Business
U.S. Stocks Gain Ahead of Fed Decision
NEW YORK — U.S. stocks opened higher as investors waited to see whether the Federal Reserve would decide to maintain the current pace of its bond-buying program at the conclusion of its policy meeting later today.
The Dow Jones Industrial Average gained 57 points, or 0.4%, to 15934. The S&P 500-stock index rose four points, or 0.2%, to 1785. The Nasdaq Composite Index tacked on two points, or 0.1%, to 4026.
The outcome of the Fed meeting is expected to remain in focus for most of the session Wednesday, with investors zeroed in on whether the central bank will start to taper its $85 billion in monthly bond purchases.
The purchases have been intended to spur economic growth; some analysts say recent data on the economic and unemployment front could cause the Fed to pull back on its bond buys. The Fed decision is due at 2 p.m. Eastern time, with a news conference with Fed Chairman Ben Bernanke to follow at 2:30 p.m.“Even overnight, you’re seeing people positioning ahead of the Fed meeting,” said Colin Cieszynski, senior market analyst with CMC Markets. “The bears don’t want to get too bearish in case they’re wrong, and the bulls don’t want to get too bullish.”
Markets have swung in recent weeks as traders and investors have tried to determine the outlook for Fed action this month. Stocks declined last week, with markets notching their largest single-day decline in a month in one session, on expectations that the Fed could decide pull back on its bond-buying program.
But last week’s losses followed a rally on a better-than-expected November government jobs report. The Fed has said it would watch the labor market closely to determine whether the economy was strong enough for it to take a step back. The S&P 500 is now up 0.4% so far this week.
It isn’t clear how markets will react to any move—or a signal of any future moves—from the Fed. Mr. Cieszynski said he doesn’t expect the central bank to start to pare its bond-buying efforts this month, but thinks officials could signal they want to start cutting back on easy-money policies in the early months of 2014. In that case, he said, markets could see a short-term boost but decline in 2014, in anticipation of the Fed’s step back.“As soon as we get back from the holidays, that’s on everyone’s horizon,” said Mr. Cieszynski.
Treasury prices fell ahead of the Fed decision, with the yield on the 10-year note rising to 2.879%. Rates have risen this year in anticipation of the central bank stepping back from bond-buying, with a sharp rise in early summer.
Wednesday brought signs that the housing industry is adjusting to rising interest rates, however, as new-home construction jumped by more than expected in November. The Commerce Department reported that U.S. housing starts rose to a seasonally adjusted annual rate of 1,091,000, its highest level in nearly six years. November building permits, an indicator of future construction, fell by 3.1%, a smaller drop than expected, to 1,007,000.
Gold futures rose 0.1% to $1,231.80 a troy ounce, while crude-oil futures were 0.6% higher at $98.04 a barrel. The dollar edged higher against the euro and the yen.
Meanwhile, the Stoxx Europe 600 index was 0.9% higher. Germany’s DAX added 1% amid further signs of strength for Europe’s largest economy. The Ifo institute’s business-confidence index climbed to 109.5 from 109.3 in November, hitting its highest level since April 2012 and matching economists’ forecasts.The U.K.’s FTSE 100 gained 0.2%, showing little reaction to a fall in U.K. unemployment to 7.4% in the three months to October–its lowest level in 4½ years. Economists had forecast a rate of 7.6%.
Asian markets provided a positive backdrop, as strong Japanese export data spurred a 2% gain for Tokyo’s Nikkei index. The yen’s decline against the dollar came amid speculation that Prime Minister Shinzo Abe might make a growth-strategy announcement in a speech Thursday.
Hong Kong’s Hang Seng Index rose 0.3%, while the Shanghai Composite dipped 0.1%.
In corporate news, FedEx edged up 0.5% even after it reported fiscal second-quarter profit that fell short of Wall Street forecasts. The shipping giant raised its full-year forecast for adjusted earnings, in part to account for recent share purchases.
VeriFone Systems fell 6.4% after the card-payment system maker reported earnings late Tuesday that missed analyst estimates.
Heico gained 4.1% after the aircraft-components maker beat analyst forecasts for its earnings and revenue, and gave an upbeat outlook for the new fiscal year.
– WALL STREET JOURNAL
The need for stronger regional collaboration, government-private sector synergy, and innovative market solutions to unlock Africa’s economic potential has been brought to the fore.
Group CEO of the Nigerian Exchange Group Plc (NGX Group), Temi Popoola, shed light on the transformative potential of Africa’s capital markets at the launch of the Ethiopian Securities Exchange (ESX).
The NGX Group’s strategic investment in ESX underscores its leadership in advancing Africa’s capital market infrastructure. “The launch of ESX represents a pivotal moment for Ethiopia and the broader African financial landscape,” Popoola stated. “ESX will serve as a crucial mechanism for capital formation and market liquidity, driving sustainable economic growth.”
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Expounding on NGX Group’s investment rationale, Popoola highlighted Ethiopia’s immense market potential and the shared vision of fostering economic growth through innovation. “Our partnership transcends traditional investment parameters,” he explained. “It is about ensuring that ESX evolves into a key player in Africa’s financial ecosystem, enabling cross-border investments and setting benchmarks for market development.”
Popoola also drew parallels with global success stories like India, which has leveraged its capital markets to achieve significant economic transformation. He emphasized the importance of responsible market opening to attract local and continental capital. “By following this path, Ethiopia can become a financial hub in Africa,” he remarked.
Prime Minister Abiy Ahmed lauded the launch of ESX as a transformative milestone in the country’s journey toward economic modernization. “Today, we have officially rung the bell to launch the Ethiopian Securities Exchange, our nation’s first stock exchange,” the Prime Minister announced on X. “This is a call to global investors: Ethiopia offers immense potential, a fast-growing economy, and a clear trajectory toward shared prosperity.”
CEO of the Ethiopian Securities Exchange, Tilahun Esmael Kassahun, expressed confidence in the partnership with NGX Group. “We are pleased to welcome NGX Group as a strategic partner, building upon the existing support we continue to receive from them,” he said. Kassahun also emphasized the value of NGX Group’s expertise in shaping ESX’s growth and success.
Drawing from NGX Group’s six decades of experience, Popoola shared insights on diversifying financial instruments and expanding access to investment opportunities. “With the right mix of innovation, policy support, and regional collaboration, Ethiopia’s capital market can play a transformative role in driving economic development and establish itself as a leader in Africa’s financial ecosystem,” he concluded.
With the ESX poised to redefine Ethiopia’s financial landscape, NGX Group’s involvement highlights the critical role of partnerships and shared expertise in advancing Africa’s economic narrative.
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.
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