The global economy is expected to witness negative growth – IMF predicts a decline in global output by 4.9% – but should gradually recover from recession amid early expansionary programs and policies by fiscal and monetary authorities which should stimulate consumer demand, spending and hiring by businesses and resumption of global trade.
Recovery in crude oil prices is expected to range between USD30 to USD40 per barrel amid supply cut and increasing demand, especially as major markets such as the United States and China, continue to resume economic activities.
Given the negative impact of COVID-19 on the world economy, the Nigerian economy is expected to slide into recession in the second half of the year; in line with IMF’s forecast – it predicted a negative growth rate of 5.4% in 2020.
Specifically, depreciation of the Naira against the greenback, amid declining crude oil prices and Nigeria’s compliance with crude oil supply cut to the international oil market, in line with OPEC mandate, would negatively impact foreign sector of the economy.
Events in the financial sector in H2 2020 will continue to be characterized by a central theme – Liquidity Creation. The pursuit by the apex bank to increase the Loan-to-Deposit ratio further to 70 per cent in 2020, up from 65 per cent in December 2019 is still on course, in our view.
This is expected to boost liquidity in the financial system as a result of increased money creation in the second half of 2020. We witnessed liquidity boost in H1 2020, in line with our expectations which was clearly stated in our Outlook and Investment Strategies for FY 2020 report released in January 2020.
Given the anticipated sustained low-interest rates regime, we expect to see increasing government and corporate bonds issuances in H2 2020, even as cheaper interest rates provide opportunities for refinancing.
According to its revised borrowing plan for 2020, FG is expected to issue at least USD5.5 billion foreign and USD6.1 billion domestic borrowings as government reviewed its revenue downward amid lower crude oil prices and negative COVID-19 pandemic effects.
We expect FG to issue more short-term securities as the short-term debt to total debt mix of 19% was below 25% target as at FY 2019.
We are optimistic that the equities market performance in H2 2020 will be better than what was recorded in H1 2020 as the solution to COVID-19 pandemic appears to be near (amid news of the commencement of the human trial of COVID-19 vaccine in the month of June 2020) and as the effects of economic policy interventions kick in.
Union Diagnostic and Clinical Services Plc hereby wishes to inform The Nigerian Stock Exchange and the investing public that it was unable to file its Q1 Unaudited Financial Statement for the period ended 31 March 2020 (UFS), after the extended sixty (60)- day grace period granted by The Exchange.
The Company regrets its inability to file these accounts within the time prescribed by the Rules of the Exchange on Filing of Accounts. This is because the Company is still concluding its Audit exercise for the audited financial statements for the year ended 31 December 2019 which submission is a prerequisite for filing the 2020 UFS.
The Audit exercise was initially delayed by the implementation of an Enterprise Resource Planning Software and the nationwide lockdown as a result of the Covid-19 pandemic.
The Company envisages to file its 2019 AFS and Q1 UFS no later than 31 August 2020 and sincerely apologize for any inconveniences the delay might have caused.
The creation of the new positions, reporting to Group CEO, Kennedy Uzoka, represents further strategic recognition of the growth of UBA’s pan-African business, now representing in excess of 40% of Group revenue, and the critical importance of Nigeria, the Group’s largest market.
Commenting on the appointments, Group Chairman Tony O. Elumelu said:
“In 2005, we set out our pan-African vision. Fifteen years later, we are present in 20 African countries, serving over 20 million clients, leveraging our service culture and technology platform, to provide an integrated and seamless customer offering across the continent.
In Africa, we lead in innovation and service, whilst our International Business, operating from New York, Paris and London, provides global and African clients access to treasury, trade finance and corporate banking products, uniquely tailored to the African opportunity.
These senior appointments represent our commitment to optimise our management structure to best serve our clients and drive our business success.”
Oliver Alawuba has worked with the UBA Group for almost 20 years and was appointed in January 2020, CEO for the Group’s Africa operations and Oliver’s knowledge of UBA’s business in Africa is unrivalled. He previously held the role as CEO of UBA in Ghana and more recently, as Regional CEO for UBA in Anglophone Africa.
Ayo Liadi joined the UBA Group in 2014 and was appointed the Executive Director of Lagos and West bank in Nigeria, two years later. Ayo is widely recognised for his innovation in driving business development.
Also announced today by the UBA Group Board, was the retirement from the Board with effect from August 01, 2020, of Dan Okeke who has been with the UBA Group for 22 years. Dan served on the Board as an Executive Director for three terms and a total of nine years.
According to the Group Chairman,“Dan was born for UBA. He has worked tirelessly for the Group and achieved so much in the past two decades. We will miss him, but he will still be very much around us”.
UBA is one of the largest employers in the financial sector on the African continent, with approximately 20,000 employees’ group-wide and serving over 20 million customers.
Operating in 20 African countries and globally in the United Kingdom, the United States and France, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge products such as the first-ever banking chatbot in Africa, LEO.
Ghanaian consumer confidence declines by 15 points
Nigerian sentiment also experiences a significant decline
Lagos, 7 July 2020 – Against the backdrop of the unprecedented COVID-19 pandemic, West African consumer sentiment has experienced a sharp drop in the Nielsen Consumer Confidence Index (CCI) for Quarter 2, 2020. Ghana’s figures show a substantial decrease of 15 points to 104, while Nigeria’s CCI has decreased by 14 points to 108.
Looking at Ghana’s performance, Yannick Nkembe, Market Lead for Nielsen West Africa Expanded Market, comments; “The latest consumer sentiments reflect the market reality. With the global pandemic affecting the economy and causing general uncertainty all around, consumers have readjusted their confidence levels and are also more cautious with their spend.”
Woman with hygienic mask shopping for supply.Budget buying at a supply store. Emergency to buy list. Shopping for enough food and cleaning products. Preparation for a pandemic quarantine due to COVID-19
Ghanaians have significantly dropped their outlook around their job prospects, with less than half (45%) saying they will be good or excellent in the next 12 months – a 16 point decrease from the previous quarter.
In terms of the state of their personal finances over the next 12 months, 60% say they are excellent or good, again a substantial 16 point drop from the previous quarter.
Ghanaians propensity to purchase has also seen a considerable decrease quarter on quarter, with the number of those who think now is a good or excellent time to purchase what they want or need drop from 52% to 33% in the second quarter.
Only 43% of Ghanaians say they have spare cash, down 13 points from the previous quarter. Once they meet their essential living expenses, the highest number of consumers (74%) put their spare cash into savings, followed by 73% on home improvements/decorating and 56% who would invest in stocks and mutual funds.
One of the most significant drops in discretionary spending is on holidays down from 58% to 27% – a clear indicator of consumers’ mindset shift away from non-essential services and their desire to avoid unnecessary travel.
Reality bites
When asked whether they had changed their spending to save on household expenses compared to this time last year, 75% said yes, up to seven points from the previous quarter. To reduce expenses, 53% said they spent less on new clothes, 52% on out of home entertainment, with the same figure deferring on the replacement of major household items.
When looking at the real-life factors that are affecting their outlook, the top consumer concerns over the next twelve months were increasing food prices (29%), followed by work/life balance (23%) and their children’s education (22%).
Nkembe comments;“Ghana has previously experienced strong business prospects and with the relatively earlier easing of restrictions to stimulate its economy, recovery in Ghana is likely to rebound sooner. We expect consumers to revert to previous consumption behaviours, although some of their attitudes will have fundamentally or permanently changed post the pandemic.”
Subdued sentiment in Nigeria
In tandem with the rest of the world, Nigeria’s CCI figure dropped by 14 points. Commenting on the reasons for this, Nielsen Nigeria MD Ged Nooy says; “As Africa’s largest economy and the largest exporter of oil, Nigeria’s economy was already under immense pressure before the COVID-19 lockdown due to the collapse in international oil prices.
Based on the additional economic pressure as a result of the COVID-19 pandemic, Nigeria, therefore, instituted a fairly early easing of its 5-week lockdown in early May due to the adverse financial effects on its economy and population.”
Looking at the consumer picture during this time (Quarter 2, 2020) Nigerian job prospects declined with less than half viewing them as excellent or good, a 14 point drop from the previous quarter. Nigerians’ sentiment around the state of their personal finances also showed a decline with 59% who think they will be excellent or good over the next year, having decreased 19 points from the previous quarter.
Immediate-spending intentions also declined, with only a third of the respondents saying “now is a good or excellent time to purchase” what they want or need, a 14 point drop from the previous quarter.
In terms of whether Nigerians have spare cash to spend, 32% said yes, versus 50% in the previous quarter. When we look at Nigerians spending priorities, once they have met their essential living expenses, 81% said they would put their spare cash into savings, 73% said home improvements and decorating and 66% would invest in shares/mutual funds.
Seventy-six per cent of Nigerians said they had changed their spending to save on household expenses compared to this time last year. To reduce expenses, 67% said they had delayed the replacement of major household items (a 10 point increase on the previous quarter).
Sixty-four per cent said they would spend less on new clothes and 56% said less out of home entertainment – both of which are understandable given ongoing restricted living patterns.
In the next 12 months, Nigerians said their top concern would be attaining a work/life balance (31%), which has seen the biggest increase of eight points compared to the previous quarter. This is followed by increasing food prices (23%) and concerns over the economy (19%).
Elaborating on these results, Nooy says;“Economic recovery has been sluggish and will remain severely constricted due to the oil price crash amidst and beyond the pandemic. For Nigeria’s manufacturing and retail sectors to rebound will require a sharp focus, as trade opportunities and execution remains severely constrained, having further deteriorated during the partially restricted living period.”
Total sales affected by the impact of the worldwide pandemic
Initial signs of recovery in individual markets at the end of Q2
962,575 vehicles delivered (-23.0%) in year to date
BMW Group sold 218,876 automobiles in June (-9.0%)
As expected, BMW Group sales figures for the first six months of this year were impacted by the effects of the temporary closure of retail outlets worldwide. The company delivered a total of 962,575 (-23.0%) premium BMW, MINI and Rolls-Royce vehicles to customers worldwide in the first half-year.
The new BMW 530e xDrive Sedan, Phytonic blue metallic, M Sport package (05/2020) fuel consumption combined: 2,1 – 2,0 l/100 km; power consumption combined: 16,4 – 15,9 kWh/100 km, CO2 emissions combined: 49 – 46 g/km
“We are following the development of global demand very closely and continue to plan for various scenarios so we can respond quickly as regions around the globe recover from the coronavirus pandemic at different speeds,” said Pieter Nota, member of the Board of Management of BMW AG responsible for Customer, Brands and Sales. “We are seeing positive development in China, where our second-quarter sales were once again higher than in the previous year,” underlined Nota. “Demand for our electrified vehicles also outperformed the market trend in the first half of the year. Our wide range of plug-in hybrid models and the new fully-electric MINI is in high demand among our customers,” he added.
Vehicle deliveries in first half-year by brand
A total of 842,153 (-21.7%) BMW vehicles were delivered in the first six months of the current year. The MINI brand sold 118,862 (-31.1%) units during the same period.
In the first half of the year, a total of 61,652 (+3.4%) electrified BMW and MINI vehicles were handed over to customers.
Rolls-Royce Motor Cars reported sales of 1,560 (-37.6%) vehicles in the first half of the current year.
A total of 76,707 (‑17.7%) motorcycles were also sold between January and June.
Strategic decisions on future model line-up bearing fruit
The BMW Group began early with the systematic electrification of its vehicle portfolio. The BMW Group already offers plug-in hybrid models in all relevant vehicle segments and occupies a leading role in Germany and worldwide. Against this background, the company welcomes Germany’s economic package and expects to benefit from this stimulus, especially through incentivisation of electrified vehicles. Production of the fully-electric BMW iX3 will begin in a few months. Next year, electrification of the model line-up continues with the fully-electric BMW i4 and the BMW iNEXT. The BMW Group aims to have a total of 25 electrified models on the roads by 2023 – more than half of them fully electric.
The BMW Group has also continued to refresh its model range and presented the new generation of its sporty two-door BMW 4 Series Coupé in the premium mid-size segment in late May. The new BMW 5 Series has also been on the market since June, with numerous design and technology innovations that underpin its leading position in the premium upper mid-size segment. THE 5 offers the largest selection of plug-in hybrids in the BMW portfolio, with five model variants.
The MINI brand’s young electrified product line-up also had a positive impact on sales figures. In the first half of this year, a combined 8,587 units (+4.1%) of the plug-in hybrid MINI Cooper SE Countryman ALL4* and the fully-electric MINI Cooper SE* were sold.
BMW and MINI sales in key regions worldwide
Germany
The BMW Group’s domestic market saw a positive trend in new orders – in particular, for electrified vehicles – at BMW, and especially MINI. A total of 116,255 BMW and MINI vehicles (-29.1%) were sold during the first six months; 10.8% of these were electrified.
Europe
In the Europe region, a total of 372,428 (-32.3%) BMW and MINI vehicles were delivered to customers between January and June of this year. With 40,734 BEVs and PHEVs sold, the percentage of electrified vehicles stood at 10.9%. With very limited exceptions, all retail outlets in the region had reopened by the end of the first half-year.
North America
The situation in the US remains mixed and varies from state to state. By mid-June, all retail outlets had reopened for the first time since early March. A total of 133,844 vehicles (‑30.6%) were delivered to customers in the first half of the year; of these, 121,657 (-29.6%) were BMW brand vehicles.
China
In China, sales for the first six months of the year totalled 329,069 vehicles (-6.0%). Sales in the second quarter were already 17.1% higher year-on-year. This continues the positive trend pointing to a recovery in this market since March.
BMW Group sales in Q2 and YTD June 2020 at a glance
Q2 2020
Compared with previous year %
1st Half 2020
Compared with previous year %
BMW Group Automotive 1
485,701
-25.3%
962,575
-23.0%
BMW 1
430,397
-23.2%
842,153
-21.7%
MINI 1
54,597
-38.2%
118,862
-31.1%
BMW Group electrified*1
31,095
-4.9%
61,652
+3.4%
Rolls-Royce1
707
-46.8%
1,560
-37.6%
BMW Motorrad
41,933
-23.2%
76,707
-17.7%
*BEVs and PHEVs
BMW & MINI sales in the regions/markets
Q2 2020
Compared with previous year %
1st Half 2020
Compared with previous year %
Europe 1
151,869
-45.6%
372,428
-32.3%
Germany* 1
48,264
-46.0%
116,255
-29.1%
Asia 1
253,533
+7.5%
416,153
-8.1%
China 1
212,617
+17.1%
329,069
-6.0%
Americas 1
70,311
-41.1%
152,102
-30.5%
USA 1
56,245
-39.5%
120,937
-29.4%
*Provisional registration figures
1 In connection with a review of its sales and related reporting practices, BMW Group reviewed prior period retail vehicle delivery data and determined that certain vehicle deliveries were not reported in the correct periods. Further information can be found in the March 12th press release announcing BMW Group’s financial results for 2019 and in BMW Group’s 2019 Annual Report. As an update of the information given there, BMW Group has revised the data on vehicle deliveries retrospectively going back to 2015 in its sixteen most significant markets.
As H2-2020 begins to unravel, we believe the world is on a better balance of supply and demand, which will determine the trajectory of oil prices. On the supply side, OPEC+ decided to extend the 9.7mb/d cuts by one month into July (now 9.6mb/d with the exclusion of Mexico’s 100kb/d), before entering the next phase of production cuts, in which output will be reduced by 7.7 Mb/d.
On the other hand, the dynamics on the demand side are dependent on the progression of the COVID-19 disease and how soon activities can return to normal. With several economies gradually easing restrictions, as well as stimulus measures by governments to spur business and industrial activities, demand is likely to improve in H2-2020.
However, given the absence of a vaccine, the level of activities is expected to remain low throughout 2020 compared to 2019.
Notably, the OPEC projects that oil demand will rebound to about 92.3mbpd in Q3-2020 from 81.3mbpd in Q2-2020, bringing average demand in 2020 to 90.6mbpd, 10.0% lower than 99.7mbpd from 2019.
In all, we believe that oil prices will hover around $35.0/b to $45.0/b, as a full recovery in demand remains hinged on the development of a vaccine, and the non-materialization of a second wave of the pandemic.
The Nigerian Stock Exchange (NSE or The Exchange) is pleased to announce the upgrade of its Issuers’ Portal (X-Issuer) on Monday, 06 July 2020.
X-Issuer which was first launched in 2013, is a secure web-based portal designed to enable Issuers conveniently file information in an electronic format to The Exchange.
It is a key regulatory initiative of the NSE, developed to ensure electronic delivery of Issuers’ mandatory filings and other information in a structured and continuous manner to capital market stakeholders.
Issuers’ Portal (X-Issuer), a secure web-based portal designed to enable Issuers conveniently file information in an electronic format on The Exchange.
The enhanced X-Issuer, accessible via, https://ip.nse.com.ng, comes with a modern layout, improved functionalities, and new user-friendly features to further enhance the compliance and regulation experience of Issuers.
Some of the new features include the Release Calendar Module to allow issuers proactively file corporate actions and upcoming meetings, and an information channel for Fund Managers to share information about their funds.
Speaking on the development, the Chief Executive Officer, NSE, Mr. Oscar N. Onyema, OON noted that,
“This upgrade affirms our commitment to eliminating information asymmetry in our market and protecting investors. The X-Issuer has, therefore, been enhanced to ensure that investors, analysts, and other stakeholders are better able to evaluate data in an accurate, timely, and more efficient manner.
“We are positive that the improvements we have incorporated will achieve greater transparency, integrity, and accountability in our capital market; facilitate informed investment decision-making while providing an enhanced experience for issuers.”
On her part, the Executive Director, Regulation Division, NSE, Ms. Tinuade Awe, stated,“At the NSE, we understand the importance of information in driving a vibrant capital market.
“As such, we are pleased to introduce the revamped X-Issuer to the market with its new features that will enable easy, convenient and more reliable submission and dissemination of company information, corporate actions, directors’ and insiders’ share dealing information, financial statements, earnings forecasts, meeting notices, and much more.
“We believe that the upgraded X-Issuer will further enhance the experience of issuers and expedite the discharge of post-listings obligations in a cost-effective and efficient manner.”
The Exchange remains committed to investing in business innovation and technological enhancements that will enable it to meet the needs of its stakeholders especially as we transition to a world of reduced physical interactions.
The X-Issuer is one of The Exchange’s dedicated efforts to improve the level of services it provides to the market while enhancing its ability to compete effectively in the global marketplace.
Media Entrepreneur and owner of EbonyLife TV, Mosunmola Abudu, popularly known as Mo Abudu has announced that EbonyLife TV channel will no longer be available on DSTV come July 31.
Mo Abudu made this known via social media when she uploaded that all shows on EbonyLife TV will have all its full series uploaded on EbonyLife ON, a digital video-on-demand (VoD) service available on iOS stores and Google.
She said:“Remember when we used to wait a whole week to watch our favourite TV shows? Well, those days are gone forever! Now, we can binge on the whole series if we want to. Therefore, we have decided that EbonyLife TV will no longer be available on DStv from 31st July 2020.”
Remember when we used to wait a whole week to watch our favourite TV shows? Well, those days are gone forever! Now, we can binge on the whole series if we want to. Therefore, we have decided that EbonyLife TV will no longer be available on DStv from 31st July 2020. pic.twitter.com/vSdSu9EGOH
It comes after a string of corporate failures, including Carillion and BHS, led to calls for a shake-up of the sector
PwC, Deloitte, KPMG and EY have been told by the accounting watchdog to separate their auditing units from their consulting businesses by June 2024.
The Financial Reporting Council said the objective of the operational separation by the Big Four is to ensure that audit practices are focused on the delivery of high-quality audits in the public interest and do not rely on persistent cross-subsidy from the rest of the firm.
The firms must outline their plans to implement all 22 of the FRC’s principles by October 23 and have completed the measures by June 2024 at the latest.
The move represents the biggest shake-up of the audit industry in decades and comes after a string of corporate failures, including Carillion and BHS, which led to three government-backed reviews that recommended wide-scale reforms.
Regulators say that the companies’ lucrative advisory arms create a conflict with their auditing divisions as it encourages auditors to be restrained in order to protect consulting opportunities.
Sir Jon Thompson, the FRC’s chief executive, said: “Operational separation of audit practices is one element of the FRC’s strategy to improve the quality and effectiveness of corporate reporting and audit in the United Kingdom following the Kingman, CMA and Brydon reviews.
“Today the FRC has delivered a major step in the reform of the audit sector by setting principles for operational separation of audit practices from the rest of the firm.
“The FRC remains fully committed to the broad suite of reform measures on corporate reporting and audit reform and will introduce further aspects of the reform package over time.’
Under the new principles, the finances of audit divisions must be ringfenced with a separate profit and loss account and firms will have to introduce an independent audit board to oversee the practice.
The Big Four now generate the majority of their revenues from consultancy practices, with only around 20pc coming from the audit.
Konnect, a subsidiary of Eutelsat Communications, pursues its ambition to connect the entire African continent to very high-speed Internet, and more particularly in this context of the current health crisis. Konnect has recently proposed to offer broadband internet connection to isolation centres to fight against Covid-19 in Sokoto, a north-western state in Nigeria, where it will enable the real-time connection of centres, leading to effective coordination of medical services and improved the care offer thanks to telemedicine.
With this offer, Konnect joins the fight of several African governments to combat Covid-19 by allowing access to care for the greatest number of people. Each isolation center will benefit from free broadband connectivity. This deployment is made possible through the partnership with Coollink, a foremost ISP in Nigeria.
Commenting on the agreement, Jean-Claude Tshipama, CEO of Konnect Africa, said:“This operation demonstrates our ability to meet as quickly as possible the connectivity needs of institutional and commercial structures, even in complex times like these. We want Sokoto State to benefit from our expertise and the quality of our broadband services by providing FREE connectivity to all isolation centers.”
Shahin Nouri, CEO of Coollink, added:“Helping the Sokoto State Government to provide free satellite internet services to isolation centres is very important to us. It shows our engagement to deliver high-speed Internet anywhere in Nigeria and to help communities in crisis. Eutelsat Konnect has been a very important partner for us, and with such initiatives, is showing its commitment to the Nigerian market.”
Sokoto State Government Commissioner for Health, Dr Muhammad Ali Inname said:“Konnect has shown great concern towards the good people of Sokoto state by providing internet connectivity to three Covid-19 Isolation centres in the state. This gesture will go a long way in facilitating the management of Covid-19 patients in the state.”
Konnect, in partnership with Coollink, has been operating in Nigeria since 2017, with the ambition of offering broadband connectivity to all segments of the population, in particular those located in unserved or underserved areas.
Konnect offers an affordable and flexible solution, available everywhere. Konnect will see its in-orbit resources increase tenfold with the entry into service of the EUTELSAT KONNECT satellite in the coming months. With a total capacity of 75 Gbps, EUTELSAT KONNECT will be able to provide very high-speed Internet of up to 100 Mbps, guaranteeing full coverage of Nigeria and 40 other African countries.
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