Growth at Risk as Factories Stuck in Rut

South African’s manufacturing sector is stuck in a quagmire and will drag economic growth even lower.
Key indicator Barclays purchasing managers’ index (PMI) on Monday showed a sixth consecutive drop last month.
As inventories continue to outstrip new sales orders, manufacturing production will be muted; this points to weak economic growth and more job losses in the sector.
Given that manufacturing is the fourth biggest contributor to gross domestic product, this bodes ill for the economy.

 

At 43.5, the PMI was more than five index points below last year’s average. The 50 point is neutral and anything below that indicates contraction.
The drop in SA’s and China’s PMI pushed the rand over the R16/$ barrier after it broke through the psychologically key level at the weekend although it recovered late in the day. The JSE and Shanghai Composite both closed down on the news.
China’s official PMI slipped to 49.4 from 49.7. A private survey, the Caixin-Markit China Manufacturing PMI, underscored the trend by showing factory activity shrinking for an 11th month. The PMI of SA’s other leading trade partner — the eurozone – also contracted, although it remained above the 50 mark.

Samsung Electronics Operating Profit Forecast Misses Expectations

The preliminary figures show that operating profit will be 6.1tn won ($5.1bn; £3.5bn) for the October to December period, from 5.29tn won a year earlier.

 

Analysts had expected the amount to be 6.6tn won, fuelling growth concerns.

Samsung products have been hit by weak demand in China and currency woes.

Operating profit fell 7.5% from the previous quarter.

Entrepreneurship and Banking in the Nigerian Economy Growth.

Entrepreneurs occupy a central position in any market economy. They serve as the spark plug in the economy’s engine, activating and stimulating all economic activities. The economic success of nations worldwide is the result of encouraging and rewarding the entrepreneurial instinct.

economy

A society is prosperous only to the degree to which it rewards and encourages entrepreneurial activities because it is the entrepreneurs and their activities that are the critical determinant of the level of success, prosperity, growth and opportunities in any economy.

“The most dynamic societies in the world are the ones that have the most entrepreneurs, plus the economic and legal structure to encourage and motivate entrepreneurs to greater activities”, said an analyst.

Countries go to great lengths to promote entrepreneurs because they realize that the best way to tell the story of their business environment competitiveness is by using the entrepreneurs themselves to tell the story.

UK Economy Growth Estimate revised down to 0.4% for third quarter

The rate was revised down from 0.5% because the key services sector, which accounts for well over 70% of UK economic activity, grew more slowly than had been thought.

It is the third estimate for the quarter from the Office for National Statistics (ONS).

The ONS also cut its estimate of second quarter GDP growth from 0.7% to 0.5%.

In annual terms, growth in the third quarter of the year was revised down to 2.1% from the previous estimate of 2.3%.

 

The UK economy has been growing for 11 consecutive quarters.

A Treasury spokesman said in a statement that the figures highlighted that risks to the UK economy remained despite it being "the fastest growing economy in the G7 last year".

"We're leading the pack with the US this year, we have a record high employment rate and the deficit is down," the Treasury said.

Slow

Economic growth slows rapidly-US

Gross domestic product grew at an annualised pace of 1.5% between July and September, according to the Department of Commerce, down from a rate of 3.9% in the second quarter.

The slowdown was partly due to companies running down stockpiles of goods in their warehouses. 

 

On Wednesday, the Federal Reserve kept rates unchanged and said the economy was expanding at a "moderate" pace.

World cup: Third Quarter 2014, had being stong in profit - William Hill

The bookmaker said its operating profit for the full year would be at the bottom end of the range of analysts' forecasts of £290.9m and £312.1m.

 

The warning came with results for the three months to the end of September.

Construction output fell 4.3% in August- UK

In the three months to August, output fell by 0.8%, the biggest such decline since March 2013. Meanwhile, the UK trade deficit was £3.3bn in August, a narrowing of £1.2bn from July, it said. But the deficit was larger than expected and is set to weigh on growth, the ONS added.

 

An ONS official said the weak figures for construction in August may have been linked to wet weather during the month.

IMF says, Cuts forecast for global expansion remains elusive

It has reduced its figure to 3.1% from the 3.3% it predicted in July. The 2016 forecast is down to 3.6% from 3.8%.

"A return to robust and synchronized global expansion remains elusive," the IMF says.

The report also warns that the risks of an outcome worse than its forecasts are more pronounced than they were just a few months ago.

The sharpest downgrades are for emerging economies, especially Brazil, Nigeria, South Africa and Russia.

So the IMF is still predicting growth, but it is distinctly lacklustre growth, especially for the current year.

Modest recovery

 

Why No CEO Should Go It Alone

 In this series, professionals share their hiring secrets. Read the stories here, then write your own (use #HowIHire somewhere in the body of your post).

If there is one thing that I ought to be really great at, it’s hiring. I’ve spent the last 20 years working in leadership roles at the same company — one that is more dependent than most on top talent. Given my tenure, I’ve got an unusually deep level of insight into my company’s services and culture; I’ve had lots of practice at bringing people into the business; and my client base includes about 3,000 heads of HR at the world’s leading companies, so I benefit hugely from proximity to the best in the business.

Now add to that the fact that a good chunk of our revenue comes from helping the world’s largest companies acquire and develop talent of their own, and one would argue I ought to be the Serena Williams of making great hiring decisions — long track record of achievement, good in all situations, and seemingly getting better every day.

I ought to be, but I’m not. Left to my own devices, I make a litany of mistakes. Just ask our recruiters, who usually talk me out of my worst ideas, but not all. (As an example, I once hired a sales executive whose particular skill was leveraging great marketing lead flow to close business. I neglected to inform her that, at the time, we did not actually have lead flow, or — for that matter — a marketing department.)

Prudential Business Profit Boosted by Asia and US by 17%

The insurer said profit in the six months to June was £1.88bn, a 17% rise from £1.6bn last year after currency movements are stripped out.

 

It also said its life and asset management products in the UK had done particularly well during the period.

Investors amid FMDQ OTC listing as FGN Securities Set to Attract Broader range.....

The official listing on Monday of outstanding FGN Bonds amounting to N4.847trillion and Nigerian Treasury Bills (NTBs) of N2.804trillion on the FMDQ Over-The-Counter (OTC) platform will attract a broader range of investors  in FGN securities on account of the value addition from the activities of the OTC debt capital market.

At the listing ceremony, Abraham Nwankwo, director-general, Debt Management Office (DMO) assured investors of its commitment to fulfilling the listing rules already handed to DMO by FMDQ, saying that the debt office “will continue to direct its efforts towards ensuring that the country sustains a vibrant and viable domestic debt securities market that will be the envy of its peers”.

With the listing of these Federal Government securities on the OTC platform, it is expected that FMDQ will continue to provide a robust and credible OTC platform for the listed FGN securities to the public.

It is further expected to continuously work to improve market transparency and price discovery; monitor the activities of dealers to ensure accountability and publish relevant market data and information, as and when due, to guide investors in their investment decisions. 

Food and Agricultural Organisation troubles over Fall in Maize Growth

The Food and Agriculture Organisation on Thursday expressed concern over growing shortfall in maize grown in sub-Saharan Africa as well as poor production in other food in insecure hotspots.

 

In a statement in Rome, FAO said prospects for rice production in Asia and India had also deteriorated.

Woolworths First-Half Profits Fell- takeover Rumours

The Australian newspaper reported fresh rumours that US private equity giant KKR had a bid that could be "almost ready" for consideration. 

 

It would be one of the biggest deal in Australia's corporate history, the newspaper said.

Banks in Nigerian ahead US, S/Africa, Europe, Australia, Canada in quality

Nigerian banks rank well in the world in terms of their overall quality, according to Lafferty Bank Ratings, which scores banks world- wide for their overall quality.

A cross border comparison shows that Nigeria ranks about 34.0, higher than South Africa which ranks 30.0, Canada 23.0, US 20.0, Australia 22.0, and Europe 18.0.

Nigerian banks financial ratios are particularly good and their overall ratings will improve considerably when they devote more attention to the qualitative aspects of their annual reports – including clear statements on their strategies (and how they will be achieved), culture, customer satisfaction and so forth, Michael Lafferty, chairman, Lafferty Group said in Lagos yesterday.

Lafferty who was delivering a paper at the Annual Guest Lecture organised by the Chartered Institute of Bankers of Nigeria (CIBN),further said Nigerian banks are at about the same stage of development in retail banking as their Indonesian counterparts, though they lag when it comes to cards and payments.

Tension over Greek Banks' Health

Capital flight from beleaguered Greek banks this week alone could be more than €3bn (£2.1bn), reports say.

Savers are moving funds as time runs out to resolve Greece's debt crisis.

It is understood the European Central Bank (ECB) will hold a telephone conference later to discuss more emergency assistance for the banks.

The pace of withdrawals has gained speed as talks between the government and its creditors have collapsed.

Greece has less than two weeks remaining to strike a deal or face defaulting on a €1.6bn (£1.1bn) loan repayment due to the International Monetary Fund (IMF).

The country has already rolled a €300m payment into those due on 30 June.

Water Security vital to Unlocking African Prosperity says SAB Miller

With coordinated action, better water provision in Africa will strengthen economic growth and unlock the path to prosperity for millions, according to SABMiller’s Chief Executive Alan Clark.

Speaking today at the World Economic Forum (WEF) on Africa in Cape Town, Alan Clark highlighted that water security and resource efficiency have become and will remain a priority for SABMiller in Africa as climate change exarcebates competition for resources. This year’s WEF Global Risks Report ranked water scarcity as the biggest single risk to societies and economies.

US Interest rates raise mount Pressure on Nigeria’s Foreign Reserve, Naira

Plans by the United States (US) to raise interest rate would further devalue Nigeria’ currency, the naira and mount pressure on foreign reserves, analysts have said.

San Francisco Fed President John Williams said on Thursday that the Fed was likely to raise interest rates later this year, adding that he expects above-trend U.S. growth for the rest of 2015 after a weak first quarter.

Our Quarterly Earnings Beat Forecasts-BMW

Underlying earnings rose more than 20% to €2.52bn ($2.84bn; £1.85bn), beating analysts' forecasts.

Revenues in the January-to-March period rose 14.7% to €20.9bn.

Eurozone Economic Growth Rising up, EU report says

Eurozone economic growth will be slightly stronger this year than previously forecast, according to the European Commission's latest forecast.

 

It predicts 1.5% growth this year, up 0.2 percentage points from its forecast in February, thanks to cheaper oil, a weak euro and stimulus measures.

UK economic growth slows to 0.3%

The rate of economic growth halved in the three months to the end of March, official figures show, marking the slowest quarterly growth for two years.