Business
Stocks Decline Before Fed Speakers as Lira Slides, Gas Advances
WASHINGTON – Stocks fell in Europe and Asia after the Standard & Poor’s 500 Index dropped the most in two months yesterday. Turkey’s lira led emerging-market currencies lower while U.S. natural gas climbed for a third day.
The Stoxx Europe 600 Index slid 0.4 percent at 7:05 a.m. in New York, after closing yesterday at the highest level since May 2008. Japan’s Topix (TPX) index sank 2.3 percent and the yen weakened as the nation’s current-account deficit widened to a record. S&P 500 futures added less than 0.1 percent following the gauge’s 1.3 percent drop yesterday. The lira slid to an all-time low against the dollar. The 10-year Treasury yield rose two basis points to 2.85 percent. Natural gas added 1 percent.
Federal Reserve board members Charles Plosser and Richard Fisher are scheduled to speak after Atlanta Fed President Dennis Lockhart yesterday backed reductions in bond buying in the U.S., where retail sales data are due today. The S&P 500 climbed 30 percent last year, the best year since 1997, to close at the highest valuation in four years. The Stoxx 600 trades at 13.8 times its members’ projected earnings, more than the average over the last five years, after advancing 17 percent in 2013.
“The risk in the European market is if profits don’t follow multiple expansion, as that makes the market expensive,” said Nathalie Martin-Pelras, who oversees the equivalent of $1.3 billion as chief investment officer at KBL Richelieu Gestion in Paris. “After 2013’s multiple expansion story, corporate results have to deliver in 2014.”
Support Failed
Every industry gauge in Europe declined as the Stoxx 600 dropped. Celesio AG slid 6.1 percent after McKesson Corp. said it failed to gain support from enough shareholders to enable it to buy the German drug wholesaler. Ashmore Group Plc plunged 11 percent as the asset manager said that clients withdrew a net $3.5 billion from its funds in the three months through December. Jeronimo Martins SGPS SA slipped 2.4 percent after the Portuguese retailer said that sales growth slowed in Poland.
JPMorgan Chase & Co. was little changed in pre-market trading after reporting adjusted earnings per share that beat analysts estimates. JPMorgan and Goldman Sachs Group Inc. are among 29 members of the S&P 500 reporting earnings this week.
The S&P 500 declined yesterday the most since Nov. 7. The gauge traded at 15.4 times estimated earnings, more than their average multiple over the last five years of 14.1, according to data compiled by Bloomberg.
Last week’s payrolls report shouldn’t discourage Fed policy makers from pursuing cuts to asset purchases after they announced the first $10 billion reduction last month, Lockhart, who doesn’t vote on policy in 2014, told reporters yesterday. The economy was on a “solid footing,” he added.
Stimulus Cuts
Plosser, an opponent of bond purchases by the Fed, said this month policy makers shouldn’t try to make up for a permanent loss in potential growth caused by the financial crisis. Fisher argued for a $20 billion reduction in the central bank’s monthly bond purchasing pace instead of the $10 billion announced last month. The regional Fed chiefs and other voting members of the Federal Open Market Committee meet on Jan. 28-29.
A Commerce Department report today will probably show U.S. retail sales rose 0.1 percent last month, after increasing 0.7 percent in November, according to the median of 86 estimates of economists surveyed by Bloomberg.
The MSCI Emerging Markets Index slid 0.5 percent, with benchmark gauges in Russia and Turkey losing at least 1 percent. The lira dropped 0.6 percent to 2.1921 per dollar. It earlier weakened as much as 0.8 percent to 2.1964 after the country’s current-account deficit widened.
Labor Disputes
South Africa’s rand slumped to a five-year low on concern that labor disputes at the world’s three biggest platinum producers will weigh on mining output and dent the nation’s exports. The currency declined as much as 0.7 percent to 10.8952 per dollar, the weakest level since October 2008.
Japan’s currency fell against all of its 16 major counterparts after the current-account shortfall widened more than economists projected in November to a record 592.8 billion yen ($5.7 billion). The yen weakened 0.6 percent to 103.58 per dollar, the biggest decline since Dec. 18, after trading at 102.86 per dollar yesterday. The yen dropped 0.6 percent per euro. The dollar was little changed at $1.3684 per euro.
The Swedish krona strengthened after a report showed consumer prices rose more than economists estimated in December. It added 0.7 percent to 8.8273 per euro.
The cost of insuring corporate bonds against losses rose, with the Markit iTraxx Europe index of credit-default swaps on 125 European investment grade companies increasing 1.5 basis points to 73 basis points, the highest since Dec. 19. The Markit iTraxx Crossover index of contracts on speculative-grade companies rose 4.7 basis points to 288 basis points, the most since Dec. 20.
Stockpiles Forecast
U.S. natural gas climbed 5.5 percent yesterday, the most since April 29, after Citi Futures Perspective forecast a record drop in stockpiles after last week’s cold weather. Inventories probably fell by 303 billion cubic feet in the week ended Jan. 10, Citi Futures Perspective said before Energy Information Administration data on Jan. 16. That would surpass the biggest-ever decline of 285 billion on Dec. 13.
Gold fell 0.4 percent to $1,248.11 an ounce, the first drop in four days, and West Texas Intermediate oil advanced 0.2 percent to $91.94 a barrel.
– BLOOMBERG
Business
Deregulation, Not License For Off-spec Products Blending – Dangote Refinery
The Dangote Petroleum Refinery and Petrochemicals is of the view that deregulation should not be used as a justification for the importation of off-spec petroleum products or the undermining of Nigeria’s national interests.
This was contained in a statement on Tuesday by Dangote’s Group Chief Branding and Communications Officer, Anthony Chiejina.
The counsel came in response to remarks by Chief Executive Officer of Pinnacle Oil and Gas Limited, Robert Dickerman, on the importation and blending of petroleum products, which he framed within the context of a “deregulated commodity market.”
However, the Dangote Petroleum Refinery is of the view that his argument for a deregulated market could not obscure the serious implications of his actions, which, it claimed, not only threatened the integrity of Nigeria’s energy sector but also endangered the welfare of its citizens.
While reiterating support for deregulation and industrialisation, the Dangote Refinery emphasised that the support must be grounded in a commitment to the sustainable growth of Nigeria’s economy, while shielding the people from exploitation.
The refinery made it clear that the health and safety of Nigerians should never be compromised in the pursuit of profit.
According to the statement, “The Dangote Petroleum Refinery and Petrochemicals Company has long been an advocate for deregulation and industrialisation in Nigeria, but our support is rooted in a commitment to the sustainable growth of the country’s economy and the protection of its people from any exploitation. Unlike Dickerman’s view, deregulation should not be a licence for the importation and distribution of off-spec products or the subversion of national interests.”
The company also noted that, as an American, Dickerman should be well aware of how his own country protects its industries. It pointed to several recent examples from the United States to underline the point.
For instance, U.S. President Joe Biden recently opposed the sale of U.S. Steel to Japan’s Nippon Steel, stressing the importance of maintaining strong American steel companies supported by American workers — an example of protectionism that prioritises national economic interests over short-term profit.
Similarly, the U.S. has taken action to restrict the use of Chinese-made cranes in its ports, citing national security concerns. The U.S. has also imposed a 100% tariff on electric vehicles and a 50% duty on medical equipment imported from China, further demonstrating its commitment to safeguarding domestic industries.
The U.S. has also ramped up efforts to boost its own production of computer chips and medical supplies, driven by national security concerns and the need for economic self-sufficiency. Furthermore, during his presidency, George W. Bush used anti-dumping laws to impose tariffs on a range of Chinese goods that were considered to be unfairly priced.
“It is therefore perplexing that Dickerman, with all his experience in the U.S. market, would advocate for the importation and blending of petroleum products to Nigeria under the claim of deregulation and a free market. The fact is that he had deceitfully approached us and pleaded that we extend the pipeline from our refinery to Pinnacle’s tank farms for the purpose of blending our high-quality products with their imported products and selling them to Nigerians. We categorically rejected his request to extend our pipeline to their tank farms for such devious purposes because it would be a betrayal of the Nigerian people’s trust. The health and safety of Nigerians cannot—and should not—be compromised for profit,” the statement added.
The company also raised concerns over Pinnacle Oil’s decision to lease its tank farms to a company without any retail outlets in Nigeria, questioning the strategic intent behind such actions, particularly given that the farms are located just 500 metres from Dangote’s refinery.
It expressed its vigilance regarding the coordinated efforts to undermine the Dangote Refinery, drawing parallels to the fate of refineries in Port Harcourt, Kaduna, and Warri.
Consequently, the Dangote Petroleum Refinery called on the government, patriotic Nigerians, and local businesses to remain steadfast in defending the country’s sovereignty and economic independence.
“The choice we face is between fostering industrialisation or allowing Nigeria to remain a dumping ground for inferior products while exporting jobs. For nearly three decades, cartels and their collaborators have sabotaged efforts to develop Nigeria’s refining capacity, keeping the country dependent on imported products. The time has come to end this cycle of exploitation and ensure that Nigeria’s energy sector works for the benefit of its people,” it added.
Reiterating belief that a strong, self-sufficient energy sector is vital for Nigeria’s economic growth, the Dangote Refinery affirmed that it will continue to advocate for policies and practices that protect both industries and the well-being of all Nigerians.
The company also expressed its support for healthy competition that drives innovation and quality, and looked forward to the upcoming commissioning of the four state-owned refineries, as promised by the NNPC Ltd.
“At Dangote Petroleum Refinery, we are committed to ensuring that Nigeria becomes self-reliant in petroleum production, and we welcome competition that drives innovation and quality. However, we will never allow the continued importation and blending of petroleum products, nor the deliberate destruction of our national economy. We believe that a strong, self-sufficient energy sector is vital to Nigeria’s economic growth, and we will continue to advocate for policies and practices that protect our industries and the well-being of all Nigerians.
“We eagerly anticipate the coming on stream of the Kaduna, Warri, and Port Harcourt refineries before the end of this year, as promised by the Group Chief Executive Officer (GCEO) of NNPCL, Mele Kyari. This milestone will not only end all baseless rumours of monopoly but also position Nigeria as a refining hub for petroleum products in Africa,” it concluded.
Business
How CNL Stays Focused On Candidates’ Comprehensive Testing Experience
Chevron Nigeria Limited (CNL), operator of the joint venture between the Nigerian National Petroleum Company Limited (NNPC Ltd) and CNL, has expressed commitment to providing a seamless and inclusive experience for all applicants participating in the selection tests for its available job opportunities.
According to the General Manager, Policy, Government and Public Affairs, at CNL, Olusoga Oduselu, the company strategically achieves this by leveraging reputable organizations and technology.
Biztellers reports that the CNL retained Dragnet Solutions Limited (DSL), a provider of online assessment services with relevant expertise, to administer aptitude tests to candidates for its available job opportunities.
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Olusoga explained that the online assessments allow candidates to participate from various locations to save time and promote inclusivity for candidates who are constrained to participate in physical assessments.
He maintained that this strategy “provides equal opportunities for all candidates, including those with disabilities.”
According to Oduselu, the CNL was aware of some complaints of challenges by some candidates during their scheduled test period. To address these challenges, CNL engaged with DSL and deployed repeat tests for those who complained of technical hitches during the tests and those who could not participate in their scheduled tests.
“All isolated cases of system glitches have been addressed by our consultant, and the transparent, all-inclusive recruitment process continues. The applicants and our various stakeholders have commended this act of goodwill,” he stated.
The CNL’s recruitment process, including assessment, is transparent and fair and provides equal opportunity for all qualified candidates to compete for available job opportunities.
He added that the CNL assures its stakeholders that its recruitment process uses appropriate technology and complies with applicable laws and regulatory requirements.
Business
Content Creation Can Buy 4 Lamborghini’s – Comedian Josh2Funny Reveals
Nigerian comedian and popular skit maker, Chibuike Josh Alfred, known by his stage name Josh2Funny, has shed light on the profitability of the content-creating industry.
In a recent interview with Echo Room, Josh2Funny highlighted the impressive financial potential that content creators can achieve, noting that it is possible for them to comfortably afford multiple luxury cars, including up to four Lamborghini vehicles.
Speaking candidly, Josh2Funny emphasised that content creation has become an extremely lucrative field due to the constant demand for fresh and engaging material. “If you want to buy four Lamborghini from content creation, you can buy it,” he said.
His remarks underscore the significant revenue opportunities available in the digital content landscape.
Josh2Funny explained that the continuous consumption of online content is what drives its profitability. “What do you think we are doing in the content-creating industry? Are we joking? You all are with your phones, when you’re in the bathroom, when you’re [using the restroom], you’re consuming our stuff. It’s like pure water,” he stated.
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The comedian further elaborated that businesses or industries that deliver products consumed on a daily basis often see the most substantial financial returns. Content creation, with its high rate of daily consumption by audiences worldwide, aligns perfectly with this model.
“People are out there, consuming our content every time,” he said, reinforcing the idea that the reach and influence of content creators have never been more extensive.
Josh2Funny’s insights reveal why the content-creating industry has become a lucrative career path for many in Nigeria and around the world. With the continuous growth of social media platforms and the public’s insatiable appetite for entertainment and relatable content, creators are finding new and innovative ways to monetize their craft.
This shift not only highlights the potential for significant financial gain but also showcases the evolving landscape of digital media, where influencers, comedians, and skit makers can turn creativity into a sustainable and highly rewarding business.