Cash-less: Inter-bank fund transfer, others hit N2.1tn monthly
Due to the growing influence of the cash-less policy, inter-bank fund transfers, instant payments and cheque transactions in the Nigeria Inter Bank Settlement Payment System Plc are now worth N2.1tn monthly. The Central Bank of Nigeria, in a document made available to our correspondent on Thursday, confirmed that the NIBSS now handles the processing of 140,344 electronic fund transfer, instant payment and cheque transactions everyday. The transactions are worth over N70.2bn. The Head, Shared Services, CBN, Mr. Chidi Umeano, who confirmed the data, explained that the NIBSS was processing 6,749 instant payments worth N5.66bn; 99,602 electronic fund transfers worth N40bn; and 33,993 cheque transactions worth N24.7bn. Analysts, who spoke with our correspondent, said the 4.2 million monthly transactions across the three e-channels were worth N2.1tn; adding that these were expected to increase as the cash-less scheme received more acceptance.
http://www.punchng.com/business/business-economy/cash-less-inter-bank-fund-transfer-others-hit-n2-1tn-monthly/
DMO issues N70bn in 2017, 2022 bonds
The Debt Management Office sold N70bn ($440.31m) worth of five-year and 10-year bonds, maturing in 2017 and 2022, at its regular auction on Wednesday. The debt office said on Thursday that it sold N35bn each in five-year and 10-year paper with maturities of four years, 11 months and nine years, eight months, respectively. According to DMO, the bonds are due to mature in 2017 and 2022, respectively, and are re-openings of previous issues. The 2017 bond has a coupon of 15.24 per cent, compared with 15.1 per cent at the last auction in April, while the 2022 paper pay a rate of 15.45 per cent against 15.47 per cent previously. Meanwhile, figures from the Central Bank of Nigeria showed that foreign exchange reserves rose to their highest in 21 months to $37.02bn on Tuesday, from $36.66bn at the end of last month. Forex reserves in the country stood at $33.94bn a year ago. The last time the reserves were at this level was in August 2010.
http://www.punchng.com/business/money/dmo-issues-n70bn-in-2017-2022-bonds/
Inflation pushes up bond, T-bills yields
Yields on Nigeria bonds and treasury bills rose across all maturities on Thursday after a pickup in inflation in Africa’s second-biggest economy, dealers said, prompting investors to hold positions ahead of next week’s rate decision, Reuters reported. The Central Bank of Nigeria will hold its rate setting meetings next Tuesday and analysts expect the bank to keep interest rates on hold at 12 per cent, despite an uptick in inflation. Bond and treasury bill yields had adjusted upwards, rising between 20 and 100 basis points, dealers said, after April inflation climbed to 12.9 per cent, year on year, from 12.1 per cent in March. Successive hikes in interest rates by the CBN had spurred a sustained rally in bonds, but Tuesday’s inflation data reversed some of those gains, traders said. The shortest three-year bond inched up to 15.4 per cent on higher inflation, from 15.1 per cent, while longer tenor 20-year paper was unchanged at 14.39 per cent.
http://www.thenationonlineng.net/2011/index.php/business/46972-nigeria-bond-yields-rise-on-inflation-worries.html
Nigeria’s consumer spending on packaged goods tops in Africa
The volume of spending by Nigerian consumers on packaged goods has assumed a crescendo, making it the highest in Africa , according to a survey by Nielsen, a leading global provider of information and insight into consumer behaviour on consumer packaged goods (CPG). The report demonstrates an increase in consumer earnings in the country. “Nigerians earn more and spend more on CPG products than the African average,” the report has stated, while noting that the middle and high income consumer segments, which it categorised as Trendy Aspirants, Balanced Seniors and Progressive Affluents, account for over 50 percent of spending on CPG, which is significantly higher than the Africa average of 45 percent. As the most populous country in Africa and the second largest economy in sub-Sahara Africa, Nigeria ’s growing middle class and consumer spending have made it an attractive…
http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/37949-nigerias-consumer-spending-on-packaged-goods-tops-in-africa
Govt to borrow $7.9 billion, insists Nigeria is not broke
For the second time in a week, key officials of the Federal Government have maintained that the Nigerian economy is healthy and not threatened by another looming global financial crunch. Last Monday in Abuja, Minister and Deputy Chairman of the National Planning Commission (NPC), Dr. Shamsudeen Usman, had said the current fears about another global economic crisis would not take any toll on Nigeria because its “economy is on track and stable.” Again yesterday, Minister of Finance and Co-ordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, sang the same song, when she declared that Nigeria is not broke even though the Executive arm of government wants to borrow $7.9 billion to execute critical projects. Okonjo-Iweala told members of the House of Representatives Committee on Finance, who visited her in Abuja yesterday that despite the signals of an impending global financial…
http://www.guardiannewsngr.com/index.php?option=com_content&view=article&id=86496:govt-to-borrow-79-billion-insists-nigeria-is-not-broke-&catid=1:national&Itemid=559
CBN, Travelex collaborate against currency counterfeiting
The Central Bank of Nigeria (CBN) has said it would continue to regularly restructure the naira in line with international best practices by upgrading the design and security features embedded in the banknotes in order to keep counterfeiters at bay. It also stated that it would continue to maintain its “symbiotic relationship” with Travelex (foreign exchange and international payments specialist). This was disclosed by Tunde Lemo, deputy governor, operations, CBN, at a training workshop on Detection of Counterfeit Foreign Currencies organised by Travelex Representative Office Nigeria Limited. Lemo, who was represented by A. O. Ikuseeyidun, deputy director, Currency operations, CBN, said, “It is the collective responsibility of currency authorities and printers to ensure that proactive policies, regulations…
http://www.businessdayonline.com/NG/index.php/markets/companies-and-market/37943-cbn-travelex-collaborate-against-currency-counterfeiting
Dangote Sugar gets shareholders’ nod to acquire Savannah Sugar
Proposal by the board of Dangote Sugar Refinery Plc (DSR) Plc to acquire Savannah Sugar Company (SCC) was yesterday, endorsed by shareholders. Also, the shareholders who attended the company’s yearly general meeting in Lagos approved the payment of 30 kobo dividend for the year ended December 31, 2011, amounting to final dividend of N3.6 billion. National Coordinator of Independent Shareholders Association of Nigeria, explained that the proposed acquisition is capable of creating “strong synergy” between both firms. The company’s turnover increased from N89.9 billion in 2010 to N106.5 billion as at December 31, 2011. Chairman of DSR, Alhaji Aliko Dangote, in his address to shareholders, described the company as the market leader in the Nigerian sugar industry with about 70 per cent market share and the largest sugar refinery in Sub-Sahara Africa, with installed sugar refining capacity of 1.44 million tonnes per year.
http://www.guardiannewsngr.com/index.php?option=com_content&view=article&id=86451:dangote-sugar-gets-shareholders-nod-to-acquire-savannahnsugar&catid=27:capital-market&Itemid=564
Fidelity Bank declares 14 kobo per share dividend
Fidelity Bank on Thursday declared dividend of 14 kobo per share from a profit after tax of N5. 36 billion declared for its financial year ended Dec. 31, 2011. The bank recorded profit after tax of N6.11 billion in the preceding year. The bank’s chairman, Dr, Christopher Ezeh, announced the results at its 24th Annual General Meeting (AGM) in Lagos. The bank’s profit before tax during the period was N7.67, million against N8.65 billion declared in 2010. According to Ezeh, the bank’s fixed assets rose by 6.9 per cent to N27.03 billion from the N25.27 billion in 2010. Its net assets also increased to N137.48 billion in 2011 from N136.18 billion in the previous year. The chairman said that the improvement was remarkable considering the fact that the banking industry was just recovering from financial crisis.
New tariff: FG abolishes uniform pricing for electricity
The Federal Government has approved different electricity tariffs for consumers in the same categories across the country. The new tariff regime which is a clear departure from the current model, will commence on June 1. For instance, in the new template, consumers in the R2 category, where most residential users of electricity belong, will pay different tariffs, depending on their locations. A customer of the Eko Electricity Distribution Company Plc in the R2 category will pay N13.03 per kilowatt hour of electricity instead of the current uniform rate of N7.30, while a customer in the same category with the Ikeja Electricity Distribution Company Plc will pay N12.15 per KWh. Also, an R2 customer of the Abuja Electricity Company will pay N11.28 per kWh, but the same category of customer of the Benin Electricity Distribution Company will pay N11.30 per kWh. Furthermore, an R2 customer of the Enugu Electricity Distribution Company will pay N12.69 per kWh, while that of the Jos Electricity Distribution Company will pay N16.68 per KWh.
http://nationalmirroronline.net/business/40160.html
Govt Officials Spend N300b Annually on Aircraft Charter
It has been revealed that top government officials at the Federal and state levels, including Ministers, President’s aides, governors, Senate and House committees, Speakers of State Houses of Assembly and others expend over N300 billion annually on aircraft charter. A confirmed insider told THISDAY on Monday that charter operations in Nigeria is a multibillion Naira business that effectively competes with that of scheduled commercial operation and involves largely foreign registered aircraft with foreign registered crew, although most of the aircraft are owned by Nigerians. With average of about $6,500.00 (N1, 01400) for one hour charter, the charter operators rake in huge amounts of revenue every month from mainly government officials and some Nigerian businessmen and women. It was also revealed that although this subsector of air operation in Nigeria generates billions of Naira annually, many of them do not pay the stipulated charges, Value Added Tax…
ThisDay
FOREIGN NEWS
Greece downgraded deeper into junk
The credit rating on Greece's government debt was downgraded deeper into junk bond territory on Thursday. Fitch Ratings cited the increased risk that Greece, operating now with a caretaker government, could be forced to leave the eurozone following more elections next month. An exit from the eurozone would be "probable" if the elections fail to produce a government willing to stand by earlier austerity agreements reached with eurozone leaders, Fitch said. In turn, the country's departure from the eurozone would "result in widespread default on private sector as well as sovereign euro-denominated obligations," the ratings agency said. (Moody's downgrades Spanish regions) And all 16 other countries in the eurozone could be dinged.
CNN Money
Facebook Raises $16 Billion in Record Technology Offering
Facebook Inc. (FB) raised $16 billion in the biggest initial public offering by a technology company in history, pricing the shares at the top end of an increased range. The social network sold 421.2 million shares at $38 each, a statement today shows. That values Facebook at $104.2 billion, making it the largest company to go public in the U.S. by market capitalization, according to data compiled by Bloomberg and Dealogic. Facebook, led by 28-year-old Mark Zuckerberg, this week expanded the IPO to meet demand, allowing investors Goldman Sachs Group Inc. and Accel Partners to reap more gains. Mark Zuckerberg, founder and chief executive officer of Facebook Inc.
Reuters
Santander, BBVA Among Spanish Banks Downgraded by Moody’s
Banco Santander (SAN) SA and Banco Bilbao Vizcaya Argentaria SA, Spain’s biggest lenders, were cut three levels by Moody’s Investors Service, which cited a recession and mounting loan losses in downgrading 16 of the nation’s banks. Nine firms were cut three grades and seven were kept on review for further reductions, Moody’s said yesterday in a statement. Santander’s U.K.-based subsidiary also was cut. The Banco Santander SA company logo is displayed at one of the bank's branches in London. Photographer: Simon Dawson/Bloomberg The moves followed Moody’s May 14 downgrade of 26 Italian banks and its Feb. 13 cut of Spain’s sovereign debt. The main drivers for the Spanish bank downgrades were a surge in soured loans, the recession, restricted funding access and the reduced ability of the government to support lenders as its own creditworthiness diminishes, Moody’s said. “Banks will continue to face highly adverse operating and market funding conditions that pose a threat to their creditworthiness,” the ratings…
Bloomberg
Global shares slide amid fears for Spanish banks, growth
Asian shares tumbled on Friday and were set for their worst weekly showing since September, amid political turmoil in Greece and signs of growing instability in Spanish banks, with investors adding the latest weak U.S. data to the list of risk factors. Assets across the board, from commodities such as oil and gold to riskier currencies such as the euro and the Australian dollar were all heading for their weekly losses. Financial stocks were hammered after the head of Australia and New Zealand Banking Group (ANZ.AX) said volatile conditions in global markets have caused the wholesale funding market for Australian banks to freeze again, a worrying echo of the global financial crisis. European shares were also set to fall, with financial spreadbetters predicting that major European markets.FTSE .FCHI .GDAXI would open down as much as 1.3 percent. U.S. stock futures were down 0.3 percent.
Reuters
JPMorgan unit has $100bn of risky bonds
The unit at the centre of JPMorgan Chase’s $2bn trading loss has built up positions totalling more than $100bn in asset-backed securities and structured products – the complex, risky bonds at the centre of the financial crisis in 2008. These holdings are in addition to those in credit derivatives which led to the losses and have mired the bank in regulatory investigations and criticism. The unit, the chief investment office (CIO), has been the biggest buyer of European mortgage-backed bonds and other complex debt securities such as collateralised loan obligations in all markets for three years, more than a dozen senior traders and credit experts have told the Financial Times. The bank has said its derivative activities were intended primarily to help balance risks on its overall balance sheet, but the revelation that it has built up other large, risky positions is likely to raise further questions about the CIO’s remit. A spokesperson for JP Morgan declined…
Financial Times
World Currency Table - May18, 2012
Currency Last Day High Day Low % Change Bid Ask
EUR/USD 1.2657 1.2706 1.2645 -0.17% 1.2657 1.2660
GBP/USD 1.5763 1.5791 1.5736 -0.11% 1.5763 1.5768
USD/JPY 79.240 79.450 79.210 -0.09% 79.240 79.270
USD/CHF 0.94860 0.94970 0.94530 +0.21% 0.94860 0.94900
USD/CAD 1.0208 1.0224 1.0190 +0.15% 1.0208 1.0209
AUD/USD 0.98210 0.98950 0.97980 -0.68% 0.98210 0.98220
Reuters
Euro extends losses to hit fresh four-month lows
The euro fell on Friday to hit a four-month low against the dollar and a 3-1/2 month trough versus the yen as concerns about a chaotic Greek exit from the euro zone, banking sector worries and contagion risks drove investors to add to bearish positions. The euro fell to $1.2642, close to its 2012 low of $1.2624. A drop below that level will take the single currency to its lowest since August 2010. The euro also fell to a 3-1/2 month low against the yen to 100.219. The safe-haven dollar rose with the dollar index rising to a four month high of 81.758. The greenback also rose to a four-month peak against the Swiss franc of 0.95002 francs on trading platform EBS. The high-yielding Australian dollar extended losses, tracking sharp drops in stock markets, to drop to its lowest level in nearly six months of $0.9794.
Reuters
Latest Exchange Rates
Currency UK £ US $ ¥en Euro Can $ A$ SFranc
1 UK £ 1.0 1.5763 124.89 1.2447 1.6089 1.6050 1.4954
1 US $ 0.63430 1.0 79.230 0.78980 1.0207 1.0182 0.94850
1 ¥en 0.0080030 0.012621 1.0 0.0099630 0.012878 0.012854 0.011971
1 Euro 0.80320 1.2661 100.32 1.0 1.2924 1.2893 1.2009
1 Can $ 0.62100 0.97972 77.570 0.77310 1.0 0.99690 0.92926
1 A$ 0.62290 0.98200 77.800 0.77540 1.0023 1.0 0.93155
1 SFranc 0.66874 1.0543 83.532 0.83268 1.0761 1.0735 1.0
Reuters Africa
Due to the growing influence of the cash-less policy, inter-bank fund transfers, instant payments and cheque transactions in the Nigeria Inter Bank Settlement Payment System Plc are now worth N2.1tn monthly. The Central Bank of Nigeria, in a document made available to our correspondent on Thursday, confirmed that the NIBSS now handles the processing of 140,344 electronic fund transfer, instant payment and cheque transactions everyday. The transactions are worth over N70.2bn. The Head, Shared Services, CBN, Mr. Chidi Umeano, who confirmed the data, explained that the NIBSS was processing 6,749 instant payments worth N5.66bn; 99,602 electronic fund transfers worth N40bn; and 33,993 cheque transactions worth N24.7bn. Analysts, who spoke with our correspondent, said the 4.2 million monthly transactions across the three e-channels were worth N2.1tn; adding that these were expected to increase as the cash-less scheme received more acceptance.
http://www.punchng.com/business/business-economy/cash-less-inter-bank-fund-transfer-others-hit-n2-1tn-monthly/
DMO issues N70bn in 2017, 2022 bonds
The Debt Management Office sold N70bn ($440.31m) worth of five-year and 10-year bonds, maturing in 2017 and 2022, at its regular auction on Wednesday. The debt office said on Thursday that it sold N35bn each in five-year and 10-year paper with maturities of four years, 11 months and nine years, eight months, respectively. According to DMO, the bonds are due to mature in 2017 and 2022, respectively, and are re-openings of previous issues. The 2017 bond has a coupon of 15.24 per cent, compared with 15.1 per cent at the last auction in April, while the 2022 paper pay a rate of 15.45 per cent against 15.47 per cent previously. Meanwhile, figures from the Central Bank of Nigeria showed that foreign exchange reserves rose to their highest in 21 months to $37.02bn on Tuesday, from $36.66bn at the end of last month. Forex reserves in the country stood at $33.94bn a year ago. The last time the reserves were at this level was in August 2010.
http://www.punchng.com/business/money/dmo-issues-n70bn-in-2017-2022-bonds/
Inflation pushes up bond, T-bills yields
Yields on Nigeria bonds and treasury bills rose across all maturities on Thursday after a pickup in inflation in Africa’s second-biggest economy, dealers said, prompting investors to hold positions ahead of next week’s rate decision, Reuters reported. The Central Bank of Nigeria will hold its rate setting meetings next Tuesday and analysts expect the bank to keep interest rates on hold at 12 per cent, despite an uptick in inflation. Bond and treasury bill yields had adjusted upwards, rising between 20 and 100 basis points, dealers said, after April inflation climbed to 12.9 per cent, year on year, from 12.1 per cent in March. Successive hikes in interest rates by the CBN had spurred a sustained rally in bonds, but Tuesday’s inflation data reversed some of those gains, traders said. The shortest three-year bond inched up to 15.4 per cent on higher inflation, from 15.1 per cent, while longer tenor 20-year paper was unchanged at 14.39 per cent.
http://www.thenationonlineng.net/2011/index.php/business/46972-nigeria-bond-yields-rise-on-inflation-worries.html
Nigeria’s consumer spending on packaged goods tops in Africa
The volume of spending by Nigerian consumers on packaged goods has assumed a crescendo, making it the highest in Africa , according to a survey by Nielsen, a leading global provider of information and insight into consumer behaviour on consumer packaged goods (CPG). The report demonstrates an increase in consumer earnings in the country. “Nigerians earn more and spend more on CPG products than the African average,” the report has stated, while noting that the middle and high income consumer segments, which it categorised as Trendy Aspirants, Balanced Seniors and Progressive Affluents, account for over 50 percent of spending on CPG, which is significantly higher than the Africa average of 45 percent. As the most populous country in Africa and the second largest economy in sub-Sahara Africa, Nigeria ’s growing middle class and consumer spending have made it an attractive…
http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/37949-nigerias-consumer-spending-on-packaged-goods-tops-in-africa
Govt to borrow $7.9 billion, insists Nigeria is not broke
For the second time in a week, key officials of the Federal Government have maintained that the Nigerian economy is healthy and not threatened by another looming global financial crunch. Last Monday in Abuja, Minister and Deputy Chairman of the National Planning Commission (NPC), Dr. Shamsudeen Usman, had said the current fears about another global economic crisis would not take any toll on Nigeria because its “economy is on track and stable.” Again yesterday, Minister of Finance and Co-ordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, sang the same song, when she declared that Nigeria is not broke even though the Executive arm of government wants to borrow $7.9 billion to execute critical projects. Okonjo-Iweala told members of the House of Representatives Committee on Finance, who visited her in Abuja yesterday that despite the signals of an impending global financial…
http://www.guardiannewsngr.com/index.php?option=com_content&view=article&id=86496:govt-to-borrow-79-billion-insists-nigeria-is-not-broke-&catid=1:national&Itemid=559
CBN, Travelex collaborate against currency counterfeiting
The Central Bank of Nigeria (CBN) has said it would continue to regularly restructure the naira in line with international best practices by upgrading the design and security features embedded in the banknotes in order to keep counterfeiters at bay. It also stated that it would continue to maintain its “symbiotic relationship” with Travelex (foreign exchange and international payments specialist). This was disclosed by Tunde Lemo, deputy governor, operations, CBN, at a training workshop on Detection of Counterfeit Foreign Currencies organised by Travelex Representative Office Nigeria Limited. Lemo, who was represented by A. O. Ikuseeyidun, deputy director, Currency operations, CBN, said, “It is the collective responsibility of currency authorities and printers to ensure that proactive policies, regulations…
http://www.businessdayonline.com/NG/index.php/markets/companies-and-market/37943-cbn-travelex-collaborate-against-currency-counterfeiting
Dangote Sugar gets shareholders’ nod to acquire Savannah Sugar
Proposal by the board of Dangote Sugar Refinery Plc (DSR) Plc to acquire Savannah Sugar Company (SCC) was yesterday, endorsed by shareholders. Also, the shareholders who attended the company’s yearly general meeting in Lagos approved the payment of 30 kobo dividend for the year ended December 31, 2011, amounting to final dividend of N3.6 billion. National Coordinator of Independent Shareholders Association of Nigeria, explained that the proposed acquisition is capable of creating “strong synergy” between both firms. The company’s turnover increased from N89.9 billion in 2010 to N106.5 billion as at December 31, 2011. Chairman of DSR, Alhaji Aliko Dangote, in his address to shareholders, described the company as the market leader in the Nigerian sugar industry with about 70 per cent market share and the largest sugar refinery in Sub-Sahara Africa, with installed sugar refining capacity of 1.44 million tonnes per year.
http://www.guardiannewsngr.com/index.php?option=com_content&view=article&id=86451:dangote-sugar-gets-shareholders-nod-to-acquire-savannahnsugar&catid=27:capital-market&Itemid=564
Fidelity Bank declares 14 kobo per share dividend
Fidelity Bank on Thursday declared dividend of 14 kobo per share from a profit after tax of N5. 36 billion declared for its financial year ended Dec. 31, 2011. The bank recorded profit after tax of N6.11 billion in the preceding year. The bank’s chairman, Dr, Christopher Ezeh, announced the results at its 24th Annual General Meeting (AGM) in Lagos. The bank’s profit before tax during the period was N7.67, million against N8.65 billion declared in 2010. According to Ezeh, the bank’s fixed assets rose by 6.9 per cent to N27.03 billion from the N25.27 billion in 2010. Its net assets also increased to N137.48 billion in 2011 from N136.18 billion in the previous year. The chairman said that the improvement was remarkable considering the fact that the banking industry was just recovering from financial crisis.
New tariff: FG abolishes uniform pricing for electricity
The Federal Government has approved different electricity tariffs for consumers in the same categories across the country. The new tariff regime which is a clear departure from the current model, will commence on June 1. For instance, in the new template, consumers in the R2 category, where most residential users of electricity belong, will pay different tariffs, depending on their locations. A customer of the Eko Electricity Distribution Company Plc in the R2 category will pay N13.03 per kilowatt hour of electricity instead of the current uniform rate of N7.30, while a customer in the same category with the Ikeja Electricity Distribution Company Plc will pay N12.15 per KWh. Also, an R2 customer of the Abuja Electricity Company will pay N11.28 per kWh, but the same category of customer of the Benin Electricity Distribution Company will pay N11.30 per kWh. Furthermore, an R2 customer of the Enugu Electricity Distribution Company will pay N12.69 per kWh, while that of the Jos Electricity Distribution Company will pay N16.68 per KWh.
http://nationalmirroronline.net/business/40160.html
Govt Officials Spend N300b Annually on Aircraft Charter
It has been revealed that top government officials at the Federal and state levels, including Ministers, President’s aides, governors, Senate and House committees, Speakers of State Houses of Assembly and others expend over N300 billion annually on aircraft charter. A confirmed insider told THISDAY on Monday that charter operations in Nigeria is a multibillion Naira business that effectively competes with that of scheduled commercial operation and involves largely foreign registered aircraft with foreign registered crew, although most of the aircraft are owned by Nigerians. With average of about $6,500.00 (N1, 01400) for one hour charter, the charter operators rake in huge amounts of revenue every month from mainly government officials and some Nigerian businessmen and women. It was also revealed that although this subsector of air operation in Nigeria generates billions of Naira annually, many of them do not pay the stipulated charges, Value Added Tax…
ThisDay
FOREIGN NEWS
Greece downgraded deeper into junk
The credit rating on Greece's government debt was downgraded deeper into junk bond territory on Thursday. Fitch Ratings cited the increased risk that Greece, operating now with a caretaker government, could be forced to leave the eurozone following more elections next month. An exit from the eurozone would be "probable" if the elections fail to produce a government willing to stand by earlier austerity agreements reached with eurozone leaders, Fitch said. In turn, the country's departure from the eurozone would "result in widespread default on private sector as well as sovereign euro-denominated obligations," the ratings agency said. (Moody's downgrades Spanish regions) And all 16 other countries in the eurozone could be dinged.
CNN Money
Facebook Raises $16 Billion in Record Technology Offering
Facebook Inc. (FB) raised $16 billion in the biggest initial public offering by a technology company in history, pricing the shares at the top end of an increased range. The social network sold 421.2 million shares at $38 each, a statement today shows. That values Facebook at $104.2 billion, making it the largest company to go public in the U.S. by market capitalization, according to data compiled by Bloomberg and Dealogic. Facebook, led by 28-year-old Mark Zuckerberg, this week expanded the IPO to meet demand, allowing investors Goldman Sachs Group Inc. and Accel Partners to reap more gains. Mark Zuckerberg, founder and chief executive officer of Facebook Inc.
Reuters
Santander, BBVA Among Spanish Banks Downgraded by Moody’s
Banco Santander (SAN) SA and Banco Bilbao Vizcaya Argentaria SA, Spain’s biggest lenders, were cut three levels by Moody’s Investors Service, which cited a recession and mounting loan losses in downgrading 16 of the nation’s banks. Nine firms were cut three grades and seven were kept on review for further reductions, Moody’s said yesterday in a statement. Santander’s U.K.-based subsidiary also was cut. The Banco Santander SA company logo is displayed at one of the bank's branches in London. Photographer: Simon Dawson/Bloomberg The moves followed Moody’s May 14 downgrade of 26 Italian banks and its Feb. 13 cut of Spain’s sovereign debt. The main drivers for the Spanish bank downgrades were a surge in soured loans, the recession, restricted funding access and the reduced ability of the government to support lenders as its own creditworthiness diminishes, Moody’s said. “Banks will continue to face highly adverse operating and market funding conditions that pose a threat to their creditworthiness,” the ratings…
Bloomberg
Global shares slide amid fears for Spanish banks, growth
Asian shares tumbled on Friday and were set for their worst weekly showing since September, amid political turmoil in Greece and signs of growing instability in Spanish banks, with investors adding the latest weak U.S. data to the list of risk factors. Assets across the board, from commodities such as oil and gold to riskier currencies such as the euro and the Australian dollar were all heading for their weekly losses. Financial stocks were hammered after the head of Australia and New Zealand Banking Group (ANZ.AX) said volatile conditions in global markets have caused the wholesale funding market for Australian banks to freeze again, a worrying echo of the global financial crisis. European shares were also set to fall, with financial spreadbetters predicting that major European markets.FTSE .FCHI .GDAXI would open down as much as 1.3 percent. U.S. stock futures were down 0.3 percent.
Reuters
JPMorgan unit has $100bn of risky bonds
The unit at the centre of JPMorgan Chase’s $2bn trading loss has built up positions totalling more than $100bn in asset-backed securities and structured products – the complex, risky bonds at the centre of the financial crisis in 2008. These holdings are in addition to those in credit derivatives which led to the losses and have mired the bank in regulatory investigations and criticism. The unit, the chief investment office (CIO), has been the biggest buyer of European mortgage-backed bonds and other complex debt securities such as collateralised loan obligations in all markets for three years, more than a dozen senior traders and credit experts have told the Financial Times. The bank has said its derivative activities were intended primarily to help balance risks on its overall balance sheet, but the revelation that it has built up other large, risky positions is likely to raise further questions about the CIO’s remit. A spokesperson for JP Morgan declined…
Financial Times
World Currency Table - May18, 2012
Currency Last Day High Day Low % Change Bid Ask
EUR/USD 1.2657 1.2706 1.2645 -0.17% 1.2657 1.2660
GBP/USD 1.5763 1.5791 1.5736 -0.11% 1.5763 1.5768
USD/JPY 79.240 79.450 79.210 -0.09% 79.240 79.270
USD/CHF 0.94860 0.94970 0.94530 +0.21% 0.94860 0.94900
USD/CAD 1.0208 1.0224 1.0190 +0.15% 1.0208 1.0209
AUD/USD 0.98210 0.98950 0.97980 -0.68% 0.98210 0.98220
Reuters
Euro extends losses to hit fresh four-month lows
The euro fell on Friday to hit a four-month low against the dollar and a 3-1/2 month trough versus the yen as concerns about a chaotic Greek exit from the euro zone, banking sector worries and contagion risks drove investors to add to bearish positions. The euro fell to $1.2642, close to its 2012 low of $1.2624. A drop below that level will take the single currency to its lowest since August 2010. The euro also fell to a 3-1/2 month low against the yen to 100.219. The safe-haven dollar rose with the dollar index rising to a four month high of 81.758. The greenback also rose to a four-month peak against the Swiss franc of 0.95002 francs on trading platform EBS. The high-yielding Australian dollar extended losses, tracking sharp drops in stock markets, to drop to its lowest level in nearly six months of $0.9794.
Reuters
Latest Exchange Rates
Currency UK £ US $ ¥en Euro Can $ A$ SFranc
1 UK £ 1.0 1.5763 124.89 1.2447 1.6089 1.6050 1.4954
1 US $ 0.63430 1.0 79.230 0.78980 1.0207 1.0182 0.94850
1 ¥en 0.0080030 0.012621 1.0 0.0099630 0.012878 0.012854 0.011971
1 Euro 0.80320 1.2661 100.32 1.0 1.2924 1.2893 1.2009
1 Can $ 0.62100 0.97972 77.570 0.77310 1.0 0.99690 0.92926
1 A$ 0.62290 0.98200 77.800 0.77540 1.0023 1.0 0.93155
1 SFranc 0.66874 1.0543 83.532 0.83268 1.0761 1.0735 1.0
Reuters Africa
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