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Euro and pound remain steady as European shares bounce back

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LONDON – On Tuesday, Shares in Europe improved as investors tried to take advantage of the price drop caused by geopolitical tension and doubts about global growth.

Markets were encouraged by hopes of stimulus measures in China and by a growing consensus that a rift between the West and Russia was unlikely to get out of hand.

Bourses in London.FTSE, Paris.FCHI and Frankfurt.GDAXI opened around 0.9 percent higher, bouncing after Monday’s 1 percent drop put the region’s FTSEurofirst 300 index .FTEU3 on track for its worst month since June.

While equity markets were hunting for bargains, the euro at 1.3827, the pound at 1.6483 and the region’s benchmark government bonds were little changed as they digested fresh data from the region’s biggest economies.

Top of the list was German business sentiment data from Germany’s Ifo institute. As expected, it dipped after this month’s tensions with Russia over Ukraine.

In Britain, inflation data showed price increases had slowed, reinforcing views that the Bank of England would hold off on raising interest rates.

“The reason why the equity markets are doing well is a bit of a rebound from the recent sharp sell-off,” said David Madden, a market analyst at IG index in London. “The euro has struggled a bit because of dollar strength more than anything, though I do think any strong sanctions slapped on Russia by the U.S. and Europe or vice-versa would knock equities again.”

STANDOFF

The Group of Seven major industrialized nations warned Russia on Monday it faces additional economic sanctions if President Vladimir Putin takes further action to destabilize Ukraine.

“The fallout from Ukraine so far has been very limited,” said Ramin Nakisa, a global macro strategist at UBS. “The politicians won’t have a strong mandate for heavy sanctions.”

In Asian trading, Japan’s Nikkei .N225 had dropped 0.4 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.2 percent after a lackluster session on Wall Street.

Short-dated U.S. Treasuries prices remained in focus after Federal Reserve chief Janet Yellen said last week that interest rates could rise early next year.

Two-year Treasuries, the most sensitive to interest rate changes, were steady at 0.4288 percent in early European deals, after reaching a six-month high of 0.4650 on Monday. Money market futures were pricing in some possibility of a rate hike by spring 2015.

LESS PRECIOUS

Buoyant short-term rates undermined precious metals again. Gold fetched $1,315.35 per ounce, close to Monday’s near- five-week low of $1,307.54. Silver tumbled to a six-week low of

$19.84.

Rising U.S. rates are also generally negative for emerging markets, but many of them have held up so far. They have been helped in part by expectations the Chinese government will introduce economic stimulus measures after weak Chinese manufacturing data was reported on Monday.

Mainland Chinese shares .SSEC touched a one-month high in Asian trade as companies linked to Shanghai’s free-trade zone gained on the back of media reports that its restrictions on foreign investors may be relaxed.

“The (manufacturing) data was pretty bad,” said Naoki Tashiro, president of T.S. China Research. “It looks almost certain that the first-quarter growth is likely to fall short of the government’s growth target of 7.5 percent. So the government is likely to take some measures.”

The Australian dollar, often seen as a liquid proxy for bets on the Chinese economy, briefly reached a three-month high of $0.9158. Copper, also highly sensitive to China’s fortunes, touched a week high.

Copper prices have now stabilized after sinking to a three-and-a-half year low on worries that China’s slowdown might trigger a wave of defaults on loan deals where copper was used as collateral.

“Copper is a little bit in pause mode at the moment,” said analyst Mark Keenan of Societe Generale in Singapore. “People are watching for any signs of fresh defaults, but also for the official PMI stats out next week.”

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

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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.

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

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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.”

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FG Reiterates Commitment To Utilise Gas For Economic Growth, Prosperity

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. . . 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.

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