Business
U.S. Stock Futures Turn Lower on Jobs Data
NEW YORK — U.S. stock futures turned lower after U.S. employment data for January came in lower than economists had expected.
European markets gained ground after a German court delayed a decision on the legality of the European Central Bank’s bond-buying program Immediately after the data was released at 8:30 am ET, Dow Jones Industrial Average futures were down 48 points, compared with being up 52 points just before the release.
On Thursday, the Dow surged 188 points, or 1.2%, to post the biggest one-day gain since Dec. 18.
For the year, stocks are still down: The Dow ended Thursday down 5.7% on the year, while the S&P 500 was off by 4.1%. The market has been weighed down by concerns over global economic growth and recent turbulence in emerging market currencies and stocks.
Investors were watching the government’s January employment report to see if the weak December report was a one-time aberration or marked the beginning of a real slowdown in hiring. Earlier this week, data showed that private-sector job growth in January fell shy of forecasts, while weekly jobless claims declined more than expected.
Nonfarm payrolls were expected to grow by 189,000, more than double December’s gain of 74,000 while the unemployment rate is seen slipping to 6.6% from 6.7% in December. Average hourly wages are forecast to increase 0.2% on the month.
“There is little doubt that markets are attaching a lot of importance to today’s labor data, despite the obvious points that it remains a highly erratic and heavily revised series, with the additional wild card of weather effects also thrown into today’s reports,” said Marc Ostwald at Monument Securities.
Kent Engelke , chief economic strategist at Capitol Securities Management, which oversees more than $4 billion, said given the recent stock strength, he wouldn’t be surprised to see the market react negatively to any surprise in the jobs data.
But overall, he remains positive on the market, given that corporate earnings have been coming in better than expected, and the market may be “fully valued, but it’s not overvalued.”
“You don’t go into a major market decline when corporate balance sheets are as strong as they are, and earnings are as strong as they are,” he said.
Reduced investor pessimism was evident in the fact that the 10-year Treasury yield was on an early track for a fourth-straight rise, which would be the longest such streak since Dec. 27. The yield was last at 2.724%, up from a three-month low of 2.585% on Monday. Bond prices move opposite to their yields.Among early stock movers, Apple rallied 1.7% after the technology giant said late Thursday that it has bought $14 billion worth of its common stock in the two weeks since it reported disappointing iPhone sales in the fiscal first quarter.
LinkedIn slumped 6.8% in premarket trading as the professional social network’s disappointing revenue outlook for the current quarter and full year overshadowed better-than-expected fourth-quarter results.
In Europe, the Stoxx Europe 600 tacked on 0.4%, after posting the biggest one-day gain in seven weeks on Thursday. Germany’s DAX 30 index added 0.3%, France’s CAC 40 edged up 0.3% and the U.K.’s FTSE 100 gained 0.2%.
Germany’s top constitutional court said the ECB’s Outright Monetary Transactions program, which has been critical in restoring confidence to the region’s markets, probably overstepped the central bank’s mandate . But the court referred the decision to the European Court of Justice.
“Any hope that we would get a clean, straightforward outcome now looks optimistic,” said Daragh Maher , a currencies analyst at HSBC in London. “But these negatives are offset to an extent by the idea that the [European court] might be a bit more sympathetic in its interpretation of the legality of the OMT given it has passed other pan-European crisis initiatives as being lawful in the past.”
Separately, data showed that German industrial output surprisingly declined in December, and industrial production in the U.K. rose slightly less than forecast.
Asian markets were mostly higher, with Japan’s Nikkei Stock Average surging 2.2%, boosted by some weakening in the yen. Stocks in mainland China resumed trading after a long Lunar New Year holiday, with the Shanghai Composite shaking off early loss to rise 0.6%.
In other corporate news, Activision Blizzard ATVI +8.04% surged 8.3% after the video game maker beat fourth-quarter earnings and revenue estimates, raised its annual dividend and paid down debt.
Illinois Tool Works announced late Thursday an agreement to sell its industrial packaging business to Carlyle Group for $3.2 billion. The stocks of Illinois Tool Works and Carlyle Group were still inactive ahead of the open.
– WALLSTREET JOURNAL
Business
Tinubu Moves To Transform Tragedy To Prosperity With Livestock Investment
Nigeria’s President, Bola Ahmed Tinubu is of the view that his administration’s renewed focus in driving international and local investments into livestock sector of the agricultural value-chain will end the crisis of farmer-herder clashes, eradicate hunger and poverty in addition to promoting economic prosperity.
President Tinubu said this Thursday in Rio de Janeiro, Brazil at the signing of a Letter of Intent between the Nigerian Government and the JBS S.A, one of the top three largest meat processing companies globally.
“What we are doing right now is that we are solving a problem that afflicted humanity in that part of Africa, clashes between farmers and migrating cows that have caused some life and bloodshed when there is a modern, civilized way to solve those problems and even bring a successful economy out of it.
ALSO READ: JUST IN: Senate Approves Tinubu’s ₦1.77trn Loan Request
“We are trying to turn a situation of tragedy, hopelessness into economic opportunity, see through problems and see the opportunity that is involved in it.”
The Nigerian leader called on the company to see the considerable potentials in what he called the $2.5billion livestock investment opportunities in Nigeria, especially with its huge population and tap into it, given JBS S.A’s globally recognized expertise in the area of guaranteeing food security.
“We’ve heard so much about you in terms of the reputation, and we believe in the partnership we are forging today.
“Food security is extremely important. As we talk right now, there is hunger. However, there is huge hope. And you are one of those hopes that we are looking at.”
President Tinubu told the JBS top executives that Nigeria is ready to do business with them, assuring them of a good return on their investment.
Prior to his visit to Brazil, President had commissioned a team of Nigerian officials and private sector players to take the advantage of the G20 Leaders’ Summit in Rio to conduct a study tour of Sao Paulo, Brazil and explore the opportunities in livestock development, meat processing, seed development and multiplication for key grains.
In his remarks, the Minister of Livestock Development, Idi Muhktar Mahia, who led the delegation, reported to the President that the team embarked on guided, extended and intensive tours of companies on the scale of their global reach, the integrated nature of their operations as well as the deployment of advanced technology. He added that from their interactions with various companies, JBS S.A. was chosen being the second largest meat processing company in the world with the capacity to process 33,000 cattle daily and over eight million birds daily, using advanced zero-waste practices. The company employs over 200,000 people across its subsidiaries in more than 50 countries in the world including United States, Canada, Mexico, Saudi Arabia among others.
Wesley Batista, founder and President of the JBS group, said the company is the largest employer of labour in Brazil with over $79 billion dollars revenue already in year 2024.
“We are glad to work with Nigeria to work together to develop the livestock industry there. We think it’s a good opportunity for our business in Nigeria and Africa as we believe Nigeria can be the center of supply of protein to many countries in Africa. We look forward to working with you. We are almost in December and this year is almost gone. We hope to be in Nigeria as soon as possible,” the founder and Chief Executive said.
Other members of the delegation included Minister of State Agriculture and Food Security Hon. Aliyu Sabi Abdullahi, Co-chairman Presidential Livestock Reform Committee, Professor Attahiru Jega, the Secretary of the Committee, Professor Mohammed Kuta Yahya, and the Chief Executive Officer of Nigerian Investment Promotion Council, Aisha Rimi.
Business
NANTA Champions Nigeria’s Tourism Revival With ₦742m Investment
The National Association of Nigeria Travel Agencies (NANTA) has disclosed an investment of ₦742 million over the past three years to position Nigeria as a premier tourism destination at the annual World Travel Market (WTM) in London.
Speaking in Lagos on Thursday, NANTA’s immediate past president, Mrs. Susan Akporiaye, revealed that the funds were used for exhibition pavilions, magazine publications, and logistical support for members attending the prestigious trade show.
“In three years, NANTA has spent ₦742,226,100 to deliberately put Nigeria on the global tourism map at the WTM. This was achieved with only skeletal support in 2022 and 2023,” Akporiaye said.
READ MORE: Adeleke Represents SW On Ad Hoc Committee on Nat’l Electrification Plan
According to Akporiaye, the association received minimal support in its early years of participation.
In 2022, La Campagne Tropicana Beach Resort and Air Peace contributed by placing advertisements on the Nigerian pavilion and in the association’s magazine. By 2023, Ibom Air joined the effort, supporting NANTA with adverts, while La Campagne Tropicana maintained its support.
The 2024 edition, however, marked a turning point. Akporiaye noted that for the first time, Ibom Air went beyond advertisements to co-exhibit, alongside Eko Hotels and Sabre Travel Network. Their contributions made Nigeria’s representation at WTM more robust and impactful.
“Sabre Travel Network also supported us, so we had their graphics, as well as Ibom Air’s, displayed on our stand. Their contributions made our 2024 participation very grand,” she added.
Akporiaye highlighted that 90% of the funds for WTM participation came directly from NANTA members, underscoring their commitment to Nigeria’s tourism development.
“This shows that we are true patriots, and we deserve national recognition for our efforts,” she said.
NANTA began attending the WTM in 2022 to fill the gap left by Nigeria’s absence from the event for over 10 years.
The association saw the need to promote the country’s tourism potential and create international business opportunities for its members.
“It’s been a wonderful and successful three years that NANTA has participated in WTM, filling the gap left by Nigeria’s absence for over 10 years. We are glad to have handed over the baton of Nigeria’s participation at WTM to the Nigerian government this year,” Akporiaye said.
Through its participation, NANTA has secured affiliations with international tourism boards, organized product training for members, and raised awareness about Nigeria as a destination.
These efforts have also led to partnerships with global airlines and travel boards, fostering significant growth for members’ businesses.
“Our participation at WTM has helped members’ businesses grow significantly. We have formed partnerships with airlines and travel boards worldwide.
“Our greatest achievement at WTM is drawing Nigeria’s attention back to the need to exhibit at the global travel market,” Akporiaye said.
The initiative has also inspired members to expand their horizons into global Meetings, Incentives, Conferences, and Exhibitions (MICE) events.
Business
CSR: Dangote Cement Fuels Education With Support Projects At Lagos Schools
Dangote Cement Plc, a leading cement manufacturer, has donated multi-million Naira educational support projects to secondary schools in Lagos as part of its social investment initiatives.
The company in a statement explained that the move is aimed at complementing the government’s efforts in providing quality and sustainable education in the state.
It was gathered that the projects were commissioned and handed over to various schools in the Ikoyi-Obalende Local Council Development Area, align with the Sustainable Development Goals (SDGs) on education. These goals focus on ensuring inclusive, equitable, and quality education, as well as promoting lifelong learning opportunities for all.
The projects, warmly received by both teachers and students, include 100 dual school desks for Ilado Community Junior High School and Wahab Folawiyo Senior High School, alongside a refurbished and fully equipped Chemistry Laboratory at the Government Senior Secondary School, Ikoyi.
ALSO READ: Dangote Cement Ibese Fetes Host Communities’ Senior Citizens
Also donated were reading tables, chairs, and bookshelves for the library at Government Junior Secondary School, Ikoyi.
A celebration also took place at Falomo Junior High School and Ireti Senior Grammar School, both in Ikoyi, where the company donated 20 brand-new desktop computers to the ICT departments of the schools.
At the event at Government Junior College, Ikoyi, the Group Managing Director of Dangote Cement Plc, Arvind Pathak, explained that social investment is a key part of Dangote Cement’s operations.
He said the company is dedicated to giving back to society and supporting the sustainable development of local communities, especially in areas where it operates.
Pathak’s address was delivered by Wakeel Olayiwola, the Head of Social Performance at Dangote Cement Plc.
He said, “education holds a pivotal role in the development and empowerment of the youths in the country. As a cornerstone for societal advancement, it serves as a critical tool for personal growth, economic development, and national progress. An educated youth population not only fosters individual success but also contributes significantly to the nation’s overall wellbeing.
“At Dangote Cement, we believe that providing quality education to our youth is vital and should not be left solely as the government’s responsibility. Thus, we aim to partner with the government to enhance educational development in this regard.
“The projects we are handing over today are part of our 2024 Corporate Social Responsibility (CSR) programme for selected schools within the neighbourhood of Dangote Cement Plc’s Head Office in Ikoyi, Lagos. These projects were selected based on need assessments in collaboration with the schools.”
As a responsible corporate entity, Pathak noted that Dangote Cement’s commitment to societal wellbeing, with investments in four key areas: Education, Healthcare, Infrastructure, and Economic Empowerment programmes.
“This year, our plants in Ibese, Ogun State; Obajana, Kogi State; Gboko, Benue State; Okpella, Edo State; and our Pan-African operations have launched several social investment projects. These efforts contribute to the quality of life in our host communities and support sustainable national development,” he added.
Pathak thanked the Lagos State Government, the Tutor General/Permanent Secretary, and the school management teams for their collaboration in identifying the schools’ needs and ensuring the timely completion of the projects.
Dr. Idowu Olufunke Oyetola, Tutor General and Permanent Secretary of Education District 3, Lagos State Ministry of Education, who was represented by Bolaji Rotimi Ajayi, Director of School Administration, praised the long-standing partnership with Dangote Cement, noting that the schools selected for the donations were fortunate beneficiaries. “We hope for more collaborations that will positively impact education,” she added.
The principals of the recipient schools expressed their gratitude after the formal handover of the projects.
Odunlami Olubunmi, Principal of Ilado Community Junior High School, Ikoyi, thanked Dangote Cement for the new desks, stating that the donation would significantly improve the learning environment for the students, helping to prepare them for a brighter future.
Bamidele Ayotunde, Principal of the school with the refurbished laboratory, urged other businesses to follow Dangote Cement’s example in supporting local schools, pointing out the positive impact of the laboratory’s renovation on the school’s learning environment.
The Principal of Ireti Senior Grammar School, Ikoyi, whose school received the new desktop computers, described the donation as a positive development and expressed hope for more support in the future.
Pupils also shared their appreciation for the contributions. Abiola Jamaudeen, a lab prefect at Government Senior College, Ikoyi, promised that the laboratory would be used to its fullest potential and well-maintained.
Lawal Rumayzo Abdulsalam, a student at the school, said the new library equipment would foster better reading habits and create a more conducive environment for learning, ultimately preparing them for success. Some students even performed special songs to welcome the Dangote team to their schools.