Tuesday Briefing: Nigeria Preps for Economic Development

July 26, 2016

Economic Development is the top trending issue on Sentifi as Nigeria is prepping itself to improve its economy and its status as an emerging market. Sadly, the same thing cannot be said about Angola as a presidential election is bringing lots of political risk and volatility to the country. You can find more insights regarding these issues on Sentifi.


1/ Economic Development: Nigeria is preparing for economic development

Vice President of Nigeria Yemi Osinbajo has advocated for collaboration with Nigerians in the Diaspora as one of the main drivers for the nation’s economic growth. Meanwhile, Minister of Science and Technology Dr. Ogbonnaya Onu has voiced his belief that a secured, equitable and environmentally sustainable energy supply will support the country’s growth. These are positive plans as one of the most economic active countries in Africa aims to cement its position as an emerging market.

2/ Political Risk: Angola is at risk

An approaching presidential election is posing a threat to Angola’s struggling economy. The country has already lowered its growth forecast for 2016 to 1.3 percent from 3 percent, and cut it spending by 20 percent. Its debt-to-GDP ratio continues to rise at a rapid pace, and the election is expected to hike its spending.

3/ Foreign Reserve: News from Singapore, India and Australia

In FY2015/16, Singapore recored a S$5.2 billion investment gain in its foreign reserves. In India, the foreign exchange reserves increased to $363 billion on July 15 from $362 billion in the previous week. Meanwhile, Australia saw a 4% increase in foreign reserves in FY2015/16 to $70 billion.

4/ Bad Debts: Chinese banks attempt to weed out bad debts

Nonperforming loans are dragging down Chinese banks.

The nonperforming loans ratio of Chinese commercial banks have increased 1.81 percent, or 6 basis points on-quarter and 31 basis points on-year, prompting the China Banking Regulatory Commission to focus its effort on risk management and exploring securitization to rid the banks’ balance sheets of NPL.

5/ Acquisition: Activity in India’s startup scene

One of the largest e-commerce companies in India Flipkart is planning to acquire rival Jabong, beating other bidders such as Future Group and Snapdeal, among others. Jabong was a product of German Incubator Rocket Internet, but over the last year it’s been struggling with dwindling sales and management changes.

6/ Free Trade: India seeks trading pacts with individual EU members

India is planning to delink the investment agreement with the EU to instead sign agreements bilaterally with individual EU members based on its model Bilateral Investment Treaty. The EU is opposed to the idea. No final decision has been made.

7/ Private Banking: Julius Baer expands in Asia

Julius Baer is looking at Asia for expansion as Europe is deep in volatility due to Brexit.

Two hundered relationship managers have signed to join Swiss private banking group Julius Baer to support its effort of expanding in Asian wealth markets. The news was announced against the backdrop of the Brexit decision, which is expected to dampen the bank’s operations in the U.K. and even cause job cuts.

8/ Cyber Attack: U.S. authority is investigating attack on the DNC

A hacking attack on the Democratic National Committee had made e-mail and internal reports available on WikiLeaks on Friday, resulting in the resignation of Chairwoman Debbie Schultz. The FBI is on the case, with reports saying the bureau is seeing Russia as the leading suspect.

9/ Credit Risk: Rooftop solar equals credit risk 

Fitch, one of the major rating agencies, reported that solar utilities potentially face more political resistance to rate increases, lower earnings and downgrades in credit ratings. The solar energy industry, on the other hand, claims those reports to be untrue.

10/ Fintech: Banking app gains popularity in the U.K.

The U.K. is seeing a significant growth of the consumer use of app-based banking. Mobile banking is experiencing greater adoption as well, with 60% in 2016, up from 29% in 2013.

If you want to harness the wisdom and insights from the crowd to monitor your portfolio free of charge, please sign up for Sentifi.