Africa has an important role to play in China’s much-touted One Belt and One Road Initiative, an ambitious plan to revive the old maritime Silk Road.
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Africa : Commodity Bridgehead to Asia
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Africa has an important role to play in China’s much-touted One Belt and One Road Initiative, an ambitious plan to revive the old maritime Silk Road.
"Africa has an important role to play in China’s much-touted One Belt and One Road Initiative, an ambitious plan to revive the old maritime Silk Road, which wields plenty of financial muscle and promises to boost member-countries's growth and economies"
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“There are easier and harder jobs in this world. Then there was Pravin Gordhan’s job. But Gordhan’s fire might have come as a relief to him.”
An ETF tracking an indexing comprising 50 large African companies will list on the JSE on April 20.
"There have been few options so far for the man in the street who wants to put money in a local tracker fund that invests in Africa beyond our borders. That’s about to change on April 20, with the listing on the JSE of an exchange traded fund (ETF) that tracks an index comprising 50 companies across the continent, excluding South Africa"
The first SME Indaba organised by AHI South Africa discussed why big and small businesses should work together. Melissa Javan Pay invoices on time, AHI South Africa president Bernard Swanepoel challenged owners of big corporates, the government and members of his organisation. “Think small [businesses] first. Consider the effects on small and medium enterprises (SMEs).” …
"The first SME Indaba organised by AHI South Africa discussed why big and small businesses should work together" #Investorseurope #Mauritius #Stockbrokers
What renowned investor Mark Mobius learned from a recent visit to South Africa.
An outline of key issues facing South Africa's economy that investors are watching closely #Investorseuropemauritius #stockbrokers #onlinetrading
Africa has potential to boast more billion-dollar startups than anywhere else on Earth: Africa's maturing private equity market.
“More than 200 African private equity deals were reported over the past year. Almost a third of them were in South Africa, but the potential in Nigeria is mind boggling. The transaction activity is expected to continue into 2017, with a good pipeline of deals already spilling over into the first quarter of 2017”
Somalia intends to resume printing banknotes this year for the first time since the government collapsed in 1991.
Somalia to resume printing banknotes this year for the first time since the government collapsed in 1991
President Donald Trump wants to reverse much of the law adopted to prevent another financial crisis.
"President Donald Trump wants to dismantle much of the Dodd-Frank Act of 2010, which was designed to prevent another financial crisis. The law barred banks from many profitable but risky businesses, forced them to add loss-absorbing capital, and required them to make detailed plans for how to shut down in a crisis. Critics say it made banks wary of lending by overburdening them with rules, hampering the economic recovery. Bloomberg View columnists Tyler Cowen and Noah Smith met online to debate Trump’s proposal"
Remember when conservatives told government to live within its means? That was before the age of Trump.
“Republicans finally control Washington and are licking their chops about what they can achieve: tax cuts, ending regulations, a stronger defense. But they are strangely silent on a centerpiece of their policy rhetoric during Barack Obama's presidency: federal budget deficits”
But the larger point is that there are always a multitude of safe, lucrative opportunities out there.
If you live, work, bank, invest, own a business, and hold your assets all in just one country, you are putting all of your eggs in one basket. You’re making a high-stakes bet that everything is going to be ok in that one country — forever. All it would take is for the economy to tank, a natural disaster to hit, or the political system to go into turmoil and you could lose everything—your money, your assets, and possibly even your freedom. #Investorseurope stockbrokers is your number one provide of online trading platforms for access to global stock markets
Sappi has said that it was planning to increase its dissolving wood capacity by more than 30 percent in the next four years.
"South Africa's Sappi plans to increase dissolving wood pulp capacity by more than 30 percent over the next four years as the world’s largest maker of the product pursues growth"
"The Deutsche Bank Currency Volatility Index - which indicates investors’ expectation of future currency volatility -reflected this, largely tracking sideways in 2016. Implied volatility was low despite events that ordinarily could have caused significant shocks to the market"
"Currency investors were relatively stoical during some significant events in 2016, including the attempted coup in Turkey, shifting political sentiment in Europe and the US and mixed signals from key central banks. The main exception was sterling, which fell to a 31-year low against the US dollar after the UK electorate voted in June to leave the EU"
Oil prices faltered at the start of the second week of the year, as fears set in about a rapid rebound in U.S. shale production. For the better part of two months, optimism surrounding the OPEC deal has buoyed oil prices, but bullish sentiment from speculators are showing early signs of abating, raising the possibility that the oil rally is running out of steam.
WTI and Brent sank more than 2.5 percent in intraday trading on Monday, after a report at the end of last week showed another solid build in the U.S. rig count, the tenth consecutive week that the oil industry added rigs back into the field. Aside from a single week in October, the U.S. oil industry has deployed more rigs in every week dating back to June, a remarkable run that has resulted in more than 200 fresh rigs drilling for oil. The gains in the rig count come even as oil prices have held steady in the mid- to low-$50s per barrel.
At the start of 2017, there are two major dynamics at play occurring at the same time, each pushing in opposite directions on the market. The OPEC deal is slated to take oil off the market, while U.S. drilling is expected to add new supply. The pace and magnitude of each trend will ultimately drive oil prices one way or the other.
On the positive side of the ledger, there are early signs that OPEC members are meeting their commitments. Saudi Arabia said last week that it is lowering its production in January by 486,000 barrels per day, a volume that it promised to cut as part of the November deal. That will take output down to 10.058 million barrels per day, a level that Riyadh was only required to meet as an average over the January to June time period. Cutting to that level ahead of time is a sign of good faith from Saudi Arabia, and increases the chances that OPEC will stay true to its promises.
On top of that, Kuwait’s envoy to OPEC said that Qatar, Kuwait and Oman were also complying with the cuts. In an interview with Bloomberg, Kuwait’s Nawal Al-Fezaia said that those countries already told customers that cuts were imminent. "It’s a good time to do maintenance on oil fields during production cuts," Al-Fezaia said, noting that Kuwait will lower output from 2.89 mb/d in December to 2.7 mb/d by the end of January.
Market analysts paused a bit on news that Iraq’s oil exports from its southern ports on the Persian Gulf hit a record high in December, but the data has no bearing on whether or not Iraq will comply with the agreed upon cuts. "Achieving this record average will not affect Iraq’s decision to cut output from the beginning of 2017," Oil Minister Jabbar Al-Luaibi told Bloomberg in an emailed statement. "Iraq is committed to achieving producers’ joint goals to control the oil glut in world markets."
It is still early but all signs point to a stronger commitment from OPEC to adhere to the specifics of the cuts than market analysts might have given them credit for. That bodes well for a narrowing supply surplus – and ultimately a deficit – as well as falling inventories. In other words, OPEC is succeeding in putting upward pressure on prices.
However, the flip side of the equation is faster drilling from the U.S., where rig counts continue to climb. Oil output, according to EIA weekly surveys, is up roughly 300,000 bpd from summer lows, with more supply expected to come online in the months ahead as drilling picks up pace.
It is unclear, at this point, how rising U.S. supply and falling OPEC output will ultimately balance out. For now, the consensus seems to be tightening conditions in the first half of 2017, with much greater uncertainty in the second half, but that remains to be seen.
What is clear is that oil speculators have built up such a large bullish bet on oil that they have opened up crude to near-term downside risk. According to Reuters, hedge funds and other money managers amassed net-long positions in WTI and Brent equivalent to 796 million barrels in the last week of December, which was nearly double the amount from mid-November. The OPEC deal clearly fueled a huge speculative rush in rising oil prices, which, not coincidentally, corresponded with real gains in crude prices.
But at this point, there are very few short positions left in oil, while a massive volume of long bets have built up. That suggests two things, both of which are bearish for oil: there is not a lot of money left to go long, lowering the chances of further prices gains; and the potential for a correction in prices is very high at this point. Indeed, in the most recent week for which data is available, net-long positions declined a bit, raising the possibility that bullish bets have peaked. All it will take is a bit of bearish news to spark a downturn in prices.
There are a few minor worrying signs for oil prices that could crop up as additional bearish forces in the next few weeks. The U.S. DOE announced on January 9 a "notice of sale" from its strategic petroleum reserve, with plans to sell 8 million barrels for delivery over the course of February, March and April. Meanwhile, Libya is seeing rapid gains in oil exports after the reopening of a key export terminal, with output jumping to 700,000 bpd, according to the latest data, up sharply from the 580,000 it produced in November and the 300,000 bpd it exported before it started restoring output last summer. Moreover, Nigeria – which, like Libya, is exempt from the OPEC deal – is intent on restoring production. It may struggle to do that with the recent shuttering of the Trans Niger Pipeline, potential strikes from oil workers unions and the announcement from the Niger Delta Avengers that attacks will resume this year. In fact, production appears to have declined in December, falling 200,000 bpd to 1.45 mb/d, becau se of some of these issues. But if those problems can be overcome, Nigeria has latent production capacity that could come back online at some point.
And in a sign that there is not a lot of room on the upside, a kerfuffle in the Persian Gulf over the weekend did nothing to affect oil prices. A U.S. Navy destroyer fired three warning shots towards Iranian ships, an incident that in the past would have led to a sharp, even if brief, rally in crude prices. Instead, the markets shrugged off the incident – WTI and Brent sank on the first trading day after the event, on unrelated news. "The market is overbought and under a lot of downward pressure," Bob Yawger, director of the futures division at Mizuho Securities USA Inc., told Bloomberg. "The shots fired at the Iranian boats in the Strait of Hormuz didn’t do anything to the market. A few years ago that would have added a couple dollars to the price."
Link to original article: http://oilprice.com/Energy/Energy-General/Oil-Prices-Running-Out-Of-Reasons-To-Rally.html
By Nick Cunningham of Oilprice.com
Oil prices faltered at the start of the second week of the year, as fears set in about a rapid rebound in U.S. shale production. For the better part of two months, optimism surrounding the OPEC deal has buoyed oil prices, but bullish sentiment from speculators are showing early signs of abating, raising the possibility that the oil rally is running out of steam
South Africans No. 1 in the world for watching porn on mobile devices, and in the top 20 countries for porn-watching traffic.
"South Africa is ahead of the rest of the continent, climbing four places in 2016 and contributing to 90 billion-plus video views of Pornhub around the world"
Ethiopia moves toward privatization of state-owned firms. It's not about money. It's about technology, the prime minister says.
“Fast-growing Ethiopia, long committed to driving its economy with state investment, has invited foreigners to invest in its state-owned shipping and logistics company. Other coveted sectors usually off limits to foreigners — like telecommunications and banks — weren’t mentioned in the solicitation”
The Dangotes are the exception. Most businesses built by African entrepreneurs are local. African entrepreneurs share advice on how they became successful.
“The vast majority of businesses built by African entrepreneurs are local. Local political patronage and connections often sustain African entrepreneurs, according to Ghanaian lawyer and entrepreneur Elikem Nutifafa Kuenyehia. Still, their efforts often turn these entrepreneurs into superstars in their communities. Some African entrepreneurs share advice here on how they became successful”
Ethiopian Airlines just announced its 5th destination in China. China has invested heavily Ethiopian infrastructure, funding railways, roads and dams.
“Ethiopian Airlines plans to start new non-stop service in June from Addis Ababa to its fifth China destination in Chengdu, a logistics and transportation hub”
Uganda could be the first African country to regulate digital currencies. Bitcoin Africa: what to expect in 2017 as value jumps to near 3-year high in 2016.
“Some African countries have openly criticized bitcoin use. Others have taken a wait-and-see approach. Bitcoin has enjoyed a rally in 2016 that’s beaten every major currency, stock index and commodity contract, surging 15 percent during Christmas week alone to more than $900”
"Following his gap year to Lesotho in 2004, Harry partnered with Lesotho’s Prince Seeiso, the younger brother of King Letsie III of Lesotho, to set up the charity"
"This tiny country is often overlooked by travelers to Africa. Here's why Prince Harry is in love with Lesotho, 'Kingdom of the Sky"
Why are Comcast, Tencent investing in a Nigerian payments startup? Comcast is the largest broadcasting and cable TV company in the world by revenue.
"Paystack, one of Nigeria’s most hotly anticipated tech start-ups, has just secured $1.3 million seed investment from international and homegrown investors, Forbes reported"
Combating HIV in Swaziland. Hope for Zimbabwe post-Mugabe.These are some of an investment banker’s 54 Christmas wishes for African economies in 2017.
If I could be Santa and give gifts to each of my African friends, here’s what I’d wish for each African country in 2017
Modi has done a right thing: Mauritius PM on demonetisation
"Prime Minister of Mauritius, Anerood Jugnauth, today hailed his Indian counterpart s decision to demonetise Rs 500 and Rs 1,000 notes saying the move would benefit the country's economy in the long run"