- Buhari Approves Transaction Advisor for C’River Deep Seaport
President Muhammadu Buhari has approved a transaction advisor for the Cross River State deep seaport project in fulfillment of his earlier promise to assist the state in its quest to establish a deep seaport which will bridge the distance and foster economic activities between the northern and southern states.
As the news broke yesterday, Governor Ben Ayade of Cross River State and members of the state Executive Council gave a standing ovation to President Buhari in appreciation of the approval of a transaction advisor for the Bakassi Deep Seaport project by the federal government.
The news of the approval of the transaction advisor for the multi-billion naira project was announced to the members of the state executive council at the council chambers by the governor moments after a presentation by Siemens, which is seeking to invest in the state.
It was greeted with a aloud standing ovation, which the governor said was the least the state could do in appreciation of a president that has a special love for the state.
“As the president receives a standing ovation in this executive chambers, I want to appreciate him for graciously keeping to his promise by appointing a transaction advisor for the people of Cross River for the uptake and starting of the Bakassi Deep Seaport project.
“It is a classical demonstration of the president’s commitment to his words,” an excited Ayade said.
Recalling that the president had during the groundbreaking ceremony for the project promised to assist the state in actualising it, he said the approval of the transaction advisor in just two years is record-setting.
According to him, “The people and government of Cross River State are grateful to President Buhari for helping us to achieve this feat within record speed of two years.”
He explained that the appointment of the transaction advisor for the project means that work would soon commence on site.
Ayade used the occasion to also express gratitude to the Minister of Transport, Hon. Rotimi Amaechi, who according to him, stopped at no point in putting pressure on his entire team to get the transaction advisor approved.
On what the development means for the state, he said: “For us as a state, it puts an end to the dreaming phase, now we are in reality, thank God for President Buhari and the Ministry of Transport who made it possible.
“Preliminary reclamation works will commence soon while commencement of the actual work will also start this year.”
Barclays Tell High Net Worth Investors to Shun Africa and Other Emerging Economies
Barclays to High Net Worth Clients, Stay Off Africa and Other Emerging Economies
Barclays, one of the world’s largest investment banks, has started advising high net worth clients to stay off Africa and other emerging economies.
According to Barclays, despite the recent recovery noticed in emerging-market stocks, investors are better off avoiding the risks that still abound in emerging nations. Barclays Plc, however, advised high net worth clients to focus on U.S equities despite the S&P’s breakneck rally.
The investment bank said emerging economies do not have enough fiscal buffers to spend their way out of the COVID-19 pandemic and will likely continue to struggle in the near-time compared to the US with 12 percent of gross domestic product fiscal-support.
It said the huge US stimulus may halt rebound in emerging-markets stocks as more money is expected to flow into the world’s largest economy and its European counterparts.
“Compared to the U.S., emerging-market economies appear more vulnerable,” said Haider, the London-based managing director and head of global growth markets. “Their central banks have less room to maneuver, their governments may not be able to provide unlimited support and equity markets, given their sector mix, can be more challenged by an economic slowdown.”
Barclays added that even after 33 percent rebound in stocks of emerging markets since the panic selloff subsided in March, stocks are still down by 9 percent from year-to-date while the US S&P 500 stocks are up by 45 percent. Presently, their stocks trading at a 36 percent discount to US stocks, up from 25 percent three months ago.
Crude Oil Rises to $43.1 Per Barrel on Production Cuts Extension
Crude Oil Hits $43.1 Per Barrel Following OPEC’s Production Cuts Extension
Brent crude oil, against which Nigerian oil price is measured, rose by 1.25 percent on Monday during the Asian trading session following OPEC and allies’ agreement to extend crude oil cuts to the end of July.
OPEC and allies, known as OPEC plus, agreed to extend production cuts of 9.7 million barrels per day reached in April to July on Saturday.
In the virtual conference, delegates agreed that members, including Nigeria and Iraq presently struggling to attain a 100 percent compliance level must keep to the agreement or be forced to do so in subsequent months.
Nigeria, Iraq and others failed to keep to the cartel’s agreement in May after reports show that Nigeria only managed to attain a 19 percent compliance level during the month while Iraq struggled to attain just 38 percent in the same month.
Russia and Saudi Arabia, the two largest producers of the group, warned members to stick to the agreed quota if they want to rebalance the global oil market.
“While the errant producers such as Iraq and Nigeria have vowed to reach 100% conformity and compensate for prior underperformance, we still think they will likely continue to have some commitment issues over the course of the summer,” said Helima Croft, head of global commodity strategy at RBC Capital Markets.
“The potential return of Libyan output could also cause considerable challenges for the OPEC leadership.”
Earlier on Monday, Brent crude oil hits $43.1 per barrel, more than a month record-high, before pulling back slightly to $42.83 per barrel.
Gold Dips by 2 Percent on Better Than Expected Job Report
- Gold Dips by 2 Percent on Better Than Expected Job Report
Gold prices declined by 2 percent on Friday following a better than expected US non-farm payroll report.
The report showed an increase of 2.5 million payroll numbers against a decline of 7.5 million predicted by many experts.
The surprise number boosted investors’ confidence in US recovery as many dumped their haven investment (gold) for the stock market.
“We had significantly stronger-than-expected U.S. payroll numbers – an increase of 2.5 million versus an expectation of a decline of 7.5 million – that 10-million swing has brought forward expectations of the economic recovery in the United States,” said Bart Melek, head of commodity strategies at TD Securities.
Spot gold immediately declined by 1.9 percent per ounce to $1,678.81 while the U.S. gold futures slid 2.6 percent to settle at $1,683.
Gold was also being pressured by stronger yields and a slightly firmer dollar, “meaning the opportunity cost to hold gold in the portfolio has gone up,” Melek added.
The surprise didn’t stop there, US Dow Jones was up 614 points despite the protest going on the US and US-China tension.
Also, NASDAQ rose by 29 points while the S&P index added 50 points increase.
Note: Investors generally increase their investments in gold and other haven assets during a crisis to avert risk exposure and do the opposite once they sense a better economy.
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