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Airbus Sees Africa Demand for 1,000 Jets Over Next 20 Years

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  • Airbus Sees Africa Demand for 1,000 Jets Over Next 20 Years

Airbus SE expects African operators to buy about 990 new planes over the next two decades to meet increasing demand for passenger and freight services on the continent.

While making up only 3 percent of overall global demand, the planes will more than double the number of such aircraft on the continent, according to Airbus’ vice president for sales in Africa and India, Hadi Akoum. The company forecasts passenger traffic in Africa increasing by 5.6 percent a year over the next two decades, higher than the 4 percent global average.

“We put Africa’s growth above the rest of the world and we do believe that there is a huge potential,” Akoum said in an interview in the Rwandan capital, Kigali, on Wednesday. “We are working with almost every country and airline that has capacity to operate aircraft beyond 100 seats.”

Underpinned by a growing middle class, the number of air passengers in Africa is forecast to increase by almost two thirds to 303 million by 2035, according to the International Air Transport Association. The top 10 fastest-growing markets in percentage terms are expected to be African nations including Sierra Leone, Mali, Rwanda, Togo, Uganda and Zambia, each doubling in size every decade, the trade body said on its website.

Of the 990 new Airbus aircraft, 760 will be single-aisle jetliners in the 120-200 seat category, while 230 will be wide-body twin-engine medium- and long-haul airliners, according to the company’s projections. There is also room in the market for 10 larger liners, such as A380s, it said.

The anticipated orders present aircraft maintenance and repair business worth about $76 billion, and a requirement for as many as 21,700 new pilots, according to Airbus.

Jet Deliveries

Some of the planes will replace 226 outdated ones, while the rest of the existing fleet will still be in service by 2035, according to Airbus. There are 605 planes with capacity of more than 120 seats on the continent, manufactured by both Airbus and Boeing Co., it said.

Airbus had 228 planes with 32 African operators by the end of January, including 140 single-aisle A320s and three A350XWB wide-body twin-engine jets.

The company expects to deliver two A330s to South African Airways this year and is in talks with Ethiopia Airlines for more A350-1000s, Akoum said, without giving details as the specifics are still confidential. The airplane maker is also in early-stage discussions with Kenya Airways Ltd., the continent’s third-biggest carrier.

Defunct Ugandan Airlines is in negotiations with both Airbus and Bombardier Inc for leases on six planes, the Nairobi-based East African newspaper reported in December, citing Ugandan Minister of State for Transport Aggrey Bagiire.

Last year, Airbus delivered 688 new aircraft globally valued at $101.3 billion and booked orders for another 949, estimated at $132.7 billion.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Global Oil Drops as Coronavirus Infections Rises in India and Other Nations

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Crude oil

Oil prices declined on Monday during the Asian trading session amid rising concerns that the surge in coronavirus in India and other nations could force regulators to enforce stronger measures at curbing its spread and eventually affect economic activity and drag on demand for commodities like crude oil.

Brent crude oil, against which Nigerian oil is priced, declined by 22 cents or 0.33 percent to $66.55 per barrel at 8:19 am Nigerian time on Monday, following a 6 percent surge last week.

The US West Texas Intermediate (WTI) declined by 18 cents or 0.29 percent to $62.95 per barrel, after it gained 6.4 percent last week.

The decline was after India reported 261,500 new coronavirus infections on Sunday, taking the country’s total cases to almost 14.8 million, second to only the United States that has reported over 31 million coronavirus infections.

“With … a resurgence of virus cases in India and Japan, topside ambitions continue to run into walls of profit-taking,” said Stephen Innes, chief market strategist at Axi.

Businesses in Japan believed the world’s third-largest economy will experience a fourth round of coronavirus infections, with many bracing for an additional slow down in economic activity.

While Japan has had fewer COVID-19 cases when compared with other major economies, concerns about a new wave of infections are fast rising, according to responses in Reuters poll.

On Tuesday, April 20, 2020, Hong Kong will suspend all from India, Pakistan and the Philippines because of imported coronavirus infections, authorities stated in a statement released on Sunday.

India’s COVID-19 death rose by a record 1,501 to hit 177,150.

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Global Markets Near Record Peaks and Will Get Stronger: deVere CEO

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As the FTSE 100 hits 7,000 points for the first time since the Covid pandemic, global stock markets are poised to “get even stronger”, says the CEO of one of the world’s largest independent financial advisory and fintech organisations.

The observation from Nigel Green, the chief executive and founder of deVere Group, comes as London’s index jumped over the important threshold in early trading in London, gaining over 0.5% to 7024 points.

Mr Green notes: “London’s blue-chip index is up 40% since the worst lows of the pandemic.

“This landmark moment represents the wider optimistic sentiment gripping global markets which are near record peaks.

“We can expect global stock markets to get even stronger as investors look to seize the opportunities from economies reopening.

“They are looking towards economies rebounding in a post-pandemic era due to the monetary and fiscal stimulus, pent-up cash and demand, and strong corporate earnings.

“The current ultra-low interest rate environment and the under-performance of bonds will also act as a catalyst for stock markets.”

However, the CEO’s bullish comments also come with a warning.

“I would urge investors to proceed with caution as there are some headwinds on the horizon, including relations between the U.S. and China, the world’s two largest economies, which could be coming to a tipping point in coming weeks.

“As such, in order to capitalise on the opportunities and mitigate risks, investors must ensure proper portfolio diversification.”

Mr Green concludes: “A variety of factors are going to drive global stock markets. Investors will not want to miss out and should work with a good fund manager to judiciously top-up their portfolios.”

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Refinitiv Expands Economic Data Coverage Across Africa

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Building on its commitment to drive positive change through its data and insights, Refinitiv today announced the expansion of its economic data coverage of Africa. The new data set allows investment managers, central bankers, economists, and research teams to use Refinitiv Datasteam analytical data for detailed exploration of economic relationships and investment opportunities among data series covering the African continent.

Securing reliable, detailed, timely, locally sourced content has not been easy for economists who have in the past had to use international sources which often can take many months to update and opportunities to monitor the market can be missed. Because Africa is a diverse continent, economists and strategists need more timely access to country-specific data via national sources to create tailored business, policy, trading and investment strategies to meet specific goals.

Africa continues to develop critical infrastructure, telecommunications, digital technology and access to financial services for its 1.3bn people. The World Bank estimates that over 50% of African inhabitants will be under 25 by 2050. This presents substantial opportunities for investors who can spot important trends and make informed decisions based on robust and timely economic data.

Stuart Brown, Group Head of Enterprise Data Solutions, Refinitiv, said: “Africa’s growing, dynamic and fast evolving economies makes it a focal point for financial markets today and in the coming decades.  As part of LSEG’s commitment to empowering the global markets with accurate and timely data, we are excited about making these unique datasets available via the Refinitiv Data Platform. Our economic data coverage of Africa will provide our customers with deeper and broader inputs for macroeconomic analyses and enable more effective investment strategies and economic research.”

Refinitiv Africa economic data coverage:

  • Africa economics content comprises around 500,000 nationally sourced time series data covering 54 African nations
  • Content is sourced from national statistical offices, central banks and other key national institutions
  • The full breadth of economics categories in Datastream including national accounts, money and finance, prices, surveys, labor market, consumer, industry, government and external sectors
  • International sources including OECD, World Bank, IMF, African Development Bank, Oxford Economics & more provide comparable data & forecasts across the continent

Refinitiv® Datastream® has global macroeconomics coverage to analyze virtually any macro environment, and better understand economic cycles to uncover trends and forecast market conditions. With over 14.2 million economic times series map trends, customers can validate ideas and identify opportunities using Refinitiv Datastream. Access its powerful charting tools, 9,000 pre-built chart templates and chart studies for commonly used valuation, performance, and technical and fundamental analysis.

 Refinitiv continually grows available data – the China expansion in 2019 covered a unique combination of economic and financial indicators. Refinitiv plans to expand Southeast Asia covering Thailand, Vietnam, Philippines and Malaysia with delivery expected in 2021. This ensures that Refinitiv will have much needed emerging market economic content.

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