Business
Growth worry sees Global shares fall for third day
LONDON – Global shares eased for a third day on Friday, on course for their longest losing streak in over a month, and yields on some lower-rated euro zone bonds rose as a gloomier economic picture in Europe led investors to shed riskier positions.
Weaker-than-forecast GDP figures from euro zone countries such as Italy, France and Portugal on Thursday challenged market expectations for an economic recovery in the bloc, which have boosted shares and lower-rated bonds in the region since last summer.
Sharp sell-offs in U.S. and Japanese shares and a fall in safe haven Treasury yields strengthened the feeling global investors were starting to question a 20 percent rally in global shares since June 2013, which propelled a key world index to 6-1/2 year highs earlier this week.
“There’s a general rotation and fall in risk appetite,” Andrew Parry, chief executive officer at Hermes Sourcecap, which manages 2.4 billion euros ($3.3 billion) worth of assets.
“In Europe…GDP figures yesterday show the recovery is quite modest so far.”
The MSCI All-Country World index .MIWD00000PUS was down 0.2 percent, falling for a third day and further retreating from 418.24, a high touched on Thursday and previously not seen since November 2007.
Futures pointed to a flat to lower start for U.S. indexes, which have fallen for the past two sessions.
Greek and Portuguese 10-year government bond yields rose, hit by nervousness around Greek government stability and weaker-than-expected growth data for Portugal.
“There will be some investors that are concerned and should take into consideration that is not just a one day movement but something more prolonged,” said Daniel Lenz, strategist at DZ Bank.
Italian, Spanish and Irish bond yields reversed early advances to trade slightly lower. <GVD/EUR>
Yields on benchmark German bonds, regarded as a safe-haven asset due to the country’s strong economy, hovered close to a one-year low while the euro consolidated just above a 2-1/2-months trough against the dollar. <FRX/>
In commodities, gold struggled below $1,300 an ounce after U.S. jobs and factory data indicated brighter prospects for that economy, hurting the metal’s appeal as an investment hedge. <GOL/>
Nickel prices rose on Friday, shaking off steep losses from the previous two sessions as investors refocused on shrinking supplies, while copper prices were on track to post their biggest weekly gains in nearly two months on robust demand. <MET/L>
Brent futures held above $109 a barrel as fresh tensions over Ukraine kept them on course for their biggest weekly rise since mid-April, but returning Libyan supply capped gains.
– REUTERS
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
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