BusinessDay

Five things to know to start your Saturday

Peter Obi joins Labour Party

Peter Obi, a former governor of Anambra State and presidential aspirant, has joined the Labour Party. The former governor confirmed the development in a post on his Twitter handle on Friday.

Obi’s decision to join the Labour Party is coming less than 48 hours after announcing that he is dumping the People’s Democratic Party (PDP).

The former governor had been scheduled to participate in the PDP presidential primary scheduled for May 28.

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Oil output barely enough to cover petrol imports – Finance Minister

The revenue from the current oil output is barely enough to cover the country’s cost of importing fuel, the finance minister Zainab Ahmed said in Davos, Switzerland.

The minister, who was speaking to Reuters at the World Economic Forum said that the current oil production in the country which is 1.5 million bpd can only get better if it starts to average at 1.6 million bpd this year.

Ahmed noted that the federal government has been unable to meet its target of 1.8 million bpd of production because of crude oil theft and attacks on oil infrastructure.

“We are not seeing the revenues that we had planned for,” Ahmed said. “When the production is low it means we’re … barely able to cover the volumes that are required for the (petrol) that we need to import.”

India’s GAIL open to buying Russian oil and gas assets, says chairman

GAIL India’s largest gas company responsible for nearly 90 percent of the supply of natural gas in the country has said that the company is open to buying Russian oil and gas assets shunned by Western companies.

The company’s chairman, Manoj Jain said that following Western sanctions on Russian oil and gas assets, as a result of the country’s invasion of Ukraine, provided a great opportunity to buy assets that can increase its distribution and profit in the short, medium and long run.

Since the February 24 invasion of Ukraine, Russia has faced countless financial and oil sanctions that have made it difficult for it to engage in business in the international environment. With the European Union proposing its toughest sanctions yet, including a ban on crude oil in 6 months, the selling of Russian assets looks like a better option to Moscow.

Jain who was responding to questions from reporters over the refusal of India to follow the West in sanctioning Russia said he doesn’t see why the country can’t take advantage of a good deal if it sees one.

According to him, “Why would anyone say no (to Russian assets) if it makes commercial sense,”

GAIL reported a 39 percent rise in its first-quarter profit.

Bitcoin falls, trades below $28,800

 

Bitcoin continued its fall early this morning as it fell to its lowest level since the 13th of this month. The world’s most valuable cryptocurrency according to digital currency analysts at Bloomberg said the coin was set for an eighth straight weekly loss in its longest such slump since August 2011.

This morning the coin lost precisely 2.5 percent of its value in trade, as it traded at $28,618 following news from the US Fed that it was going to tighten the monetary sector with not only the higher interest rate but with tougher cryptocurrency regulations following the outcome of the stable coin TerraUSD algorithmic.

This comes as a piece of not pleasant news to cryptocurrency investors who have seen the entire crypto market lose more than 29 percent of value worth $500 billion, according to coinmarketcap.com.

Meanwhile, the continued rise in the value of stocks in the US stock market added to the more attractive returns of the US Federal back securities also played an important role in taking investors’ attention away from bitcoin.

Wall Street close stronger for 3rd session

US stocks ended trading on a stronger note on Friday as consumer spending exceeded analysts’ expectations for the month of April. Thus, the Dow Jones average gained nearly 600 points or 1.78 percent, while the S&P 500 and the Nasdaq edged higher by 2.3 percent and 3.1 percent respectively.

Expectations are still high following an increase in consumer spending as the belief that the economy can expand higher despite the rising cost of living and production.

According to tradingeconomics, the closely watched core PCE inflation rate eased further, strengthening expectations that the Fed will not embark on more aggressive interest rate hikes that emerged after the release of minutes from the FOMC’s May meeting.

Corporate earnings from some of the blue-chip stocks showed strength in the market. Autodesk rose 10.3 percent and Dell picked up 12 percent growth on the back of strong earnings. However, renewed positive belief on the retail sector performance helped GAP, a retail giant edged higher by 4.3 percent

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