E-Financial
Market Sentiment Sours on Rising US Political Risk
By Lukman Otunuga, Senior Research Analyst, FXTM
Rising political risk in the United States has joined the growing list of negative themes weighing heavily on global sentiment.
In a dramatic development overnight, US lawmakers have called for an impeachment inquiry against US President Donald Trump. Given how this increases the prospect of heightened political uncertainty in the world’s largest economy and compounds the list of geopolitical factors, risk assets and global equities in particular remain in the firing line. The negative mood lingering across markets is also being fueled by renewed US-China trade uncertainty after Trump criticized China’s trade practices in a United Nation’s speech. Fresh signs of escalating trade tensions between the world’s two largest economies will be negative for market sentiment as investors fret over slowing world growth.
Asian markets slipped on Wednesday morning as US political uncertainty and trade concerns drained investor confidence. The growing caution and absence of risk appetite could find its way into European markets later this morning.
Pound bulls experienced a sugar rush on Tuesday after the Supreme Court ruled Boris Johnson’s suspension of Parliament ‘unlawful, void and to no effect’.
However, gains were later surrendered as investors refocused on the bigger picture and what it meant for Brexit. Given how the prime minister said he disagreed with the Supreme Court ruling and vowed that Britain would leave the EU by the 31 October deadline, nothing has changed in this complicated Brexit equation. Opposition leaders are already calling for Boris Johnson to resign which will add to the political uncertainty as the clock ticks down. Investors should fasten their seat belts and prepare for more drama and action in the Brexit saga as Parliament reconvenes on Wednesday.
There are so many questions drifting in the air over what to expect in the coming weeks and this compounds the overall uncertainty. Will Johnson be able to strike a deal in Brussels on October 17-18? Will he be forced to seek an extension to Article 50? Will there be a general election? Does the prime minister have a plan B?
The British Pound could transform into a fierce battleground for bulls and bears due to its sensitivity to Brexit developments.
Looking at the technical picture, prices still remain in a downtrend on the weekly charts. However, a solid weekly close above 1.2500 should open the doors towards 1.2700.
Egyptian stocks hit by protest uncertainty
Egypt’s benchmark EGX30 index fell over 4% on Tuesday as protests in Cairo and other cities over the weekend sparked risk aversion consequently dampening appetite for riskier assets.
While concerns over further escalation may drag the index lower, losses could be cushioned by Egypt’s improving macro-economic conditions. The nation expanded by 5.3% in 2018 which was its highest rate of growth in 10 years while inflation is at its lowest level in six years at 7.5%. Overall sentiment towards the economy has the potential to improve if the Central Bank of Egypt cuts its key interest rates on Thursday in an effort to stimulate growth.
Titan Trust Bank has selected Oracle FSS for its core and digital banking technology, it is understood.
The start-up bank recently obtained its license by the Central Bank of Nigeria (CBN).
It’s understood that Temenos and Infosys also competed for the deal.
The shortlist came down to the two most widely installed international core systems in Nigeria, Infosys’ Finacle and Oracle FSS’s Flexcube.
The Nigerian banking sector has seen a great deal of upheaval over the years, with many mergers, start-ups and closures. Flexcube is a well respected name since the late 1990s (the pioneer was Access Bank, now one of the country’s top five banks) and has been a commonly selected platform since then.
The new bank is believed to be one of five to have gained regulatory approval of late (Globus Bank is another).
Local media sources say the new licences stem from the Central Bank’s desire to attract new investments into the sector and better serve the country’s 50 million+ unbanked and under-banked citizens.
Titan Bank is said to be headed by a former executive director of Heritage Bank (which is a Finacle user).
Oracle FSS did not respond to request for comment.
International Monetary Fund (IMF), has appointed Tony Elumelu, Nigerian billionaire and group chairman of Heirs Holdings, owners of United Bank of Africa, to its advisory council on entrepreneurship and growth, convened by Kristalina Georgieva, the fund managing director.
The announcement was disclosed in a statement on Friday.
According to the statement, the IMF advisory council comprises global business leaders, policymakers, and academics dedicated to identifying and addressing regulatory barriers to entrepreneurship.
The IMF said Elumelu will be instrumental in ensuring that Africa’s entrepreneurship is central in policy making.
“Elumelu, Africa’s leading advocate of entrepreneurship and whose Foundation has funded, mentored, and trained over 25,000 African entrepreneurs since 2015, champions entrepreneurship as the engine for the economic transformation of Africa,” the statement reads.
“A self-made entrepreneur, Elumelu’s embracing of entrepreneurship is fundamental to his concept of Africapitalism, his belief that Africa’s private sector can and must play a leading role in the continent’s development, making long-term investments that deliver social and economic value.
“Elumelu will be instrumental in ensuring that Africa’s entrepreneurial potential is central to global economic policy making.”
Speaking at the inaugural meeting of the advisory council on March 26, Georgieva said the appointees would share their experiences on how macroeconomic and financial policies “can provide a supportive environment for innovation, entrepreneurship, and productivity — key ingredients for a thriving private sector and strong economic growth”.
Africa’s Micro, Small, and Medium Enterprises, fintech industry, scaling remittances, and cross-border payments will be the driving forces behind the continent’s digital ballooning payments system, which is estimated to reach $1.5 trillion by 2030.
This is according to a MasterCard-commissioned study by Genesis Analytics, which states that the digital payments economy is growing faster on the continent.
This comes as the World Bank says Sub-Saharan Africa has shown significant growth in financial inclusion over the past decade, much of it driven by mobile money account adoption.
Dimitrios Dosis, president, Eastern Europe, Middle East and Africa at MasterCard, comments: “Africa is filled with immense possibilities, and its people have the potential to shape the global economy in the decades ahead.
“MasterCard remains deeply committed to driving digital transformation across the continent, working closely with entrepreneurs, merchants, banks, start-ups, telcos, and governments. By increasing our investments, expanding innovation, and fostering inclusion, we are helping build a more connected and accessible digital future.”
The payment technology company went on to say as a longstanding technology partner to Africa, its continues to strengthen its commitment to the continent’s digital growth through strategic investments, public-private partnerships, and innovation initiatives that drive financial health and economic growth.
In addition, it says trends in Africa signal a strong shift towards digital transactions, with businesses and consumers increasingly embracing contactless solutions, further accelerating economic participation and financial accessibility across the region.
“For over five decades, MasterCard has worked alongside African governments, businesses, and communities to advance financial inclusion and economic development.
“With Africa projected to host nine of the world’s 20 fastest-growing economies, we are focused on leveraging our expertise and a technology to support the continent’s continued digital transformation.
“Our investments today will help build a more resilient economy for the future,” says Mark Elliott, division president, Africa, MasterCard
By fostering collaboration with key stakeholders, MasterCard says it aims to enhance digital connectivity, expand economic opportunities, and enable millions of people and businesses to thrive in the digital economy.
Titan Trust Bank Selects Oracle FSS for Core and Digital Banking Technology
IMF Appoints Elumelu, Nigerian Businessman to Advisory Council
NCS to Launch Electronic System for Cash Declarations at Airports
IHS Nigeria Hosts Telecom Industry Stakeholders to Discuss Protection of Critical National Infrastructure in Lagos State
Aquaterra Energy Secures Multi-million-dollar well Intervention Contract with Intrepid Energy in Nigeria
News2 days agoCourt Throws Out Falana’s Fraud Case against Ekeh, Zinox Boss and Others
E-Financial2 days agoHeritage Bank Depositors Seek National Assembly’s Help to Recover Trapped Funds
Telecom2 days agoNokia Unwraps 5G Gateway for Home Internet
News2 days agoFG Receives N1Bn Grant from Airtel Africa to Boost 3MTT Programme
News2 days agoFG to Halt Solar Panel Imports, Pushes for Local Manufacturing
E-Business2 days agoSenate Passes Bill to Re-enact NIMC Act
Telecom1 day agoAgain, Labour Fumes, Threatens Shutdown of Telcos over Non-Implementation of 15 Percent Tariff Reduction
Telecom2 days agoSenate Urges FG, Telcos to Cut Data Cost