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European Stocks fall Further After Wall Street Tumbles

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NEW YORK – European stocks tumbled for a third-straight session Friday, with a selloff in global markets showing no sign of abating.The Stoxx Europe 600 index was 1.2% lower mid-morning, adding to Thursday’s 1.3% decline, and echoing a slump on Wall Street, where the Dow industrials erased its gains for the year after suffering its worst one-day loss since February.

These sharp moves are a contrast to the becalmed markets that have largely prevailed so far this year.

Investors said there has been no single catalyst for the selling, but point to a lackluster earnings season in Europe and some strong U.S. economic data that has reawakened fears about the Federal Reserve raising interest rates sooner than expected.

“Investors have gotten used to a very low volatility, pretty boring market, grinding higher on low volumes. When portfolio managers see a move like this, it’s tempting to take some profit,” said Luca Paolini, chief strategist at Pictet Asset Management, which oversees roughly $450 billion of assets.

Mr. Paolini said he had expected a fall of 5% to 10% in equity markets at some point this year as investors adjust to the prospect of tighter U.S. monetary policy. Longer-term, he expects shares in Europe and the U.S. will continue to gain.

Stocks and bonds had fallen in tandem on Thursday, suggesting the market is becoming jittery about a tightening of U.S. monetary policy.“We’ve been neutral on equities because it’s very difficult to time a shift in the Fed’s stance; but it’s starting to happen,” he said.

U.S. stock futures pointed to further declines on Wall Street, indicating a 0.5% opening loss for the Dow. Changes in futures aren’t necessarily reflected in market moves after the opening bell.

Investors awaited the monthly jobs report later in the session.

Germany’s DAX was particularly hard-hit Friday, falling 2.1%. Investors are also worried about the economic impact of Western sanctions on Russia, and Germany has often found itself in the firing line given strong trade and energy links with Russia.

Argentina’s debt default and the financial woes of Portuguese lender Banco Espírito Santo have rattled investors. BES shares plunge once more on Thursday after the bank reported a record loss, and continued to fall Friday, shedding 5.5%.

On their own, each of these factors wouldn’t have been enough to worry investors, but taken together they have unnerved investors worried about expensive valuations in the U.S., and poor corporate results in Europe, according to Jeanne Asseraf-Bitton, head of cross-asset research at Lyxor Asset Management in Paris, which manages about $110 billion of assets.“When you add up several little things, markets have cracked,” Ms. Asseraf-Bitton said.

Earnings remained in focus for investors Friday.

French chemicals company Arkema was the biggest faller on the Stoxx Europe 600 after issuing a profit warning and weak second-quarter results.

Also in France, construction company Vinci slid after disappointing first-half results.

Adidas, which had weighed heavily on German markets Thursday following weak results, fell further after being cut to sell from hold by Deutsche Bank.

In currency markets, the euro was steady against the dollar, and traded at $1.3395, close to the eight-month low hit earlier in the week.

In commodities, gold picked up slightly from Thursday’s losses, rising 0.2% to $1,285.50 an ounce. Brent crude oil was down 0.3% at $105.74 a barrel.

– WALLSTREET JOURNAL

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Tesla Aims for 2028 Commercial Production of Flying Car

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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.

READ ALSO: 2027 Election: ‘Your Future Is More Valuable’ — IGP Warn Youths Against Political Violence

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.

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Marketers Eye Portion of FG’s Petrol Discount

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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.

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Tanzania Nears Completion of $42bn Equinor, Shell-Led LNG Project

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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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