some candidates during their scheduled test period. To address these challenges, CNL engaged with DSL and deployed repeat tests for those who complained of technical hitches during the tests and those who could not participate in their scheduled tests.
“All isolated cases of system glitches have been addressed by our consultant, and the transparent, all-inclusive recruitment process continues. The applicants and our various stakeholders have commended this act of goodwill,” he stated.
The CNL’s recruitment process, including assessment, is transparent and fair and provides equal opportunity for all qualified candidates to compete for available job opportunities.
He added that the CNL assures its stakeholders that its recruitment process uses appropriate technology and complies with applicable laws and regulatory requirements.
Nigerian comedian and popular skit maker, Chibuike Josh Alfred, known by his stage name Josh2Funny, has shed light on the profitability of the content-creating industry.
In a recent interview with Echo Room, Josh2Funny highlighted the impressive financial potential that content creators can achieve, noting that it is possible for them to comfortably afford multiple luxury cars, including up to four Lamborghini vehicles.
Speaking candidly, Josh2Funny emphasised that content creation has become an extremely lucrative field due to the constant demand for fresh and engaging material. “If you want to buy four Lamborghini from content creation, you can buy it,” he said.
His remarks underscore the significant revenue opportunities available in the digital content landscape.
Josh2Funny explained that the continuous consumption of online content is what drives its profitability. “What do you think we are doing in the content-creating industry? Are we joking? You all are with your phones, when you’re in the bathroom, when you’re [using the restroom], you’re consuming our stuff. It’s like pure water,” he stated.
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The comedian further elaborated that businesses or industries that deliver products consumed on a daily basis often see the most substantial financial returns. Content creation, with its high rate of daily consumption by audiences worldwide, aligns perfectly with this model.
“People are out there, consuming our content every time,” he said, reinforcing the idea that the reach and influence of content creators have never been more extensive.
Josh2Funny’s insights reveal why the content-creating industry has become a lucrative career path for many in Nigeria and around the world. With the continuous growth of social media platforms and the public’s insatiable appetite for entertainment and relatable content, creators are finding new and innovative ways to monetize their craft.
This shift not only highlights the potential for significant financial gain but also showcases the evolving landscape of digital media, where influencers, comedians, and skit makers can turn creativity into a sustainable and highly rewarding business.
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