Business
Europe rides rebound in risk appetite, emerging markets shine
LONDON – Revived appetite for emerging markets helped Asian stocks hit a near six-month high on Wednesday, driving more modest gains in Europe and other developed markets, where future stimulus looks less clear-cut.
It was an easier start for European bourses after a difficult couple of days during which tensions have escalated in Ukraine and the European Central Bank has tempered expectations of a new asset-buying program.
The pan-regional FTSEurofirst 300 .FTEU3 rose 0.6 percent as the main markets in London .FTSE, Paris .FCHI and Frankfurt .GDAXI helped claw back some of the 1.2 percent the FTSEurofirst has lost so far this week.
In the currency market, the euro and sterling both remained firm as the dollar retook a bit of the ground it has lost against a rallying yen in recent days.
The International Monetary Fund predicted on Tuesday the global recovery would strengthen this year and next as output in richer nations picked up.
But it was emerging markets that got the thumbs-up from investors again on Wednesday.
MSCI’s broadest index of Asia-Pacific shares outside Japan advanced almost 1 percent .MIAPJ0000PUS to its highest level since late October, helped by another EM outperformance .MSCIEF, both in stocks and currencies.
Talk that China could be readying new economic support measures has helped investors largely put aside worries about geopolitics and slowing U.S. stimulus that fuelled a turbulent start to the year for emerging assets.
The South Korean won led Asian currency gains on Wednesday as it hit a near six-year high thanks to capital inflows, while the Indonesian rupiah rose as parliamentary elections started. <EMRG/FRX>
“The divergence (in performance) between developed market and emerging market assets and currencies has continued,” analysts at Morgan Stanley wrote in a note to clients.
“A rotation from growth to value assets is being broadly cited as putting major DM equity markets under pressure.”
GREECE IS THE WORD
Core euro zone bonds were under pressure in early European trading.<GVD/EUR>
But periphery debt was back in favor as chatter focused on talk Greece was poised to announce its return to bond markets, just two years after a spectacular default that saw investors lose 70 percent of their cash.
Greece has hired a group of banks to manage the sale of a 2 billion euro five-year bond, Thomson Reuters markets service IFR reported last week, a move sources said would now happen on Thursday.
“The fact that Greece is returning is good news for the periphery in general,” one trader said. The yield on Greek 10-year bonds traded at 5.995 pct, its lowest since prior to its first bailout in 2010.
Nervousness about Ukraine failed to temper the revival of risk appetite. The United States accused Russian agents and special forces on Tuesday of fomenting unrest, saying Moscow could be eyeing military action as it had in Crimea.
The dollar stood at 102.00 yen, off a three-week trough of 101.55 hit on Tuesday and a long way off the 2-1/2 month high of 104.13 against the Japanese currency it touched on Friday.
The British pound’s strong run has also been a focus in currency markets in recent sessions.
It was little changed and buying $1.6744 at 0815 GMT having jumped on Tuesday after strong industrial output data and glowing comments from the IMF had stirred expectations for the Bank of England to raise rates ahead of its peers.
“While the strength of the yen has likely caught many participants wrong-footed and runs counter to the underlying theme favoring carry strategies and risk assets, it may be the pound that is the most surprising,” currency strategists at Brown Brothers Harriman wrote in a note to clients.
SAFETY FIRST
In the commodities markets, gold traded near a two-week high after rising 1 percent on Tuesday thanks to the sharply lower dollar and the renewed tensions in Ukraine.
Spot bullion traded at $1,310.30 an ounce, not far off Tuesday’s session high of $1,314.43. <GOL/>
The events in eastern Ukraine also provided some support for oil by fuelling fears that tensions between Moscow and Western powers may disrupt supply from Russia, one of the world’s top oil exporters.
Brent stood little changed at $107.34 a barrel, holding most of the gains made when it surged 1.7 percent on Tuesday.
– REUTERS
Business
Tesla Aims for 2028 Commercial Production of Flying Car
Tesla has set a 2028 commercial production date for its new Roadster sports car that can briefly rise into the air using rocket technology.
According to CNN, the date was revealed when the manufacturers demonstrated its functionality on Thursday at a SpaceX testing facility in Texas, United States, where the two-seater vehicle performed a series of manoeuvres, including driving upside down before making a short airborne movement.
The prototype was operated without a driver during the test, with Musk saying the decision was taken “to make sure we don’t kill anyone.”
“Success is not guaranteed. I mean that. It’ll probably work, but if it doesn’t work, we’re at a safe distance,” he said.
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CNN reported that the vehicle uses 10 nozzles and high-pressure air tanks to generate thrust, with Musk claiming it could accelerate from zero to 60 miles per hour in less than a second.
The Tesla boss attributed the development to cooperation between the electric vehicle manufacturer and SpaceX, the rocket company he also leads.
He described the project as “the results of what happens when you have a collaboration with the world’s best car company and the world’s best rocket company.”
Musk also sought to assure spectators that the demonstration was genuine, saying, “We need an audience to prove that it’s not AI or SI. So you guys can tell people you saw it with your eyes, because what you see with your eyes, you will not believe.”
Despite the display, questions remain about whether the vehicle can achieve sustained flight and how practical it would be for everyday transportation.
Roger Conner, curator for vertical flight at the Smithsonian’s National Air and Space Museum, told CNN that combining the requirements of road vehicles and aircraft presented significant engineering challenges.
“Aircraft are extremely sensitive to weight, whereas with ground vehicles you want them to have bumpers and crumple zones and all that,” he said.
“Inevitably, something that is a hybrid between the two is going to be a poor performing aircraft and a poor performing vehicle, and also quite expensive,” he added.
Conner questioned whether the demonstration amounted to flying in the conventional sense.
“We’re not talking about sustained flight. We are literally talking about hopping,” he said.
However, Jim Dukhovny, chief executive of flying car startup Alef, said the technology was achievable, while pointing to the difficulties involved in making such vehicles transition safely from vertical take-off to forward flight.
“It absolutely is 100% feasible,” he told CNN.
“That being said, the hardest part on all eVTOLs, and for us, it’s a transition from (rising) vertical to (moving) forward. It needs to be extremely careful, making sure you do not lose lift, and making sure it’s very stable,” he added.
CNN also reported that Alef’s prototype weighs about 254 pounds, uses eight propellers and is designed to carry one person.
Musk said Tesla intended to begin production of the new Roadster in 2028.
CNN reported that the latest display adds to Musk’s ambitions to push Tesla’s vehicle technology beyond conventional electric cars, although the prototype’s ability to operate as a practical flying vehicle has yet to be established.
Business
Marketers Eye Portion of FG’s Petrol Discount
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to add its member-stations to the petrol discount programme.
It cautioned that the current arrangement could limit the reach and deny vast consumers in underserved communities the benefits of the 30-day discount window.
The PETROAN also urged the FG to allocate at least 30 percent of the discounted petrol volume to outlets operated by its members.
READ ALSO: Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project
The calls followed last week’s announcement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, of a petrol discount at Nigerian National Petroleum Company Limited (NNPC Ltd) retail outlets, with priority given to public transport operators nationwide.
According to the National Publicity Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, the exclusion of independent marketers could undermine the programme’s effectiveness, particularly in communities where NNPC retail outlets have limited presence.
He argued that independent marketers, with their extensive nationwide distribution networks, were better positioned to extend the benefits of the intervention to consumers in remote and underserved areas.
“Independent oil marketers have over 90 percent coverage and presence in the nooks and crannies of this country. You are giving NNPC that is situated only in the town. So how do the poor masses, whom you intend to ensure that this petroleum product will alleviate their sufferings, how would they now get it?” Ukadike asked.
He said the association was not opposed to the government’s policy but insisted that independent marketers should be included to ensure wider access to the discounted product.
“But it’s government policies; we are not against government policies, but let it be all-inclusive; let independent marketers be part of it,” he said.
Ukadike also urged the government to extend the discount period to 60 days, citing logistical challenges that could delay the movement of petrol from coastal depots to other parts of the country.
“And the 30 days should be extended to 60 days. Because of the circulation of petroleum products, most times it takes two weeks for a truck to leave Apapa and get to Gombe, Maiduguri, because of the bad road and all the rest of them and loading process,” he added.
Similarly, PETROAN National President, Billy Gillis-Harry, urged the Federal Government to allocate 30 per cent of the discounted petrol volume to the association’s retail outlets to facilitate broader national distribution.
Business
Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project
In the bid to transform Tanzania into the East African regional energy hub, the country is on the verge of concluding an agreement with a consortium of energy companies, including a $42 billion LNG project.
It was gathered that the project is designed to tap the 47.13 tcf of gas discovered in Tanzania’s deep offshore fields, part of the country’s estimated 57.54 tcf in total discovered reserves, the sixth-largest in Africa, behind Nigeria, Algeria, Senegal, Mozambique and Egypt.
READ ALSO: Shell Identifies Keys to Nigeria’s Energy Future
Equinor and Shell would be the lead operators, alongside involvement from ExxonMobil Pavilion Energy and Medco Energi, while state oil major, the Tanzania Petroleum Development Corporation (TPDC), would also hold an equity stake in the project.
“It’s almost there,” Khamis Mussa Omar, Tanzania’s finance minister, told Reuters.






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