Category: Business

Oil prices collapse as glut fear triggers heavy selling

Oil prices slumped Friday to lows not seen since last year as concerns over high crude supplies triggered massive selling, dealers said.

 

The WTI futures contract, the New York commodities markets’ benchmark, and its European counterpart Brent Crude both fell more than six percent on the day.

 

High global oil production compared to demand was the top reason for Friday’s selling, while the outlook for a weakening world economy led investors to conclude that growth would not be strong enough to soak up the surplus.

 

“The truth of the matter remains that rising global crude supply coupled with worrying signs of slowing demand have written a recipe for disaster for the oil markets,” said Lukman Otunuga, a research analyst at FXTM.

 

With a December OPEC meeting not expected to make a major dent in production levels, WTI now had scope to fall to $50 “in the near term”, he said.

 

In late European trading, WTI held just over $51 and Brent around $59.

 

Some analysts said US President Donald Trump had much to do with falling oil prices.

 

– Some say it’s Trump –

 

“Although most analysts claim that this has to do with supply overhang and increased production from Russia and Saudi Arabia, the bottom line is that the US President keeps pushing for lower prices,” said Fiona Cincotta, senior market analyst at City Index trading group.

 

“While this is the case it will be difficult to see a return to oil at a higher level unless oil cartel OPEC decides on a major output cut at its next meeting on December 6.”

 

The pound dropped versus the dollar, a day after spiking on news that Britain and the EU had struck a draft deal over ties post Brexit.

 

That came ahead of a weekend summit in Brussels to sign off on an overall package on the UK’s exit from the European Union in March.

 

Elsewhere, the euro dropped as data monitoring company IHS Markit said business growth in the 19-nation eurozone pulled back in November to its slowest rate in nearly four years, as exports weakened.

 

– Stocks mixed –

 

Eurozone stock markets, meanwhile, recoverd to show mild gains by the close but London ended lower as weak energy prices weighed.

 

On Wall Street, the Dow index was also under pressure with shares in energy companies feeling the pain from lower oil prices and investors weighing headwinds facing the global economy.

 

“US stocks are lower in early action following yesterday’s Thanksgiving holiday break, with the energy sector seeing some pressure as crude oil prices are continuing a tumble, while European political uncertainty remains and China/US trade worries are lingering ahead of next week’s G-20 summit,” analysts at Charles Schwab summed up market sentiment.

 

Earlier, Asian stock markets had already plunged into the red.

 

Chinese shares led the downward charge as Shanghai slumped by more than two percent, with the tech sector hit hard by a Wall Street Journal report that Washington is urging its allies to avoid using equipment from Chinese telecoms giant Huawei.

 

Worsening trade tensions between the United States and China have shattered confidence on global trading floors.

 

“China wants to make a deal. If we can make a deal, we will,” Trump said, ahead of crunch talks with his Chinese counterpart Xi Jinping at the G20 in Argentina next week.

 

The world’s top two economies have been locked in a trade war since the summer, with the US imposing punitive tariffs on Chinese goods worth $250 billion per year. In retaliation, China imposed tariffs on $110 billion of US goods.

 

Washington has threatened to toughen measures even further if the issue is not resolved before January.

 

– Key figures around 1640 GMT –

 

Oil – Brent Crude: DOWN $3.78 at $58.82 per barrel

 

Oil – West Texas Intermediate: DOWN $3.42 at $51.21

 

Pound/dollar: DOWN at $1.2808 from $1.2866 at 1700 GMT Thursday

 

Euro/dollar: DOWN at $1.1340 from $1.1400

 

Dollar/yen: DOWN at 112.87 yen from 113.00 yen

 

London – FTSE 100: DOWN 0.1 percent at 6,952.86 points (close)

 

Frankfurt – DAX 30: UP 0.5 percent at 11,192.69 (close)

 

Paris – CAC 40: UP 0.2 percent at 4,946.95 (close)

 

EURO STOXX 50: UP 0.3 percent at 3,137.21

 

New York – Dow: DOWN 0.3 percent at 24,404.46

 

Tokyo – Nikkei 225: Closed Friday for holiday

 

Hong Kong – Hang Seng: DOWN 0.4 percent at 25,927.68 points (close)

 

Shanghai – Composite: DOWN 2.5 percent at 2,579.48 points (close)

 

Vanguard business news

Is barister Cynthia Nwadiora (Ceec) the most endorsed BBN3 housemate?

Ever since Cynthia Nwadiora came out of the BBN3 house as the first runner up and also the last girl standing, she has in many ways proved Nigerians wrong following their perceptions about her

According to her series of interviews where she clearly stated that what happened in the house should stay in the house that she is very good with all her fellow housemates and ever ready to work with whoever is ready to bring a positive idea .

Many Nigerians still find it hard to believe that the ceec they watched in big brother for three months could be able to stay saga free and maintained maximum decency ever since she came out of the house,

Could this be the reason strong brands find her attractive to work with?

Miss Nwadiora has been recorded as the most successful and most endorsed female in the history of BBN  .

Let’s go through some of her endorsements

 

Shortly after the house, Cynthia was announced the brand ambassador to an American owned company that are into body  shape wears . (Slimshapewears)

Immediately After that , She bagged another endorsement deal  as the Brand Ambassador to number one sunglass company in Nigeria (House of Lunettes)

The Eyewear brand took to its official page to share the photos and wrote: “Welcoming @ceec_official to the @house_of_lunettes family as a Brand Ambassador.


Cee-c’s fashion sense and love for trendy Eyewear makes her a unique choice as “Face of Lunettes”. We are looking forward to a remarkable campaign of Cee-c in our new affordable Eyewear brands that are fashionable and well priced for our customers across the country.”

wow, things are getting more interesting for Cynthia.

Immidiatly After the celebration,  Another great news came in another shape, but this time with her best friend Sirleobdasilva AKA , Freshair as given to him by Cynthia his lover😜

The Announcement was made by Hon .Amb. Jonathan Daniel as he took to his Instagram

thus:

Cynthia Nkemdili Nwadiora aka CEEC  & Leo Da Silver* joins the list of credible Nigerian celebrities as Ambassadors of Numatville Tourism Megacity. Gets complimentary plots of land each at the Nollywood Quarters of the Megacity worth millions of naira. – Let’s join hands together to uphold the emergence of Africa’s first & Largest National Tourism & Cultural Megacity in Nigeria… Endorsement confirmed by Hon. Amb. Jonathan Daniel @Jodelamedia

wow, congratulations once again to Ceeleo

should I continue counting ? Another mind blowing endorsement on the side of Cynthia.

Cee-C has added yet another endorsement deal to her already growing list and this time, it’s with sports betting brand, NairaBet.

The unveiling of their latest ambassador was done on the sports betting social media platforms with additional photos from the contract signing event.

    Have I mentioned her latest deal with Number one Nigerian perfume company  , SAPPHIRE SCENTS As they took to their social media and Billboard to announce the unveiling  Of Cynthia as their newest brand ambassador with great pictures to back it up 

 

now I have to stop here for now and continue from next week as she is about to announce yet another mind blowing deal .

congratulations Ceec

 

 

 

Experts warn govt. of major challenges ahead as GDP shrinks to 1.5%

The National Bureau of Statistics on Monday released the Gross Domestic Product growth rate for the second quarter of this year with the economy recording a decline in performance from 1.95 per cent in the first quarter to 1.5 per cent.

The bureau in the report which was made available to our correspondent said the second quarter growth rate was constrained by contractions in the oil GDP.

Some finance and economic experts, reacting to the development, said it showed that the economy was still vulnerable to oil and herders/farmers clashes and warned of major macroeconomic challenges ahead such as increased inflation, unemployment and a further decline in external reserves.

In nominal terms, the NBS put Nigeria’s economic output during the second quarter of this year at N30.69tn, adding that this represented a 7.85 per cent increased when compared to the preceding quarter figure of N28.46tn.

The report read in part, “In the second quarter of 2018, Nigeria’s GDP grew by 1.5 per cent year on year in real terms to N16.58tn. Growth on Q2 was 0.79 per cent points higher when compared to the second quarter of 2016 which recorded a growth of 0.72 per cent, but -0.45 percentage points slower than 1.95 per cent recorded in the first quarter of 2018.

The NBS in the report said oil GDP contracted by -3.95 per cent in the second quarter as against 14.77 per cent in the first quarter of this year and 3.53 per cent in the second quarter of 2017.

The report said for the first time since Nigeria’s exit from recession, growth was driven by the non-oil sector which grew by 2.05 per cent, representing the strongest growth in non-oil GDP since the fourth quarter of 2015.

The 2.05 per cent growth rate is higher than the 0.76 per cent growth, which the sector recorded in the first quarter of this year.

It added that the non-oil GDP growth, which was 0.72 per cent in the first quarter of 2017, 0.45 per cent, -0.76 per cent, 1.45 per cent in the second, third and fourth quarter of 2017, respectively grew by 2.05 per cent in the second quarter of this year.

The report added, “Non-oil growth was driven by transportation which grew by 21.76 per cent supported by growth in construction which grew by 7.66 per cent and electricity which grew by 7.59 per cent.

“Other non-oil sectors that drove growth in Q2 2018 include telecommunication, which grew by 11.51 per cent; water supply and sewage, which grew by 11.98 per cent; and broadcasting, which grew by 21.92 per cent.

“The non-oil sector performance was however constrained by agriculture that grew by 1.3 per cent compared to three per cent in Q1 2018 and 3.01 per cent in Q2, 2017.”

In real terms, the NBS report said the non-oil sector contributed 91.45 per cent to the nation’s GDP compared to 90.96 per cent recorded in the second quarter of 2017 and 90.39 per cent recorded in the first quarter of this year.

Reacting to the GDP report, the Managing Director, Financial Derivatives Company Limited, Mr Bismarck Rewane, said the economy recorded “a significant drop in performance” in the second quarter because of the disruption in oil production and agriculture, citing the herdsmen/farmer crisis and force majeure on oil exports.

He said, “It (the Q2 GDP figure) just shows you that the economy is very vulnerable to oil in the South-South and herdsmen and pastoral conflict in the Middle Belt of Nigeria. And then there is a time lag between when you have policies and when you get results. The lesson is that Nigeria should stop celebrating too early. We tend to celebrate even before we see the real impact.

“So, we have some major macroeconomic challenges ahead of us, and we are going to see the external reserves declining; we are going to see oil production vulnerable. The good news is that oil production is going to go up in October. But in the fourth quarter, we are going to see another slow growth in petroleum sector.”

According to Rewane, the sectors that are growing fast are those that do not employ a lot of people, and so the unemployment data is going to be disappointing.

He said, “There is going to be increased inflation in August and September; there is going to be increased unemployment and flat growth. So the annual growth projection, instead of 2.1 per cent, is going to come in at about 1.8 per cent, which will be a disappointment.

“What is important is that it is time to now consider very seriously a reduction in interest rates because there is a need for activities. There is a broad market solution which will drive industries, and the Small and Medium Enterprises.”

A professor of Economics at the Olabisi Onabanjo University, Ago Iwoye, Sheriffdeen Tella, said the economy was growing gradually, adding that it would take some time before the budget would have real effects.

“So, it is not surprising that such growth was reported. The economy depends largely on oil sector and the US has reduced drastically its imports from Nigeria and the price of oil also reduced in the second quarter.

“What is important for us is to continue to pursue economic diversification – to continue to promote output from the industries because if agriculture is growing and what you are producing is for industrial use, definitely the industries will grow. So, as long as the industries are growing, the economy will improve. So, we must continue to pursue economic diversification particularly in the areas of agriculture and industries.”

Also reacting to the report, the Minister of Budget and National Planning, Senator Udo Udoma, said that the Federal Government was encouraged by the continuing growth recorded in the non-oil sector, which grew by 2.05 per cent in the second quarter.

But an economist and former Director-General, Abuja Chamber of Commerce and Industry, Chijioke Ekechukwu, said the fact that the non-oil sector drove the growth rate in the GDP was an impressive development for the economy.

He said, “This is an impressive development. To have a non-oil-driven growth is an indication that all the economic development efforts of the government are beginning to yield results.

“Government should sustain all policies that have expanded the frontiers of business in the private sector. It is the growth of non-oil sector that will form economic buffer should there be a sudden drop in the price of oil. Unemployment is expected to reduce as the non-oil sector grows. Non volatility of this sector gives any economy some stability and sustainable growth.”

millions Nigerians denied access to Internet – NCC

Coverage gaps in 200 communities across the country deprive more than 40 million people access to the Internet, the Nigerian Communications Commission has said.

The Executive Vice Chairman at NCC, Prof Umar Danbatta, said this in Abuja on Monday at the annual International Telecommunications Union regional capacity building workshop hosted by the Digital Bridge Institute.

Danbata said the regulatory agency was working on an intervention that would bridge the gap in the communities at the fastest time possible.

He said, “Access is very important. Talking about access, I don’t know the experience in other parts of the world especially the Africa continent but here in Nigeria, we have 200 access gaps and we know where these gaps are.

“These access gaps deprive close to 40 million people access to the Internet. We need to look at what we can do to fast-track blocking these access gaps because unless and until we do so, many of our citizens will continue to live without access to the Internet, especially the right kind of Internet connectivity.”

He added, “We are trying to make sure we are not left out in benefiting from the various important features of the fourth industrial revolution. While we are doing this, we are taking cognisance of the elements of digital transformation system because we have to start somewhere.

“How do we generate that critical mass of the Information Communication Technology adoption and use so that by so doing increase Internet and broadband penetration?

“The NCC through the Digital Bridge Institute funds interventions aimed at providing training particularly to teachers in our tertiary institutions so that they can leverage the power of ICT to improve content delivery to be able to access all relevant materials from the Internet.”

Danbatta said the essence was to provide the connectivity that was easily accessible and available to the masses.

Speaking at the event, the Administrator of the Digital Bridge Institute, Dr Ike Adinde, said there was no future with the ICT, adding that the more ICT skills available to youths in the country, the better for the economy.

Oil spills: ‘Shell using JTF to force us to sign report’

The people of Aghoro 1 community in Ekeremor Local Government Area, Bayelsa State, have accused Shell Petroleum Development Company of using the Joint Military Task Force, Operation Delta Safe, to coerce their leaders into signing oil spill reports.

Aghoro, a coastal settlement along Ramos River, recently experienced an oil spill from Shell facility in the community which polluted the river, farmlands and surroundings.11

A disagreement in the areas impacted by an oil leak on the Trans Ramos Pipeline within Shell’s oilfield at Aghoro communities is said to have stalled the release of Joint Investigation Visit report on the spill incident.

The community leaders, who participated in the JIV to determine the cause of the spill, subsequently declined to sign the report.

The refusal, it was learnt, was due to wide disparity between the impacted areas claimed by Shell and that of the community.

The Chairman, Community Development Committee, Aghoro 1, Mr Victor Akamu, alleged that Shell, in connivance with the JTF, had resorted to force and intimidation.

Akamu said on Monday that the JTF summoned the community leaders to Yenagoa on August 23 to force them to sign the JIV report, which they declined.

He said those from Aghoro were labelled pipeline vandals and profiled into the database of the security outfit.

The CDC chairman said, “We were taken to a room where detailed profiles of us were taken including our finger prints, biometric details and our photographs.

“We were profiled for almost three hours before we were eventually asked to go. I want to know if it is part of the JTF’s job to force a community to sign a JIV report.”

But the JTF and the SPDC denied the allegation of coercing leaders of Aghoro 1 community to sign any report.

ITF has empowered 11,000 Small and Medium Enterprises across the nation.

The Director-General/Chief Executive of the Industrial Training Fund, Mr. Joseph Ari, and the Ilorin Office Manager, ITF, Mr. Simeon Ogbonna, have said that the ITF has empowered 11,000 Small and Medium Enterprises across the nation.

This, they said, was achieved during the just concluded National Industrial Skills Development Programme.

According to them, the SMEs are the bedrock of economic growth, industrialisation and commerce.

Speaking on Thursday during the closing ceremony of the programme in Ilorin, the Kwara State capital, they stated that the SMEs would contribute substantially to the Gross Domestic Product, adding that efforts should be made to empower them.

Ari, represented by the Director of Procurement, ITF, Ahmed Elkyari, said 11,000 trainees across the federation received start-up packs which cost the ITF several millions of naira.

He stated that the programme was the result of the committed and relentless efforts of the ITF in line with its mandate, and as its contribution to the Federal Government’s policy of job and wealth creation.

He said, “There is no country in the world that the SMEs are not the backbone of its economy. In some countries, the SMEs contribute between 70 per cent and 80 per cent of the GDP. That is why the ITF said that it’s the way to go.

“Today’s event marks a watershed since we commenced implementation of the NISDP as we have taken a step further from merely training and equipping the youths with knowledge and skills, to providing them with start-up packs to enable them to set up their businesses and hit the ground running.”

Ogbonna said 300 trainees from Kwara State benefited from the programme.

He added that they were trained for three months in any trade of their choice ranging from tailoring to fashion designing, welding and fabrication, plumbing and pipe-fitting

PUNCH.

Air Peace Chairman Among 100 Impactful Entrepreneurs In Nigeria-NESH

Nigeria’s Air Peace Chairman/Chief Executive Officer , Mr. Allen Onyema has been listed among 100 “most remarkable and impactful entrepreneurs in Nigeria” in 2016/2017.

The list compiled by the Nigeria & Entrepreneurship Summit Honors (NESH) comprised the names of 100 Nigerians positively impacting the country’s economy in their different spheres of operation.

Onyema was, however, the only entrepreneur honoured in the aviation sector, where he has made huge investments providing thousands of direct and indirect jobs for Nigerians and expatriates.

With a fleet size of 24 aircraft, Air Peace currently operates into 10 domestic destinations in Nigeria and one in Accra, Ghana.

The carrier, which plans to expand its route network to cover Kano, Abuja-Uyo, Freetown, Banjul and Dakar in December, says it is on a mission to create employment for thousands of Nigerians and make air connectivity seamless on the domestic routes, the West Coast of Africa and international destinations, including Dubai, London, Guangzhou-China, Houston, Mumbai and Johannesburg.

Speaking at the 2017 NESH Annual Gala Dinner, Founder of the group, Mr. Emeka Ugwu-Oju praised the honourees for working tirelessly to lift and sustain the nation’s economy.

The vision of NESH, he said, was to “stimulate sustained growth of the Nigerian economy by promoting entrepreneurship.”

He added: “Today’s event is taking place at a momentous crossroads in Nigeria. For sure, the economy is not out of the woods. Yet, in spite of the vibrant exchanges between the government and the opposition, the good news is that Nigeria remains a good destination for investment and entrepreneurial effort.”

Banks Raise Alarm Over Fake Job Recruitment Website

Commercial banks have raised the alarm over a fake employment website alleged to belong to them, deployed by fraudulent element with the intent to defrauding unsuspecting young graduates.

The website posted a public post on Facebook, directing graduates to apply for jobs online.

The involved commercial banks are Access Bank Plc, Fidelity Bank Plc and Skye Bank Plc. Others are Stanbic IBTC Holdings, Sterling Bank Plc and Union Bank of Nigeria Plc.

Affected banks contacted have debunked the job recruitment website, urging young and interested graduates not to apply.

The website demanded minimum of B.Sc Degree or H.N.D from a reputable institution for Fidelity Bank job seekers with a minimum of Second Class Lower Division from any discipline.

Part of the requirements include age limit of 30 years while other requirements vary based on the bank’s years of operations.

For Skye Bank, a notice placed for job seekers include “candidates residing in Lagos will be shortlisted and contacted for an interview (Application not complying with this instruction shall be disqualified).”

Within 24 hours of posting on Facebook, the public post has generated 37 shares and over 50 comments as job seekers continued to reveal personal information online about their identity.

The spokesperson of Skye Bank, Mr. Rasheed Bolarinwa said the website is fake, urging the general public to ignore such job placement advert in the financial institution.

He noted that the bank currently is not recruiting.

The head of Corporate Affairs of Fidelity Bank, Mr. Ejike Ndiulo, said he was not aware of the bank’s recruitment.

Meanwhile, a source in Sterling bank said the bank is currently not employing graduates.

Recently, thousands of unemployed and desperate graduates fell victim to fake job alerts circulated on social network without investigating the source, hoping to secure call centre operator jobs with a bank in Lagos.

As the rate of online job placement increased, false online related fraud has also increased.

Fidelity Bank of recent warned its customers to stay clear of false Online & Instant Banking notifications.

The bank in its notice to customers said “Please do not click on any link from unknown sources requesting your personal information as this might be an attempt to defraud you.”

Meanwhile, the total capital imported in the third quarter has hit 4,145 million dollars, which doubled the inflow in the second quarter, representing an increased value of 147.5 per cent on a year- on- year basis. The National Bureau of Statistics (NBS) said this in a report on “Nigerian Capital Importation for third quarter’’ posted on its website on Tuesday. The bureau stated that capital importation into Nigeria in the third quarter recorded a substantial increase compared to the past few quarters, as the economy continued to recover from recession following its exit in the second quarter. The total capital imported in the third quarter was recorded at 4,145.1 million dollars, more than double the inflow in the second quarter of this year, representing an increased value of 147.5 per cent on a year on year basis. According to the report, this inflow of capital in Q3 quarter is the first time since the beginning of 2015 that the capital hit over 4,000 million dollars in a quarter.

The reports noted that the boom in capital importation in Q3 was mainly driven by significant growth in both Portfolio and other Investment. Capital Importation can be divided into three main investment types: Foreign Direct Investments (FDIs), Portfolio Investment and Other Investments, each comprising various sub-categories.

(source leadership)