Debt swap – Arab Center http://arabcenter.net/ Thu, 30 Jun 2022 10:24:29 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://arabcenter.net/wp-content/uploads/2021/05/cropped-icon-32x32.png Debt swap – Arab Center http://arabcenter.net/ 32 32 Should investors be optimistic about Tullow Oil’s prospects? https://arabcenter.net/should-investors-be-optimistic-about-tullow-oils-prospects/ Thu, 30 Jun 2022 10:24:29 +0000 https://arabcenter.net/should-investors-be-optimistic-about-tullow-oils-prospects/
Tullow Oil has underperformed other oil stocks this year – so far. Photo: Shutterstock

When it comes to stock price drops, Tullow Oil (TLW) has been pretty rough in recent years.

Tullow Oil’s share price is down around 90% over the past 10 years and year to date, while other oil companies have prospered, Tullow has only risen 2.1 % and fell 13% last month. Why the low comparative performance? And what is he doing to turn the tide?

First, let’s look at the performance issue. The publicly traded, London-based oil company focuses on oil and gas exploration, development and production activities primarily in Africa and South America.

Falling oil prices in general (and in particular in 2015/16) as well as a costly confrontation with the Ugandan government over oilfield projects and tax disputes, have hit Tullow’s share price hard and debts have piled up – so far the recovery has nothing to do with it. write home.

Ten years ago Tullow’s share price stood at 1,271.4 pence; but just before Covid took over the world in mid March 2020 the price had fallen to 9p. It has since recovered moderately with some dips along the way to a current level around 48p.

Positives for the Tullow Oil share price

With no signs of an end to tensions in Ukraine and oil supplies looking scarce for quite a while yet, does Tullow Oil seem like a reasonable bet for investors?

There are a few potential positives. City watchers will be delighted to see how Tullow Oil’s recent merger with Capricorn Energy (formerly Cairn Energy) (CNE.L) unfolds and if successful in reducing costs and improving cash flow to enable investments in higher production

JP Morgan analysts certainly see reason for optimism – they recently set a price target of 82p.

And Tullow Oil receives a moderate buy consensus rating from Marketbeat. The company’s average rating is based on four buy ratings, four hold ratings, and no sell ratings.

Simply Wall St rates Tullow as good value based on its price to sales ratio (0.7x) compared to the peer average (3.5x). He considers Tullow’s fair value price to be 158p – essentially 69.2% undervalued.

How do you feel about TLW?

Vote to see the sentiment of traders!

Balancing risk and reward

However, due to its level of debt, Simply Wall St rates Tullow Oil 2/6 on financial health.

There are obviously risks with an investment in Tullow, not just its existing debt levels, but the possible collapse of oil prices at some point – given that the current supply pressures are geopolitically driven. .

Tullow Oil may not even survive if oil prices fall to levels seen in the recent past.

But with oil prices only going one way at the moment, investors can factor in broker ratings and buy, even if it’s just a short-term position.

Read more

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Fraudulent subsidy, economists insist — Nigeria — The Guardian Nigeria News – Nigeria and World News https://arabcenter.net/fraudulent-subsidy-economists-insist-nigeria-the-guardian-nigeria-news-nigeria-and-world-news/ Sun, 26 Jun 2022 03:52:00 +0000 https://arabcenter.net/fraudulent-subsidy-economists-insist-nigeria-the-guardian-nigeria-news-nigeria-and-world-news/

Mixed reaction follows World Bank insistence on withdrawal
• CBN programs are driving inflation and will throw the economy into a deeper mess – Owoh
• Ife welcomes Apex Bank’s support for the productive sector
• Urges FG to privatize 20% of NNPC stake to fund budget

As the administration of President Muhammadu Buhari approaches its sunset, a major assessment of its economic performance came last week in the form of the World Bank’s Nigeria Development Update (NDU), putting the emphasis on the near misses of the key administration and policies that had underdeveloped the country.

By focusing on the country’s unstable growth, falling incomes, unsustainable subsidies, unparalleled fiscal mechanisms, redundant monetary policies and flawed trade policies, among many other areas, the report exposes weak spots of the country, making them as clear as possible. It also highlights the many near misses of recent times while making recommendations on the path that immediate long-term plans could follow.

From a broader perspective, it is a succinct account of the country’s economic realities and near-term projections, many of which are as daunting as they have been in recent years. Although the reviews and some of the predictions are not entirely new, the report, titled “The Continuing Urgency of Unusual Cases” details the issues in a way that gives policymakers a benchmark for intellectual reconciliation.

The main idea of ​​the report, including the PMS grant and the intervention program of the Central Bank of Nigeria (CBN), has sparked debate among economists and development experts.

Amid the controversy, Godwin Owoh, a professor of applied economics, noted that no aspect of the 100-page report is remarkably different from the advocacy and red-lights that have been raised by local experts over the years.

Owoh has aligned itself with the World Bank on the subsidy trap, saying they are clearly fraudulent, inefficient and unproductive.

“When other countries talk about subsidies, it’s about helping companies, including state-owned companies, to maximize their profits. But the subsidy amounts to fraud in Nigeria. No one understands what is subsidized. This is the argument that has been made and we don’t need to wait for the World Bank to tell us how inefficient it is,” he said.

Owoh also aligned with the Bank’s position on CBN development finance. The economist expressed the belief that the interventions are the main drivers of the country’s inflation, which currently stands at 17.7%, and warned that they would plunge the country into deeper economic mess.

In an earlier interview with The Guardian, Owoh described the interventions as a false imposition on the people as he argued they were unearned resources and unrelated to productive engagement.

But The Guardian has learned that part of the response funds came from the apex bank’s cash reserves, which would have been part of the frozen and idle cash.

The World Bank report indicates that CBN development finance accounted for 10% of the banking sector’s total credit at the end of last year.

The World Bank has warned that rising prices of basic necessities and the shock of the crisis in Europe will push seven million more Nigerians into poverty by the end of the year.

President Buhari, in an interview with Bloomberg, had noted that the food crisis in the country could be worse without CBN interventions. But Owoh said the interventions were aggravating the crisis rather than reducing its severity.

Like Owoh, Henry Adigun, a financial expert, also described the approach as excessive. But a global economic consultant, Professor Ken Ife, called the report an “error in judgement”.

While Prof. Ife aligned his thoughts with the World Bank’s report on the destructive effect that Premium Motor Spirit (PMS), otherwise known as “oil”, is having on the Nigerian economy, he argued that the CBN approach is the best way out of the economic quagmire. Nigeria finds itself.

His words: “The World Bank report is an error in judgment, but I agree with the need to end the subsidy regime. Consumption should never be subsidized. It is a production that should be subsidized so that the government can encourage job creation through economic activities. Spending four trillion naira on grants is money thrown away and it will not help anyone but will overheat the economy and create all sorts of problems.

Regarding the CBN’s interventionist approach, Ife said productive sectors such as agriculture were being completely ignored by commercial lenders, who preferred to finance politicians and fast-money activities rather than wealth-creating sectors and businesses. jobs.

The principal consultant for the Economic Community of West African States (ECOWAS) said there was no crowding out effect as the CBN does not compete with banks in the areas where it channels its development resources.

He said, “It has become necessary for the CBN to do so due to market failure and the level of structural factors that are constraining Nigeria’s productive capacity. These are the two main reasons for the interventions. We know that insecurity has worsened in all six geopolitical zones of the country and that this has depressed agricultural production, so we needed a response. We also know that we were spending $1.25 billion importing agricultural raw materials and related goods. It wasn’t viable because Nigeria didn’t have that kind of money.

“Again, all last year, the Nigerian National Petroleum Company (NNPC) which is expected to remit about three billion dollars to the federation’s account has not remitted a kobo as it is now trading crude directly with foreign refiners to get Premium Motor Spirit (PMS) All this means that more than 80% of the foreign exchange that the CBN would have had to defend the naira and support imports is not available Diaspora remittances are declining , foreign direct investment is not coming and foreign portfolio investment is not coming either because there is the normalization of monetary policy in the United States and in many European countries.

“The implication of these is that all the money that is meant to come to Nigeria is now going back to earn higher interest in America, which has seen its inflation above 8.2%, which is the highest in 42 years. They keep that money in the United States because it is safer there than in Nigeria. Those are the things that are working against us. It now comes from man management.

Ife further argued that restricting the exchange of certain agricultural commodities influenced the banks’ urgent need to fund local substitutes to strike a balance and prevent a total collapse of the economy.

He hinted that the government has given more money to the agricultural sector than the country has made in the past 20 years, saying that more than 4.8 million farmers have obtained unsecured loans.

“A single trillion was given to the beneficiaries of the Anchor Borrowers program who produced the food we eat and there are complaints? I do not understand that. More people would have starved to death than COVID-19 and terrorism have killed had this program not been introduced.

On the allegation that the CBN was unable to secure the repayment of the loans, Prof. Ife disclosed that the Global Standing Instruction (GSI) was initiated to prevent such a disruption.

He explained: “Every loan granted is guaranteed by someone. So, if the CBN switches to GSI, it can sweep the accounts of people who have taken out loans in the banks. The bank can go ahead to sweep the accounts of the guarantors as well. But the CBN must be careful not to send the wrong signals to farmers who have accessed the loan. The CBN should involve more farmers from the middle belt and the south of the country in the program. I can’t sleep at CBN’s ability to recover the money.

Regarding the PMS grant and Nigeria’s growing debt, Prof. Ife urged the federal government to privatize NNPC in the same way Saudi Arabia privatized Saudi Aramco to raise $25 billion.

Again, he said, “The situation surrounding PMS grants in Nigeria is very opaque. What I suggested was that Nigeria should consider what Saudi Arabia has done. When the Saudis needed $25 billion, they didn’t go to the World Bank or the International Monetary Fund (IMF) or a development bank, they just determined the value of Saudi Aramco, which was more than a trillion dollars, and they put it on the market. and got five percent. That’s how they got the money. Today, that same Saudi Aramco is now worth $2.5 trillion, which is now the highest in the world.

“Nigeria should do the same. NNPC is worth over 50 trillion naira if assessed as a going concern if all assets are added. If the federal government privatizes about 20% of this, it will read over 20 trillion naira. 10 trillion naira can be used for debt risk relief, use part of it to recapitalize NNPC, and then use part of it to pay a subsidy if the government wishes.

For his part, a financial expert, Henry Adigun, argued that the available facts do not support the “mass production of rice” by rice farmers.

“The fact on the ground today is that Nigeria still imports around 80% of the rice it consumes. It’s very funny how someone thinks rice can be grown while there is insecurity in the country,” he said.

Adigun also said inputs such as fertilizers and other essential tools needed to engage in farming are not available.

He further argued that adopting an interventionist approach allows the CBN to assume an “alternative government” status that offers services that distort economic fundamentals.

On how Nigeria can get out of the current quagmire, Adigun insisted that while he offered no solution, the CBN allowing financial institutions and other government agencies to operate would reset the economy and put it back on track. way.

“How can all this encourage foreign direct investment (FDI) in the country where there are four exchange rates? Investors are faced with multiple exchange rates which cause confusion. Money is not sentimental.

“Money flows where the best return on investment is possible. Nigerian inflation did not occur when the war in Ukraine started and it will continue to rise above the current figure due to the policies implemented by the CBN. For Nigeria to beat inflation, it needs to have one rate and maybe two markets. The differentials must be minimal,” he explained.

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Form 497 MASSMUTUAL SELECT FUNDS https://arabcenter.net/form-497-massmutual-select-funds/ Fri, 24 Jun 2022 17:36:54 +0000 https://arabcenter.net/form-497-massmutual-select-funds/

The Fund will normally invest most of its assets in underlying funds advised by MML Advisers, JP Morgan or affiliates of JP Morgan (which may include one or more funds sub-advised by JP Morgan); the Fund will normally not invest more than 20% of its assets in mutual funds not advised by MML Advisers, JP Morgan or companies affiliated with JP Morgan (hereinafter referred to as “unaffiliated” funds). MML Advisors will select Underlying Funds from mutual funds advised by them or by JP Morgan or its affiliates, even though they may have higher expense ratios or less favorable historical performance than non-affiliated funds, and MML advisors will have no obligation to select the cheapest. or the best performing funds available to serve as underlying funds. In addition, MML Advisors will likely seek to invest assets in funds advised or sub-advised by JP Morgan or its affiliates in an amount sufficient to provide an appropriate level of income for JP Morgan. JP Morgan will be subject to a conflict of interest when determining the Fund’s asset allocations, as it could expect to benefit financially from allocating the Fund’s assets to asset classes where MML Advisors would be who may invest in mutual funds advised or sub-advised by JP Morgan or its affiliates. These conflicts of interest may result in a portfolio of underlying funds that achieves a level of return or incurs higher costs that are less favorable to the Fund than if MML Advisers or JP Morgan did not consider these factors or were not subject to such conflicts of interest. . There may be circumstances where MML Advisors’ possession of non-public information regarding an underlying fund will limit the fund’s ability to buy or sell shares of that underlying fund when it otherwise could. , which could adversely affect the investment performance of the underlying fund. Funds.

The table below shows the approximate allocation of the Fund, as of June 23, 2022, between the underlying funds in which the Fund invests 5% or more of its assets. The other underlying funds in which the Fund invests are listed under “Additional Information Regarding Investment Objectives and Principal Investment Strategies” in the Fund’s prospectus. MML Advisors may, in their sole discretion, change the selection of underlying funds at any time and from time to time, and may invest the fund’s assets in additional or different underlying funds, including funds which may be created in the future. At any time, the Fund’s allocations to underlying funds may be affected by various factors (such as, for example, whether an underlying fund accepts additional investments). Information regarding the Fund’s actual allocations to underlying funds is available in the Fund’s shareholder reports and at https://www.massmutual.com/funds from time to time. A brief description of the underlying funds is included in Schedule D of the Statement of Supplementary Information (“SAI”).

MM Equity Asset Fund

23.03%

Mass Mutual Blue Chip Growth Fund

6.91%

MassMutual Overseas Funds

9.22%

MassMutual International Equity Fund

5.76%

Vanguard Developed Markets Index Fund

8.07%

JPMorgan Emerging Markets Research Enhanced Equity Fund

6.05%

Through its investments in Underlying Funds, the Fund will be exposed to a wide range of securities and other instruments with different characteristics (such as credit quality, duration, geography, sector and market capitalization ), which may include, but are not limited to, equity securities of small, medium, or large capitalization U.S. or non-U.S. issuers (including issuers that may only recently become public companies), fixed income securities of U.S. or non-U.S. corporate or government issuers (including “spam” or “high yield” bonds, including defaulted securities), inflation-protected securities, loans banks and short-term investments of any kind. Equity securities may include common stock, preferred stock, securities convertible into common or preferred stock, real estate investment trusts (“REITs”), rights and warrants. An underlying fund may engage in foreign exchange transactions, including forward contracts, currency options, futures contracts and swap contracts, to take long or short positions in foreign currencies in order to improve the return on its investment or attempt to protect itself against adverse changes. in exchange rates. An underlying fund may be permitted to use a wide variety of other exchange-traded and over-the-counter derivatives, including options, futures, swap contracts (including interest rate swaps, total return swaps and credit default swaps) and hybrid instruments. An underlying fund may generally use these derivatives for hedging purposes, as a substitute for direct investments, to earn additional income, to gain exposure to securities or markets in which it may not be able to to invest directly or to adjust various portfolio characteristics, including duration (interest rate

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The hidden cost of saving UK taxpayers billions of pounds https://arabcenter.net/the-hidden-cost-of-saving-uk-taxpayers-billions-of-pounds/ Wed, 22 Jun 2022 16:14:56 +0000 https://arabcenter.net/the-hidden-cost-of-saving-uk-taxpayers-billions-of-pounds/
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With inflation soaring and UK official interest rates and government borrowing costs set to rise further in the coming months, the hunt for savings in tight public budgets is on. So a proposal that the UK government could save nearly £60bn ($74bn) over three years by not giving freebies to banks sounds like a slam dunk.

The idea advanced by the New Economics Foundation think tank is deceptively simple. Rising official rates mean the Bank of England will start paying more interest on the billions in additional bank reserves created to buy government bonds under its quantitative easing programs. The NEF and others question why taxpayers’ money should be spent to give banks a fair return on excess cash that appears to have been sitting idle. After all, Chancellor of the Exchequer Rishi Sunak is seeking funds to help people deal with a growing cost of living crisis.

Unfortunately, it is not so simple that bonus-hungry bankers receive profits for no reason. The proposal is based on achieving fiscal savings by changing the way the central bank manages Britain’s borrowing costs. But these changes have no obvious benefit for monetary policy, while there is a risk of disrupting the influence of official interest rates on the economy. There are also big misconceptions behind what payments to banks represent. And it’s not just a British story: it illustrates how political and financial complexities befall each central bank as they unfold years of quantitative easing.

The Office for Budget Responsibility, a public spending watchdog, the NEF and others say QE has been profitable in the past, but will start to suffer losses from higher payments on reserves once the BOE rate will reach around 2%. But the story is really how and when Britain pays its public debt.

First, a quick refresher on QE: the BOE has created hundreds of billions of pounds of reserves, money only available to banks, to buy bonds in the market, either from the banks themselves , or from other investors via their bank accounts. Like the Federal Reserve and many other central banks, the BOE pays interest on excess reserves deposited with it by commercial banks at the interest rate it sets for the UK economy as a whole.

For years, that rate was well below the coupon payments the BOE received on the government bonds it holds, which currently total around £850bn. This meant huge positive cash flows accumulated in the QE program, of which £120 billion was returned to the government. While that might look like a profit if the BOE were a fund manager, it’s really just savings on the cost of servicing outstanding UK debt. The government and its central bank are just different branches of the state; these savings allowed government spending to be higher or taxes and borrowing to be lower than if government bonds had remained in private hands.

Government bond coupons do not change until the debt is refinanced, but interest on reserves increases with the rate set by the BOE. When this reaches 2%, payments on these reserves will exceed the total coupons received on BOE bonds. The government will have to start paying back some of the £120 billion in savings to date, but it may never pay them all back. A recent analysis by the BOE estimated that QE could result in public savings of around £40 billion by the time it is phased out completely around 2070.

The NEF and others argue that the BOE could stop paying interest on reserves, or at least a large part of them, by introducing graduated rates. Tiering was introduced in Europe to shield banks from some of the pain of negative rates. If you can help the banks in this way, why not limit their profits in the UK situation? It may sound tempting, but there is never a free lunch. Money markets and central bank interest rate transmission is a complex system that can react unpredictably to tinkering, even when changes have been well telegraphed.

While the cost of interest on reserves is expected to rise rapidly, if the BOE gets inflation under control, it could also come down quickly. The UK will still have to refinance government bonds at high yields, paying higher coupons than exist today. These interest charges will persist for years. The difference really comes down to the timing and persistence of UK public debt costs. One way or another, the interest on the reserves will not remain higher than the coupons on government bonds forever.

Also, central banks started paying interest on reserves for a reason. Quantitative easing has left banks drowning in excess cash and if they earn nothing, they will compete to lend it to other banks or exchange it for government bonds or safe treasury notes at short term. This would drive short-term market interest rates below the level set by the central bank, thereby undermining monetary policy. Policymakers might find other ways to mop up that excess cash, but there will be some sort of cost somewhere.

The BOE could tell banks that they must hold a very large portion of reserves as central bank deposits while paying no interest on them. But because these reserves are in fact the current method of funding much of Britain’s debt – bonds held in QE are equivalent to nearly 40% of government borrowing – not paying interest on these s akin to free government borrowing, a form of monetary financing that is generally frowned upon, not least because it risks fueling inflation.

If QE didn’t exist, all UK government bonds would be in the hands of the banks (and insurers, pension funds, foreign investors and other central banks) and Britain would probably have already paid a lot more for its debt. The government must find ways to sustain public spending and tackle the cost of living crisis. It would be good to think he has made good use of the £120billion savings he has enjoyed so far.

The language of the NEF and others pushes the idea that the banks are going to get a big boost in taxpayer profits for doing nothing. What’s really going on is juggling how and when Britain pays its public debt – alongside the regular operation of trying to ensure the economy tracks BOE interest rates . Ostensibly easy savings through tinkering with the system might turn out to be more trouble than it’s worth.

More from Bloomberg Opinion:

• British discontent risks deepening unease: Mohamed El-Erian

• Now is the summer of British railway discontent: Thérèse Raphaël

• Is the era of property booms and busts in the UK over? : Chris Hughes

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times.

More stories like this are available at bloomberg.com/opinion

]]> ASX Companies 1.4% as Banks and Energy help stocks break losing streak https://arabcenter.net/asx-companies-1-4-as-banks-and-energy-help-stocks-break-losing-streak/ Tue, 21 Jun 2022 06:36:00 +0000 https://arabcenter.net/asx-companies-1-4-as-banks-and-energy-help-stocks-break-losing-streak/

“There are a lot of headwinds, especially the fact that central banks aren’t even halfway through their tightening cycle,” he said.

In Singapore, benchmark iron ore futures traded for July delivery rose 1.9% to US$113.05 after sharp falls on Monday. BHP Billiton gained 1.7%, Rio Tinto climbed 2.3% and Fortescue Metals 3.5% to $17.59.

Company News

On the other side of the ledger, Queensland-based coal miners have been hammered after the Palaszczuk state government added three more tiers of coal royalties to take a bigger share of the soaring coal price.

The three new tiers include a 20% royalty rate for prices above $175 per tonne; 30% for prices over $225 per ton and 40% for prices over $300 per ton.

In response, Bowen Coking Coal fell 47% to 22¢ per share, with coal mine operator Bowen Basin Coronado Coal down 9.3%.

In other corporate news, GrainCorp said its full-year 2022 EBITDA guidance of $590 million to $670 million represents a 90% increase over the prior year and reflects strong global demand. Australian grains, oilseeds and vegetable oils. Shares jumped 4.7% to $9.52 at the close.

Westpac said it would raise approximately $750 million in new top-tier capital through the issuance of capital note debt. Interest paid should be between 3.4% and 3.6% above the exchange rate for three-month bank bills. The capital notes can be converted, redeemed or transferred on certain dates in 2028 and 2029. Their conversion into common shares is scheduled for June 2031.

In New Zealand, the Westpac McDermott Miller Consumer Confidence Index fell 13 points in the June quarter to a record low of 78.7 as the Reserve Bank of New Zealand raised interest rates to 2% in May.

Mr. Sherwood said investors are worried about the impact of rising interest rates on consumer spending and the prospect of recessions in the United States and elsewhere.

“Last week the Fed upped the ante and hiked rates by 75 basis points, which they previously ruled out, so they’re more hawkish, they’re more worried about the inflation backdrop and expectations for inflation that are no longer entrenched,” he said.

“They are trying to chart a course that will see interest rates rise and unemployment rise. We know the Fed wants to raise rates to 3.8% by mid-2023, but the key question now is how far can it raise rates before something breaks, and she just has to stop. Obviously, the faster they walk, the sooner we get to that fork in the road. »

In bond markets, yields on benchmark 10-year US Treasuries climbed 4 basis points to 3.28%, with yields on Australian 10-year Treasuries holding steady at 4.07% at the close. .

Flagship cryptocurrency bitcoin continued its two-day rally to add 4.3% to US$20,960. The second-largest cryptocurrency Ethereum advanced 6.7% to US$1,153.

The Australian dollar closed flat that day at US69.6¢.

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One woman’s money-saving tip could save hundreds of Britons | Personal finance | Finance https://arabcenter.net/one-womans-money-saving-tip-could-save-hundreds-of-britons-personal-finance-finance/ Sun, 19 Jun 2022 03:00:00 +0000 https://arabcenter.net/one-womans-money-saving-tip-could-save-hundreds-of-britons-personal-finance-finance/

The 39-year-old is mortgage-free and debt-free because she stopped paying by card and started using cash instead. He follows a who? Study that found Britons are turning to using cash instead of cards to help them easily manage their finances and reduce spending.

When it comes to saving money, it’s often the old fashioned ways that are the most effective.

That’s certainly true for lifestyle blogger Becky Derbyshire who paid off £8,000 of debt and her mortgage in 10 years by taking this choice.

She told Express.co.uk: “I’ve been doing this for years – it really annoys my husband as I’m always loading my pockets with various changes and notes which end up going through the wash.

“Yeah, so I withdraw £400 at the start of each month and allow myself £100 a week max, although often I don’t even need that much.”

READ MORE: Santander raises interest rates on mortgages and savings

Now that the cost of living crisis is crippling people’s pockets, experts including Becky recommend others try exchanging cards for cash.

Ed Fleming, managing director of promo code website Savoo, told Express.co.uk: “Switching to a cash-only budget can seem daunting at first, but it’s a great method to help us stay on track. good track with our spending.

“It’s easy to scan our credit and debit cards, and even our mobile phones, when making a payment, but using cash lets us realize how much things really cost and if we really need them. .”

The good news is that Brits don’t have to ditch online payments altogether to benefit from this money-saving trick.

Ed added: “Not everything we have to budget for can be paid for in cash, for example online bills, rent and mortgage payments.

“The first step in moving to a cash-only budget is to figure out what we can actually afford with physical cash, such as groceries, entertainment, dining out, and clothing.

“You can then use the envelope technique to reserve a certain amount for yourself each month for these expenses.

“Another tip is to set aside a dedicated time to withdraw money from your bank account.”

He continued: “Whether you prefer to start the week with a new budget or prefer to have everything ready on the first of each month, sticking to a routine will help you avoid overspending and take out more than you need. really need.

“Building a cash budget is also a great way to save in the long run, especially if you use buy it now, pay later programs and credit cards.

“With buyers having to pay interest if payments are made late, these methods can really hamper our savings efforts and even damage credit scores.

“Making sure to use cash in these cases is the best way to avoid overspending and spending money that we don’t have in stock at the exact time of purchase.”

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Everton LIVE news and transfers https://arabcenter.net/everton-live-news-and-transfers/ Wed, 15 Jun 2022 06:31:00 +0000 https://arabcenter.net/everton-live-news-and-transfers/

Everton takeover talks advance as Peter Kenyon consortium ‘awards period of exclusivity’

The potential takeover of Everton Football Club took another twist tonight after it was claimed a consortium led by Peter Kenyon now had exclusive talks to buy the club.

Former Manchester United and Chelsea CEO Kenyon is at the forefront of the offer, but the bulk of the funding for the consortium is being provided by US businessman Maciek, according to a Telegraph report. Kaminski, who is the general manager of Talon Real Estate in Minneapolis. American businessman John Thornton is also part of the consortium.

The report goes on to claim that the group will now enter a period of exclusivity to carry out due diligence on the club. Everton declined to comment on talks at this stage. A source told the Telegraph: “Kaminski is the money behind the offer. There isn’t much information about him, but word is that he has significant funding behind him.

It is currently unclear whether Kaminski is seeking to invest his own money or funding from other business interests. If a deal is agreed, Telegraph sources believe Everton would be sold for upwards of £500m, including the club’s debt, and the new owners would have to fund the completion of the Blues’ new stadium.

To read the full story, click here.

Peter Kenyon, former CEO of Manchester United and Chelsea
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How Nigeria’s inability to reap the benefits of a more than $100 oil price hike is hurting the economy https://arabcenter.net/how-nigerias-inability-to-reap-the-benefits-of-a-more-than-100-oil-price-hike-is-hurting-the-economy/ Sun, 12 Jun 2022 13:04:57 +0000 https://arabcenter.net/how-nigerias-inability-to-reap-the-benefits-of-a-more-than-100-oil-price-hike-is-hurting-the-economy/

NIGERIA stands to lose outright gains from rising oil prices above $100 a barrel because it has failed to enact the reforms that could enable it to reap such gains.

The very expensive Nigerian Brent is currently selling for $123.06 a barrel, a price that could have had a positive impact on the Nigerian economy and reduced borrowing.

Much of Nigeria’s revenue and its federal budgets depend on revenues from petroleum resources. In addition, the sharing of allocations by the Federation Accounts Allocation Committee (FAAC) to the Federal, State and Local Governments comes from the proceeds of Nigeria’s oil revenues, which have increased due to the effects of war. Russian-Ukrainian, but have no positive impact. on the fortunes of the country because of oil imports.

The poor economic choices of the government and the delay in the implementation of the Petroleum Industry Act (PIA) have threatened the allocation of the Nigerian federation and foreign exchange inflows.

Due to the weak inflow of oil remittances, the Federal Government borrowed over 10 trillion naira from the Central Bank of Nigeria (CBN), a step which intensified inflationary pressures on the wider economy.

To compound concerns, Nigeria is currently failing to meet the Organization of the Petroleum Exporting Countries (OPEC) allocated oil quota of 1.7 million barrels per day as oil theft and vandalism of pipelines have plagued it. produced fewer barrels.

OPEC data showed that Nigeria’s oil production fell to an average of 1.35 million barrels per day. Although it reached around 1.4 million bpd in May, according to secondary sources, Nigeria still faces a shortfall of 350,000 barrels per day.

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How does this harm the economy?

Faced with the reduction in fiscal resources following poor management of revenues from oil resources, the government resorted to borrowing.

According to the latest figures from the National Bureau of Statistics (NBS), Nigeria’s debt figure has risen to N41.6 trillion. The government must borrow to meet most of its capital and operating expenses, including the payment of salaries.

The country’s current currency crisis stems largely from falling oil revenues, which is a dollar-linked business and largest contributor to Nigeria’s foreign exchange earnings.

Oil majors give up investing in Nigeria

Nigeria has witnessed a gradual divestment by major international oil companies, whose investments are worth billions of dollars.

Shell, ExxonMobil, Chevron and Total have ceded operations to other regions, despite Nigeria being Africa’s largest oil producer in the region.

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The Managing Director of the Nigerian National Petroleum Company Limited (NNPC), Chief Mele Kyari, had at the ongoing International Energy Summit (NIES 2022) said that oil majors were leaving Nigeria and moving their portfolios where they belong. could add value to their trip. towards a net zero carbon commitment.

Kyari noted that the big oil companies were leaving Nigeria not primarily because there were no opportunities in the country, but because of the push for fossil fuels over the past 10 years.

However, analysts say there are several other critical issues that have also contributed hugely to the divestment.

ICIR had reported that in November 2020, NNPC had paid $3.1 billion to five International Oil Companies (IOCs) for call-in obligations, but the oil company still owed the IOCs $1. .5 billion dollars.

Last year, NNPC owed Shell Petroleum Development Company (SPDC) an outstanding balance of $917 million, while Total E&P Nigeria Limited and Nigerian Agip Oil Company owed $252 million and $370 million respectively.

The lack of refineries forces the government to import PMS

The Nigerian government has been content with imports since state-owned refineries – the Port Harcourt, Kaduna and Warri refineries – became redundant.

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The country is known to have lost billions of dollars as a result of crude oil swap deals.

According to the Nigerian Extractive International Transparency Initiative (NEITI) 2021 reports, Nigeria lost 2.1 trillion naira due to postponement of crude oil production in one year.

NNPC uses direct sales and direct purchase agreements for its fuel imports. This method made it the sole importer of fuel, crowding out other importers who had complained about the inaccessibility of the dollar to start importing.

Borrow more N4trn to pay the PMS subsidy

For NNPC, anything above $70-80 a barrel of crude will create major distortions in its projections and add more hardship to the business,” as Kyari said at an oil summit in February. in Abuja.

He had argued that due to subsidy payments, the rising global oil price is creating problems for the Nigerian oil sector due to delayed reforms.

The NNPC helmsman fears that the country is spending N4trn to maintain subsidies and lamented that oil prices have started to move out of the comfort zone set by the NNPC and become a burden.

Industry analysts say a government that complained about low oil prices when it came to power in 2015 to now complain about rising oil prices is showing bad fiscal reforms in the sector.

“The current rise in the world price of oil is not reflected in government revenues. Now is the time to stock up for rainy days. In fact, the rainy day is here, but we are beaten by heavy rain,” said Adeola Adenikinju, professor of energy economics at the University of Ibadan. CIRI.

Nigerian Finance Minister Zainab Ahmed recently attempted to explain the paradox between rising oil prices and its negligible impact on the economy.

According to Ahmed, the rise in oil prices had little impact due to the corresponding increase in spending.

“The high oil price means we would be able to earn more revenue, but we also have the challenge of having to buy petroleum products to use in the country, as we don’t have functioning refineries. So it eats away at the revenue that we would otherwise have made,” the minister said.

Recently, CBN Governor Godwin Emefiele said that the federal government currently spends about 30% of its dollar revenue on importing petroleum products, which puts pressure on the local currency.

“By the time the Dangote Refinery starts operating, it would be a major source of foreign exchange savings for Nigeria. At present, the total foreign exchange we spend on imported items, import of petroleum products consumes almost 30%,” he said.

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The Borrower Blues https://arabcenter.net/the-borrower-blues/ Tue, 07 Jun 2022 23:18:00 +0000 https://arabcenter.net/the-borrower-blues/

YAN XUE/FOR CHINA DAILY

Monetary policy tightening in the US and EU becomes a nightmare for highly indebted developing countries

Over the past decade, the debt burden of emerging and developing countries has increased dramatically.

This year, with the Russian-Ukrainian conflict and US monetary policy tightening, many developing countries are on the brink of debt crisis and some of them have already fallen off the cliff. At the beginning of April, Lebanon and Sri Lanka announced that they were over-indebted. According to the International Monetary Fund and the World Bank, 38 of 69 low-income countries are already in debt distress or at high risk of debt distress. It is also warned that the number of countries in crisis is very likely to increase in the near future.

Three groups of countries deserve particular attention. The first group is made up of emerging market economies with high external debt dependence, poor historical sovereign credit records and weak economic recoveries, such as Argentina, Turkey, Brazil and Mexico. Since the beginning of 2022, these countries have experienced high inflation and currency depreciation. To deal with these problems, their central banks have already raised the key interest rate. However, even if their central banks are tightening their monetary policy more aggressively, the pressures from capital outflows and currency depreciation are still high, due to weak fundamentals and weak sovereign credibility. In general, these countries face the dilemma that there are few appropriate policy tools and insufficient space for policy expansion and tightening.

The second group includes highly indebted countries that have been hard hit by the Russian-Ukrainian conflict. On the one hand, some Russian and Ukrainian entities have defaulted on their debts due to the conflict and sanctions, leading to asset losses for the financial institutions that hold their debts, especially those in Europe. On the other hand, rising commodity prices and refugee problems caused by the conflict have increased the fiscal burden of many governments neighboring Russia and Ukraine or having close economic and trade ties with them. European countries, including Hungary, Moldova, Romania and Slovakia, and Asian countries, including Mongolia, Tajikistan and Kazakhstan, fall into this category.

The third group includes countries with serious debt and poverty problems and high dependence on food imports, such as Lebanon, Yemen and Syria. These countries may experience multiple crises such as capital outflows, food crises and political unrest. Since the outbreak of the Russian-Ukrainian conflict, world food prices have risen sharply and many countries have announced food export restrictions or bans. The UN has warned that 325 million people worldwide are currently suffering from food shortages, and around 43 countries expect famine to knock on their doorsteps.

At the level of global governance, the top priority is to expand and improve debt restructuring and relief programs within the framework of multilateral mechanisms. As a first step in tackling the debt crisis, the G20 has postponed debt repayment for 73 of the poorest countries through the Debt Service Suspension Initiative. The bloc has also rolled out a common framework aimed at promoting large-scale, speedy and orderly debt restructuring. However, the influence of the DSSI and the CF is still relatively limited. Among the countries eligible to apply, many countries choose to continue to borrow from the private sector at high interest rates rather than participate in debt restructuring at an early date, because the DSSI and the CF offer insufficient discounts, but should require lengthy negotiations and induce downgrades of sovereign ratings. Such a slow response to the debt crisis will eventually snowball into debt problems and higher debt relief costs in the future.

In order to avoid a spiral of debt, it is necessary to develop a multilateral consensus with long-lasting and broad influences. The key to achieving this goal is to create more incentives for borrowers and creditors to participate in debt settlement as soon as possible. It is particularly important to provide more incentives, pressures and platforms for the private sector to participate in debt relief. For example, eligible debtor countries can be encouraged to combine debt settlement with other sustainable development goals, through the use of debt-for-nature swaps, debt-for-climate swaps and other debt settlement tools. sustainable funding. These instruments are capable of hitting two birds at once: reducing the debt burden and channeling funds to support sustainable development.

Combining debt resolution with sustainable development goals like climate change mitigation can help attract funds from NGOs, international organizations and ESG investors. Through its cooperation with The Nature Conservancy, a non-profit organization, Seychelles not only completed a $21.6 million debt restructuring, but also established 410,000 square kilometers of ocean protection zone. In 2021, Belize also secured a $364 million debt restructuring and funded the protection of 30% of its waters through a similar debt swap program.

As an emerging creditor, China should also be prepared for the next wave of debt crises in developing countries. It should further improve its external lending standards and debt management institutions, and provide more diversified debt settlement options to debtor countries, especially market-based debt restructuring options. For example, more loan-to-bond conversions can be encouraged. These loan-for-bond swaps can greatly increase debt transparency, as the disclosure requirements of bonds are much stricter than those of loans. At the same time, it is also important for China to adhere to multilateral frameworks and strengthen its coordination and cooperation with other creditors. For example, China can better monitor the debt sustainability of the countries concerned by cooperating with the IMF and the World Bank. Deeper cooperation between all parties will help formulate more influential and effective international rules for debt governance, thereby laying a better global foundation for the prevention of future crises.

Xiong Wanting is a research assistant at the Institute of Global Economics and Politics, Chinese Academy of Social Sciences. Xu Qiyuan is a researcher and deputy director of IWEP at CASS. The authors contributed this article to China Watch, a think tank powered by China Daily. Opinions do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn

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FTSE 100 rises in early trade; Oil stocks, miners shine https://arabcenter.net/ftse-100-rises-in-early-trade-oil-stocks-miners-shine/ Mon, 06 Jun 2022 13:51:00 +0000 https://arabcenter.net/ftse-100-rises-in-early-trade-oil-stocks-miners-shine/

FTSE 100 rises in early trade; Oil stocks, miners shine

0748 GMT – The FTSE 100 index rises 1.1% to 7617.44 as UK markets reopen after two public holidays at the end of last week, with heavy miners and oil-related stocks among the main risers due to rising oil prices after a price hike by Saudi Arabia Saudi Arabia. Gains are widespread, however, with real estate, travel and financial values ​​all higher. “In the UK, investors took inspiration from more dynamic movements in Asian markets after a long Jubilee holiday weekend,” Richard Hunter, head of markets at Interactive Investor, said in a note. Melrose is the biggest gainer, up 4.2% after announcing plans to sell its Ergotron business for around $650 million. (jessica.fleetham@wsj.com)

 
Companies News: 

Amarin Appoints Reilly CFO as Kalb Steps Down > AMRN

Amarin Corp. said on Monday that Michael Kalb had resigned as senior vice president and chief financial officer to pursue other interests.

MC Mining obtains a new loan of 3.9 million dollars to finance the Makhado project

MC Mining Ltd. said on Monday it accepted a new $3.9 million loan facility to be used for the Makhado hard coking coal project.

Supply@Me Appoints Albert Ganyushin as Independent Non-Executive Chairman

Supply@Me Capital PLC announced on Monday that Albert Ganyushin had been appointed independent non-executive chairman effective after the end of its annual general meeting, scheduled for the end of June.

Kanabo Group’s 2021 pre-tax loss widened due to higher costs

Kanabo Group PLC said on Monday its 2021 pre-tax loss widened after factoring in higher costs, and it expects EU CE accreditation for its medical device Vapepod this year.

IG Design Group shares rise after bank deal extension

Shares of IG Design Group PLC rose 9.9% on Monday after the company announced it had extended the term of its existing banking agreement until March 31, 2024.

Empresaria Group Chairman Tony Martin retires

Empresaria Group PLC said Monday that non-executive chairman Tony Martin is retiring with immediate effect after 18 years in the role.

Ashtead Technology moves to 2021 pre-tax profit after strong year-end

Ashtead Technology Holdings PLC said on Monday it had turned to a pretax profit for 2021 after a strong year-end, ahead of expectations at the time of its November IPO.

Brave Bison signs two contracts worth £1.7m

Brave Bison Group PLC announced on Monday that it had signed two new contracts worth a total of 1.7 million pounds ($2.1 million), adding further revenue visibility for this fiscal year.

Vaalco Energy shares rise following a successful drilling campaign in Gabon

Shares of Vaalco Energy Inc. rose on Monday after the company announced it had successfully drilled the South Tchibala 1HB-ST offshore well in Gabon.

Caspian Sunrise says the main impact of sanctions against Russia is the reduction in the price of oil

Caspian Sunrise PLC said on Monday that the main impact on its business from sanctions against Russia remains the discount at which its oil is trading.

ADVFN shares fall as 2H sales disappoint, dividends suspended

Shares of ADVFN PLC traded down 31% on Monday after it said second-half sales to date had been disappointing and it was suspending dividend payments.

Nanoco offers a fundraising of £2.3 million; To beat revenue expectations for the full year

Nanoco Group PLC said on Monday it was offering to raise 2.3 million pounds ($2.9 million) to provide cash to the business and now expects 2022 revenue to be above his previous expectations after securing a new contract.

London & Associated Properties says Bisichi expects first-half results to be best in fiscal 2021

London & Associated Properties PLC said on Monday that its partly-owned subsidiary Bisichi PLC expects results for the first half of this year to be significantly better than those of 2021.

Eve Sleep begins strategic review; No longer expects to meet fiscal year revenue expectations

Eve Sleep PLC said on Monday it was entering into a review to consider strategic and funding options, including a possible sale of the company, and that it no longer expected to meet its previous revenue expectations for the company. full year.

Base Resources operations in Kenya hit by heavy rains

Base Resources Ltd. warned on Monday that its Kwale mineral sands project in Kenya had been affected by freak thunderstorms in the area.

Bisichi sees first half results “very significantly ahead” of 2021

Bisichi PLC said on Monday it expects results for the first half of 2022 to be “very significantly ahead” of those for 2021.

M&C Saatchi removes Vin Murria from the board with immediate effect

M&C Saatchi PLC said on Monday that board member Vin Murria would be removed from office with immediate effect because of his ties to AdvancedAdvT Ltd.

 
Market Talk: 

Sterling Seen buoyed by optimism sparked by UK PM’s vote of confidence

12:58 GMT – The pound sterling is the best performing G10 currency on a day in hopes that a vote of confidence in the leadership of British Prime Minister Boris Johnson will see the government move beyond the scandal and distraction, Rabobank said. “Whether or not Johnson survives the vote of confidence, sterling investors are hoping this will clear the air and allow the government to continue with the work in progress,” Rabobank forex strategist Jane Foley said in a note. However, the pound remains exposed to poor economic fundamentals in the UK, she said. Rabobank expects EUR/GBP to rise to 0.86 in three months from 0.8544 currently. The vote of confidence, which follows revelations of a series of lockdown parties in Downing Street, is expected between 5:00 p.m. GMT and 7:00 p.m. GMT. (renae.dyer@wsj.com)

European airline bookings are under pressure from a high comparison base, but prices are improving

12:37 GMT – European airline bookings for the week ending May 29 were down 18% from the same week in 2019, before the coronavirus pandemic, but prices have improved, analysts at Bank of America in a research note. The previous week, bookings were only 8% lower than the corresponding period in 2019, according to BofA. The steeper drop this week is likely due to some European public holidays falling at a later date in 2019, meaning the basis for comparison was higher, according to BofA. However, average prices improved in the week to May 29 and were 8% higher than the same period in 2019. (cristina.roca@wsj.com; @_cristinaroca)

EnQuest Debt Refinance Faces Energy Tax

12:28 GMT – EnQuest is set to face debt pressure from the UK’s planned windfall tax on energy companies, Barclays says, downgrading the North Sea oil producer and explorer to a underweight relative to equal weight. “We estimate the Energy Profits Levy reduces EnQuest 2023-26 cash flow by $450 million, reducing our discounted cash flow-based equity valuation by 36%,” says Barclays analyst James Hosie. , in a footnote. “It also brings debt refinancing plans back into focus, just as higher oil prices and improved operating performance had allayed concerns. We are downgrading to underweight, given a relative valuation higher.” Barclays is also cutting its share price target to 23p from 40p. The stock fell 6% to 27p. (philip.waller@wsj.com)

AstraZeneca’s new breast cancer drug forecast will net $2 billion in sales

12:07 GMT – AstraZeneca’s cancer drug Enhertu, which reduces the risk of progression or death from a type of breast cancer by 50%, is expected to boost the company’s sales, Berenberg analysts said in a note. The treatment, which is used on a type of metastatic breast cancer known as HER2-low, could help AstraZeneca secure at least $2 billion in potential sales, analysts say. According to a forecast from the German bank, Enhertu’s peak sales could reach $10 billion, and analysts say their confidence in AstraZeneca’s top-tier revenue prospects has increased. (cecilia.butini@wsj.com)

Intermediate capital group seen in the profit upgrade cycle

1202 GMT – Intermediate Capital Group remains in an earnings leveling cycle, with strong momentum heading into fiscal 2023, Peel Hunt analysts Robert Sage and Stuart Duncan say in a note. A significant sign from the FTSE 100 asset manager was an increase in fundraising expectations, which is the main driver of future revenue and profit growth, analysts said. Peel Hunt raises its fundraising estimate to 20% for FY2023 and 27% for FY2024. The UK brokerage improves its recommendation on what stock to buy from add and raises its target price at 2,625 pence against 2,580 pence. (michael.susin@wsj.com)

Pound could fall amid weaker UK economic outlook

11.52 GMT – The pound is set to depreciate as the UK’s weaker economic outlook limits the scale of interest rate hikes by the Bank of England, according to Monex Europe. “Amid the gloomier macro outlook, the BOE’s hands are tied,” say Forex analysts Monex. With a further 115 basis points of rate hikes in overnight index swaps in sterling by the end of the year, prudent policy will weigh on the pound, they say. If the BOE is trying to control inflation at the expense of economic growth, raising short-term rates will not necessarily support the pound, they say. Monex expects GBP/USD to fall to 1.24 in the coming month from 1.2563 currently, before extending losses to 1.22 in three months. (renae.dyer@wsj.com)

GSK’s Affinivax deal appears consistent with Bolt-On strategy

(MORE TO BE FOLLOWED) Dow Jones Newswires

June 06, 2022 09:51 ET (13:51 GMT)

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