Connect with us

Business

Euro share, peripheral bonds fall over election pressure

Published

on

LONDON – European shares and peripheral bonds buckled for a second day running on Tuesday, as political angst offset optimism over fresh support from the ECB.

The premiums demanded by investors to hold Spanish, Italian and Portuguese bonds rather than German Bunds rose to two-month highs amid growing nervousness about this week’s European Union elections.

Coupled with recent disappointing growth data, the worry is that strong showings by Eurosceptic parties from Greece to France could derail domestic reforms.

Shares across the region .FTEU3 faltered after a broadly solid start. The main bourses in London .FTSE, Frankfurt .GDAXI and Paris .FCHI dropped 0.5, 0.3 and 0.5 percent respectively. U.S. stock futures pointed to a lower start for Wall Street.

The upcoming elections will be the first time since the euro zone debt crisis began that the European electorate will get a chance to voice its opinion, said Kelly Craig, a global macro strategist at J.P. Morgan Asset Management.

“The polls are suggesting that 25 to 30 percent of seats could go to the Eurosceptic parties … that shows that a lot of people aren’t really happy with the way things are going,” he said. But that “may actually force the more center right and center left parties to work more closely and not have the feared big impact on the policy direction at the European level.”

The euro was back under $1.37, after two weeks of hints the ECB will loosen policy, which have undermined bets the single currency would top $1.40.

A trio of ECB policymakers – Finland’s Erkki Liikanen, Austria’s Ewald Nowotny and Spain’s Luis Linde – are all due to speak later. Analysts will be hoping for further clues on the decisions likely to be made at its meeting at the start of June.

“Largely baked into the (market) prices are a refi rate cut and a negative deposit rate and perhaps something additional like a targeted LTRO,” said J.P. Morgan AM’s Craig. “But the chance of anything firm in terms of asset purchases is low and markets had maybe been pricing a little bit of that in.”

THAI UNREST

Nervousness had also washed in from Asia, where Thailand declared martial law overnight after months of unrest and the Australian dollar dropped on uncertainty about its biggest industry, mining.

Thailand’s baht initially fell against the dollar, then steadied as dealers suspected the Thai central bank had intervened. Bangkok’s SET index .SETI also pared back some of its early losses to end down 0.8 percent.

The declaration of martial law was intended to restore peace and order and does not constitute a coup, deputy army spokesman Colonel Winthai Suvari told Reuters.

Fitch Ratings said the move was not in itself negative. “It may even help to break Thailand out of the political deadlock of the past six months, by which the two sides have failed to agree on arrangements for new elections,” said Andrew Colquhoun, its head of Asia-Pacific Sovereigns.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped about 0.3 percent. But Japan’s benchmark Nikkei stock average .N225 bucked the downtrend and tracked overnight gains on Wall Street.

BOJ ON DECK

The Australian dollar was the main mover on major currency markets on Tuesday, falling more than half a percent after a decline in the price of iron ore, one of the country’s biggest exports. <FRX/>

In the UK, high-flying sterling rose to a 16-month peak against the euro after a report showed British inflation rose more than expected in April. That also helped to widen the gap in yields between UK and euro zone government bonds.

“The data fuels expectations for an early rate hike from the Bank of England, this despite the dovish tone of the Inflation Report last week,” said Alex Edwards, head of corporate desk at UK Forex.

The dollar .DXY was slightly lower against the yen after dropping to its lowest in more than three months overnight. It last bought 101.32 yen, down about 0.2 percent on the day.

The BoJ is set to conclude its latest two-day policy meeting on Wednesday. Governor Haruhiko Kuroda has maintained an optimistic view of the Japanese economy, keeping expectations of further policy easing at bay.

In commodities trading, U.S. crude rose slightly, to $102.77 per barrel, after the weaker dollar lifted it close to a one-month high in the previous session. Spot gold was steady at $1,292.04 an ounce.

– REUTERS

Click to comment

Business

AFRICA CEO FORUM: Dangote Calls For More Investments To Propel Africa’s Economic Growth

Published

on

President of the Pan-African Conglomerate, Dangote Industries Limited (DIL), Aliko Dangote has called for increased investments in the African continent to foster its rapid growth and development.

He made the call at the largest gathering of private sector leaders in Africa, the Africa CEO Forum in Kigali, Rwanda.

According to Dangote, recent trends underscore Africa’s pivotal role as the future epicenter of global progress.

The business mogul cautioned against the continent’s overreliance on raw material exports, but advocating instead for strategic investments that will propel indigenous industries. He urged African nations to resist the urge to export raw materials but to nurture domestic manufacturing capabilities so as to reduce dependency on imported consumer goods.

He said, “Looking ahead, Africa holds the key to its greatness. I’m not merely investing money but dedicating my entire being to this cause. In Africa, possibilities are boundless. It is like a scratch card; you won’t know what is inside unless you scratch it.

“For some of us, despite the boom of the capital market in the US, we didn’t really participate, rather we invested in Africa.”

Over the past seven years, Dangote pointed out that he had channelled over $25 billion into bolstering Africa’s self-sufficiency in vital sectors such as fertilizers, petrochemicals, and refined products.

Notably, he said the monumental Dangote Refinery, boasting a capacity of 650,000 barrels per day, stands poised to meet the burgeoning demand across West Africa, Central Africa, and South Africa.

“We have finished our refinery; it is quite big. We believe it is what Africa needs. If you look at the entire continent, there are only two countries that don’t import petroleum products, only Algeria and Libya but the rest import.

“We need to change that, so we don’t just produce raw materials but finished products and create jobs. One of the things we need to know as Africans is that when we produce raw material and export them while others dump finished products on our continent, what we are doing is that we are importing poverty while exporting jobs. We must change the narrative.

“We just commissioned in February. We are producing jet fuel and diesel. By next month, we will be producing gasoline but what that will do is that it will be able to take most of the African crudes that are being produced and be able to supply refined products not only in Nigeria because our capacity is too big for Nigeria.

“It will be able to supply in West Africa, Central Africa and South Africa. This is the first phase, we are going to the next phase by next year,” he said.

Expressing concern over Africa’s paradoxical export of raw materials juxtaposed with an influx of imported finished goods, Dangote underscored the urgent need to reverse this trend.

He lamented that exporting raw materials while importing finished goods perpetuated a vicious cycle of job loss and poverty.

Founded in 2012, the Africa CEO Forum, is a platform through which African decision-makers connect with each other continuously, as well as with international investors and institutions operating on the continent.

It has evolved into an organisation dedicated to facilitating business in Africa through the exchange of ideas and experiences.

Continue Reading

Business

ICAN, NGX Regco Recommit To Transparency, Excellence In Corp Reporting

Published

on

NGX Rallies Corporates On Sustainability Reporting

. . . As Dangote Cement, Airtel, Seplat Top Awards

The Institute of Chartered Accountants of Nigeria (ICAN) and the NGX Regulation Limited (NGX RegCo) on Friday, 17th May held the maiden corporate reporting award.

Biztellers reports that the award recognizes the top 30 most capitalized companies listed on the Nigerian Exchange (NGX) for the 2022 financial reporting year.

It was gathered that the awards underscored both organization’s shared commitment to fostering transparency, accountability, and international best practices within the private sector. Evaluation criteria included financial reporting, corporate governance, and sustainability reporting.

Dangote Cement secured the top position across all three categories, earning the Platinum award alongside the best-in-class award of excellence in corporate governance. Airtel clinched the gold award, securing the second position and the best-in-class award of excellence in financial reporting for the period under review.

Seplat Energy was honored with the Silver award while also receiving the best-in-class award for excellence in sustainability reporting.

President, ICAN, Dr. Innocent Okwuosa, commended NGX RegCo for ensuring better disclosures and reporting among listed companies.

He noted that corporate reporting had evolved over the years from the time that most of its content focuses on financial reporting to when there emerged the clamour for incorporation of social and environmental disclosures.

He emphasized the evolution of corporate reporting over time, highlighting the shift from a primary focus on financial reporting to the increasing request to incorporate social and environmental disclosures, noting that “the latter has evolved and have been differently propagated including but not limited to Environmental Social and Governance (ESG) disclosure and of late sustainability disclosures”.

Dr Okwuosa added that good corporate reporting must reflect the best elements in corporate governance, financial, and sustainability reporting, highlighting that the maiden edition is limited to NGX-30 companies for ease of administration and will be extended to all the listed companies in the future.

On his part, CEO, NGX RegCo, Olufemi Shobanjo, highlighted that “without a doubt, transparency is one of the key drivers of any economy. It ensures full disclosure of information by entities and that such information is easily accessible to members of the public to make informed decisions.

“Over the years, there has been an evolution in the type and quality of information demanded, driven by heightened expectations from investors, decision-makers, and society as a whole.”

He added that “while financial reports remain at the forefront of information required by stakeholders, the concept of Environmental, Social and Governance (ESG) considerations has become an area of increasing interest to both public and private sector stakeholders”.

Shobanjo attributed this to the interplay between ESG and key issues such as sustainable development, corporate governance, climate change, stakeholder engagement, and community relations amongst a myriad of other issues.

“Stakeholders are beginning to demand more accountability, and companies are required to think beyond just profitability by expanding their scope to include the ethical impacts that their operations have on society or communities within which they operate,” he added.

He concluded that “as a self-regulatory organization, NGX Regulation remains committed to ensuring that the expectations of investors and other stakeholders regarding access to quality information are met.”

Continue Reading

Business

FG Reiterates Commitment To Utilise Gas For Economic Growth, Prosperity

Published

on

. . . Tinubu Lauds NNPC Ltd, Partners Over Three Commissioned Gas Projects

In line with its renewed hope agenda, the Federal Government has reiterated determination to utilize Nigeria’s abundant gas resources towards revamping her industrial growth and kick-starting economic prosperity.

Biztellers reports that President Bola Ahmed Tinubu made the assertion while commissioning three critical gas infrastructure projects executed by the NNPC Limited and its partners in Ohaji-Egbema, in Imo State and Kwale, in Delta States, on Wednesday.

The three projects commissioned include the expansion of the AHL Gas Processing Plant, the ANOH Gas Processing Plant and the 23.3km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline Projects.

He said, “It is pleasing that approximately, 500MMscf of gas in aggregate would be supplied to the domestic market from these two Gas Processing Plants, which represents over 25% incremental growth in gas supply.

“In practical terms, this translates into more gas to the Power Sector, Gas-Based Industries, and other critical segments of the economy.”

The President pointed out that from the onset, his administration was clear of its intention to leverage on the virtually unlimited capacity of gas to deepen domestic gas utilization, increase national power generation capacity, revitalize industries, and create multiple job opportunities for economic growth.

He said aside the Presidential Compressed Natural Gas (CNG) Initiative which is aimed at moving Nigerians away from petrol and diesel as vehicular combustion fuel, significant progress has also been recorded in incentivizing gas development through Presidential Executive Orders.

While congratulating the projects partners (NNPC Limited, Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and Seplat Energy for the successful implementation of the three projects, Tinubu particularly charged the NNPC Limited to, as the national energy company of choice, sustain its relentless efforts and record more successes in the energy sector for the benefit of all Nigerians.

President Tinubu described the commissioning as a highly significant milestone for Nigeria as it demonstrates his administration’s efforts to accelerate the development of critical gas infrastructure geared at enhancing the supply of energy to boost industrial growth and create employment opportunities.

He said the projects were fully in line with the Federal Government’s Decade of Gas initiative, and his administration’s quest to grow value from the Nation’s abundant gas assets while concurrently eliminating gas flaring and accelerating industrialization.

“I wish to assure the citizenry that these are just the beginning, as the federal government is stepping up its coordination of other landmark projects and initiatives that will ensure the earliest realization of gas fueled prosperity in our country.

“Consequently, I wish to assure investors in the energy space that this is an investment enabling government and we will not relent in facilitating the ease of doing business,” the President noted.

Earlier in his address, the Minister of State for Petroleum Resources (Gas) Rt. Hon. Ekperikpe Ekpo highlighted the efforts of his ministry to continue to champion the utilisation of gas as a transition fuel as Nigeria moves towards achieving clean energy efficiency and security by 2060.

Ekpo commended the President for his leadership and support towards the success of the three projects.

In his remarks, the GCEO NNPC, Mele Kyari described the commissioning as a demonstration of Mr. President’s commitment and support to grow the domestic utilization of natural gas for power generation, as feedstock for gas-based industries and overall rapid industrialization of Nigeria on the back of the enormous gas resources in the country.

Kyari assured that as part of its mandate, NNPC Ltd remains committed to maintaining energy security by executing more strategic gas projects for the benefit of Nigeria.

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.