Business
U.S. Stock Futures Gain
NEW YORK — U.S. stock futures nudged higher to start to start the month of February, but some lingering concerns over weakness in overseas markets kept investors on edge.
European markets slipped, with some disappointing earnings from the banking sector offsetting stabilization seen in emerging-market currencies.About 90 minutes ahead of the open, Dow Jones Industrial Average futures gained 38 points, or 0.2%, at 15668.
S&P 500 index futures added four points, or 0.2%, to 1781 and Nasdaq-100 futures advanced 10 points, or 0.3%, to 3524. Changes in stock futures don’t always accurately predict stock moves after the opening bell.
On Friday, the Dow fell 150 points, or 0.9%, and the S&P 500 lost 0.6%, to end January with the worst monthly percentage declines since May 2012. The S&P 500 is down 3.6% from its Jan. 15 record-high close of 1848.38.
Among emerging-market currencies, the Turkish lira was little changed and the South African rand and Hungarian forint rose slightly against the dollar. But equities remained weak, with the iShares MSCI Emerging Markets exchange traded fund falling 0.4% in premarket trading.
Colin Cieszynski, senior market analyst at brokerage at CMC Markets said investors remain cautious despite the calm start to the week, because trouble in emerging-market currencies could flare back up at any time. He said he expects volatility to pick back up later in the week with the release of key jobs data in the U.S. and a policy announcement from the European Central Bank.“We’re just seeing a bit of a pause, but the markets are still vulnerable,” Mr. Cieszynski said. “We need a retrenchment in the [U.S.] market, so I wouldn’t be surprised to see a decline of 10% or so.”
On the economic calendar, the Institute for Supply Management’s manufacturing purchasing managers index for January is expected to show a drop to 56.0 from 56.5 in December. On the horizon is the January employment data, due out on Friday.
In addition, auto makers will release monthly sales figures throughout the session. General Motors gained 0.5% in the premarket while Ford Motor climbed 0.7%.
The yield on the 10-year Treasury note inched up to 2.676% from a near three-month low of 2.669% late Friday. Gold futures gained 0.7% to $1,248.10 an ounce, while crude oil futures edged up 0.1% to $97.63 a barrel. The dollar lost some ground against the euro and the yen.
In Europe, the Stoxx Europe 600 was down 0.2%, after snapping a four-month losing streak in January. Banks saw the heaviest losses. Poorly received updates from the U.K.’s Lloyds Banking Group and Switzerland’s Julius Baer dragged on that sector. That offset data showing the euro zone’s manufacturers expanded at a slightly faster rate in January.“The outbreak of nervousness in risk assets has been attributed mainly to a combination of [U.S. Federal Reserve] tapering, Chinese growth concerns and emerging-market currency volatility. We suspect the lukewarm corporate earnings news is as big an issue for equity investors,” said Ian Williams, economist and strategist at brokerage Peel Hunt.
Overnight, Asian shares fell following the latest official data for the Chinese manufacturing sector, which indicated a modest slowdown in January. Japan’s Nikkei Stock Average shed 2% as a stronger yen weighed on exporter shares. Chinese markets were closed for the Lunar New Year holiday.
In other early stock movers, Jos. A. Bank Clothiers slumped 5.5% after The Wall Street Journal reported that the apparel retailer has entered into talks to buy Eddie Bauer, as it looks to fend off a proposed takeover by Men’s Wearhouse.
Herbalife rallied 4.7% after announcing plans to offer $1 billion in convertible debt to fund the repurchase of its common stock.
– WALLSTREET JOURNAL
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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