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Stocks Tumble Ahead of Big Tech Earnings

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By Edward Moya

US stocks are declining as Wall Street abandons the tech trade ahead of massive tech ​ earnings later this week and as global slowdown fears remain front and center as aggressive central bank tightening jitters won’t go away.  Inflation won’t let up anytime soon as the Russian headlines suggest the war in Ukraine could see further escalations, which means inflation won’t ease up and that will continue to drive central bank tightening fears.

Earnings

The earnings blitz is beginning and overall it was not a good start.  GE was down sharply as their full-year guidance was towards the low end.  UPS saw lower volumes but still affirmed its guidance as they will pass on cost increases to the consumer. Pepsico posted strong results and raised its guidance, but shares were unable to shake off the risk-off theme hitting markets today.  3M showed sequential margin improvement but had a slow start to April and had to lower their outlook for the year.

The morning’s earnings picture showed price increases are weighing on businesses and costs are being passed onto the consumer. Alphabet will be the first major tech giant to report after the close, but it will be a tough quarter when compared to robust one last year. ​ Everyone is expecting strong search and YouTube ads results, but the key to how share prices react might fall on the other revenue streams.

Oil

Oil is making a comeback as energy traders focus on tightness in the diesel markets and shift the focus back to Russian energy supplies and the rising danger of nuclear war in Ukraine.  Earlier crude prices got a boost after China’s PBOC stepped up efforts to calm markets and as energy traders await China’s mass COVID testing results, which could lead to even more lockdowns.

The oil market has priced in enough demand destruction from China and crude prices should start to find strong support around the $100 level.

Gold

Gold prices are trying to find support here now that China’s PBOC is stepping up efforts to support the economy and as the move higher with yields continues to show signs of exhaustion.  Gold investors are hoping prices can hold the $1900 level heading into next week’s FOMC decision, but if risk aversion remains the dominant theme that won’t happen.

Gold is trading more like a risky asset right now than as a safe-haven and that leaves it vulnerable here.  If the war in Ukraine sees further escalations, that could be the catalyst to send prices sharply lower.

Crytpo

Bitcoin was tentatively back above the $40,000 level as Wall Street became more optimistic with the long-term outlook for cryptocurrencies after reports that Fidelity Investments will allow Bitcoin into 401(k)s. What also helped Bitcoin this morning is that the dollar rally is holding steady alongside Treasuries.

Bitcoin reversed lower as risk aversion returned to Wall Street, with tech stocks leading the decline. Russia’s suspension of gas supplies to Poland sent risky assets, including Bitcoin sharply lower. ​ ​ ​

Ethereum was showing signs of life hovering back above the $3000 level.  Ethereum investors will become more aggressive with their bets if they feel more confident the upgrade to proof-of-stake system has less road bumps ahead. Ethereum also turned negative and will continue to follow what happens on Wall Street. ​ ​

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Energy

How Nigeria’s National Power Grid Collapsed Ten Times Within 9 Months 

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power project

The national power grid has again collapsed, leaving many Nigerians in total darkness.

Investors King can authoritatively report that this is the tenth time the power grid will be disrupted this year alone.

For this recent collapse, the grid, reportedly lost power generation around 1:39 pm on Tuesday.

Information revealed that power generation was 2,711 megawatts as of 1:00 pm, having previously peaked at 3,631 MW.

Earlier, power generation peaked at 3,934.77 MW around six o’clock in the morning.

However, between 2 pm and 3 pm, hourly generation dropped to 0.00 MW.

The Transmission Company of Nigeria confirmed that the national grid experienced a partial disturbance at about 1:52 pm on Tuesday, 5th November 2024.

TCN spokesperson Ndidi Mbah mentioned that the recent collapse was due to a series of line and generator trippings that caused instability in the grid and, consequently, the partial disturbance of the system.

Mbah pointed out that data from the National Control Centre revealed that a part of the grid was not affected by the bulk power disruption.

TCN however indicated that work work is in progress to restore power.

She explained that engineers are already working to quickly restore bulk power supply to the states affected by the “partial disturbance.”

Mbah noted that presently, bulk power supply has been restored to Abuja at 2:49 pm, maintaining that “we are gradually restoring it to other parts of the country.”

She apologized to Nigerians for whatever inconvenience the collapse might have caused.

Findings by Investors King revealed that the grid had collapsed at ten different times between March and November, this year.

Times the grid collapsed included February 4, March 28, April 15, July 16, two times in August 5, October 14, October 15, twice in October 19 and now today, November 5.

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Energy

Darkness Falls Again: TCN Explains Latest National Grid Collapse

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The Transmission Company of Nigeria (TCN) has provided an explanation for the latest National Grid collapse, which occurred on Tuesday, November 5.

Tuesday’s collapse, marking the 10th in 2024 alone, left Nigerians in total darkness.

Recall that the National Grid collapsed twice in October, sparking concerns among Nigerians.

Reacting to the latest collapse via a statement on Tuesday, the General Manager of TCN Public Affairs, Ndidi Mbah, disclosed that the collapse happened at 1:52 pm.

The GM revealed that the grid collapse was caused by line and generator trippings.

Mrs. Mbah said, “TCN states that the national grid experienced a partial disturbance at about 1:52 pm today, 5th November 2024.

“This followed a series of line and generator trippings that caused instability in the grid and, consequently, the partial disturbance of the system.

Data from the National Control Centre (NCC) revealed that a part of the grid was not affected by the bulk power disruption.

Mbah disclosed that operators are working to restore power in affected states, adding that power was restored in Abuja.

She explained, “TCN engineers are already working to quickly restore bulk power supply to the states affected by the partial disturbance. Presently, bulk power supply has been restored to Abuja at 2:49 pm, and we are gradually restoring power to other parts of the country.”

Apologizing to Nigerians, TCN said, “We sincerely apologize for any inconvenience this may cause our electricity customers.”

Investors King, in an earlier report, revealed that in an attempt to address the persistent collapse of the national grid, the Nigerian Electricity Regulatory Commission (NERC) announced that discussions were underway with Independent Operators to take over the management of the grid.

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Energy

Nigeria Partners with ECOWAS and Morocco to Launch $26B African Gas Pipeline

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Gas-Pipeline

The Nigerian government, in partnership with the Economic Community of West African States (ECOWAS), Morocco, and Mauritania, has announced plans to advance the $26 billion African Atlantic Gas Pipeline project to drive economic growth across Africa.

This development was revealed on Monday, November 5, by Mele Kyari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), at the ECOWAS Inter-Ministerial Meeting on the Nigeria-Morocco Gas Pipeline Project.

Speaking at the meeting, which was attended by ECOWAS Ministers of Hydrocarbons and Energy as well as representatives from Morocco and Mauritania, Kyari stated that, once completed, the project will connect 13 African countries.

Represented by Olalekan Ogunleye, NNPC’s Executive Vice President for Gas Power & New Energy, Kyari said this will be Africa’s largest pipeline project.

Ogunleye confirmed that progress has been made with the front-end engineering design completed, the phase two study finalized, and work ongoing for environmental and social impact assessments as well as land acquisition and resettlement.

He emphasized NNPC’s readiness to execute the project: “Today, we come together to make significant progress in the African Atlantic gas pipeline project, which is a transformative initiative connecting at least 13 African nations in shared prosperity and development. These achievements underscore our capability to deliver this landmark project, supported by strong regional collaboration.”

Ekperikpe Ekpo, Minister of State for Petroleum Resources (Gas), described the project as a game-changer for the regional economy, stating, “We stand at a critical juncture where these agreements can reshape our energy landscape, strengthen our economies, and uplift our people.”

He also highlighted that the project will increase Africa’s presence in the global gas market, noting that “the agreements demonstrate a strong commitment to advancing hydrocarbon and energy trade across ECOWAS, enhancing access to natural gas in West Africa, and expanding Africa’s global footprint in the gas market.”

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