Business
Slower growth in China and Europe drags world stock lower
LONDON – Europe and Asia dragged world equity markets lower on Monday as concerns about slower growth in China prompted investors to cut their risks.
The dollar slipped against major currencies as expectations that the Federal Reserve is in no rush to tighten policy kept the benchmark 10-year bond yield near last month’s six-month low.
Shanghai shares hit a three-week low as Beijing announced regulations that tighten its grip on interbank lending and aim to defuse risks among “shadow” non-bank financial firms that act like banks. Fresh data also added to evidence of a cooling property market.
“Markets think any weakness (in the Chinese economy) from here will be met with a policy response from the authorities,” said Manik Narain, strategist at UBS. “But there is room for China to disappoint.”
The benchmark MSCI world equity index fell 0.1 percent while European shares .FTEU3 lost 0.6 percent.
Emerging stocks .MSCIEF outperformed their developed counterpart by rising 0.3 percent, approaching last week’s 6-1/2 month high. Wall Street was heading for a weaker open with S&P futures down 0.3 percent.
The dollar fell 0.1 percent .DXY against a basket of major currencies while the euro ticked higher. The dollar fell to a 3-1/2 month low of 101.07 yen.
NO STRAIGHT LINE
European equity markets were dragged lower by British pharma group AstraZeneca, whose shares fell more than 13 percent after it rejected a sweetened “final” offer from Pfizer.
Deutsche Bank fell more than 2 percent after the lender unveiled plans to raise 8 billion euros ($11 billion) in new capital, in its third capital increase since 2010.
Deutsche’s cap hike gives it the firepower for the investment banking push, especially in the United States, after a retreat by competitors Barclays, UBS and others left a gap that it aims to fill.
But it also underscores how the bank fell short of its ambitious turnaround targets and how burdensome fines and settlements and lagging profitability have hampered management efforts to fortify capital by retaining earnings.
European shares have been rallying in recent weeks on expectations that the European Central Bank would cut interest rates to support the economy.
“It’s not going to be a straight-line recovery and people will lose confidence in it at times,” Richard Marwood, senior investment manager at AXA Investment Management, said.
“But you’ve got a safety net (from central banks) and I still think the stocks market is a better place to be than the bond market.”
The 10-year Irish government bond yield briefly fell towards last week’s record low after Moody’s upgraded Ireland’s credit rating by two notches to Baa1 .
“Ireland has come from being one of the weakest countries in the euro zone … but now in an upwards rating cycle, Ireland should do better than its current peers,” said Peter Schaffrik, head of European rates strategy at RBC.
Other peripheral yields in Italy and Spain rose as investors looked to book profits before European elections later this week. German Bund futures rose 7 ticks.
U.S. crude oil rose 0.6 percent to $102.67 a barrel.
– 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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