28 June 2017, Sweetcrude, Houston — The local and international financial market products and services update.
NIGERIA: The French government has announced that it has set aside about €1bn to be invested in Nigeria’s oil and gas industry and that Nigeria remains its first economic trading partner in Africa.
The France Ambassador to Nigeria, Denys Gauer, announced this when the Group General Manager, Group Public Affairs Division of the Nigerian National Petroleum Corporation, Mr. Ndu Ughamadu, led a delegation to his office in Abuja.
Gauer said the French Development Agency had put in place about €1bn to encourage investors from his country to invest in the Nigeria oil and gas sector.
FX: Results of the retail auction were finally released on Friday, with CBN once again breaching the 60-day tenor. From preliminary investigations, it appears most of the trades were pushed to the 75days tenor. Estimated sales at this auction is circa $600mio , we should get a better picture of the amount this week.
FIXED INCOME: Not much to report on Friday in the fixed income market. It was an extremely quiet day with lots of bored traders. Traded volume was well below average with only a handful of enquiries from asset managers and brokers. This week started with Eid which has shortened the week and we don’t expect much change in the fixed income space. O/N closed at 15% because CBN refunded naira for unsuccessful FX bids.
U.K.: Bank of England Deputy Governor Jon Cunliffe helped draw the battle lines for the August interest-rate decision, saying that policy makers have time before they need to hike.
While some members of the BOE’s rate-setting committee have argued that consumer-price inflation of 2.9% means an increase in bank rate is required imminently, Cunliffe said that has been driven by the pound’s depreciation since the Brexit referendum and that wage pressures have remained low.
Inflation above the 2% target is “not a comfortable place,” Cunliffe said in an interview on BBC radio.
FRANCE: President Emmanuel Macron will take a major step toward freeing up France’s labour market on Wednesday, a task that proved beyond his predecessors from across the political spectrum.
Macron’s cabinet will approve a broad outline of changes to the labour code and will ask parliament for the authority to negotiate the details over the summer with unions and business groups. The government plans to introduce the new framework in September by decree, to avoid getting tangled up in a long parliamentary debate with numerous amendments.
After sweeping aside the establishment to claim the presidency and then cementing his dominance of the political landscape with a resounding majority in this month’s parliamentary elections, Macron wants to show France’s often frustrated European partners that he can deliver.
COMMODITIES: Oil fell after the longest run of gains in a month as U.S. industry data showed crude stockpiles rose, exacerbating a glut.
Futures lost as much as 1.3% in New York after climbing 4% the previous four sessions. U.S. stockpiles expanded by 851,000 barrels last week, the American Petroleum Institute was said to report on Tuesday. Government data on Wednesday is forecast to show inventories extended declines from a record reached at the end of March.
Oil in New York and London tumbled into a bear market last week on concerns that rising global supply will counter output cuts from the Organization of Petroleum Exporting Countries and its partners.
Macro Economic Indicators
Inflation rate (Y-o-Y) for May 2017 16.25%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at June 21, 2017 30.220
Money Market Highlights
30 Day 19.3319
90 Day 21.3734
180 Day 23.6701
USD 1 Month 1.22211
USD 2 Months 1.25222
USD 3 Months 1.29483
USD 6 Months 1.44639
USD 12 Months 1.72400
Tenor Maturity Yield (%)
91d 21-Sep-17 18.77
182d 21-Dec-17 19.35
364d 14-Jun-18 22.59
2y 29-Jun-19 16.50
3y 14-Jun-20 16.35
5y 27-Jan-22 16.16
Indicative Currency Exchange Rates
USDNGN 314.50 315.00
EURUSD 1.1283 1.1484
GBPUSD 1.2716 1.2918
USDJPY 111.95 111.98
GBPEUR 1.1164 1.1374
USDZAR 12.9017 13.1110
EURNGN 357.69 359.07
GBPNGN 403.23 404.61