Business
Global shares rally on hopes for U.S. jobs growth
PARIS – Stocks gained ground on Friday to further recover from a steep two-week selloff, buoyed by expectations that a January U.S. jobs report will soothe recent concerns over the pace of global growth.
The euro dipped to a session low against the dollar while German bund futures rose after Germany’s Constitutional Court referred the European Central Bank’s flagship bond-buying program to the European Court.
Europe’s FTSEurofirst 300 .FTEU3 index was up 0.2 percent in morning trade in Europe, while MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS climbed 0.9 percent and Tokyo’s Nikkei .N225 added 2.2 percent.
The gains mirrored a rally on Wall Street on Thursday, fuelled by data showing a drop in applications for U.S. unemployment insurance, as well as robust corporate results.
While the data has no direct bearing on January’s employment report, as it falls outside the survey period, it boosted the mood after the recent rout in emerging economies raised fresh concerns about the global growth outlook.
“After what we saw yesterday, we’re going slightly ‘long’ into the data and if the figures are good, we expect a nice short squeeze,” said Markus Huber, senior trader at Peregrine & Black, referring to a situation where traders scramble to unwind negative bets on the market, helping push prices higher.
According to a Reuters’ poll of economists, non-farm payrolls are expected to have increased by 185,000 last month, snapping back from December’s three-year low, which could eclipse recent tepid U.S. manufacturing data.
Emerging market equities were regaining ground on Friday, with the MSCI Emerging Market index .MSCIEF up 0.7 percent, while battered currencies such as the Turkish lira and the South African rand were trading off recent lows.
Data from Thomson Reuters Lipper showed further massive outflows from emerging market equities, however, with U.S.-based funds invested in emerging market stocks seeing redemptions of $2.7 billion during the seven-day period to February 5.
Alexandre Baradez, chief market analyst at IG France, warned about the risk that a lower-than-expected U.S. payroll figure could send stocks dropping again.
“If you look at the last batch of U.S. macro figures, it was quite sluggish, so the risk seems on the downside ahead of the payrolls data. This market correction is probably not over yet,” he said.
The euro fell to $1.3552, from around $1.3582 beforehand, and Bund futures rose as high as 144.02, up 69 ticks on the day, after German judges referred a complaint against the ECB’s OMT bond-buying program to the European Court.
Although the German court said it saw substantial reasons to suggest the OMT exceeds the ECB’s mandate, the European Court has a reputation for giving federalist rulings that take a broad interpretation of European institutions’ powers.
The announcement at the height of the bloc’s sovereign debt crisis in September 2012 of the as-yet unused program, which promises potentially unlimited sovereign bond purchases by the ECB, is widely credited with stabilizing the euro.
On the commodities front, London copper was set to post its largest weekly rise this year, boosted by hopes the U.S. jobs figures will calm fears about global growth.
Brent crude steadied above $107 a barrel, heading for its second weekly gain in three on optimism about the U.S. jobs data.
Gold inched up, trading at $1,260.35 an ounce, as Chinese buyers came back into the market after a week-long holiday.
– REUTERS
The Office of the Auditor-General of the Federation has uncovered financial irregularities amounting to ₦514 billion in the 2021 operations of the Nigerian National Petroleum Company Limited (NNPC Ltd).
The revelations were contained in a comprehensive audit report highlighting non-compliance and internal control weaknesses within Ministries, Departments, and Agencies (MDAs) during the 2021 financial year.
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Breakdown of Infractions
The audit detailed four major financial discrepancies within NNPCL:
“Irregular Deductions: A total of ₦343.64 billion was deducted from domestic crude oil sales at source without proper documentation.
“Sinking Fund Deposits: ₦83.66 billion, categorized as miscellaneous income, was retained in a sinking fund account.
“Unauthorised Refinery Deductions: ₦82.95 billion was deducted from federation revenue purportedly for refinery rehabilitation.
“Unsubstantiated Payments: ₦3.75 billion was flagged for transactions related to petrol sales that lacked proper verification.
The Auditor-General’s report stated that these financial activities violated the 1999 Constitution and the Financial Regulations Act of 2009, underscoring significant lapses in compliance with statutory guidelines.
According to the report, NNPCL generated ₦484.73 billion from domestic crude oil sales in March and May 2021.
However, ₦343.64 billion was deducted for various purposes, including “Value Shortfall,” “Strategic Stock Holding Cost,” and “Pipeline Maintenance.”
The deductions were made unilaterally by NNPCL without adequate documentation or justification.
Additionally, the report flagged ₦50 billion of the net payable amount for May 2021 as unaccounted for, creating a significant gap in the federation’s revenue.
“Audit observed from the review of NNPC SAP payment record for March and May 2021 payments that the sum of ₦484.73bn was the gross amount generated for the sale of domestic crude for the months of March and May 2021.
“The sum of ₦343.64bn from the gross amount was unilaterally deducted from the gross domestic crude sales as NNPC Value shortfall, Strategic Stock Holding Cost, Crude Oil and Products Pipeline Losses, as well as the pipelines maintenance and management costs.
“The details of each of the cost components deducted were not provided for audit review. Hence, the reasons for the deductions could not be justified by the management.”
On the unremitted ₦50 billion from May 2021, the report noted: “In the month of May, the net payable that could have been remitted ought to have been ₦127.075bn, but only the sum of ₦77.075bn was remitted, leaving an unremitted balance of N50bn to the Federation Account, which has remained unaccounted for.”
The report attributed these anomalies to weaknesses in NNPCL’s internal control systems, warning of the risks they pose to public funds.
It read, “The above anomalies could be attributed to weaknesses in the internal control system at NNPC, now NNPC Ltd. This is a potential loss of Federation revenue, diversion of public funds, or misapplication or misappropriation of funds.”
The success of the maiden edition of the Lagos Shopping Festival (LSF), Africa’s first 72-hour non-stop commerce and entertainment event has been credited to the Governor of Lagos State, Babajide Sanwo-Olu.
This is the view of Managing Director/Chief Strategist of Chain Reactions Africa Ltd, Israel Jaiye Opayemi, one of the main organisers of the event.
According to Opayemi, though Chain Reactions Africa conceptualised the event, the festival could be rightly described as the Governor’s baby and owes its success to his leadership. “Firstly, the Lagos Shopping Festival could not have come to fruition if the Governor did not buy into our audacious plan when we first presented the idea to him during the Covid-19 pandemic in 2020. Secondly, it was the Governor’s exemplary leadership of the project as its Chief Marketing Officer which attracted the buy-in of key sponsors like Zenith Bank, Tolaram Group, First Bank Plc, and Guinness Nigeria Plc,” Opayemi revealed.
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While the duo of Zenith Bank and First Bank provided their bank on wheel platforms for buyers at the Lagos Shopping Festival, they also supported the Vendors with special Point of Sale Machines with which to process payments from buyers. The banks were also seen marketing their diverse banking products to guests within the shopping arena.
For Tolaram, it was a time to support the citizens and give back to society. Guests at the Lagos Shopping Festival were freely given some of the products of the group such as PowerOil, Indomie and Kellogg’s packaged into goodie bags and given out to prospective buyers at the shopping arena. The Children’s Arena was however activated by Indomie with the children entertained by Santa Claus within a well-equipped arena manned by the Indomie Brands team and the Lagos State Safety Marshalls. The children were daily treated to free Indomie meals daily and given various gifts to go home with.
On its part, Guinness Nigeria came through as the real life of the Nigerian party by organizing product sampling activation for the teeming guests at the festival using brands such as Singleton, Johnnie Walker, Ciroc, Don Royale and Captain Morgan to deliver pleasant experiences to guests aside from Guinness and Malta Guinness.
While unveiling the identity of the festival last month, Governor Babajide Sanwo-Olu had thanked the management of Zenith Bank Plc, Tolaram Africa Group, Guinness Nigeria Plc and First Bank of Nigeria for supporting the idea of a Lagos Shopping Festival, describing it as a value addition on the state’s tourism calendar and the overall efforts to grow the State’s GDP. The Governor further said, “I must specially acknowledge your pioneering sponsorship role. It is easy for a corporate sponsor to jump on the sponsorship band wagon of an already established festival and fund it. But you are supporting the maiden edition of this Lagos Shopping Festival with us. The competition is watching you now. Do not build this brand with us and yield the space for the competition to take over. I do hope you would all commit long term to this brilliant initiative.”
On his part, Girish Sharma, CEO Guinness Nigeria Plc, expressed enthusiasm for the initiative. “Lagos is the commercial heartbeat of Nigeria and Africa’s entertainment capital, and the Lagos Shopping Festival captures its essence. We see opportunities in this initiative because it is a creative fusion of commerce and entertainment. This partnership reflects our dedication to fostering economic opportunities and support the nation’s vibrant entertainment industry.”
A first-of-its-kind, the festival was a convergence of commerce and entertainment, bringing together buyers and sellers in the MSME ecosystem, and hordes of fun-seekers who were entertained with thrilling performances by A-list entertainers, including Adekunle Gold, Wande Coal, Teni, Young Jonn, BNXN, Ayo Maff, SB Live and EmmaOMG. The list also included some of Nigeria’s most sought after DJs such as DJ Neptune, DJ YK Mule, DJ Baddo while Gbenga Adeyinka the 1st and Larry J dished out rib-cracking comedy performances.
Held from 23rd to 25th Day of December 2024, at the iconic Mobolaji Johnson Arena, Onikan Stadium, Lagos, the Lagos Shopping Festival saw thousands of fans throng the main venue and select Lagos malls during the three-day period to bag the latest bargains from local and top global brands.
The Nigerian Naira experienced mixed movements in the foreign exchange markets on Monday, as it depreciated to N1,665 per dollar in the parallel market, down from N1,660 per dollar recorded over the weekend.
In contrast, the official exchange rate saw the Naira appreciate to N1,534.56 per dollar, improving slightly from N1,535 per dollar last Friday, according to data released by the Central Bank of Nigeria (CBN).
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This reflects a marginal gain of 44 kobo in the official Nigerian Foreign Exchange Market (NFEM).
As a result, the gap between the parallel market rate and the NFEM rate widened to N130.44 per dollar, compared to the N125 per dollar margin recorded over the weekend.
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