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FXTM Analysis: Global Markets In State of Shock Over UK Referendum Outcome ‎

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The financial markets and spectators across the globe are in a complete state of shock following the unexpected outcome to the EU referendum that the UK has voted to leave the European Union.

Markets were completely reliant in the final lead up to the vote on following the bookmakers, who heavily favoured a one-sided remain and as such, were simply positioned for only a remain outcome.

Investors were guilty of ignoring the consistent opinion polls that repeatedly pointed out that the vote was going to be close and as a result, the possibility of a UK exit had been severely under-priced throughout the financial markets.

Make no mistake, around this time last year the markets were in complete pandemonium over what implications a “Grexit” could have on the global markets and the ramifications of a “Brexit” will carry far more severe risks.

What happens next? ‘Sell the news’ is going to become the name of the game.

Despite all of this historic movement in the British Pound overnight, this eventual outcome has not been priced into the equity markets, and the open to both the European and US session later today is going to be under the watchful eye of the world.

The GBPUSD itself dropped from a cliff overnight, and has recorded historic losses from 1.50 to 1.32 in a matter of hours.

It is important to point out that the reason for the GBPUSD falling to such extraordinary levels is not just limited to the UK voting to exit the European Union, investors have been very quick to also price in the uncertainty over the future of UK Prime Minister David Cameron and also the likelihood that this shocking news possibly opens the doors for another Scottish Referendum down the road.

There are also many other unanswered questions such as would this impact the UK’s credit rating and how will the Bank of England (BoE) react to such a shock.

There has also been an expected correlated move in the Eurodollar overnight, which itself has declined from 1.14 to just above 1.09 as a result of questions now lingering over the future of the European Union as a whole.

Headlines have circulated over the past hour alone around political parties in both Italy and France possibly planning on campaigning for their own referendums in the future.

I would personally not see this as a major threat for the time-being, but it could be interesting to monitor the possible reaction to Denmark and Sweden following the news that the UK has voted to leave the European Union. ‎

It must also be made clear that the unexpected shock overnight must have implications on the Federal Reserve and their intention towards raising US interest rates later in 2016.

With so much uncertainty set to surround the global economy, US interest rate expectations must be pushed back and Federal Reserve Chair Janet Yellen was very explicit in stating the risks a Brexit outcome could provide to the global economy.

This possible correlation has not quite yet been priced into the Dollar and if US futures point as sharply lower as what the European futures are currently suggesting, there is a threat of a knock-on effect on the Dollar.

We saw the USD plunge sharply lower following the events of Black Monday in August and it is possible history could repeat itself if US markets enter trading under such heavy pressure.

Gold has reached its highest level since March 2014 as a result of safe-haven demand following the United Kingdom voting to leave the EU.

After reaching levels beyond $1350 earlier in trading, Gold is now consolidating somewhere around the $1320 region. If risk aversion sweeps across the financial markets as expected following diminished risk appetite from investors, Gold could continue to see further support due to its status as a safe-haven asset.

Of course, this would be even more possible if US interest rate expectations do get pushed back as a result of such a shock overnight.

Due to limited attraction towards risk from investors, the oil markets have dropped as expected because concerns over the global economy would naturally make investors question demand for the commodity.

What does this mean to the Bank of Japan? A UK exit outcome represents their worst nightmare. With risk aversion now likely to be a theme in the markets for a prolonged period following such a shock overnight, there is quite simply nothing the central bank can do to prevent Yen demand from traders.

Can they intervene? Yes they can, but it would not be a wise idea to even consider this until this outcome has been priced in across the financial markets.

If the BoJ are not patient in allowing investors to adjust to the outcome of the referendum and the possible ramifications, the BoJ simply risks entering a game of cat-and mouse. In times of uncertainty the Japanese Yen becomes the best friend for traders and despite all of the unbelievable gains for the Yen throughout the first six months of 2016, the outcome to the overnight referendum has just encouragement towards the Yen towards new levels. 

Quite simply put, the reaction to Gold, the Japanese Yen and how heavy equity markets are at threat to falling is the simplest reflection of how unprepared traders were for this outcome.

By Jameel Ahmad, VP of Market Research at FXTM


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Access Bank Unveils DiamondXtra Season 16, Dangles N200m, 3 SUVs

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The sixteenth season of DiamondXtra, a savings and reward account where customers of Access Bank are rewarded with several prizes, have been unveiled in Lagos.

Access Bank Unveils DiamondXtra Season 16, Dangles N200m, 3 SUVs

 L – R : Doris Okpara, Product Manager, DiamondXtra; Ngozi Igboanugo, Regional sales Manager Festac 1&2 & mainland Access Bank; Bolarinwa Animashaun, Regional Sales Director Lagos 2 Access Bank ; Emeka Ezikeugo, Diamondxtra N200,000 Onsite winner; and Adaeze Ume, Head Consumer liabilities, Access Bank during the launch of Diamondxtra Season 16 held at Alaba International Market Lagos yesterday.

The Season 16th of the special interest yielding hybrid account which allows deposit of both cash and third-party cheques has been upgraded as customers will win prizes to the value of N200 million and three SUVs, amongs other mouthwatering prizes.

Speaking at the unveiling in Alaba International Market, Lagos, Mr Bolarinwa Animashaun, regional sales director, Lagos, said the new season will bring more goodies to the customers as the bank has taken their interest at heart.

“In the last fifteen years, we have been able to ensure customer loyalty, reward committed customers over time and show that we are a bank that is ready to empower people and partner with people.

“If I take it into specific figures, we have rewarded 26,696 customers and we’ve given a total sum of N6.5 billion over the period.

This Season16is interesting, because, we have seen a lot of opportunities to expand into digital opportunities and this time around, we will be rewarding 15,786 customers, and 10,000 of them will be digitally rewarded.

“This is almost half of what we have done over the last 15 years. So that is what is making it special. We have takenit into the possibilities of how technology can expand our business and reward customers”.

The draws for the new season are going to be the same like the previous ones as it will be held in different regions.

“So, we start from the monthly draws, quarterly draws and the annual draws. What makes it extremely interesting this year is that we will be rewarding with up to N200 million in prizes and we have added some very interesting gifts. We will be given out three SUVs as part of the N200 million price for this year”, Animashaun added.

At the unveiling, Access Bank conducted onsite draws where 48 customers who have DiamondXtra accounts and were present at the unveiling won cash prizes ranging from N20,000 to N200,000.

Breakdown shows 40 customers won N20,000 each, five customers won N50,000, two customers won N100,000, while one customer went home with N200,000.

Among winners of the N20,000 prize was Mr Victor Edobor, who said he opened the DiamondXtra accounts 24-hours before the draws.

One of the two winners of the N100,000 prize, Mrs. Maureen Nneka Oforka, said she was surprised to have won at the well-attended event as that was her first time winning any prize.

She said, “I have never won any prize in my life. This is my first. I came here reluctantly and thank God, I am here and I am a winner of N100,000 which has already been paid into my account.

The grand prize winner of N200,000, Mr. Emeka Ezikeugo, a trader in Alaba, said. “I will forever be grateful to Access Bank for the prize as I was not expecting it. I thank the bank for showing leadership among its peers”.

To be part of the winning train and qualify for the DiamondXtra season 16 which is open to both new and existing customers, new customers are required to open a DiamondXtra savings account with just N5,000 by dialling *901*5# or walking into one of our branches to open the account.

However, the more multiples of N5,000 both new and old customers save, the higher their chances of winning at the monthly, quarterly and annual draws.

DiamondXtra is an interest yielding hybrid account which allows deposit of both cash and third party cheques. Hybrid means a combination of both savings and current account features. The DiamondXtra reward scheme has given away over N6.5 billion in cash and household items to over 15,000 loyal customers over the last 15years.  Please click HERE to learn more.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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Lafarge Africa Launches Girls-in-Tech Programme to Empower Women Innovators

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Recognising the underrepresentation of women in the technology sector, Lafarge Africa Plc, has launched the Girls in Tech Program, a pioneering initiative aimed at empowering young women in technology.

Meticulously crafted to bridge the gender gap in tech and empower 10 young females between the ages of 18-25 years from Lafarge Africa Host communities in Cross River State, the program is poised to make a significant impact in the region.

The Girls in Tech Program seeks to harness the unique talents of these young women and introduce them to the dynamic world of technology. By providing them with essential skills and opportunities, the initiative aspires to equip them to become self-reliant as well as problem solvers in society.

In collaboration with Aptech and Arena Multimedia,globally recognized leaders in technology incubation and opportunity, as well as The Bridge Leadership Foundation, the boot camp promises to be a transformative experience for the participating girls, who are eager to make their mark in the tech industry.

Speaking during the onboarding to flag-off in Calabar recently, the Plant Manager, Lafarge Africa Plc, Sotirios Valsamakis, who was represented by the Human Resources Business Partner, Lafarge Africa Plc; Barong Ita, revealed that the program was in line with the company’s commitment to diversity and inclusion.

She also added that the initiative is designed to ignite a spark of inspiration, hope, and possibilities in the heart of the selected girls across the host communities.

“As an organization, people are an integral part of our sustainability drive, and we are invested in building lasting progress by empowering members of our host communities. We also recognize the need for greater and greener diversity and inclusivity within the tech sector.”

Today’s event is not just about launching a program. It is about igniting a spark of inspiration, hope, and possibilities in the hearts of these young women. It is about challenging stereotypes.”

Also speaking at the event, the Cross Rivers State Commissioner for Science, Innovation & Technology, Justin Beshel represented by Edwin Adie, Technical Senior Advisor, Cross Rivers State Ministry of Science & Technology commended Lafarge Africa for the initiative adding that it is in line with the State government’s plan towards science, technology and innovation development.


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Hydrogen, CCHub Partner to Encourage Fintech Startup Success

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As the country faces economic challenges, the need for adaptive strategies in the fintech industry becomes paramount. In line with this, leading Fintech startup, Hydrogen Payment Services Limited (‘Hydrogen’), has teamed up with Co-creation Hub (‘CcHub’) to host an insightful event themed, ‘Adapting Fintech Business Models to Economic Climes’.

The event, set to take place on Thursday, April 18, 2024, from 12:00 WAT at the CcHub office in Sabo, Lagos, will delve deep into the intricacies of Nigeria’s economic challenges and how these influence the fintech ecosystem.

Participants will gain actionable insights on how to adapt fintech business models to volatile economic conditions by prioritising flexibility, agility, and customer-centricity.

This collaboration underscores the shared commitment of both entities to empower aspiring founders venturing into the Fintech space amidst economic uncertainties.

By leveraging their respective expertise and resources, Hydrogen and CcHub aim to equip emerging entrepreneurs with the knowledge, tools, and support needed to thrive in today’s dynamic economic conditions.

Emeka Awagu, Chief Technology Officer at Hydrogen, commented on the strategic partnership with CcHUB: “Our alliance with CcHUB amplifies our shared commitment to pioneering transformative solutions in Nigeria’s fintech sector.

“By leveraging Hydrogen’s technological expertise alongside CcHUB’s innovative approach, we are primed to set a new standard for fintech excellence and drive impactful change across the industry.”

The event will feature a distinguished panel of industry experts and thought leaders, including, Ina Alogwu, Group Director, Digital Transformation, ARM HoldCo; Emeka Awagu, Chief Technology Officer, Hydrogen, and Miracle Ezechi, Digital Marketing Manager, Hydrogen.

The panel discussion will be moderated to encourage an engaging and insightful conversation on the strategies and innovations required to thrive in Nigeria’s Fintech landscape amidst economic challenges.


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